PRELUDE

One of the important functions in an organization is Manpower Planning. With

the economic turnaround the dynamics of manpower planning has also

witnessed a significant change. To clasp the changes and to update with the

latest trends the Workshop conducted by Power HR Forum on “Emerging

trends in Manpower Planning” was seen as a step further towards Excellency

in HR.

The eminent facilitators helped participants by deliberating on different aspects

of Manpower Planning. The practices like – Tata Steel & Team Lease Services

made participants to think „out of the box‟.

To conceptualize as to what transpired during the two day workshop, Form

has brought out a Report. Hope, this report will prove to be beneficial.

As a next step, Power HR Forum is also bringing out a compendium of

practices on Manpower Planning for which all the member organizations have

been requested to extend their utmost support by sharing the information

which will serve as a tool for reference purposes.

Forum Sectt.

August 25, 2014

Contents

Page

1 Introduction 1

2 Industrial Engineering: Yesterday, Today & Tomorrow: A Systems Flavor: By Prof. Dr. D.K. Banwet, IIT - Delhi

2

3 Manpower Planning-National & International Perspectives with

Focus on Power sector: By Dr. S.N Nandi, Former DDG, NPC

3

4 Right Sizing the Manpower- A Step toward Lean Management: By Mr. B.B Das, Tata Steel, Jamshedpur

4

5 Team Lease Presentation: By Mr. Indranil Ghosh

& Mr. Mridul Diwedi, Team Lease Services Pvt. Ltd. 5

6 Manpower Planning in Offices & other Activities:

By Mr. K.G. Varshney, Consultant

6

7 Lean Management, with focus on Manpower Planning: By Prof. K. K. Muthu, Consultant

7

8 Sharing & Discussion on Practices of Member Organizations

w.r.t. their Processes, Trend, Budgeting and Manpower Planning

8

9 Manpower Planning Model – A Way Ahead 9

Annexure 11

“Emerging Trends in Manpower Planning"

1. INTRODUCTION

The objective of the workshop was to familiarize the participants with:

Changing dynamics of manpower planning.

Emerging role that manpower planning deptt must assume, in view of stringent tariff

norms and lean bottom-line results for member organizations.

Professional approach that IE/Manpower groups must assume, using modern and

effective tools and practices.

Best practices of member and other utilities.

1.2 The workshop was facilitated by experts from Indian Institution of Industrial Engineering,

Delhi Chapter and senior I.E. professionals from member organizations. Tata Steel was invited

to share their best practices, apart from member organizations, in managing employee strength

commensurate with business need by adopting innovative Employee Engagement Scheme

(E.S.S.).

1.3 The brief report highlight issues discussed by various faculty members and the

recommendation offered by them during their deliberations which affect directly or

indirectly the Manpower Planning process. It does not summarize the presentation of the

faculty members but highlights only important aspects which have direct bearing on the

emerging trends in Manpower Planning.

1.4 Highlights of presentation by faculty members are discussed in subsequent sections.

1.1 The workshop on “Emerging Trend in Manpower Planning” supported by Power HR Forum

was organized for the participants of member organizations during July 30-31 2014 at PMI,

NOIDA. A copy of the schedule is enclosed as Annexure. The participants were from member

organizations dealing with Industrial Engg/Manpower functions.

2. Industrial Engineering: Yesterday, today & tomorrow - A Systems flavor:

By Prof. (Dr.) D.K. Banwet, IIT – Delhi.

2.1 Prof. (Dr.) D K Banwet elaborated on various facets of Industrial Engineering with refe rence

to its role in yesterday, today and tomorrow environment and emphasized that the factors

like Liberalization, Privatization and Globalization supplemented by increasing competition

specially from country like China contributed greatly for bringing about necessary changes

in the Industrial Engineering profession to make it more relevant to the changing needs of

the enterprises.

2.2 While Industrial Engineering initially evolved around aspects like Method study, Woke

study, Time and Motion study, but gradually embraced other techniques to enable the

organization/ industry to become more competitive in the globalized world. Some of the

important techniques of Industrial Engineering which have evolved over the years and

playing vital role in the changing environment include the following techniques/system for

achieving organization goals and objectives:

i. Lean Management

ii. Value Analysis & Engineering

iii. Benchmarking/Performance Management System

iv. Materials & Inventory Management

v. TPM: RAM Reliability Availability & Maintainability

vi. Technology Management, Innovation & R&D

vii. Supply Chain Logistics Management

viii. Total Quality Management, Lean Six Sigma

2.3 Initially work study including method study, work measurement and time - motion study

helped in estimating manpower requirement of right skill. But other techniques mentioned

above contributed significantly to ensure optimum number of employees, improve their

productivity and effectiveness by better utilization of manpower and machines, reduction of

wastes, reducing inventories, improving quality of product and services, improving

involvement and commitment of employees for achieving organizational excellence on

continuous basis.

3. Manpower Planning-National & International Perspectives with Focus on

Power Sector: By Dr. S.N Nandi, Former DDG - NPC

3.1 Manpower Planning

Manpower Planning is the process of determining manpower requirement and ensuring that

it has the right number, right quality, at the right place at right time doing right thing to

carry out the integrated plan of the organization to achieve designed goal.

3.2 Manpower Planning process differs across industry and countries and reflects different

perspectives, starting with simply making quantitative assessment of manpower to

integrating it with strategic considerations of the management.

3.3 In Indian power sector, state level plants are manned by simplest manpower planning

models, where as in organization like NTPC and others in the central sector, manpower

planning integrates with business plan and strategic considerations to ensure that optimum

man power is provided for achieving competitiveness nationally and internationally.

3.4 He emphasized the need for developing a Human Resource Plan which support the overall

strategy of the organization and is responsive to internal & external environment.

3.5 He shared the latest HRP Techniques to ensure proper recruitment, training, developing

succession plan etc. so that full potential of employees is successfully utilized for achieving

organization goals and objectives.

3.6 He also highlighted that Benchmarking, a process of adopting better work practices noble

ideas from other enterprises would also be very useful for improving the manpower

planning model for any organization.

3.7 He shared data from India and International utilities to drive home the urgency.

4. Right Sizing the Manpower - A Step toward Lean Management:

By Mr. B.B Das, Chief (HRM), Tata Steel, Jamshedpur.

4.1 Why Right Sizing

Right sizing of manpower is essential to reduce cost, improve job satisfaction, besides

providing other pre-requisites like rewards to be given to employees with merit considerations

only for creating healthy and congenial environment.

4.2 Objective of Right Sizing

To ensure right number and skill of employees to run the core and support functions in most

productive manner.

4.3 He emphasized that surplus manpower should be identified and these employees should be first

provided opportunity to continue with the organization by redeployment, if no such possibility

exists/available, then the employee should be motivated/ convinced to seek exit through

Employee Separation Scheme (ESS).

4.4 Important aspects of current ESS of Tata Steel

I. Pension scheme.

a. For employees > 45 years full pay upto 60 years.

b. For employees < 45 years 1.2 times full pay upto 60 years.

c. If Employees dies - Full pay upto 60 years of employee to the nominee.

II. Retain company’s accommodation for 4 years or 58 years whichever is earlier.

III. Non – refundable grant of ` 2000/-.

IV. Existing medical facility till 60 years to continue.

V. House rent grant (for those who were not having company residence)

@ ` 500/- Per month for 5 years or lumpsum ` 25,000/-

4.5 Result

Manpower reduced from 78669 to 36000.

5. Team Lease Presentation: By Mr. Indranil Ghosh & Mr. Mridul Diwedi

5.1 Team Lease primarily deals with hiring of temporary employees and taking care of statutory

and regulatory compliance for the same.

5.2 Team Lease also shared that their other offering including payroll, re-imbursement of claim,

etc. of the employees as an outsource activity. Few of Forum’s member organizations like

REC, IREDA are either taking support from Team Lease or actively considering to take their

expertise to fulfill their need.

6. Manpower Planning in Offices & other Activities: By Mr. K.G. Varshney,

MD Innovative Training & Management Services

6.1 He thrown light on classic the Parkinson’s Law which states that work expands to fill up the

gap of time and the expenditure rises to meet the income. In the same manner manpower

requirements in various Deptt. also tend to increase for creating bigger empire for the Bosses.

He also explained the following concepts to the participants:

Job analysis

Job analysis is a detailed and systematic study of the job to find out the nature and

qualifications of the people required for efficient performance of the job. Job analysis reveals

the tasks which constitute the job, the skills and knowledge required for the successful

performance of the various tasks, etc.

Job specification

Job specification involves specifying the minimum human qualities i.e. knowledge, skills,

experience etc. required to perform a job efficiently.

Job Redesign

Job Redesigning/Restructuring of individual job through Job rotation, job enlargement, Job

enrichment, and multi-skilling are very important considerations to optimize the manpower

requirement.

6.2 Techniques of Work Measurement of office related activities

Work-load Analysis, work-measurement study like Time Study and work Scheduling. Work

Sampling, Time Ladder Sheets, Analytical Estimation etc are the main techniques of Work

Measurement of office related jobs. Information available in logbooks, MIS Report etc also

provide inputs for manpower requirement calculations. Workload may be assessed for the

present systems & procedures in vogue and subsequently determined for the changed systems

& procedures.

6.3 Outsourcing

While finalizing the strategy for outsourcing, the core and non- core function of the

organization should be identified. Following are some of the functions which have potential

for outsourcing and provide necessary inputs while planning for manpower on shor t term,

medium or long term basis.

Recruitment Pay Roll Accounting

O & M Annual Maintenance

Testing Overhaul

Logistics Inventory

Training Medical Support

Security Time Office

7. Lean Management, with focus on Manpower Planning

By Prof. K. K. Muthu, Sr. Consultant, TQM, Industrial Engineering

7.1 Lean Perspective

I. Traditionally Lean is identifiable by buzzwords like Just In Time, Kanban, MUDA,

Poka-yoke, Kaizenetc, out of these JIT is most valuable concept to eliminate all types

of wastages and helps in improving manpower utilization.

II. Out of 14 Principles from Jeffrey Liker’s on lean management “The Toyota Way”, the

important ones dealing with manpower, emphasizes continuous improvement and

employee empowerment, develop peoples and teams who follow company philosophy,

take decision by consensus, become a learning organization and work for continuous

improvement

7.2 Types of Wastes- MUDA

While waste of various type like waiting (idling), transportations of material/product,

unnecessary stock, producing defective goods etc. do not add value to the product/ service

but Non- utilization or under utilization of creative power of employees has very adverse,

not only on their morale, but also the environment of the organization impacting its

efficiency and thereby the competitiveness.

7.3 Tarzan Swing Change Model.

Change is the law of nature. It is essential to bring about change in the attitude of the

employees to enable them give their best for achieving the goals and objectives of the

organization.

i. Tarzan Swing Change Model envisages that there is always resistance to change,

which starts with denial mode, but employees finally accept and get committed to

change once convinced.

ii. Employees Change by adapting and learning.

iii. Leaders and employees need to be facilitated to deal with change by open

communication and understanding business & people.

iv. Appraisals/promotions and Reward/Punishment systems also contribute to the

adoption of required changes in the organization.

7.4 Above concepts and practices play important role in the Manpower p lanning process of any

Organization.

8. Sharing & Discussion on Practices of Member Organizations w.r.t. Processes, Trend, Budgeting and Manpower Planning

8.1 Session on Sharing and discussion on practices of member organizations w.r.t. Processes,

trend, Budgeting and Manpower Planning was primarily focused on Manpower Planning process being adopted by member organizations.

8.2 The session was led by Shri P.K Senapati AGM (NTPC). He explained the salient features of the manpower planning process being followed in NTPC. He also informed that presently

manpower per/MW in NTPC is comparatively higher than new power projects commissioned recently in the country.

He discussed the methodology for assessing the manpower requirement in the power sector, especially with reference to NTPC. He also mentioned that NTPC has planned to diversify

in various related areas therefore while assessing the manpower, following considerations are of paramount importance.

a. Business plan of the organization.

b. Management strategy for outsourcing in respect of levels and Activities / Functions c. Benchmarking of manpower as compared to better/ best run organization with

similar technology nationally / internationally

d. Preparing manpower plan for short /medium /long term basis taking into consideration the nature of the project and there gestation period which could be in the range of 1-2 years for short term, 3 to 8 years for medium terms and 9 to 15

years for long term.

He highlighted the need and usefulness of Industrial Engineering for manpower assessment to facilitate the process of manpower planning.

The high level committee(s), 1 level or 2 levels depending on nature and complexity of manpower plan, should be constituted to discuss and decide the manpower plan, based on the various inputs like Industrial Engineering study, benchmarks, etc. so that it is more

practicable and thus acceptable by various levels in the organization.

8.3 The organizations who shared their practices in the session are: BBMB, DTL, NEEPCO, IREDA, NHPC, NTPC, NPCIL and SJVN.

9. Manpower Planning Model – A Way Ahead

9.1 Manpower Planning is essentially the process of getting the right number of qualified employees and to place the right employees in the right job at the right time and seek their

involvement and commitment to meet the goals & objectives of the organization to be most competitive nationally and internationally. This would require the following steps to be taken

for achieving the desired results.

i. Business Plan

The Business Plan considers various projects/services planned to be under taken by the organization (refer para 8.2 a).

ii. Management Strategy in terms of level of outsourcing.

a. Identify core and Non- Core functions. b. Examine possibility of outsourcing of Non-Core functions.(Refer paras 5.1,

5.2 and 6.3)

iii. Manpower Plan should be prepared based on business plan and strategy for outsourcing

for short term for 1 to 2 years, medium term for 3 to 5 years and long term 9 to 15 years separately for all the projects. Extent of such planning may vary depending on the types of projects and their gestation period (Refer para 8.2 d).

iv. Industrial Engineering department should undertake necessary studies to determine

optimum manpower requirement.

v. Bench Mark of manpower norms of better managed organization should be consulted and

considered before finalizing the manpower requirement on short/ medium/ long term basis (3.6).

vi. Manpower Planning process should be extended from simply assessing manpower in

quantity terms, to Human Resource Planning to include other aspects like right skill, right

attitude and aptitude and placing them at right job and at right time. The process should also be integrated with the strategy consideration like job rotation, multi-skilling to enhance potential of manpower (Refer paras 3.3 to 3.5)

vii. In existing organization, if the manpower is considered to be higher as against norms,

surplus could be assessed/ identified based on appropriate Industrial Engineering study. Suitable measures like re-deployment or alternatively motivate them to avail VRS/ESS to

optimize the manpower (refer 4.3, 4.4).

Tata Steels’ example of innovative employee separation scheme is a unique example and

is an ideal benchmark.

viii. In case of office related activities/ functions, automation of activities, even concepts like paperless office, officer oriented system should be given due consideration. Further

decision making process, number of levels should be reduced, 3-4 against current 5 to 8 levels.

ix. Constitute appropriate high level committee(s) for necessary discussion and decision regarding the manpower plan for various projects, based on the various inputs. (Ref. para

8.2).

x. Implement the manpower planning on the basis of prescribed procedure and norms, and

as per specified time schedule. After recruitment, employees should be provided opportunity for training, job rotation, multi-skilling and exposure to concept like Quality

Circle, Kaizen etc. to seek their involvement and commitment for achieving organization excellence on continuous basis.

9.2 Manpower Planning /Human Resources Planning developed based on the concepts mentioned above would enable the management to ensure optimum manpower and required level of

involvement and commitment to contribute their best potential for turning the organization most productive and competitive nationally and internationally. This would be a win-win situation for the employees as well as the organization.

Annexure

Workshop on

“Emerging trends in Manpower Planning" Schedule

[July 30 – 31, 2014]

Day 1

09.45 am – 10.00 am

Introduction to the Meet

- Power HR Forum

- Mr C P Gupta, Secretary

Indian Institution of Industrial

Engineering

Session – I

10.00 am -11.30 am

Industr ial Engineering: Yesterday, Today & T omorrow:

A Systems flavor

Prof. (Dr.) D K Banwet,

IIT - Delhi

Session – II

11.45 am – 01.15 pm

Manpower Planning – National & International Perspec-

tives with focus on power sector

Dr. S N Nandi,

Former DDG, NPC

01.15 pm – 2.00 pm

Lunch

Session – III

2.00 pm – 3.30 pm Tata Steel practices in downsizing the manpower – A Step

Towards Lean Management

Mr. B B Das,

C hief (HRM), Tata Steel, Jamshedpur

Session – IV

3.45 pm – 5.15 pm Team Lease presentation on –

Practices & procedures of outsourcing

Temporary staffing

Possible avenues of outsourcing

Regulatory compliance services

- Mr. Indranil Ghosh

GM, Business Development

- Mr. Mridul Diwedi – Sr. Manager

Business Dev elopment

Team Lease Serv ices

New Delhi

Day 2

Session – I & II

10.00 am – 11.30 am

Manpower planning for office related function and activ i-

ties in Power Sector

Mr. K G Varshney

Managing Director (Former Dy . Direc-

tor General, NPC ) Innov ativ e Training

& Management Serv ices

11.45 am – 1.15 pm

Lean Management with focus on manpower planning Mr. K K Muthu

President, C orporate C onsultancy

New Delhi

01.15 pm – 2.00 pm

Lunch

Session – III & IV

02.00 pm – 05.15 pm

Sharing & discussion on practices of member organizations

w.r .t. processes, trend, budgeting and Manpower Planning

DELHI TRA NSCO, DVC, IREDA ,

NEEPCO, NHPC, NTPC, OPTCL,

PFC, POWERGRID, REC, SJVN,

THDC, NPCIL

5.15 pm

Valediction