MANPOWER CRISIS

In this article we are discussing a real case on Human Resources crisis at a reputed bank in India
which is popularly known as IDBI Bank. There was a time when every fresh graduate after
qualifying with a professional degree and most of the experienced professionals look forward to
join this bank as an employee. Times have changed now with foreign banks setting up their
organizations in India. This is consequential to India embarking upon its Globalization program
in all facets of business from banking to software. Skilled professionals have opportunities one
better than the other. This is making them to switchover from one organization to another better
paying one.

Let us first look at the facts what exactly happened at IDBI,

IDBI operated their commercial banking and institutional banking as separate organizations. The
merger between the two has precipitated the manpower crisis as the pay and seniority problems
were not addressed to the satisfaction of all concerned.

Employees continue to desert IDBI Bank even as it struggles in a schizophrenic existence as a

development finance institution and a modern commercial bank; the result of a merger with its
new generation private sector bank two years ago.

IDBI lost 810 employees in 2005, majority of whom were from the commercial banking side,
that is, the erstwhile private bank. Head of alternative bank channels and card products had left
for Deutsche Bank immediately after the merger. Head of human resources had also quit to join
another Bank. Sometime back the regional head of corporate banking also left to join some other
Bank. Even the head of corporate banking at the bank, is the latest to quit the bank. Sources at
the bank say that he left after the differences with the top management.

Their high salaries have often been the matter of envy for IDBI bank staff. A top official at IDBI
commented that IDBI Bank officials need to understand that they are a part of the public sector
organization and accept the rules. He added that IDBI was already working on ways to retain and
develop the human resources and reduce the attrition.

International consultant Hewitt Associates has been helping the bank with post merger
integration, the most critical factor of amalgamation or acquisition. IDBI is also seeking the help
of National Institute of Bank Management on human resources development.

We presume the following could be strong reasons for the HR crisis. However the bank has
taken steps to address the problems through proper expertise and it may take some more time
before situation is normal.

· IDBI has lost 810 employees in 2005, majority of whom were from the commercial banking
side

· Uneven pay scales have created rift between staff of the commercial and institutional banking
units.
· The cultural difference between IDBI and IDBI bank has also led to a huge attrition in the
organization.

· Attrition is a problem faced by entire finance sector but at IDBI the rate is abnormally high.

· The bank has added around 936 people in 2005 and plans to add another 250 during the year.
However salary is not the only issue for all of them

· Cultural differences and uneven pay scales have created a wide chasm between the staff of
the commercial and institutional banking units. At the time of the mergers the employees of the
IDBI Bank, who were paid market salaries, were promised that their remuneration would be
protected for three years.

more at http://www.citeman.com/538-manpower-crisis/#ixzz15Y5w062j

Manpower Planning and Forecasting

May 19, 2008

in Human Resource Management

Manpower planning is the first step in the recruiting and selection process.

1. Decide what positions you’ll have to fill through Manpower planning and forecasting.
2. Build a pool of candidates for these jobs by recruiting internal or external candidates.
3. Have candidates complete application forms and perhaps undergo an initial screening
interview.
4. Use selection techniques like tests, background investigations and physical exams to identify
viable candidates.
5. Decide who to make an offer to, by having the supervisor and perhaps others on the team to
interview the candidates.

Planning and forecasting:

Employment or Manpower planning is the process of deciding what positions the firm will have
to fill, and how to fill them. Manpower planning covers all future positions from maintenance
clerk to CEO. However, most firms call the process of deciding how to fill company’s most
important executive jobs succession planning.

Employment planning should be an integral part of a firm’s strategic and HR planning processes.
Plans to enter new businesses, build new plants, or reduce costs all influence the types of
positions the firm will need to fill. Thus, when JDS Uniphase, which designs, develops, and
manufactures market products for the fiber optics market, decided to expand its Melbourne
Florida, operations, its managers knew they’d have to expand its employment there from 140
people to almost 750. That meant they needed plans for who to hire, how to screen applicants,
and when to put the plans into place.

One big question is whether to fill projected openings from within or from outside the firm. In
other words, should you plan to fill positions with current employees or by recruiting from
outside? Each option produces its own set of HR plans. Current employees may require training,
development, and coaching before they’re ready to fill new jobs. Going outside requires a
decisions about what recruiting sources to use, among other things.

Like all good plans, management builds employment plans on basic assumptions about the
future. Forecasting generates these assumptions. If you’re planning for employment
requirements, you’ll usually need to forecast three things: Manpower needs, the supply of inside
candidates, and the supply of outside candidates. We’ll start with Manpower needs.

Forecasting Manpower Needs:

The most common Manpower planning approaches involve the use of simple techniques like
ratio analysis or trend analysis to estimate staffing needs based on sales projections and historical
sales to Manpower relationships.

The usual process is to forecast revenues first and then estimate the size of the staff required to
achieve this sales volume. Here, HR managers use several techniques.

Trend Analysis: Trend analysis means studying variation in your firm’s employment levels over
the last few years. You might compute the number of employees in your firm at the end of each
of the last five years, or perhaps the number in each subgroup (like sales, production, secretarial,
and administrative) at the end of each of those years. The purpose is to identify trends that might
continue into the future. Trend analysis can provide an initial estimate, but employment levels
rarely depend just on the passage of time. Other factors like changes in sales volume and
productivity also affect staffing needs.

Ratio analysis: Another approach, ratio analysis, means making forecasts based on the ratio
between (1) some causal factor like sales volume and (2) the number of employees required (for
instance number of sales people). For example, suppose as salesperson traditionally generates
$500,000 in sales. If the sales revenue to salespeople ration remains the same, you would require
six new salespeople next year (each of whom produces an extra $500,000) to produce an
expected extra $3 million in sales.

Like trend analysis ratio analysis assumes that productivity remains about the same – for
instance, that each salesperson can’t be motivated to produce much more than $500,000 in sales.
If sales productivity were to increase or decrease, the ratio of sales to salespeople would change.
A forecast based on historical ratios would then no longer be accurate.

more at http://www.citeman.com/3255-manpower-planning-and-forecasting/#ixzz15Y6OGuBJ