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Chapter: Business Science - Enterpreneurship Development - Launching of Small Business

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Human Resource Mobilization

Meaning of Manpower Planning: Small scale enterprises also need to draw plans to take various decisions and perform multi various activities. In simple words, plans are basic to any sort of enterprise - whether large, medium or small.

Human Resource Mobilization

 

Meaning of Manpower Planning:

 

Small scale enterprises also need to draw plans to take various decisions and perform multi various activities. In simple words, plans are basic to any sort of enterprise - whether large, medium or small. This includes the plans or provisions for manpower also. Unfortunately, the man power planning is neglected area in the Indian context especially in small scale industry. Under manpower planning, the management needs to ask itself two basic questions of:

 

 

 

1.What kinds of people do we need?

 

Before we ask this question, we must first understand the types of jobs to be filled. For example, do these jobs require someone with training in typing or shorthand or can they be done by an individual without any specialized training but who can learn our billing system quickly and who enjoys assignment requiring attention to small details?

 

To answer such questions in a systematic manner, enterprises often do develop job descriptions. In simple words, job descriptions are written explanations of the duties of a job together with a list of the minimum qualification necessary to hold the job. The use of these guides makes the selection process to a great extent, more eective.

2. How many people do we need?

 

In fact, the previous question deals with the quality of personnel. This question deals with the quantity of personnel the enterprise needs. We must answer several questions to determine the number of people required for various positions throughout the enterprise.

 

1. Is the demand for certain skills and occupations growing, constant or shrinking?

 

2. How much work can the average person do in a specified period of time?

 

3. What is the level of absenteeism?

 

4. What is the level of turnover?

 

Manpower planning can be defined as ”the process by which an entrepreneur ensures that he has the right number of people and right kind of people with appropriate skills, at the right place and the right time to do work for which they are economically most suitable”.

 

Job Requirements:

 

The job requirements must be identified before an enterprise select employees for itself.

 

1. Conducting Job Analysis:

 

This is an investigation into various aspects of a task in terms of skill, qualification, duties and responsibilities.

 

It covers job title, the department to which it relates line of supervision, relationship with other jobs, types of material and equipment used, mental and manual dexterity, working condition etc.

 

2. Job Description:

 

Simply stated, job description deals with what, why, when and how tasks are to performed. In other words, it is a written statement of work conditions, time involvement and job responsibilities.

 

3. Job Specification:

 

Job specification is a description of the salient features of the person to be recruited in the specific job.

 

It is standard against which the salient features of the employee are matched how far he matches with the job specifications. In other words, it describes the personal qualities of the employees like their knowledge, skills, experience, qualities of leadership and decision making abilities etc.

 

Recruitment:

Recruitment in small scale industries is more dicult because they cannot compete with their large counterparts in salary, fringe benefits and apparent stability. These limitations impose severe problems for small enterprises for attracting qualified and committed work force. The entrepreneur should also strive hard to create a public image of his enterprise as a worthy place to work and proper.

As regards recruitment in small scale industries, the most prevalent practice exercised in small scale units is to seek out and select candidates rather than wait for applications as happens in the case of large scale industrial unit. Broadly, these could be two sources of recruitment in small scale enterprises:

1. Internal Sources:

 

Internal sources refer to recruitment from the present workforce of the enterprise itself. Filling vacancies from own existing employees boost the morale of the employees because they look forward scope and avenues for their career development and advancement. Such hope for future often motivates the employees to put in their best performance. This manner of recruitment has other side also. One of the serious drawbacks of this manner, to mention, is what while the quality of level of employee‟s remains limited to that of the existing employees, on the other hand, the advantages of including the induction of fresh blood is missed.

 

2. External Sources:

 

(a)  Employees Referrals: Many a times, the existing employees of the enterprise and other sister organizations can refer to suitable candidates. In this case, kinship, friendship and village ties of the existing employees expectedly play a major role in the recruitment process.

 

(b) Recommendations: Sometimes the entrepreneurs receive recommendations from their friends and relatives to employ the persons known to them. The experience suggests that the entrepreneurs need to be cautions in considering such recommendations. The best principle in such case will be ”Never hire a person to please someone, make sure that you want him.”

 

(c) Unsolicited Applications: This is one of the common manners exercised to recruiting employees in small enterprises. The enterprise receives application and require for jobs from several sources.

 

The applications are kept and as and when there is a need to recruit people, these applicants are contacted if still available.

 

(d)   Advertisements: If the entrepreneurs have sucient time at their disposable to process and interview the candidates. They advertise their vacancies in the newspaper and other medias like radio and television. This manner ensures better choice for entrepreneurs to recruit the employees.

 

Recruitment Kinship, friendship and relatives Unsolicited applications

 

Gate hiring

 

Referrals and recommendations Advertisements

 

Employment Exchanges

 

Selection:

 

Selection process starts where recruitment ends. Selection means fitting a round peg in a round hole.This is done by comparing the requirements of job with the qualifications and experience of a candidate.

 

The basic purpose of selection is to find out right kind of people to fill the available positions; an orderly and systematic procedure is therefore always advisable selection of over qualified people results frustration on the part of the employees, selecting under qualified people invites indignation of the employer frequently.

 

Although, the selection procedure varies from place to place and enterprise to enterprise, most commonly used selection procedures in small scale industries are:

 

1. Preliminary Interview:

 

If the recruitment programme is non-selective, the preliminary interview is likely to be used in selection. This interview is short, often lasting for ten-fifteen minutes. The basic purpose of the preliminary interview is to determine an applicant‟s suitability for further consideration. The kind of work available in the enterprise is explained by the interviewer. If there is felt some chance of successful placement, the applicant is allowed to continue the rest of the selection procedure.

 

2. Application Blank:

 

It is commonly used in the selection process. Questions like work history, education level, work experience and the type of work applied for are asked in the question blank. Application blanks certain questions related to the probability of job success.

 

3. Psychological Test:

 

Most psychological tests administered in the enterprise are paper and pencil. The test taker is given a series of questions and a choice of two or more possible answers to each question.

 

Aptitude Test: This is a test measuring intelligence of the applicant and his ability to learn certain skills.

 

Performance Test: It is a test that measures one‟s current knowledge of a specific test.

 

Personality Test: Under the test, an applicant‟s personality traits such as dominance, sociability and conformity are measured.

 

Interest Test: As the name of the test itself denotes, this is the test measures one‟s interest in various fields of work.

 

4. References:

 

Personal references are generally unreliable and biased. Many a times reference persons are not well qualified to judge one‟s past work performance. Therefore, the names of previous employees and teachers are considered more reliable and unbiased in giving judgment about one‟s past experienced/performance.

 

5. Interview:

 

Interview facilitates an interviewer to evaluate more e ectively the applicant‟s potential for success in the particular job. The basic objective of an interview device should be to measure those facilitating qualities and traits that cannot be better measured by some other devices like testing or application blank.

 

6. Physical Examination:

 

A physical examination is usually placed towards the end of the selection process. It gives the enterprise current information about the applicant‟s physical health at the time of selection or hiring.

 

7. Placement:

 Once a new employee has been selected, he/she is finally placed to perform the specific job. A new comer should be properly introduced to his fellow workers, shown the location of facilities available, informed of regulations if any and encourages asking any needed information.

 

8. Orientation:

 

The employees selected should be made familiar with their enterprises objectives and activities and acquainted with their jobs. Thus begins their orientation period to learn about their work environment. Henceforth starting the training and development of newly selected employees.

 

Training and Development:

 

Training may be defined as any procedure, initiated by an enterprise, which intends to foster and enhance learning among the employees working in the enterprise. Training in small scale unit is concerned, the owner himself takes the responsibility for developing and conducting the training programme with an objective to enhance the employee‟s job related skills and knowledge.

 

Objectives of Training:

 

1. To improve job performance by enhancing employee‟s knowledge and skill.

 

2. To prepare employee‟s well competent to discharge the new responsibilities.

 

3. To impart skill how to operate the new machinery and equipments.

 

4. To reduce the wastages and accidents.

 

5. To build a second line for more responsible position at a later stage. Characteristics of a Successful Training Programme:

 

1. Its objectives and scope are clearly defined.

 

2. The training techniques are related directly to the need and objectives of the organization.

 

3. It employs accepted principles of learning.

 

4. As far as possible, it is conducted in the actual job environment. Methods of Training:

 

1. On the job Training: The oldest and most commonly used training technique in the small scale units is the on the job training. It consists of the employees receiving training from their supervisors and other departmental members while they perform their regular jobs. Such training is considered essential on every job available in the enterprise. On the job training has three categories:

 

(a) Demonstration: The job is demonstrated to the employees and each step involved in the process is explained thoroughly.

 

(b) Performance: The trainees perform the task what they have learned in the step one.

 

(c) Inspection: In the third and final step, the work performed by the employees, as mentioned in the step two, is inspected and immediate feedback of the job performance to the employees.

 

2. Apprenticeship Training: Apprentice training combines both formal classroom learning and on the job experience. This kind of training programme is provided mainly in the technical cadres.

 

3.  Job Rotation: This kind of training is particularly beneficial in the case of small scale industries where each employee has a thorough understanding of the di erent functions performed in the enterprises. In this training programme, employees are moved from one job to job for a few hours a day, a few days or several weeks.

 

4. Outside Training: The outside training consists of the employees being trained at schools/institutes outside the enterprise. Training is a continuous process of the employee development.

 

Remuneration and Benefits:

Employees remuneration expressed in terms of wages is of critical concern to personnel relations in small scale industry, whereas wages represent income to the employees, they represent cost of the employer and potential taxes to the government. Wages constitute the largest part of the employee‟s purchasing power and therefore have an important bearing on the level of economic activity.

 

As regards labor is organized (i.e.) large industrial sector, he is politically awakened and is ready to protest to secure his rights. Wages in the small sector are around one-half of those in the large organized sector through labor productivity does not so di er between them. The high wages in the organized sector have been described as ”islands of prosperity” when compared to the poor wages or ”oceans of distress” in a small sector.

 

The wages in small enterprises are not fixed on well established norms and principles of equal pay for equal work. In fact, wage fixation is usually done based on the bargaining strengths of the employer and employee in which the former dominates the scene. Even knowing wide di erences in wages between the two sectors, employee in the small sector/unorganized sector, they are not in the position to voice their concerns is an e ective manner due to their poor bargaining strength.

 

Employee Benefits and Services:

 

In addition to remuneration (i.e.) wages to the employees for their work done, enterprises nowadays also pay for a wide variety of supplementary items - often called fringe benefits. These benefits are the indirect payments made to the employees in addition to their direct wages and salaries. The employer‟s federation of India considers fringes as those benefits provided by the employer (a) which materially add to the welfare of the employees either during the tenure of their service or their retirement - (b) the expenditure of which does not form part of his normal wages and other allowances. Days are gone when the fringe benefits

 

were of secondary importance. Over the period, these benefits have risen to such an extent but these now command a significant proportion of the total employee compensations. All the fringe benefits can be broadly

 

classified into

 

1. Premium payments consisting of bonus

 

2. Payments for overtime

 

3. Payments for not-worked

 

4. Payments for employee welfare.


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