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Research Article ISSN 2229 – 3795

ASIAN JOURNAL OF MANAGEMENT RESEARCH 473

How effective is Man Power Planning in reducing Labour Turnover in Information Technology Enabled Services Organization

Edwin Christopher.S 1 , Rekha Jain.N 2 1 Principal, Sri Bhagawan Mahaveer Jain College, Geetha Road, Robertsonpet, Kolar Gold

Fields, Karnataka 2 Associate – Academic Resource Faculty, Sri Bhagawan Mahaveer Jain College, Geetha Road,

Robertsonpet, Kolar Gold Fields, Karnataka [email protected]

ABSTRACT

Human Resources is a vital issue in managing an organisation effectively and efficiently and prune it to perfection at every task undertaken in an organisation. With plethora of opportunities available across the globe for qualified and efficient individuals to work, sustaining on the roll employees / man power in the organisation is a herculean task. Hence, a study was conducted to find how Man Power Planning becomes a more defensive tool than a planning tool for managing Human Resources of an organisation, in the present day context as majority of the corporate players are facing the Man Power crunch. Moreover, among the various corporate players in the market, the major crunch of human resources is found in the Information Technology Enabled Services organisation and off late it has rendered the management of these organisations to spend time, money and energy in recruitment and selection than looking at other core areas of exploring in Human Resources Management. The study enlightens on how an organisation can combat the situation by employing the Man Power Planning as an effective and defensive tool not only used while recruitment and selection of manpower to the organisation but also in chalking out various methods, techniques, plans, policies, procedures in retaining and sustaining the on roll employees of the organisation.

Keywords: Man Power Planning, Human Resources Management, ITES, Labour, Labour turn over

1. Introduction

Men, Materials, Machines, Methods and Money are regarded as the most important factors of production. But Men (Man Power / Human Resources) are regarded as the only dynamic factor of production (Rakesh K Chopra 2001). Further, it is believed and said that Organisations are not mere bricks, mortar, machineries or inventories, they are people. It is the people who staff and manage the organisations (K Ashwathappa 2002). Hence, Human resources is the sum total of inherent abilities, acquired knowledge and skills representing the talents and attitudes of employed personnel in an organisation (Leon C 1977). And therefore it is rightly put across that these human resources / man power is the heart of any organisation and their performances are directly linked to quality and the quantity available at any given point of time and rendering their services to the organisation.


Human resource planning has traditionally been used by organisations to ensure that the right person is in the right job at the right time (Susan E Jackson, and Randall S Schuler 1990). In the contemporary context, human resource planning occurs within the broad context of organizational and strategic business planning that involves forecasting the future needs of the organisation in terms of human resources and how it will be met (Mills D Q 1985). Finally, human resource planning today includes gathering the relevant data that is used to evaluate the effectiveness of ongoing programmes in the organisations, its effectiveness in bringing enhanced efficiency in the skills and tasks executed by the human resources of the organisation and their by making the human resource planners being informed of the revisions, forecasts and programmes that are needed. Man power planning is concerned with people dimensions in management. Since every organisations irrespective of being a Government , Business, Education, Health, Recreation or Social Action is made up of people, acquiring their services, developing their skills, motivating them to reach higher levels of performance and ensuring that they continue and maintain their commitment to the organisation is essential in achieving organizational objectives ( David and Stephen 1989). Hence, it is very much necessary that the organisation should uphold the trust of their existing human resources by initiating excellent and conducive corporate policies that would enable the work force with opportunities for growth, financial stability and progressive career development.

The study becomes more imperative in this context to find the various issues related to man power planning and how it has become an effective defensive tool for the organisation to overcome the battle of manpower deficit, their effectiveness in managing human resources to sustain , be loyal to the organisation, a tool to meet and fulfill the goals and objectives aspirations of the organisation and its personnel’s, so that neither the other corporate players can poach personnel’s by making lucrative offers, promises, multiple benefits, credible career growth or the personnel’s taking initiative and seeking in finding the green pastures for their personal growth and development.Faced with an information technology employee shortage of monumental proportions (Gray Dessler 2003) it is found that personnel’s quitting the organisation and hopping from one to another and from there to some other is quiet common and the labour turnover rate is very high in the services oriented industry and more so in the technologically dependant organisations with specific reference being made here to Information Technology Enabled Services sector. From Indian context it is found that the labour turn over in Information Enabled Technology Services sector is around 30 – 40% of these over 50% of them hop from one organisation to another within one year time of joining and it is also reported that poaching is common practice in this industry and as report confirms that 40% of them who joined are from other organisations of the same sector (Batt R, Doellgast , Kwon H, Nopany P, Nopany 2005) . Further in the recent survey on attrition rate in different sectors it is found that the in the ITES sector the attrition rate has come down to 27% from 30% 40% existing in the year 2005, showing that the 05 years down the line the attrition rate has just marginally reduced but still prevails as a major concern for the ITES organisations.

2. Literature Review

Studies have been carried out to determine the need for manpower planning and its importance in enabling organisations to reduce employee turnover. Interest has gained momentum in the recent past among organizational behaviourists, psychologists, sociologists, economists with different perspectives adopted to study the phenomenon. With the advent of a work scenario where more


and more organisations have to concede that their valued employees are leaving them, a new concept of career planning is bound to emerge, but to focus not only on motivating an employee but also to see that the employee is retained and reinvented in careers and to be loyal to the organisation. The study revealed that career development of an employee in an organisaiton is the need for the changing environment in the world of employment and lifetime employment is not being the agenda in the minds of the present employees, the work and commitment being short in term, the young generation aspires to have work that is more exciting and entertaining

The study suggests that designing work systems that leverage the thinking of all employees and opportunities for continuous up gradation of skills is to be provided and the organisation too should learn to commit lifelong training and learning process for their employees by which the employees gain greater expertise and control over their careers, they will reinvest their gain back into their work. (Prof. Meenakshi Gupta, 2003).Employee turnover is much studied phenomenon and way back from 1950’s, lot of studies have been incorporated to study the reasons for employee turnover and several factors have been identified to be the major reasons for employee turnover in organisations. In spite of many studies on the subject has been done, all have been done with small number of variables which often explains only small amount of variability in turnover and studies on employee turnover do not adequately capture the complex psychological process involved in individual decisions to leave the organisation.( Jule McQueen 2010)

Boxall, MacNy & Rasmussen E 2003, studied about employee turnover that confirmed that motivation for job change is multidimensional and that no one factor will explain it. However, over a period of time there have been number of factors that appear to be consistently linked to turnover. Mobley W H ., Griffeth R W., Hand H H and Meglino B M review article on employee turnover revealed that age, tenure, overall job satisfaction, job content, intentions to remain on the job and commitment are relatively important to employee turnover and they have also pointed that higher the variable lower is the turnover. Employee turnover is confirmed that job satisfaction, organizational commitment, comparison of alternatives and intention to quit are the most important variable linked to employee turnover among the other linked factors to turnover is less conclusive. (Griffeth R W ., Hom P W., and Gaertner S , 2000). Employees are the back bone of any organisation and any successful business will need to have well maintained and motivated employee in the organisation to have the global edge in the competitive world.

However, the study was of the view that management should encourage job redesign, task autonomy, task significance, task identity, open book management, empowerment of employees, scientifically effective recruitment, selection process with the objective of retaining and sustaining employees and reducing turnover. Further, it was also said that management should compensate employees adequately and their pay should be in accordance to their performance and in addition, performing employees should be given incentives like employee bonus, lump sum bonus, sharing of profits and other benefits (Henry Ongori 2007 )

Though pressures continue to build for effective allocation of man power there is little evidence that manpower planning is achieving sophistication in practice or making its most significant for organisation operations. Man Power Planning has been described by the author in five stages like definition and objectives, determination of gross man power requirements, defining in house man power capability, ascertaining net requirements of man power and lastly envisaging a suitable programme to meet the net manpower requirements.( Mr. Coleman, 1970). Man Power Planning


is deciding in advance and planning to meet the future requirements of man power in the organisation and drawing a blue print of the same to coordinate and control within the organisation the available assets for effective utilization of organizational goals and objectives in a time bound manner.

Eric W Vetter defines Man Power Planning as the process by which management determines how an organisation should move from its current human resources position to the desired position. The study found that the time span for manpower planning depends on the environment of the organisation with which it is operating. It is said that if the organisation is operating under unstable environment such as Information Technology, then the man power planning will be done for short span of time, while in case of Universities, man power planning can be drawn for stretched up to several years ( Business and Market 2009) Man power planning is found to be the main working instrument to ensure full employment and rational use of labour and as essential to enable the community of organisation to meet the human as well as the economic problems which inevitably arise as the structure of the labour market continues to change.

While, the critics say that man power planning is of some value to certain occupations and for some it is not found to be necessary. Thus there cannot be universally acceptable agreement on methodologies and technology that man power planning should be used. (Lother Richter 1984)

2.1 Statement of the study

In an organisation, Human Resources play a vital role for its success and failures, as they are the core strength of any organisation. Man power is an important corporate asset and the economic performance of the organisations depends upon the extent to which it is effectively utilized. So far prosperity of business enterprises has largely been due to technological progress and innovation in the different fields of Management. It now appears that efficient utilization of human assets may well become the crucial factor in determining the growth and prosperity of business enterprises in the years ahead. A formal man power plan has become important because of the general increase in the size of business enterprises to meet the increasing needs of the domestic and international market. (R. S. Tarneja, 1980)

In this scenario, it’s the job of every human resources manager to plan for procuring personnel with necessary qualifications, skills, knowledge, work experience and right positive attitude to work in the organisation. Further, moving one step ahead, the human resources manager needs to formulate succession plans for on the roll employees to sustain them for the long run in the organisation.

While it is also found to be apt to circumvent the situation for the human resources manager to plan the appraisals of the employees, need corrective training and equip them with more enhanced skills for the task ahead and make them more effective.

In the above said context, the study undertaken proposes to answer the following questions predominantly so that, the major issues pertaining to Man Power Planning is analysed and answered in the way it should be.


• Why do employees move out from one job and move into another?

• Why the Labour Turnover is very huge in the Service Oriented Organisations?

• Why retaining and sustaining an employee who is on the rolls of the organisation is found to be difficult task today?

2.2 Definitions

Man Power Planning is well defined as … includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if any thing, must be done to ensure that personnel supplies equals personnel demand at appropriate point in the future (Terry L Lead and Michael D Crino, 1990) . Vetter has defined as … the process by which a management determines how an organisation should move from its current man power position to its desired man power position. Through planning a management strives to have the right number and the right kind of people at the right place, right time, to do the things which result in both the organization and the individual receiving the long range benefits (Eric W Vetter, 1967) . An integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals to organizational members (Magginson 1977). A process of analyzing organizations human resources needs under changing conditions and developing the activities necessary to satisfy these needs (Walker, 1980)

A process for determining and assuring that the organization will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprises and which provide satisfaction for the individuals involved (Beach 1975). According to Geisel manpower planning is the process – including forecasting, developing and controlling – by which a firm ensures that it has the right number of people and the right kind of people at the right places at the right time doing work for which they are economically most useful. (1967). Frederic J Gaudet observes, : “ Just as the high reading on a clinical thermometer is a sign to a physician that something is seriously wrong with human organism, so is a high index of labour turnover rate a warning to the management that something is wrong with the health of the organisation. But just as the clinical thermometer merely indicates that some thing is wrong – not what is wrong – so does the turnover rate merely warn not diagnose. A high turnover rate may mean poor personnel policies, poor supervisory practices or poor company policies. Nor should we forget that too low rate of turnover, like a below normal reading on the thermometer, can be a danger signal. “(1960)

It is clear from these few definitions that although the different definers chose to group their perceptions of the phenomenon in their individual ways, there is a recurring common theme. Each of them agreed that manpower planning is an ongoing process (integrated approach), not a once and for all phenomenon. Its process involves interrelated activities and the plan must continue to be modified to meet prevailing circumstances. As a plan, it is embedded with implementation programmes designed to ensure availability of adequate qualified persons. Such implementation programmes include recruitment and selection (employment) of required skilled personnel to perform jobs that will allow the enterprise meet both the corporate and individual


goals. The plan implementation programme also entails training and development of personnel and performance appraisal as well as other related personnel administration functions. The term ‘Manpower Planning’ at organizational or corporate level is also known as microhuman resources planning and it has much to do with personnel management or personnel administration. The terms manpower, ‘human resource”, and personnel management or personnel administration refer to the same activities concerned with managing people at work. As such the terms can be used interchangeably. On this basis, Manpower Planning and Human Resources Planning (HRP) are of the same phenomenon.

3. Methodology

The Exploratory method of research was adopted for the study and all the Information Technology Enabled Services organization presently operating in the silicon valley popularly known and called as the Information Technology capital of India was considered as the Universe for the study and all the employees working in these organizations were taken to be the population for the study. From among the existing organizations in the city of Bengaluru, the data was collected from those organizations which have been in existence for a minimum of 05 years and from each of the selected organizations, 20% of the employee’s strength was randomly selected as respondent employees for the study. Hence the total sample size is restricted to 1000 respondents.The data for the study was collected through structured questionnaire with close ended questions and multiple choices of answers. While certain questions were with option of choosing more than one choice of response and others restricting the respondent employees to select only one of the choices. One to one and face to face interview with the questionnaires was conducted in the premises of the organization during their break hours and the respondent employees were given sufficient time to respond and provide answers to the questions asked. Every employee from the selected organization had free and fair opportunity of being respondent employee for the study.

The data collected was first tabulated manually question wise and within the frame work of the answers provided the tabulated data was further processed by arranging the data in sequential method using the highest to lowest value of the responses obtained from the and then the percentage tool was used to the processed data and make it more convenient for drawing the interpretation. Further, pictorial presentation by using charts was drawn to appreciate the inferences drawn on the data collected and tabulated.

Further, statistical tools like Spearmans Rank Correlation Coefficient and t test sampling distribution test was incorporated to few tables known to have relationship between the data to find, the reliability of the study and the interpretation of the data. Finally, the complete data was analysed analytically and critically to evaluate its authenticity of the study and relevance to the context of the study and specific inferences were arrived at and based on the concluding inferences, recommendations were made from the study.


3.1 Analytical Report of the study Respondent Employees Personal Profile

Table 1: Respondent employees personal profile

Factors Criteria Age in years 2025 2630 3135 36 & above

Total

No. Of respondents 310 430 150 110 1000 Percentage 31 43 15 11 100

Gender Male Female No. Of respondents 570 430 1000 Percentage 57 43 100

Education PreUniversity Undergraduate Post graduate Engineering No. Of respondents 40 380 430 150 1000 Percentage 04 38 43 15 100

Marital status Married Un married No of respondents 550 450 1000 Percentage 55 45 100

No. Of children No children 12 No. Of respondents 320 230 550 Percentage 59 41 100

Family status Joint family Nuclear No. Of respondents 310 690 1000 Percentage 31 69 100

Source: Primary Data.

The above table depicts the various aspects of the personal profile of the respondent employees taken for the study and the data processed is presented as above and inferred as follows. 74% of the total respondent employees are within the age bracket of 20 – 30 years of age while the remaining 26% of the respondent employees are in the age bracket of 31 years and above. With respect to the gender of the respondent employees taken for the study, 57% of them are male and 43% of them are female. Here it is inferred that more or less equal and fair representation has been given to both the genders in the study. In the study, it is found that a majority of 81% of the total is undergraduate and post graduates, while 15% of them are engineering graduates and a meagre of 4% of them are just educated up to pre – university. It is inferred that majority of employees are well educated in the industry and at present it is found that the minimum entry qualification is a graduate.

It is understood from the above table that 55% of them are married and 45% of the remaining are un married, providing an inference that more or less equal representation has been given to both the married and unmarried. While among the married respondents 59% of them have no issues and 41% of the remaining is having 01 – 02 children. 69% of the respondent employees taken for the study are living in nuclear type of family setup and remaining 31% of them are in joint family setup.


3.2 Analytical Report of the study Respondent Employees Responses on Manpower Planning and how it reduces Labour Turn over in Organization.

Table 2: Respondent Employees Employment profile

Source: Primary Data

Repondent Employees Employment Profile

7%

31%

2% 25%

9%

12%

14%


Figure 1: Respondent employees employment profile

As said earlier in the methodology of research, every employee working in any of the 05 selected Information Technology Enabled Services organisation taken for the study had equal and fair chance of being respondents for the study, irrespective of their experience in the organisation, cadre of employment, sex and other criteria of employment. The total sample size of the study was fixed at 1000 respondent employees.

From the data collected and presented in table 1, it is found that 31% constituting 310 respondent employees of the total are from the Middle level Management cadre and 25% of them constituting 250 respondent employees are from the technical cadre thus formulating a majority

Employment profile No. of respondents Percentage Top Level Management 70 07 Middle Level Management 310 31 Consultant 20 02 Technical Cadre 250 25 Research & Development 90 09 Manager 120 12 Front Office & Assistants 140 14

Total 1000 100


56% while the remaining 46% of them are from the various other cadres of employment as stated in the table.

Table 3: Respondent employees’ previous employment status


Table 4: Years of experience respondent employees have gained from previous employment


It is found from the study that 73% of the respondent employees were employed previously and among these 55% of them have gained work experience between 1 – 3 years from their previous employment before joining their current employment.

Table 5: Respondent Employees reasons to seek change in Employment from their previous organisation

Note: Here the total would not be equal to the total number of respondents taken for the study as the respondent employees had the liberty to mark more than one reason for seeking change in from their previous employment.

First employment No. of respondents Percentage Yes 270 27 No 730 73 Total 1000 100

Response No. of respondent Percentage Less than 1 year 90 12 01– 03 year 400 55 05 07 years 90 12 7 years and above 150 21

Total 730 100

Reasons to seek change No. of responses Percentage Less Salary 190 13 Time Schedule 80 06 Career Growth 460 33 Technological grounds 60 04 Personal Reasons 120 08 Better Prospectus 160 11 Company Policies 60 04 Process Shutdown 10 01 Nature of Job 160 11 Hierarchy & Relationship 70 05 Unable to cope up with changes 50 04

Total 1420 100


33% of the respondent employees constituting 460 of 1420 responses cite career growth as the major reason for them to quit their previous employment, followed by 190 responses constituting 13% of the total say that less salary paid by the previous employer being the reason for seeking change in employment. Further, 160 responses each from the respondents say that nature of the job and better prospects are the two other major reasons for them to seek a change from their previous employer constituting 22% together. The next major component of the reason for the respondents to seek change in their employer is due to personal reasons constituting 08% of the remaining total while all the other remaining factors like time schedule, technological grounds, company policies, process shutdown, hierarchy and relationships and unable to cope up with changes in the organisation contribute the remaining 24%.

Table 6: Factors motivating respondent employees to accept the offer by the organisation


Factors Motivating Respondent Employees to accept the Offer by the Organisation

340

50

170 170

310 300 290

60

280

0

50

100

150 200

250

300

350

400

1 2 3 4 5 6 7 8 9

Factors

Num

ber of Respo

nses

Figure 2: Factors motivating respondent employees to accept the offers of an organization

After citing the reasons for them to change their job from previous employment, the study probed in detail to find whether they found those deficiency found in their previous employment is fulfilled by their present employer in the organisation. The following is found from the study

Motivating factors No. of responses Percentage Goodwill of the Organisation 340 17 Profit turnover 50 03 Salary 170 10 Time schedule 170 10 Work environment 310 16 Nature of job 300 15 Personnel policies 60 02 Scope for growth 290 14 Opportunities available 280 13

Total 1970 100


with regard to factors motivating them to accept the employment offer from the present organisation. It is seen that good will of the organisation has taken the front seat for the respondent employees to accept the present employment with 340 responses constituting 17% of the total, while work environment, nature of the job, scope for growth and opportunities available have 310, 300, 290 and 280 responses respectively constituting a total percentage of 58%. While the third major factor for respondent employees to accept the offer from the present employer is found to be salary and time schedule with 170 responses each constituting 20% from both these factors. The remaining 05% of the total is contributed by the factors like profit turnover and personnel policies.

Table 7: Respondent Employees’ Satisfaction Status with their present Employment and Organisation

Table 8: Respondent Employees willingness to continue with present Employment in years

From the study it is found that 84% of the employee respondents are satisfied with their present employment of which 38% of them are willing to continue in the organisation for next 1 3 years time, while 28% of them say they will not seek a change in employment in the next 5 – 7 years time. As 20% of the respondent employees who are satisfied have said that they are willing to continue in the organisation for 7 years and above while only 14% of them have said that they will stay in the organisation for less than a year. In spite of majority respondent employees being satisfied in their present organisation still a question was posed to know the factors that would require a change in their organisation and would make them feel still happier and satisfied.

Respondent employees feel that the major changes preferred in the organization to enable them to sustain in the long run is to have major changes in the salary structure constituting 28%, revamp the personnel policies contribute the next major share of 17% of the total while, opportunities and scope for growth are the factors where changes are preferred constituting 26% together, the other reason like goodwill of the organisation, profit turnover, time schedule, nature of job and work environment all contribute the remaining 29% of the total.

Response No. of respondent Percentage Yes 840 84 No 160 16 Total 1000 100

No. of years No. of respondent Percentage < 1 year 118 14 01– 03 year 319 38 05 07 years 235 28 7 years and above 168 20

Total 840 100


Table 9: Changes preferred by Respondent Employees in the present organisation

3.3 Statistical test

From the study, it is found that those factors that motivated the respondent employees to accept the offer from the organisation were not the same factors that they look for changes in the organisation. Hence, the data collected in this regard from the study in table 6 and 9 was subjected to Spearman Rank Correlation Coefficient test.(Dr. Alice 2004)

Table 10: Rank Correlation Coefficient test between the table 6 and table 9 data

X Y R1 R2 d=R2R1 d 2 17 02 09 02 07 49 03 01 02 01 01 01 10 28 3.5 09 5.5 30.25 10 08 3.5 3.5 00 00 16 08 08 3.5 4.5 20.25 15 10 07 05 02 04 02 17 01 08 07 49 14 13 06 6.5 0.5 0.25 13 13 05 6.5 1.5 0.25

∑ d 2 = 156

Correction Factor m 3 1 – m1 m 3 2 – m2 m 3 3 – m3

C F = + + 12 12 12

2 3 – 2 2 3 – 2 2 3 – 2 = + +

12 12 12

Respondent preferring changes in No. of responses Percentage

Goodwill of the organisation 30 02

Profit turnover 10 01 Salary 330 28 Time schedule 90 08 Opportunities available 160 13 Nature of job 120 10 Personnel policies 200 17 Scope for growth 150 13 Work environment 100 08

Total 1190 100


= 1.5

Rank Correlation coefficient

6 [ ∑d 2 + cf ] r =

n

6 [156 + 1.5] =

9 3 9 = 0.78

The results above indicate that there is highly positive correlation between the factors that motivated the respondent employees to accept the offer from the organisation and the factors they prefer to have changes in the organisation. Meaning the factors that have motivated them to accept the offer from the organisation does not require any changes, while the factors that have not motivated them after accepting the offer in the organisation has been marked for changes. The inferred value is 0.78.

Table 11: Respondent Employees response with regard to recommending the organization for Employment to others

Respondent Employees Response with regard to recommending the organisation for Employment to others

840

160

Yes No

Figure 3: Respondent employee’s response with regard to recommending the organization for employment to others

Response No. Of respondent Percentage Yes 840 84 No 160 16 Total 1000 100


From the study it is found that 840 of the total respondent employees taken for the study have said that they are satisfied with the organisation and their employment at present. Human psychology speaks and proves that only what interest an individual would be recommended to others.

Hence, to test the psychological parameter of how these satisfied respondent employees would react to the question of recommending the organisation for employment to others was asked and it is observed and found that all those who are satisfied would recommend the organisation for employment to others while those who are not satisfied have said that they would not recommend the organisation for employment to others.

Table 12: Respondent Employees awareness of Man Power Planning adopted in the organisation


Figure 4:

Rspondent Employees Awareness of Man Power Planning adopted in the Organisation

0 200 400 600

Aware

Not aware

Fact

ors

Number of Responses

Aware Not aware

Response No. of respondent Percentage Aware 570 57 Not aware 430 43 Total 1000 100


Table 13: Respondent Employees responses on the factors incorporated in the Man Power Planning of the organisation.


Figure 5:

0 50 100 150 200 250 300 350

Number of Responses

Respondent Employees Response on the Factors being incorporated in MPP of the Organisation

Recruitment & selection

Orientation & placement

Performance appraisal

Employee remuneration

Incentive payments

Employee benefit & services

The study mainly focusing on Man Power Planning and its impact on reducing the labour turnover in an organisation, attempted to understand from the respondent employees about their awareness of Man Power Planning being adopted in their organisation and their awareness with regard to the factors that are incorporated in it at implementation stage.

It is found from the study that of 1000 respondent employees taken for the study, 570 of them are aware of Man Power Planning being adopted in the organisation and hence further it is probed for their awareness of the factors that are incorporated in Man Power Planning.

It is seen from the study that all the factors stated above in the table are well incorporated in the system of Man Power Planning and is implemented in the organisation. It is also found that every factor stated above has more or less same relevance and important factor implemented and

Factors incorporated No. of responses Percentage Recruitment & selection 320 19 Orientation & placement 250 15 Performance appraisal 300 18 Employee remuneration 260 16 Incentive payments 250 15 Employee benefit & services 290 17

Total 1670 100


incorporated in the system of Man Power Planning in the Organisation, with very little difference in the response opinion of the respondent employees of the organisation.

Table 14: Respondent Employees satisfaction status with the process of implementing the factors of Man Power Planning in the organisation


It is found that 570 of the respondent employees are aware of Man Power Planning being incorporated and implemented in the organisation. The study further probed the respondent employees being satisfied or not satisfied with the process of Man Power Planning being implemented in the organisation and it is seen that 90% of the respondent employees are satisfied.

Table 15: Respondent Employees responses on the factors that needs improvement in the Man Power Planning of the organisation.


It is quiet natural for an individual to think for improvement and further perfection as human nature is not to get satisfied but move further the level of satisfaction. In tune to this urge of human aspiring to further level of satisfaction, the study probed with those satisfied respondent employees as to which factors require further improvement in the system of Man Power Planning.

It is seen that policy of Employee remuneration is the first major factor that requires improvement in the system of Man Power Planning followed by the system of performance appraisal with 31% and 20% of the total respectively.

Further, it is also seen that the policy of incentive payments also requires a major improvements in the system of Man Power Planning of the organisation with 16% of the total. It is inferred that 67% of the total comprises of these three factors as major ones that requires changes.

Response No. of respondent Percentage Satisfied 513 90

Not satisfied 57 10 Total 570 100

Factors implemented No. of responses Percentage Recruitment & selection 60 10 Orientation & placement 50 08 Performance appraisal 120 20 Employee remuneration 190 31 Incentive payments 100 16 Employee benefit & services 80 13 Others (specify) 10 02

Total 610 100


Table 16: Respondent Employees responses on the factors to be Incorporated in the Man Power Planning of the organisation.


From table 9 it is found that Employee Remuneration, Performance Appraisal and Incentive payments are the major factors that would require a change in the system of Man Power Planning implemented in the organisation.

Further, it is probed to find that what factors are to be incorporated in the system of Man Power Planning in the organisation that does not exist at present. The study reveals that the respondent employees have cited certain factor that needs to be incorporated are very closely related to those factors that requires further improvement.

These factors are Bonus pack, Retention package, Promotions, High Compensation Package, Training Compensation and Fringe Benefits contributing 80% of the total.

Table 17: Respondent Employees responses on the areas in which the existing Man Power Planning of the organisation has helped.


Factors No. of responses Percentage Retention package 150 16 Executive remuneration 40 04 Wage incentives 70 08 Fringe benefits 90 10 Employee safety 70 08 Training compensation 90 10 Bonus pack 170 17 High compensation pack 100 11 Promotions 150 16

Total 930 100

Areas No. Of responses Percentage Easy recruitment 50 06 Effective selection 170 22 Less employee turnover 110 14 Effective training 120 15 Effective promotion 70 09 Effective transfer 40 05 Goodwill 140 18 Create brand image 80 10 Others 10 01

Total 790 100


Many of the respondent employees have said that the existing man power planning as a tool in the organisation has helped the organisation in effective selection of human resources constituting 22%, in creating good will of the organisation 18%, leading to effective training15% and in bringing down the on roll employees moving out of the organisation (labour turn over) 14%. While the other factors like creating a brand image, effective promotion, easy recruitment, effective transfer and others constitute 31% of the remaining total.

Table 18: Respondent Employees responses on the factors of Man Power Planning contributing in reducing labour turnover.


It is inferred from the above table as respondent employees have cited that due to implementation of man power planning, effective selection procedure was adopted and enhanced employee ability is found and due to effective training programme adopted through man power planning it has created good will and has lead to effective compensation policies implemented to the work done.

3.4 Statistical test

From the study, it is found that Man Power Planning has helped certain areas of the organisation and their contribution towards certain process of Man Power Planning in reducing labour turnover in the organisation.

Hence, the data collected from the study on these two aspects were subjected to find the relationship between these two tables using t distribution. (Rajmohan 2005)

H0 There is a relationship between Table 11 and 12.

H1 There is no relationship between Table 11 and 12. Level of Significance α= 5% with 13 df

t value = 2.16 Therefore t observation is < t value

That is 1.616 < 2.16. Therefore the null hypothesis is accepted.

Factors No. Of responses Percentage Effective training 100 18 Efficient promotion 70 12 Enhanced employee ability 130 23 Increased compensation 110 19 Goodwill 120 21 Other 40 07

Total 570 100


Table 19:

X1 X2 X1 2 X2

2

06 18 36 324 22 12 484 144 14 23 196 529 15 19 225 361 09 21 81 441 05 07 25 49 18 324 10 100 01 01 100 100 1472 1848 Level of Significance 5% 5% Level of Satisfaction 6.33 5.517

test statistics 1.616

As per the data in Table 17 and 18 respondent employees responses on the areas in which the existing man power planning of the organisation has helped and respondent employees responses on the factors of man power planning contributing in reducing labour turnover proves that the averages are same and it corelates each other.

Further, it is seen that since the areas of man power planning like recruitment and selection, good will created among the employees and effective training has certainly helped the organisation with employees enhanced ability to work and has made it possible for the organisation to reduce labour turn over as its result.

Table 20: Respondent Employees willingness to continue further education


Table 21: Respondent Employees reasons towards seeking additional qualification other than Employment

Response No. Of responses Percentage Yes 900 90 No 100 10

Total 1000 100

Reasons No. Of responses Percentage Individual growth 333 37 Career growth 306 34 Requirement of present job 27 03 Promotion 27 03 Enhancement of salary 54 06 Good move in hierarchy 153 17

Total 900 100



It is inferred from the study that 90% of the respondent employees have said that they are willing to continue their further education to improve their educational qualification, have said that career and Individual growth are to be the major reason for them to seek additional qualification constituting 71% of the total, while others form the remaining part of the total.

4. Recommendations

It is recommended that since most of the employees in Information Technology Enabled Services Organization are very much interested to continue their further education, it would be appreciative if the organization itself sets up their on campus learning centre to pave way for employees to pursue their higher education in tie up with Institutions of repute, so that retention of employees with higher qualification and knowledge is possible.

And by doing this, the organization can come to an memorandum of understanding with the employees where, the organization can ask the employees who take up this programme to commit for a minimum lock in period with the organization.

Since, majority of them have felt that career growth is one of the major factor for them to seek change in employment, then it is better to the organization to project the same and highlight of the possible career growth to every employee during their induction, training programme the employees attend and display prominently at every strategic point in the organization.

It is recommended that, the employees are provided sufficient information on Man Power Planning so that every employee is aware of its importance and how one can proceed with it in their career and also call for their active participation in the process of Man Power planning, its implementation, changes and its effective implementation.

It is also recommended that the organization utilize the Man Power Planning as a tool to cover all the major aspects of managing human resources effectively and efficiently.

5. Conclusion

The study has been found to be useful in the process of understanding the organisations Man Power Planning from end to end approach as this plays a very vital role in the management of human resources.

The study has thrown light right from the area of Man of Man Power Planning as a process from it being a tool in managing the most crucial human resources, without which the organisation cannot move an inch forward in the present day competitive world.

Employees being the most crucial element in the success story of the organisation, it is found from the study that their satisfaction will take the organisation a long way. However, it would be wrong to say that 100% satisfaction would be achieved in this process.


Therefore, it is very ideal and apt that the minimum level of satisfaction should be always achieved in the process and the concept of my organisation and our growth will fetch long term benefits to both the employees and the organisation..

Hence being dynamic in approach and looking for constant innovations, being creative and updating ones skill and knowledge is mandatory for the employees and to look forward for growth and development in the organisation at large.

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