A STUDY ON MANPOWER PLANNING AND HR AUDIT PRACTICES IN SMES WITH SPECIAL REFERENCE TO SIPCOT INDUSTRIES

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A STUDY ON MANPOWER PLANNING AND HR AUDIT PRACTICES IN SMES WITH SPECIAL REFERENCE TO SIPCOT INDUSTRIES S. Suresh Kumar, Dr. P. Karthikeyan & Dr. P.Mohanraj Research Scholar in Management, Bharathiar University, Coimbatore.

1 A STUDY ON MANPOWER PLANNING AND HR AUDIT PRACTICES IN SMES WITH SPECIAL REFERENCE TO SIPCOT INDUSTRIES S. Suresh Kumar, Dr. P. Karthikeyan & Dr. P.Mohanraj Research Scholar in Management, Bharathiar University, Coimbatore. Assistant Professor in School of Management Studies, Kongu Engineering College, Erode Assistant Professor in Management Studies, Nandha Arts and Science College, Erode ABSTRACT Organization and individual should develop and progress simultaneously for their survival and attainment of mutual goals. So every modern management has to develop the organization through human resource development. Employee training is a specialized function and is one of the fundamental operative functions for human resources management. The present study deals with manpower planning and HR audit practices in SMEs of SIPCOT industries in Perundurai. Manpower planning aims at the optimal use of the present and future workforce of the organization, thus it is required for getting maximum results from the investment in human resources. Manpower planning involves both quantitative and qualitative aspects. While the quantitative aspects deal with the right number of people at a job, the qualitative aspect involves the search for the right kind of people for a particular job. KEY WORDS: Organisation, Manpower, Investment, Audit, Qualitative. INTRODUCTION Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are matched for the achievement of goals of the organization. Human Resource Planning has got an important place in the field of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Shortages and surpluses can be identified so that quick action can be taken wherever required. All the recruitment and selection programmes are based on manpower planning and it helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. It also helps to identify the available talents in a concern and accordingly training programmes Page 101

2 can be chalked out to develop those talents. Through manpower planning, human resources can be readily available and they can be utilized in best manner. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern. NEED FOR THE STUDY Increase in the size of Business Manpower planning is very helpful when there is expansion of the plant. At the time of taking the decision for expansion of the plant, a large number of workers are required to be recruited. For this purpose a stock of the existing manpower should be taken and future need of the personnel should be assessed. It is very necessary to know whether personnel are to be recruited from outside or from inside and how the training facilities are to be set for all this manpower planning is essential. STATEMENT OF THE PROBLEM There is no denying the fact that the continual encouraging development of a business is owing to its successful planning. Making preparations and arrangements on the basis of what is expected to take place and performing tasks in an organized and capable way is one of the key roles of management in that it involves effective planning process. It is through the process of planning as well as designing the organizational structure by assigning an mixture of responsibilities to the employees that business organizations may accomplish their set objectives. The concept that the right person should be employed at the right place and at the right time is vitally important to a business as it includes a broad and comprehensive range of activities in relation to the management of man, while it entails man power planning, at the same time, being focused on the effective utilization of existing human element as well as fulfilling future needs of manpower in the organizations whenever the situations require. The study aims at finding and analyzing the man power planning practices in SMEs with special reference to SIPCOT, Perundurai, Erode District. Two-way table and chi-square test was used for further analysis. OBJECTIVES OF THE STUDY 1. To identify gaps, lapses, failure in applying man power planning policies, procedures, practices and HR-directives. 2. To analyse man power system and modify to meet challenges in the organisations 3. To take the corrective steps to rectify mistakes, shortcomings contesting effective work performance of HR- Department. RESEARCH METHODOLOGY The research design is the analytical structure with in which the research is conducted; it constitutes the blue print for the collection, measurement and analysis of data. This research is descriptive type and cross sectional study has been made. The size of the sample used for the collection of primary data is from 17 organizations in SIPCOT, Perundurai. Random sampling method has been followed in this research. Both primary and secondary data have been used. The primary data were collected from the organizations using questionnaire. The secondary data relating to the HR audit have been gathered from various journal, books, and website. Page 102

3 RESULTS AND DISCUSSIONS TABLE. 1 MANPOWER PLANNING AND LEVEL OF PREFERENCE ON HR AUDIT Manpower planning Frequency % Minimum Maximum Mean SD High Medium Low Total It is inferred from above table that manpower planning and level of preference on HR audit of the respondents belongs to high the ranges between 23.8 and 28 with a mean score of and the standard deviation of 1.79 and the respondents belongs to medium ranges between 13 and 26 with a mean score of and the standard deviation 4.7 and the respondents belongs to low ranges between 7 and 29 with a mean score of 15 and the standard deviation Hence, the manpower planning was highly preferred for the HR audit. With a view to study the association between the manpower planning and level of preference on HR audit, the two- way table has been prepared and presented as under. Table. 2 MANPOWER PLANNING AND LEVEL OF PREFERENCE ON HR AUDIT (TWO- WAY TABLE) Man power planning Level of Preference on HR Audit Total High Low High 6 (85.7%) 1 (14.3%) 7 Medium 4 (66.7%) 2 (33.7%) 6 Low (25.0%) Total 11 (66.7%) (75.0%) 6 (35.3%) 17 It is concluded from table that the percentage of high level of preference on HR audit of the respondents is the highest 85.7 percentage among the respondents are high manpower and the lowest 25 percentage among the respondents of low manpower. The percentage of low level of Preference is the highest 75 percentage among the respondents of low level manpower and the lowest 14.3 percentage among the respondents of high level manpower. Hence, the higher 85.7 percentage constitute that the category of high respondents. In order to study the relationship between manpower planning and level of preference on HR audit of the respondents, analysis of variance has been applied and the result of the test is given below. Page 103

4 Table. 3 MANPOWER PLANNING AND LEVEL OF PREFERENCE ON HR AUDIT (ANALYSIS OF VARIANCE) Sum of Squares Df Mean Square F Sig. Between Groups Within Groups Significant at 5% level Total The analysis of variance shows that the calculated value of F is more than the table value, which implies that the relationship between manpower planning and level of preference on HR audit of the respondents does not holds good. SUGGESTIONS 1. The aim of the manpower planning is confined to top level management. This affects the good organizational conditions and it is better to keep it open and all the employees of the organization may be informed of the goal of the organization. 2. The top management of this organization does not give due attention and encouragement to the highly skilled (potential) employees of various departments. This affects good HRD Climate of the organization and it reflects in their job satisfaction which may affect the productivity. Hence it is suggested that the top management should give due emphasis in the manpower planning. 3. It is suggested that the selection, transfer and promotion process may be transparent as far as the competencies of the personnel are concerned. Every employee should be aware of the competencies required to be all-round employee and move up to the next higher position. 4. To maintain a good HR audit and practices, a better communication method may be inculcated among the peers, superiors and subordinates. 5. The observation of the researcher identified that the employees are not given separate training for their non technical skill development. Hence it is suggested that a separate training centre may be organized and the employees may be directed to utilize it effectively to improve HR practices. CONCLUSION The need for capable working force is ever increasing. More and better trained employees are constantly needed in all enterprises. Particularly, the labour force in all SMEs is in constant state of flux. The observation of the present research shows that there is definite positive relationship between manpower planning and HR audit practices in SMEs. It also enables the higher officials to know how well the employees know about their work and where they stand. It enables them to identify their real position and make them involve in training which helps them to learn new aspects to perform better and improve their work performance and HR audit practices. Again it should not be misconstrued that the need for sufficient supply of capable working force and experienced executives is apparent only in large companies, the very same need exist in SMEs and even in one man shows. So the study concluded that every SMEs should estimate its manpower requirements so as to carry on its operations smoothly. Page 104

5 REFERENCE 1. Alphonsa V.K. (2000), HRD climate in the private Hospital an empirical Study Indian Journal of Training and Development, Vol. 30, No.4, pp Cook, J.D. and Wall, T.D. (1980), New work attitude measures of trust, organizational commitment, and personal need non fulfillment, Journal of Occupational Psychology, Vol. 53, pp Dharamvirsinh Parmar (2012), Approaches and Techniques in Manpower Planning, International Conference on Management, Humanity and Economics. 4. Hina shah and Vaghul, N. (1975), Survey of Organisationl Climate, Prajnam, Vol.4, pp Jain V.K and Singhal K C., (2002), Some Correlates of HRD Climate; A case study of BHEL; Studies in Human Resource Development Edited by B.S. Bhatia, H.L.Verma, and M.C. Grag, p.p Milliken, F. J., and Martins, L. L. (1996), Searching for common threads: Understanding the multiple effects of diversity in organizational groups, Academy of Management Review, Vol. 21, pp Prashanthi (2013), Human Resource Planning An Analytical Study, International Journal of Business and Management Invention. Vol. 2, pp Sridharan K., (1979), A Study of job Satisfaction, Job Involvement and Organisational Climate among Nationalized Banks Dissertation, University of Madras. Page 105

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