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Manpower Planning for Construction Companies

Manpower planning is the integration of manpower policies, practices and procedure so as to achieve the right numbers of right type of people in the right jobs at the right time.

Objectives

Preparation of manpower plan of a construction company is one of the most crucial inputs in achievement of its corporate objectives. The objectives of manpower planning are as follows :

(a) To ensure optimum utilisation of available human resources;(b) To develop the available manpower in terms of infornlation, knowledge,skills, performance, capacity and potential; arid

( c ) TO ensure better petiormance & prcxiuctivity.

At the construction site, the above objectives can be translated as under

(a) To ensure right distribution of manpower in different depxtnlents working at the site so that ilnbalances are avoided;

(b) To determine the direct level of recruitment in each category of cl~lployces in order to plan the intake of new employees at the site;

(c) To determine trailling needs and fran~e training policies:

(d) To deternline the channels of promotion to provide avenues for growth & developnlent of employees;

(e) To dcternline transfer policies by ascertaining the right utilisation of manpower. placement & development of right skills; and

(f) To control manpower cost.

Techniques of Manpower Planning

The techniques of manpower planning would depend on the stage at which the manpower planning process is introduced in the organisation. Mainly, there call be two approaches to this. They are as follows :

(a) The planning of manpower before starting a project; and

(b) The pla~uling of manpower when the project is in process.

This implies that no ~nanpower planni~lg is done before commissioning of a project and based on the study and experience, the review and evaluation of real need takes place after the project has been conmlissioned.

Line & Staff Functions

Line functions are those functions wlllch have direct responsibility, autl~ority and accountability to the top nlallagement. Line fulv tions arc l~orinally discharged by various operational dcpartinents such as production & oi>crations. sales & marketing, purchase Xr innterlals and accounts & finance department, elc.Staff functions are those functions which render advice on specialiseil issues and subjects. Staff fuilctions are normally discharged by huinan resourcc. rcsearch & developmenl, quality control departments, etc. These departlnents act in advisory capacity to various lint: dep,utments to facilitate and enh'mce their performance. Human resource management traditionally has been consnsldered as a staff function only where HR Manager provides his specialised services on various aspects of human resource management to line & operation managers who are entrusted with direct responsibility. authority and accountability for producing results.

Recruitment
 
Recruitment is a process of evoklng interest arid response among probable candidates to apply tor Ule vacant position. Allybody who is likely to be a prospective candidate for the job 1b encouraged to apply for the same. It is a positlve process. The steps involved in
reclu~tmcnt arc as f[~llows :

(a) Preparation of Job Analysis which consist of a list of functions to be perfor~rle~l by the person to be recruited.

(b) Preparation of Job Descriptions which consist of putting infc~mation gathered about the job in sequential and descriptive manner.

(c) Preparation of Job Specifications, which consist of preparing details of cluillificatic>li. experience and personality profile of the person to be recruited.

(d) Preparation of Job Evaluation which involves valuing a particular job in terms ot salary and perks keeping in mind the criticality of tl~e role. The ~nlportance of the role 111 the organisation, the thrust area of the management, the qualification ruld experieiice of the employee who would be occupying the new posltlons, the\ problems existing in the industry, etc. are some of the major considerations for job evaluation.

The total vacancies conveyed to recruitment section includes the various cl~;u~ges are likely to take place in future also. The recruitment action is initiated to fill up the existing total vacancies as well as preparing a wait list of suitable ci~ndidates for vacancies which illay arise in future.

Sources o f Recruitment

The source of recruitment varies with the categories for which Lhe recruitment is to he undertaken. The source of recruitment also changes depending upon the nalure of industry, whether it is a private sector con~pany or public sector undertaking,'its location, location of labour market, degree of specialisation expected from the prospective candidates, public image of the company etc. Some of the most common sources of recruitment are as under :

Internal Source

(a) From within department where the vacancy exists: vld

(b) From other departments within the comp'my.

External Source

(a) At the gate of the site;

(b) Through unsolicited applications;

(c) Through reference of employees, unions, directors and business associates;

(d) Through employmel~t exchanges, SCISTIOBC welfare associalions, Zila Sainik Board, Directorate General of Resettlement of Ex-Servicemen,NGO for recruitn~ent of physically handicapped:

(e) Through ex-enlployeeslunder legal obligation or otllerwise:

(f) Through campus interviews:

(g) Tllrough trade associations:

(h) Through recruiting agencies and managelnent consultv~ts: xnd

(i) Through direct advertisement in newspapers, business and trade journals.

Selection

Selection process is XI elimination process with a view t o select the most suitable candidate amongst all the applicants.It is also known as negative exercise because of its elimination process. Unlike recruitment wherein more and more candidates are encouraged to apply for tlle vacancies, in selection process through its various stages, candidates 'are rejected with a view to find out the most suitable candidate.It is a process of matching the indiviuual qualities in ternls of his knowledge, skills. capabilities and potential with tlie requirement of the job.

Stages o f Selection

How many stages are required for selection of a particular category of vacancy depend upon the nlxlagement philosophy, organisational systenls Xr procedures and its personnel policies apart from the total nurnber of applications received for it. Lower the category of employee, lesser the number of appllcalions and lesser the stages of selection. S~nlilarly, more the number of applications, inore the stage\ of selection. Selection is one of the most effective and efficient methods of improving your public relations. Tllerefore, the stages o f select~on should be such that it should not only help in selection of the best camlidate but at the same time. also it should look fair.

Induction and Training
Induction is the process of i~~trcxlucing a new eniploycc lo his joh, colleagues and organisation. The process of i~lduction dil'l'ers fror~i organisalion to orginiisation depending on the human rcsource policy of the company, thc position i l l wllich lht: l~cw incunibent has joined and the criticality of thc role etc.People make a company. Their skills, abilities, performance on t11e ;oh and protlucr~\,'r>, deternline the compally's p1.01 1 1 .rl-rility and its growth. Thc better lhc people are doing ;II their work, the more succesbl I,. 1111. cornpally is likely lo bc in s e l l i ~ ~ its g producls o r services.

Types of Training Programmes

The tralilrlig progralnmcs are ot differelit types depending 011 tlic purpose tor whrcli tliey are conducted. The training progranlliies cover the elllire galnut of employees from thc level of workers to supervisors and managers. The contents of the programnle depend on the level of participants, training n e c k training objectives and organisational needs. The following types of training progranuliex are conducted normally in computes:

(a) Apprentice

Training : It is an statutory obligation of tlie conipany to engage apprentice in tradcs which are prevalent in Ll~e company
in thc ratio tls prescribed u~~cler the Apprenl~cc Acl. 196 1.

(b) Executive Trai~iee/Managenient Trainee Prograrmnes

(c) Induction Training Proga~n~ries

(d) Technical Training Prograninies

(e) Management Developtxent Programmes

(f) Internal Managenlent Development Progranlliles

(g) External Management Development Progra11111ies

Methods of Training

The following methods are used these days for inlparting training to eiiiployees. F combination of these methods is normally used to make the progrannie more effective and useful.

(a) Lecture Method

(b) Role Play Method

(c) Case Study Method

(d) (In the job Training

(e) Job Rotation Method

(f) Management Games Methods

Over-staffing

The rapidly changing environmental conditions are continuously creating new challenges for the indian organisations. In the wake of the ever-increasing competition, many of the established organisations are craving for survival. Because of the ris~ng cost and falling productivity, inore and more organisations have started giving serious look at their nlanpower with a view to cut down excess manpower. Due to tlie polltlcal reasons and cumbersome procedure prescribed under Industrial Disputes Act, 1947, it is practically impossible to get rid off excessive Inanpower or terminate the services of any employee engaged even on temporary jobs. Moreover, some of the rcccnt judgeirients of Hon'ble Supreme Court have also made it obligatory for colnpanies who are engaging contract labour in job of per~nanent 'and pcrcilnial nature to regularise tlie services of wch contract Iabouur. Thus, making it i~icreasingly difficult for employer lo liave flexibility in deployliig of rnanpower or to down size its manpower. Due to increasing pressure from trade unions and social activists, maiiy organisatio~is liave started using tlie term riglit sizing Instead of down sizing because down sizing has a negative connotation. Unfortunately. till now. there is no agreement or legislation which ensure a satisfactory perforiiiailce by the work force. It has been observed that contract and temporary eniployecs sliow good results in their work but after regularisation, their perfor~nance also reduces significanlly. Some of the llilportant reasons Tor excess rnanpower in construction industries are as under
 
(a) Bulk and unplanned recruitment in the beginnirig:

(b) Political pressure to give employment to more and inore pelsons wiUlout specific needs:

(c) Practical difficulties in terminating the services ot perma~ienl/temporary/ contract employees, etc.;

(d) Low performance and productivity by the existing employees;

(e) Lack ot skills on the part of eniployecs;(f)

Lack of proper performance appraisal system:

Rigidity in deployment of manpower;

(h) Lack of multi-skilling among employees;

(i) Lack of investment on training and development of employees:

(j) Lack of training and development efforts for retraining and developing existing employees;

(k) High absenteeism rate and provision of extra people as reserves;

(l) In-efficient production planning and control function leading to fluctuation and deployment of manpower:

(m) Added work content due to :

Lack of plqnning and control (especially Process Planning & Control, Quality Control, Preventive maintenance, safety,inventory control, distribution, storage etc);

(n) Poor systems and procedures;

(o) Unhealthy attitude (lack of motivational factors);

(p) Manpower imbalances (i.e. excess Manpower in one departmentlunit and shortage in other);

(q) Lack of redeployment efforts:

(r) Lack of systematic efforts in Manpower review/contrclL (Manpower Audit).

Time Office and Establishment Functions

Time oftice is the watchdog of human resource department. It keeps deta~ls of attendance,punctuality, late coming, early going, over time, the number of times an employees has gone out of site premises, details of sh~fts in which he has worked, the types of leaves availed, payment of productivity linked Incentive & entitlement and basis of payment of different types of allowances, preparation of muster roll and wage & salary register, etc.Normally, time office is part of establishment division of human resource department and located at the inam entry gate of the site.in the time office, the company provide the clocks and each employee is given an Attendance Card for the whole month on which he is supposed to mark his attendance through the clock while entering the establishment and similarly punching out his card while leaving the establishment. Most of the companies allow the contract employees also to mark their attendance through their tinie.office but the name of the enlployer on the attendance card is to be shown that of the contractor instead of principal employer.between his duty hours as and when the employee goes out either for personal work or for official work he has to punch-out and punch-in the departure and arrival time. His niovelnent outside the office is authorised by his departmental head on the basis of the gate pass, which he has to deposit at the time office or security office. At construction site, the concerned worker reporting at the work is through his supervisor who allocates duties for the day. At the time of allocating duty to the employees, their attendance are marked by their supervisor. Mimy large construction companies may have this system ot ~ilarkinp of attendance by supervisor in addition to punching of card at the time office.

Many construction companies have adopted computerised attendance r n ~ k i n g machines where tlle concerned employee is given an identity card with magnetic tape which he has to sweep tllrough the computerised attendance marking machine. The advantage of this new technology is that it is temper proof apart from the fact that no one can mark other's attendance until or unless they are in the position of having the identity card of that person. Another advantage of this system is that it gives computerised statement showing the late co~lliiip, early gomg, automatic calculation of salary and allowances. Thus, it is iuost cost effective proposilion.

Establishment Functions

Establishment division looks after all the personnel records including maintaining their personnel file. It contains all the details of an employee from the time  dischxrge of various adnlinistrative decisions but it also helps management in ensuring effective control over its illalpower.

The personnel file should contain the following docun~alts :

Application for the job;

Copy of vffer of appointment and appointmnent Ictler;

Report of the medical check-up and report of venficalion of antecedents;

Joining report for duty and posting order:

Nomination form under PF, Pension, ESIIWorkmen Coinpensation Act and settlement of dues;

Report on probation and confirmation letter;

Annual performance appraisal reports;

Letter of commendation, appreciation, warning, clisciplinxy action, etc.; Copy of resignation letter/discl~arge/superaimuation/retiren:ent;

Details of settlement of dues and contact address.

Wage and Salary Administration

The concept of wage and salary is being used in industries as if these are synonyni words. Although both the words represent payment of compensation in lieu of selling your services to the eiilployer but the difference lies in the frequency of paymeilts received. If it is received on a daily basis, it is called as wages and if it is reccivecl on a monthly, fortnightly or weekly basis, then it is called as salary. There is usually no guarantee of continuous employment in case of employees who receive wages. India, salaries are nlostly paid to employees on monthly basis as fort~ligbtly or weekly payments are not so popular. Under Payment of Wages Act, 1936, altl~ough it could be paid on weekly or fortnightly or monthly basis, but not beyoncl a periodicity of over a month (Section 4 of the Act). Any establishmalt or factory employi11g less tllali 1000 employees is required to make the payment on or before 7th day of the following month .

The compensation package of the organisation should be such that it should not only help in retaining the employee, but it shoultl also help them in achieving their personal goals. While it is Lrue that no organisation can take the care of all thc personal needs of the employees, but it has no right to survive, if it cannot pay the niinimuni wages prescribed 'by the Governmerit (Crown Aluminium Works Case). An agreement reducing the minimum wages under the Minimum Wages Act, 1948 is void. Similarly, payment of wages less than the minimum wages on ground of less performrulcc or output is also illegal. The employer may fix any reasonable sum specifying the quaitity of work which must be turned out by the workman during the day, but if the workmen does not turn out the work in conformity with such norms, the employer may take disciplinary action against him and remove or dismiss him, but he ci~llnot pay him anything less than minimum wages. The workman who cannot work for more than half a clay or so, is not entitled to get what is paid to other workmen for their full day work. Subnormal workmen are not entitled to full minimum wage without performance of a norilia1 day's work.

As per the Fair Wage Committee, appointed by the Govcrnmnent of India in 1948,evolving a natio~lal wage policy is very omplex and difficult task, but not impossible.However, cornmiltee classified the wages into following three categories : Minimurn Wage To cover the bare physical needs of food, shelter and clothing of worknlen arid hisn family with a view that his efficiency is preserved.

Living Wage

To provide for the worker and his family, not nierely tlie basic essential needs of food, clvrhing and shelter but also education for his children, medical facilities,saving for old ape and sickness period, amenities for luxury and comfort for him mr.,a.nrnA \.c age to be somewhere between the living wage arid mininium wage depending upon our econonuc dcvelopnient. The lower limit of the fair wage must obviously be little more tllan nunimuni wage and the upper limit is what we should thrive to achieve as our 11lc;tl goal. Between these two limits, the actual fair wage depends on number of lac to^:, \uch ;is econonuc develop~nent and growth of country, dcniand and supply of Iilbour, technology adopted, nature of industry and its location, its capacity to pay. p~oductivity of labour and its bargaining power etc.

Discipline

Discipline is a branch of instruction or learning. It is part of n~ental arid moral training. Ir is a system of rules for conduct; behaviour according to established rules. When we got freedom, our Constitution in its preamble decided to develop our country as a Sovereign.Democratic Republic on Socialistic pattern, inspired by humanistic impulse. Over last 50 years after adoption of tl~e Constitution of India, the human values and humiui orientation of all our social, business and political systems have degraded very fast. Selfisl~ness and self-centredness have done the biggest harm to the nation as a result of which in spite of being the second largest reservoir of scientific and tecllnological maupower, we are not able to alIeviate the suffering of our people. We are still fighting for fulfillment of their basic needs. Our people have to sit calmly and consider one basic question: how to infuse values into our national life and to overcome problems challenging our national aim of total human development. (:)ne of the major drawback of our Constitutioli is that it has full cllapter on fundamental rights and how these rights are to be protected whenever there is any infringement but there is no chapter or even mention of fundanlental duties of our citizens, thus making our people more conscious about their rights rather than duties. It is needless to stress that no society can ensure rights witlioul fulfillment of tlie duties by its citizens.

A logical extension of this type of thinking has also been intlicted on our business organisations, where both inanagenlent as well as union denland their respective rights without fulfilling their respective duties towards each other. The result is quite obvious and they blame each other for poor discipline and low productivity. In order to break this stalemake, both the parties have to indulge into a deliberate process of participation on l ~ to be set by issues of common interest of both of tlieni, the tone for w l ~ i c llas management by initiating the process of inforniation sharing, consultation, joint decision making and ultin~ately self ~nanagelnent or self discipline in phased manner. Even various Labour Laws prevalent in our coulltry recogllise this principle. The framing and certification of standing order or the company under Industrial Employment (Standing Orders) Act, 1946: conslilution of works committee, grievance resettlement machinery,bipartite negotiation etc. are in accordance with tlie above mentionetl pri~iciplc of participation in enforcing discipline in the industry.

Discipline - A Dynamic Concept
The concept of discipline has been undergning changes with the cllanging values of the society and industry. It has been customary f o r ;I subordinate to get up from his seat, moment the boss passes fro111 there. Sinularly the subordinate is not suppose to take the seat until and unless he offers hini tlie chair. Smoking in front of your boss was considered the biggest lnisconduct and no subordinate could ever think of doing it. It was autocratic work culture where a subor~linate was as good as a slave and he was not suppose to make any suggestion, advise or express any opinion unless it is specially sought for.

From o'ne extreme we seem to have reached to other extreme of our work culture today where boss and subordinate not ollly call each other by first name but opeilly express their views, opinion ,and suggestions. At times tlie manner in which they discuss the issue, a third person may get feeling that probably they are fighting with each other. All the frills of pl;ysical discipline seellls to be gradually disappearing ,and giving way to nlental discipline where people have to be much more orgxiised, ~nethodical ,and deliver results within a time hou~itl co~nmitnient.The concerll for task have in~reased nlany fold and in order to enable the einployee to fulfil it, the concerns from him also have increased. From autocratic style of leadership, the business moved to democratic style and now gradually moving towards Laissez Faire style of leadership where the interference and supervision from the boss is minimum and the high maturity and sense of responsibility of the subordinates ensures timely result. In the changed environment, the manager has to bring appropriate changes in his own leadership styles and adopt the role of counsellor, mentoring and guide rather than acting as authority figure. The emphasis has to be on educating rather than enforcing.

Positive Discipline

The positive discipline emerges from the right attitude to your work, your colleagues, your company and to life in general. Many times, we collsciously or subconsciously force our own biased values and judgment on our employees under the garb of discipline. Managers have to set their own examples before they could expect from them disciplined behaviour. Many a times, we ourselves break the rule which we expect them to follow. Discipline has to be uniformly applied on everybody in the org'misation irrespective of his position or status. It has to flow froiii the top of the organisation. A manager who himself comes late to office, has no llioral right to expect his employees to come in time. In any case, since he llilliself will not be there to observe his employees, he will never get tlle true picture of late coming in his depart~nent. Many managers argue in such situation that they are not answerable to their employees. True, they are not reporting to them but definitely answerable to them. They have no right to preach what they theniselves do not practice and if they still insist on sucll discipline, the employees not olily lose respect for the boss but also for the discipline. Many of them report

iii tiille and leave office after their scheduled working hours. In such cases, their productivity and performance will definitely undergo qualitative and quantitative changes.Apart from contributing to the stability objective of the organisation, positive discipline motivate the sincere and loyal workers to perform better by fostering feeling of togetherness and unity amonglthem. As a business manager one should always keep in mind to avoid unnecessary discipline and not to insist for things which are not directly related to the working of organisation. Educating and convincing employees about the reasonableness of rules and regulations help the management in its implementation. Many a times, it is the poor personnel policy of the organisation. Better communication channels through staff circulars, notice boards, in-house journals and communication meetings on a sectional basis also help to avoid nlisunderstanding among employees.It is seen that very often we forget to reward the good behaviour of the employee th'm to punish him for his poor behaviour. What is required on the part of management is a dual approach where positive discipline should be promoted by educating employees about the rules and regulations of the company as well as to caution them regarding v'uious acts of niisconduct. The service rules booklet should be given to every employee on the date of joining the organisation and in the induction programme, the reasonability of rules and regulations should be explained to them to seek their understanding and co-operation in inipleinenting it.The availability of rule book in most of our organisations is not only a problem for workers alone but also for managers.

Separation

Separation of an employee from his company could be for a variety of reasons, some of which are voluntary and some are involuntary as per the following details

Voluntary Separation

(a) Resignation : Resignation is an act of voluntary separation arising out of the desire of the employee to leave the services of the company. It is liornially resorted to by the concerned employee whenever 11c filicls hetter employment or when he plan to start his own enterprise. In case of female employees. Inany a times it is because of family reasons and compulsion.Retiremnr on Medict~l Grounds : Whenever iul enlployee is sick for

(b) Voluntary Retiremnr on Medict~l Grounds : Whenever iul enlployee is sick for a very lolig time or lie suffers from a ailment wherefrom lie is not likely to recover or where on account of ailment helshe sutters perlimnen1 partial or rota1 disablement, he applies for voluntary retirement on liiedical grounds. Request for such retirement is normally accolnpanied by recommenclations of a niedical doctor.

Voluntnry Retirenlent Scheme : Construction being labour intensive and the second largest in the world lias a lot of excess manpower as a result of which many companies have introduced voluntary retirement scheme for their employees which are norllially known as "Golden Hand Shake". The employee opting for retirement under this schenie gets sizable ex-gram amount over and above his other statutory dues sucli as provident fund, gratuiLy and pension.

(c)Involuntary Separation

(a) Determination of Probation Period : If the pertornlance ot an elnployee is not found up to the mark during his probation per~od, the employer inay deternllne his probationary period. There is a system of appraising tlie performance of the probationer twice during thc period of prc>bation on tithe basls of wli~cli he is given feedback by his imliediate supervisor. Tlie negative teedhack should fijllow by a letter highlighting the areas where Ule perforinance ot the probationer is not found upto the mark and imiied~ate improve IS expected in those areas. On completion of second report on probation elther the enlployer has to decide about determination of his period of probation or exlend it if there is no improvement in his performance.

(b) Terminution of the Sen1ice on the Busis of 1)isciplinczn Action : It e~liployee indulges in any act of misconduct he is chargesheeted for the same hy his employer. On corllpletion of the inquiry proceediilg, if the charges are proved against lhe employee, employer may decide to award punish~nent of dlschxge or dismissal to the chargesheeted employee.

(c)Compulsoq Retirement : Co~npulsory retiremenl of an e~riployee can be resorted to his employer on the following grouiids :

(i) On Merliccrl Grounds : Whenever an employee is on long leave he has already suffered permanent partial disableinelit or permanent total disablement, the employer may constitute a inedical hoard tni whose recommendation, the employee may be con~pulsory retired on nledical grounds.

(ii) As Punishntent on the Bosi.r of l)isciplinan, Action : If an enlployee is found guilty of indulging into various acts of illisconcluct which are duly proved on the basis of domestic inquiry, the employer may award hinl the
pur~sliment of compulsory retirement froin the service.

(iii) On the Basis qf Loss of Confidence : In certain cases tlic eiiiployer may loose his confidence in a particular employee clue to 111s indulgence into doubtful activity or being in arena of douht for involvemenl in various acts of nusconduct. There niay not be sufficient niaterial lo holtlh~rn guilty. In sucli cases, employer may resort to compulsory retirelilent of tlie concerned employee on the groundsof loss of confidence.

(iv) On t l ~ e Basis qf Poor Perjornlunce : The enlployer lias a d~scretion to conlpulsorily retire those employees at the age of 50 or 55 depending on the service rules or standing orders of their company, if it finds that performance of at1 employee is not up to the satisfactory level.

Superannuation
It is an act of retiring an employee on his achieving the age of superannuatio~l.Normally, it used to be 58 years of age that has been extended to 60 years rcccntly on the recol~unendation of tlie 5tli Pay Comniissiun by Government ot India.However, keeping in mind the low level of performance arid low comruitment to tI1c job of the employees in government and public sector. news keeps on appearing in newspapers that governnie~it is tliillking of reverling back to the oldage of superannuation at 58 years of age. In most of the multinationals and even in some private sector companies, the supcrannuation age is 55 years.

2 comments

  1. Manpower planning for construction companies involves strategically assessing and forecasting the labor needs for various projects. It includes identifying required skills, estimating workforce size, and implementing recruitment strategies to ensure adequate staffing levels. Effective manpower planning helps optimize productivity, minimize costs, and deliver projects on schedule.

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