Managing HR supply from all sources


If manpower deficit is estimated in any department or in the entire organization, management has to forecast the future supply of human resources from various sources like internal sources, comparable organizations, educational and training institutes, employment exchanges, labor market, etc.

Action Plan for Recruitment and Development:

If the forecast relating to future supply of manpower from internal sources of the organization shows favorable trends, the management may prefer internal candidates and plan for promotion, transfer, training and development. If suitable candidates are not available from internal sources and, if the forecasts relating to future supply from external sources indicate the availability of required human resources, plan for recruitment and selection.

The promotion plan includes establishing of the ratio of internal promotion to external recruits, basis for promotion, promotional channel, reservations in promotions, etc. The transfer plan includes channel, company rules regarding organization initiated transfers and employee initiated transfers.

The training and development plan covers areas to be developed, training techniques, training programs, training time, availability of trainer, in plant training or institute training, new courses to be developed or changes to the existing courses, cost benefit analysis of training, development of the employees and matching of their improved skills with future job requirements etc.

The productivity plan includes maximization of productivity or minimization of labor cost per unit of output through technological changes, improving and streamlining methods, procedures, systems, productivity bargaining, training, financial incentives developing various schemes, motivation, commitment, organization development programs, job enrichment or enlargement, participation etc. It also includes improving of productivity efficiency.

Recruitment and selection plan covers the number and type of employees required, when they re required for the job, time necessary for recruitment and selection process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted, selection techniques to be used to select the required candidates. It also covers the time factor for induction, preliminary training and placement.

Modify the Organizational Plan

If future supply of human resources from all the external sources is estimated to be inadequate or less than the requirement (share of the particular firm in labor market), the manpower planner has to suggest the management to alter or modify the organizational plan. For example, if the organizational plan of Indian Railways indicates that computerization should be completed in all the stations and offices by 1991 and the estimations of future supply of human resources shows that the supply of computer would be less than the human resources requirements from all the sources even by 1991, then the railways have to modify their organizational plan by extending the period of computerization by some more time when the supply of human resources available to railways will be equal or greater than the requirement of human resources.

In view of shortage of certain categories of employees, the organization has to take care not only of recruitment but also retention of existing employees.

Retention Plan

There may be a problem of unemployment in some categories but organizations experience shortage of employees in other categories. Hence, the organizations have to plan for retention of the existing employees. Retention plan includes:

1. Adjustment of the salary levels with those of the comparable industries so as to remove inequalities.

2. Providing opportunities for career development by providing training facilities, adopting the policy of promoting from within, more systematic promotional procedure, providing opportunities for self-development, assignment of challenging work, etc.

3. Introduction of effective consultation and negotiating machinery, encouragement of grievance redressing and conflict resolution rather than suppressing.

4. Providing of extensive training and development facilities. Encouraging the employees to participate in the management, development programs and training programs both within and outside the organization. And Programs should be effective in meeting not only organizational but individual needs..

5. Selection procedure should meet the job and organizational requirements not only for the present position to which the candidate has applied but also his potentialities for future jobs in the career line.

6. Provide more congenial working conditions and extensive fringe benefits.

7. Provide the scope for extensive participation of the employees in decision-making and create the environment that the system in the organization is participative management but not autocratic management.

8. Provide the facilities and environment for productive interpersonal relations.

9. Provide the scope for challenging, creative and innovative work.

In the days of Globalization and increasing outsourcing from India particularly in he area of Software it is imperative that the organizations must come up with well thought of and well drawn out plans for retention and create a congenial atmosphere for the employees to stay with them. Otherwise a high attrition rate and time taken in training new employees, how experienced they may be, will result in losing business for the company.

  • swati shah

    hi!i m studying mba 4m MET BANDRA and wishing to specialize in HR.i am a fresher so kindly helo me.thanks.

  • hi we are looking for the person who is interested to be our part for developing the business in Gujrat

    Atul kr Sharma