Sunday, 29 September 2013

The Human Resource Planning Process

The HR Planning Process
  1. Environment Scanning:
    • Systematic monitoring of the external forces influencing the organization.
    • Internal and external environment
    • External: economic factors, technological changes (automation, robotics)
    • Demographic changes: age, composition and literacy
    • Political and legislative issues, laws, social concerns, child care, education, facilities and priorities
  2. Organization objectives and Policies:
    • HR plan need to be based on organization objectives
    • Number of employees, characteristics of employees
    • Vacancies to filled by
      • Promotions
      • Hiring from outside
    • Training and development objectives
    • Union constraints, how to enrich jobs
    • Downsizing to make it more competitive
    • Level of automation ( production and operation)
    • Adaptive and flexible workforce
  3. HR demand forecast:
    • The process of estimating the quality and quantity of people required to meet future needs of organization
      • Managerial Judgment
      • Ratio trend analysis
      • Regression analysis
      • Work study analysis
      • Delphi technique
      • Flow models: time, categories(states), count annual movement(flows), probability of transition from one state to another
  4. HR supply forecast:
    • Source of procurement
    • From within and outside an organization, after making allowance for absenteeism, internal movement and promotions, wastage and change in hours
    • The supply analysis covers:
      • Existing human resource
      • Internal source of supply
      • External source of supply
    • Skills and abilities
    • Skills inventories
  5. HR programming:
    • Personnel demand and personnel supply must be balanced
    • Programming:
      • Right employees
      • At the Right time
  6. HR plan implementation:
    • Converting plans into action
    • Shortage: Recruitment and selection, T&D, retention, rewards, redeployment, succession plan
    • Surplus: Restricted hiring, reduced hours, VRS, layoffs
  7. Control and evaluation:
    • HRP plan should include budgets, targets, and standards
    • Establish reporting procedure

Factors affecting HR planning

Factors affecting HR planning

  1. Type and Strategy of Organization:
    • Production Process (Manufacturing or service)
    • Number of people
    • Type of staff needed
    • Supervisors and managers
    • Internal growth:
      • Required additional staff, hiring
    • External growth:
      • Overlapping positions
      • Merger and acquisitions
      • Layoffs plans
  2. Organization growth cycle and planning
    • Early stage: No such need
    • Growth: HR forecasting become essential
    • Mature: formal planning, retirement, Layoffs
  3. Economic Uncertainties:
    • PEST environment
    • Political, Economic, Social and technical
  4. Time Horizons:
    • Exact time span
    • Uncertain environment: short term plan
    • Certain environment: long term plan
  5. Type and quality of information
    1. Information regarding:
      1. Strategic Plan
        • Product Mix
        • Customers
        • Geographic limits
      2. General Information
        • Organization structure
        • Production, distribution and sales department
      3. Specific information:
        • Job analysis
        • Recruitment sources, plans
        • Retirement plans
  6. Nature of job being filled:
    • Shop floor positions: easily employed
    • Managerial Position: Lot of sourcing required
  7. Outsourcing: 
    • Contract, sub-contract
    • Off-loading
    • Ancillarisation

Human Resource Planning

Human Resource Planning

  1. Process of forecasting a firm’s future demand for and supply of the right type of people in the right time.
  2. Right number of people
  3. Right kind of people, right place (position), location  and right time
Importance of Human Resource Planning:
  1. Future Personnel Needs:
    • Surplus or deficiency(shortage)
    • Public sector (over staffed)
    • VRS ( Voluntary Retirement Scheme)
  2. Part of Strategic Planning:
    • HR strategies aligned with organization strategies
    • Strategic Planning = HR planning (no differences)
  3. Creating Highly Talented Personnel:
    • Prevent shortage
    • Technological changes, retrained employees
    • Redeploy employees after training
    • Succession planning: who will replace retiring chief executive??
  4. International strategies:
    • International expansion strategies
    • Culture, language, development
    • Motivate and compensate them
  5. Increasing investment in employee:
    • Develop skills, training, job assignments
    • Employees are used effectively throughout their career
  6. Resistance to change and move :
    • Plan before moving employee
  7. Others:
    • Labor cost may be less
    • More time to locate talent
    • Better opportunities for women and minorities

Job Analysis

Job Analysis

  1. Collecting and Process job related information
  2. Preparation of job description (duties)
  3. Preparation of Job specifications (skills)
  4. Collecting information, relating to operations and responsibilities of specific job.
  5. Duties and responsibilities
  6. Job analysis:
    1. Job descriptions
      • Duties
      • Responsibilities
      • Reporting relationships
      • Working conditions
    2. Job Specifications
      • Human requirements
      • Requisites (Basics, Fundamentals) education
      • Skills
      • personality

Job Descriptions: Statement containing items like:
  • Job title
  • Location
  • Job Hours (from … ……)
  • Job summery
  • Duties ( Daily, Periodic, irregular intervals)
  • Machines and Tools, equipment
  • Material and forms used
  • Supervision given and received
  • Working conditions
  • Hazards

Friday, 27 September 2013

Factors Determining the Amount of Working Capital

Factors Determining the Amount of Working Capital:

1)     Size of small scale industry

2)     Process of Production:

a.       Short Process: Less working capital

b.       Long Process: More working capital

3)     Proportion of raw material  to total cost:

a.       Price of raw material

b.       Quantity of raw material

4)     Term of Purchase and Sales

a.       Use of credit

5)     Turnover of Inventories:

a.       Large Inventory: Inventory turnover slow, Large working capital required

b.       Less Inventory: inventory turnover quick, small working capital required

6)     Importance of Labor:

a.       Labor intensive: More working capital required

7)     Cash requirement

8)     Seasonal Variations:

a.       During the season working capital requirement is High, more WC is required

9)     Banking Facilities:

a.       Good banking connections, Minimum working capital required

Financial Requirements for Small Scale Business

The entrepreneurs should have right amount of capital at the right time to meet his financial requirement.
Short term or Working Capital Requirement:
  • Usually one year financial needs
  • Current Assets: Cash, stock, credit, sales, semi-finished goods.
  • Raw material.
  • Operational losses.
  • Advances to suppliers.
  • Commission to selling agents
  • Interest on loans.
  • Expenditure on wages, salaries, rent, advertising etc.
  • Expenditure on consumables.
  • Day to day administrative expenses.
Long term capital requirement:
  1. Fixed assets:
    • Land and building
    • Furniture
    • Motor-Vehicles
    • Plant and Machinery etc.
  2. Cost of setting up enterprise
  3. Intangible assets like goodwill, patents etc.
  4. Margin money required for raising working capital requirement.
  5. Manufacturing Unit: More Fixed Assets
  6. Trading Units: Less Fixed assets, more current assets & Working capital

Saturday, 21 September 2013

Selection of Product or Project for Small Scale Industry:

Project Selection:
  1. Does the idea fire-up your motivation?
  2. Is a viable business proposition in your place?
  3. Does it match the need of your client?
  4. Check it out with basic market research?
  5. Consult with expert
  6. Competition in the field
  7. It is a sunrise industry??
  8. Project conception: 4 P’s of Project Conception
    • Product ( Shape, size, nature)
    • Technology to produce (Process)
    • Place: location of plant
    • Partners: technological and Financial partners/Collaborations

Making a Product Choice:
  1. Product line, depth, width
  2. Packing
  3. Branding
  4. After sales service (Coolers in Bikaner, e.g. Sheetal, Trishul)
  5. Ease of Raw material availability
  6. Process Technology
  7. Access to market
  8. Incentive and support from Government

Export opportunities:
  • Export-product portfolio?
  • Special packing requirement (Wooden packing not allowed in Australia)
  • ISO certificate, WTO rules about child labor

Development of export product portfolio:
  • External demand conditions
  • Internal supply conditions
  • Complexity of market tasks
  • Amount of investment required to penetrate the market

Selection of Location for Small Scale Industry:

While selecting a location for your small scale Industry, Entrepreneurs must take care of following factors:
  1. Availability of raw material
  2. Nearness to market
  3. Availability of Power
  4. Transport facility
  5. Suitability of climate
  6. Government Policy
  7. Competition between states
  8. Availability of labor
  9. Civic amenities for workers
  10. Finance and Research facilities
  11. Availability of water and fire-fighting facilities
  12. Local tax and restrictions
  13. Momentum of an early start
  14. Personal Factors
  15. Soil, Size and topography (Detail description)
  16. Disposal of waste
  17. Housing facilities for workers
  18. Road, Rail and Water (Ship) connectivity

Wednesday, 15 May 2013

Use of “Insert Function” in Microsoft Excel

Use of “Insert Function” from Formula Tab:

Using “Insert Function” button in Formula tab we can use all the available functions in Excel. The following box will appear on the screen. It contains all formulas and they are categories wise divided. We can avoid any syntax error using formula from this option (Insert function)

As picture shows, dialog box is appeared for sum function. We can type the numbers or range in the text boxes. More importantly we can select range using mouse, for this we can click red-arrow button, by this sum dialog box will reduce its size and then after selecting range we can re-click on this red-arrow button.

If Function in Microsoft Excel

If Function:

One of the important logical function is if. If function is used to check a particular condition and value of function if the condition is true or false.

Syntax :

=if(Condition, value_if_condition is true, Value_if_condition is false)


=if(F2>100, “Yes”,”No”)

For example, in the above function we are checking cell F2,If the value in F2 is greater than 100 then function will return Yes and if the value in F2 is not greater than 100 (mean false condition) then function will return No in active cell.

Monday, 13 May 2013

Autosum Feature and Relative Cell Reference

Autosum Feature and Relative Cell Reference:

Excel provides Autosum button in Home Tab (Editing group). This includes 5 commonly used functions sum, average, count, max and min. Using this feature we can avoid typing these five functions. But caution is required while auto-selecting range.

In the given example, autosum is used in cell F2. Now we can place the mouse handle in cell F2 and can copy formula using fill handle(dragging downward), Excel will copy formula to all the below cells. While copying formula cell addresses automatically get changed, this feature is known as relative cell reference.


Sunday, 12 May 2013

Use of Formulas in Microsoft Excel: (How to perform calculations in Excel)

Use of Formulas in Microsoft Excel: (How to perform calculations in Excel)

One of the important features of Excel is its calculation abilities. Excel provides large number of formulas for calculations. Built-in formulas are known as Functions. Before going to use Functions, we must learn use of formulas; it gives us ability to use formulas in any customized calculations.

Every calculation, formula starts with equal to sign (=)

E.g. if we want to add number 4 and 5 then we must type =4+5 (now press Enter), excel will perform addition and gives us answer i.e. 9. Active cell will display result of 4+5 but formula bar is displaying =4+5

In this manner we can perform any type of calculations like:

=90-12+45*304-17/3-3 (Now just press Enter to get result)

For this kind of calculations Excel uses BODMAS rule.

In the same manner we can use cell addresses in calculation, for example to multiply A1 and A2, we must type =a1*a2, excel is going to display result in active cell.

Use of built-n functions:

There are large number of built-in formulas in excel, known as Functions. These functions are in different categories, like statistical, logical, financial, date, text, mathematical and engineering formulas.

Starting with simplest and common formula that is Sum, sum is used to add number. Either we can use comma separated numbers or a range of cells. Syntax is :

=sum(6,7,8,9) {press Enter}

Or we can use =sum(a1:a10)

A1:A10 is known as range

A1: starting cell address

A10: last cell address

(:) colon sign is used in between to form a range of adjacent cells.

Comma(,) can be used to sum non-adjacent cells.

=SUM(a1, c23, a12,e12)

Some more commonly used formulas are:

=AVERAGE(num01,num02,num03) this will return average of numbers or range

=PRODUCT(num01,num02) this will return multiplication of numbers

=POWER(number-x, power-y)

It will result into xy

=SQRT(576) this will result into square root of number.

=MIN(A1:A10) it will find minimum(smallest) number among the range.

=MAX(A1:A10) it will find maximum(largest) number among the range.

=COUNT(11,23,34,42,51,67) it will result count of numbers, not sum or addition. So result is 6.

Formatting sheet using Row height and Column Width:

Formatting sheet using Row height and Column Width:

By default width of a column in Excel sheet is 8.43 and height of row is 15. But we can change row height and column width according to our requirement. For this we need to use Home Tab---Cell group---Format option.

Manually we can change row height and column width using mouse pointer. Keeping mouse handle at splitter between each column and rows, by dragging mouse we can resize rows and columns. By double clicking on Splitter between rows/Columns, Auto Fit Row height and column width feature can be used. 

Saturday, 11 May 2013

Cell Editing in Microsoft Excel:

Cell Editing in Microsoft Excel:
Cell editing in Microsoft Excel means “Making changes in any cell.”  If you have entered word Rakesh in any cell, and you want to make it Rakesh Kumar, as we start typing Kumar…Excel removes word Rakesh from cell. To complete this task we need cell editing, in simple words instead of mouse handle we need cursor in cell. Following three methods can be used to edit cell:
First: we can insert cursor in cell by clicking mouse on cell.
Second: We can edit cell from Formula bar (Just below the Ribbon)
Third: Directly press F2(Function Key 2), this will provide cursor in current cell.