MANPOWER UTILISATION &

IMPROVEMENT
Career
It may be defined as a succession of related
jobs, arranged in hierarchical order, through
which a person moves in an organization.
 Career Planning

Career planning can be defined as a sequence

of separate but related work activities that
provides continuity, order and meaning in a
persons life.
 Essence of Career Planning

 It is a process by which one selects career

goals and path to these goals.
 Career goals are the future positions one
strives for as a part of a career.
 Career path is the sequential pattern of jobs
that form a career.
 Objectives of Career Planning
 To attract competent persons and to retain
them in the organization.
 To provide suitable promotional
opportunities.
 To enable the employees to develop and
make them ready to meet future challenges.
 To increase the utilization of managerial
reserves within an organization.
 To correct employee placement.
To reduce employee dissatisfaction and
turnover.
 To improve motivation and morale.
 Career Planning VS Human Resource
Planning
Career Planning
 It evaluates one’s abilities and interests,
considering alternative career opportunities,
establishing career goals, and planning
practical development activities.
 There are two types of career planning :-
1.Individual Career Planning :- is a map of
sequence of jobs of the individual concerned
without regard to the organization.
• It helps in making choices with respect to
occupation, organization, job assignment and
self-development measures.
• Career pathing, personnel skills inventories,
career information systems and career
counseling are different career planning
activities in an organization.
2. Organizational Career Planning :- is a map of
sequence of jobs for an employee within the
organization itself.
Human Resource Planning
• HRP provides higher management with the
idea on the inventory of skills and potential
available in the organization based on which,
expansion, technology up gradation , etc are
undertaken by the organization.
• Certain basic information's required for
manpower planning –are inventory of
manpower needs in terms of – number, types,
levels and time, possible changes in functions
and activities with the passage of time.
• HRP need desired behavioral and attitudinal
changes to meet the manpower needs,
training opportunities, resources and training
time etc .
 Succession Planning
It identifies the likely vacancies for higher level
executives and locating likely successors to
man such vacancies.
 Advantages of Career Planning for
‘Individuals’
 The process of CP help the individuals to have
the knowledge of various career
opportunities, and his priorities etc.
 This knowledge helps him to select the career
which is suitable to his life styles, preferences,
family environment, and self development.
 It help the organization to identify internal
employees who can be promoted.
 Internal promotions ,up gradation and
transfers motivate the employees, boost up
their morale and also increased their job
satisfaction.
 Increased job satisfaction enhances employee
commitment and creates a sense of
belongingness and loyalty to the organization.
 Employee will await his turn of promotion
rather than changing to another organization.
It decreases employee turnover.
 It improves employees performance on the
job by tapping their potential abilities and
further employee growth.
 It satisfies employee’s needs.
Advantages of Career planning for the
‘Organization’
 Ensures the availability of human resources
with required skills, knowledge and talent.
 It improves the organizations ability to attract
and retain highly skilled and talented
employees.
 It ensures women and backward class people
to avail opportunities for growth and
development.
 It continuously satisfies employees
expectations, and thus minimizes employees
frustration.
It attract and retain people from different
cultures, enhances cultural diversity.
It projects employees interest, thus promotes
organizations goodwill.
 Process of Career Planning
Steps in Career Planning
 Analysis of individual skills, knowledge,
abilities, aptitudes.etc.
 Analysis of career opportunities both within
and outside the organization.
 Analysis of career demands on the job holder
in terms of skills, knowledge ,abilities ,aptitudes
etc & in terms of qualifications, experience, and
training received etc.
 Relating specific jobs to different career
opportunities.
Establishing realistic goals both short-term
and long-term.
Formulating career strategy covering areas of
change and adjustment.
Preparing and implementing action plan
including acquiring resources for achieving
goals.
 Career Development (process)
Career Development

It is a process of planning the series of possible

jobs which an individual may hold in the
organization over time and developing
strategies designed to provide necessary job
skills as the opportunity arises.
 Career Development & Career
Planning
Career development is a systematic process of
guiding the movement of human resources of an
enterprise through different hierarchical
positions.
 where as career planning is a process of
establishing career objectives for an employee
(or by the person himself) and developing
planned strategies to achieve them including
activities which help him in making choices with
respect to occupations, organization's job
assignments and self development measures.
 Career Development Process

To design a suitable career development

program it is essential to understand the
different career stages or development cycles
of an individual employee. Career
development cycle may be grouped under
following four categories.
A. Exploratory Stage
B. Establishment Stage
C. Maintenance Stage
D. Stage of Decline
 Succession Planning

Succession planning is used to identify, develop

and make the people ready to occupy higher
level jobs as and when they fell vacant.
Importance of Succession Planning
 It provides a powerful link between the
business needs and the need for performance
changes/training needs.
 It determines what management skills in
what quantities are required in the future.
 It strategically ensures a suitable supply of
suitable successors for senior or key jobs and
future roles.
 It( SP) deals with future needs in two ways :-
 One covers the range from near future
(simple filling the vacancies caused by labor
turnover.)
 The other deals with the far distant future.
(The strategic process).Here the help of
training professional need to be used to make
strategic decisions to make business effective.
 Why Succession Planning

The consequence of appointing the wrong

successor can be disastrous.
Management development through
succession planning becomes more
imperative today.
It’s relevancy felt more at highest level.
 Aim of Succession Planning
 To ensure that possible suitable managers are
available to fill vacancies created by
promotion, retirement, death ,leaving .
 Identify a cadre of managers available to fill
the new appointments in future.
 Prepare the right people for higher
responsibilities.
 Provide a powerful link between the business
needs and the need for performance
changes/training needs.
It helps in retaining the best talents.
 Benefits of Succession Planning
 Ensures the person “the required expertise”
for his prefixed higher position.
 The problem of ‘waiting long for expertise”
will be solved.
 The charisma of “pre-trained expertise “will
produce dynamic leaders.
 Problem of forcefully sacrificing one’s self
esteem does not arise.
Ensures high morale and efficiency.
Model of Strategic Succession Planning
System
BUSINESS STRATEGY

STRATEGIC BUSINESS NEEDS

HUMANRESOURCE
PLANNING

EFFECTIVE
BUSINESS
STRATEGIC
OPERATION
SUCCESSION
PLANNING THE NEED FOR
PERFORMANCE
CHANGES/TRAINING
NEEDS
 Human Resource Accounting
It is a process of identifying, measuring and
communicating data about human resources.
It involves measuring the costs incurred by
the organizations to recruit, select ,hire, train
and develop human assets.
It also measures the economic value of people
to the organization.
Importance of HR Accounting(HRA)
HRA projects
How the organization makes investments in
its people.
How the values of employees increases by
training and experience over a period of time.
The above mentioned information on human
resources facilitates effective management in
the organization.
 HRA projects two categories of information's
regarding human resources in the
organization
(A)Basic information about human resources :-
 Number of employees
 Categories of employees
 Grades of employees
 Total value of human resources
 Value per employee.
(B) Human Resource Acquisition
 Number of employees acquired during the
year
 Cost of acquisition
 Levels for which they were required
 Human Resource Development
 All information's pertaining to HRD activities
of the organization
 Human resource maintenance
 Costs related to human resource maintenance
 Human resource separation
 Costs related to HR separation, attrition rate
etc
 Details of benefits provided to the employees.
 Approaches to Valuation of Human
Resources
(A)Non-monetary measurement approach:-
involves the classification of human
resources in terms of :-
 Skills(skill inventory)
 Performance Evaluation
 Potentiality for development & promotion
 Results of attitude surveys and subjective
value
(B) Monetary Measurement Approach :-
 Capitalization of historical costs method
 Replacement cost
 Opportunity cost
 Economic value method
 Present value method
 HR Measurement Metrics
 An organizations competitive advantage
largely depends on the way it manages it’s
largest asset-it’s people.
 Human capital management (HCM) is
considered to be vital for the fundamental
success of a business, while effective
measurement is crucial to deliver effective
HCM.
 A broad human resource measurement policy
enables the organizational management to
collect consistent information about the
employee population, that improves decision
making.
 This measurement policy also ensures that
management and development activities
remain relevant with overall business
strategy.
• With a sound HR metrics program, HR
management can make business decisions
that are based on ‘cold facts ‘rather than ‘gut
feeling’ to back up business cases and request
for resource.
 HR Metrics
The most widely used HR metrics covers the
following :-
 Employee attitudes
 Employee turnover
 Employee skill levels
 Out sourcing costs
 Service centre operations
 Staffing process
 Training program’s utilization and effectiveness.
 HR Metrics Process
Each metric contains two to five indicators. For
example- ‘employee attitude ‘ metric contains
the following indicators:-
Job contentment (the percentage of
employees satisfied with their job)
Manager contentment (the percentage of
employees satisfied with their manager)
Example-Human Capital Metrics
 Human Capital Metrics of Deutsche Bank
2000 1999 1998
Employee 72 66 n/a
Commitment index
Absentee rate 2.3 % 2.4 % 2.7 %
Employees leaving 7.8 % 6.8 % 5.7 %
bank for a new job
Expenses for 237.2 222.4 201.7
Training (in Euros)
Employees 65 % 65 % 62 %
purchasing shares
Managers in Global 77 % 79 % 83 %
Equity Plan
HR measurements have significant implications
for all areas of the business performance. For
instance, employee attitude and turnover
metrics are reported to have key influence on
decision making in the organization.