Manpower

Manpower

1) Manpower management and planning forms the core of human resource management and deals with the human resources of an organization. It consists of the process of selection of appropriate individuals as employees based on their skills, making sure they are smoothly fitted into their assigned roles and the overall system, thus ensuring a smooth functioning of the organization. Besides selecting suitable employees, manpower planning also deals with the process of upgrading the existing employees. The human resources are the most valuable asset of any organization as they contribute to the realization of its business objectives. It is the human resources who contribute their time and expertise to the welfare of their organization. Thus, the process of manpower planning and staffing is crucial to the business development of an organization. Personnel management is closely linked to manpower planning and management.

1a) Manpower Management

Manpower management is a strategic approach to the management of people working for an organization. At its core lies the management of people, better known as employee management. Training and managing the recruited employees is an important part of manpower management. Motivating the workers, helping them update their work knowledge and maintaining the attrition rate to a minimum, are some of the other objectives of manpower management. Human resource managers need to cater to safety of the employees. Absence of workplace safety, lack of motivation and an unhealthy work environment are some of the main factors that lead to dissatisfied employees. Satisfaction breeds productivityand this fact makes it necessary for the human resource managers to take all the required measures to ensure a positive environment at work.

2) Manpower Planning

Manpower planning is the first step towards manpower management. It refers to the process of using available assets for the implementation of the business plans. It also involves the process of coordinating and controlling various activities in the organization. An effective manpower planning requires a careful assessment of the future needs of the organization. It involves the development of strategies to match the requirement of employees and availability of positions at a regional as well as a national level. Those in charge of manpower planning need to have a foresight about the business plans. They need to plan the activities for achieving business growth. They are required to estimate the business needs of the organization and plan for the resources needed to realize the business goals. We can refer to manpower planning as the process of reviewing current resources, predicting future requirements and ensuring that the demand and supply of people and skills is balanced. Manpower planning is useful for both the employees as well as the organization.

2a)

Manpower planning and staffing are critical to the welfare of an organization. Manpower management is a niche area today and considering the increasing importance of the valuable human resources in business, the field shall continue to grow.

Manpower Staffing

The selection of suitable candidates on the basis of their skill-set and requirements of the job is known as manpower staffing. A manpower-staffing consultant plays the critical role of analyzing the skills required by a particular position and weigh them against the skills and abilities of the candidates. He/she needs to read people to assess their potential and wisely choose deserving candidates. Getting dedicated and sincere employees is a difficult task that involves a careful study of the personnel, their work preferences and their fields of expertise. It is also necessary to check their educational and social background and assess their personalities in order to fill the positions with only the most deserving candidates. For determining the manpower needs, it is important to create work roles by grouping related work functions together. This helps the human resource managers in identifying the organizational subdivisions. Manpower planning and staffing involve the process of defining the position structures in the organization and preparing job profiles for the positions to be filled. Only then it is possible to begin the actual recruitment process and select appropriate candidates for vacant positions.

Definition and importance of manpower Planning:
Planning is nothing but using the available assets for the effective implementation of the production plans. After the preparing the plans, people are grouped together to achieve organizational objectives.
Planning is concerned with coordinating, motivating and controlling of the various activities within the organization. Time required for acquiring the material, capital and machinery should be taken into account. Manager has to reasonably predict future events and plan out the production. The basic purpose of the management is to increase the production, so that the profit margin can be increased. Manager has to guess the future business and to take timely and correct decisions in respect of company objectives, policies and cost performances. The plans need to be supported by all the members of the organization. Planning is making a decision in advance what is to be done. It is the willpower of course of action to achieve the desired results. It is a kind of future picture where events are sketched. It can be defined as a mental process requiring the use of intellectual faculty, imagination, foresight and sound judgment.

It involves problem solving and decision making. Management has to prepare for short term strategy and measure the achievements, while the long term plans are prepared to develop the better and new products, services, expansion to keep the interest of the owners.

Advantages of manpower planning:
Manpower planning ensures optimum use of available human resources.
1. It is useful both for organization and nation.
2. It generates facilities to educate people in the organization.
3. It brings about fast economic developments.
4. It boosts the geographical mobility of labor.
5. It provides smooth working even after expansion of the organization.
6. It opens possibility for workers for future promotions, thus providing incentive.
7. It creates healthy atmosphere of encouragement and motivation in the
organization.
8. Training becomes effective.
9. It provides help for career development of the employees.

Steps in Manpower planning
1. Predict manpower plans
2. Design job description and the job requirements
3. Find adequate sources of recruitment.
4. Give boost to youngsters by appointment to higher posts.
5. Best motivation for internal promotion.
6. Look after the expected losses due to retirement, transfer and other issues.
7. See for replacement due to accident, death, dismissals and promotion.

Factors which affect the efficiency of labor:
1. Inheritance: Persons from good collection are bound to work professionally. The quality and rate of physical as well as mental development, which is dissimilar in case of different individuals is the result of genetic differences.
2. Climate: Climatic location has a definite effect on the efficiency of the workers.
3. Health of worker: worker’s physical condition plays a very important part in performing the work. Good health means the sound mind, in the sound body.
4. General and technical education: education provides a definite impact n the working ability and efficiency of the worker.
5. Personal qualities: persons with dissimilar personal qualities bound to have definite differences in their behaviour and methods of working. The personal qualities influence the quality of work.
6. Wages: proper wages guarantees certain reasons in standard of living, such as cheerfulness, discipline etc. and keep workers satisfy. This provides incentive to work.
7. Hours of work: long and tiring hours of work exercise have bad effect on the competence of the workers.

Downsizing of manpower:
Downsizing of manpower gives the correct picture about the number of people to be employed to complete given task in the predetermined period. It is used for achieving fundamental growth in the concern. It can work out the correct price by the resource building or capacity building. It aims at correct place, correct man on a correct job.
Thus manpower planning is must to make the optimum utilization of the greatest resource available i.e. manpower for the success of any organization.

1. Objectives of Manpower Planning:- The persons concerned with manpower planning must be clear about goals of manpower planning because once the wrong forecast of future requirement of human resources are made, it may not be possible to rectify the errors in short-run.
2. Current Manpower Inventory:- Assessment of demand for operating personnel presents less problems of uncertainty & current manpower supply can be adjusted accordingly. But for supervisory and managerial levels projection is complex problem because required talents are not available at a short notice. This will also help in drawing recruitment & development plans to meet the needs of certain skills future.
3. Demand Forecasting:- A proper forecast of manpower required in future say, after one year, two years & so on must be attempted. The factors relevant for manpower forecasting are as follows.

(i) Employment Trends:- Manpower planning committee show examine number of employees on pay roll during past 5 year to knew trend within each group to determine whether particular group has been stable or unstable.
(ii) Replacement Needs:- arises due to death, retirement, resignation & termination of employees. It may relate to supervisory, skilled, clarical groups and must be anticipated in advance.
(iii) Productivity:- Gain in productivity will also influence requirements of manpower. Planning for productivity has several aspects. The first aspect relates to effective utilisation of manpower. The second aspect relates to installation of more productive tools, equipments. The last aspect relates to matching of skills with requirements of jobs.
(iv) Growth & Expansion:- A good organisation always tries to adopt itself to change in method & techniques of Production. Therefore Manpower planner should take all these factors into account while studying impact of various business expansion plans on manpower requirements.
(v) Absenteeism:- Means a situation when a person fails to come for work when he is scheduled to work. Due to absenteeism work get upset leading to overtime work which in turn leads to increased cost of production. The management should go into cause of absenteeism & attempt to reduce absentism as far as possible.
(vi) Work Study:- Can be used when it is possible to apply work measurement to know how long operations should take & amount of labour required. This is also known as ‘workload analysis.’

4. Job Requirements:- Job analysis is the qualitative aspect of manpower requirements since it determines what is the quantum of work which an average person can do on a job in a day. It facilitates division of work in to different jobs.
5. Employment Plans:- This phase deals with planning how organisation can obtain required number of right type of personnel as reflected by personnel forecasts.
6. Training & Development Programme:- Training is essential not only for new employees but also for old employees for improving their performance. Similarly executive development programmes have to be devised for development of managerial personnel. The talent of employees are not fully productive without a systematic programme of training & development.
7. Appraisal of Manpower Planning:- After training programmes have been implemented, an appraisal must be made of effectiveness of manpower planning. Deficiencies in programmes should be pointed out & catalogue of manpower inventory should be updated periodically. Conective actions should also be taken whenever it is necessary to remove deficiencies in manpower planning.

 

KEY INFLUENCE ON MANPOWER PLANNING--INDICATORS

Analysing the current manpower resource

Analysis and investigation
Internal labour
Market
Turnover
Cohort analysis
Profiles
Skills audit
Succession
Manpower system
External labour Market
Quality
Availability
Sources
Price [rewards ]
Organization
Assessment
Performance
Productivity
Structure
Technology
Skill change
Rewards
Corporate Strategy
Growth/decay
New markets
opportunities
Objectives
Manpower system
Work methods

OBJECTIVES AND NATURE OF MANPOWER MANAGEMENT

Manpower and HR plannings involves applying the basic planning process to the human resource needs of the organization. To be effective any MP/ HR plan must be derived from the CORPORATE strategic plan of the organization. The success of the MR/HR depends largely on how closely the HRdepartment can integrate effective people planning with the organization's business planning process.

Corporate business planning seeks to identify various factors critical to the success of the organization.It also focuses on how the organization can become better positioned and equipped to compete in the market. This provides
-a clear statement of the organization's mission.
-a commitment from senior management to the mission.
-an explicit statement of assumptions.
-a statement of objectives / strategies.
-a plan of action in light of available or acquirable resources , including human resources.

MP/HR planning contributes significantly to the corporate business process by providing the means to accomplish the outcomes desired from the planning process. In essence
the HR demands and needs are derived from the corporate strategic business plan and then compared with HR availability.

MANPOWER SYSTEM

Once the corporate objectives , strategies and plans are outlined, the directions are filtered down to the business units and departments, involving all levels of management in the organizational planning process.

The business units management and departments management work closely with the HR management to determine the people requirements to achieve their objectives.

Manpower planning has five essential elements:

* Analysing the current manpower resource

* Reviewing employee utilization

* Forecasting the demand for employees

* Forecasting supply

* Developing a manpower plan

While these can be seen as sequential steps, in practice thinking about manpower can begin with almost any of these. This is what makes manpower planning a dynamic process. For instance, a manufacturing function might want to introduce new machinery that will do a job to a better standard and more quickly. To justify the expenditure, the manufacturing manager will be expected to show a saving on labour, which may translate into fewer people. In another case, a downturn in business may provoke an urgent drive to reduce overheads and cuts in office staff. The point is that manpower decisions have been triggered outside the HRM function, and most certainly outside the hands of anyone who carries the title of manpower planner.

The other point that the two examples highlight is that planning can have a short­, medium‑, and long‑term aspect. The long term is necessary to provide a framework for managing broad trends. Long‑term planning should be done regularly and systematically, and plans kept under review. The short to medium term, however, is what matters to most managers.

MANPOWER planning is a simple process, and consists of  five essential elements:

1) Analysing the current manpower resource
2) Reviewing employee utilization
3) Forecasting the demand for employees
4) Forecasting supply
5) Developing a manpower plan

BUT IN REAL LIFE, you need a lot of base information to work with . If you are doing it for the first time yourself and the company, you need to collect / collate the database before you could a meaning exercise.

The manpower planning is interlinked with Organization planning and the HR planning , and one cannot be planned without the support of the other two.

Whether it is a
-organization with no expansion plan or
-organization with major expansion plan or
-organization start up, the conceptual approach is the same. You may not consider all the elements in all cases.

Other important factors that need to be considered are
-investment dimension
-time frame
-product plan / range
-nature of operation [ mfg. marketing or mfg only or trading only etc]
-geographical coverage
-distribution / channel plan etc etc.

These factors plus the corporate planning objectives / strategies plus the consequences of the inbalances from the ANALYSIS & INVESTIGATIONS would dictate the creation of MANPOWER/ HR planning strategies/ tactics [ policies/ procedures/practices etc]

The inbalances could come from
-organization circumstances
-opportunities and expectations
-requirements and availability
-behavioural consequences
-policy on organization structure
-policy on individuals

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FOREIGN GUARANTEE

FOREIGN GUARANTEE

DIFFERENT TYPES ISSUANCE AND PAYMENT

DEFINITION OF GUARANTEE

A guarantee is promise made by the person/organization (or guarantor) to the Banker that he will pay the present or future debt in case of default by the principal debtor. So the guarantor is undertaking to repay the debt in case it is not the principal debtor. We should know who is principal debtor? The person in respect of whose default the guarantee is given is called the “Principal Debtor” and the person to whom the guarantee is given is called the “ Creditor (beneficiary)”.

A guarantee may be either (1) a specific guarantee or (2) a continuing guarantee. A specific guarantee relates to one transaction only & whereas a continuing guarantee covers a series of transactions and the guarantee subsists unless revoked by the guarantor.

In 1992, the ICC published its Uniform Rules for Demand Guarantees (URDG), ICC Publication No.458. The Rules reflect current demand guarantee practice and aim to achieve a fair balance between the competing interests of the parties involved. The ICC believes that the establishment of standards for best practice is beneficial to all concerned with demand guarantee business, and there are already signs that URDG is now being increasingly used as its existence becomes more widely known.

Under Article 2(b) ICC Uniform Rules for Demand Guarantees ICC publication No.458 states that “Guarantees by their nature are separate transactions form the contract(s) or tender conditions on which they may be based, and Guarantors are in no way concerned with or bound by such contract(s), or tender conditions, despite the inclusion of a reference to them in the Guarantee. The duty of a Guarantor under a Guarantee is to pay the sum or sums therein stated on the presentation of a written demand for payment and other documents specified in the Guarantor on presentation in conformity with the terms of the Guarantee.

“Counter Guarantee” means any guarantee, bond or other payment undertaking of the Instructing Party, however named or described, given in writing for the payment of money to the Guarantor on presentation in conformity with the terms of the undertaking of a written demand for payment and other documents specified in the Counter-Guarantee which appear on their face to be in accordance with the terms of the Counter-Guarantee.

TYPE OF GUARANTEE:

There are two types of Guarantee:

a)         Simple Guarantee: A simple guarantee is given in respect of a specific transaction or promise undertaken by the Principal debtor. It comes to an end when the specific Promise or transaction is fulfilled.

b)         Continuing Guarantee: When a guarantee is given in respect of a series of promises or transactions, it is called a “Continuing Guarantee”. The surety specified the amount upto which, and the period within which, he shall remain liable as a surety. The guarantee taken by banks is usually a continuing guarantee, which holds good as security although the balance is the debtor’s account may fluctuate from time to time.

Type of Guarantee that are generally issued by the bank:

(1)        Bid-Bond / Security deposit : This is also called tender or bid guarantee and is generally sought for 2 per cent to 5 per cent of the contract amount. In case of default of the tender at whose request the guarantee is extended, the beneficiary may encash the same.

(2)        Performance Guarantee : Guarantees which are extended in consideration of specific  performance of contract are called performance guarantee. Performance guarantees are given to Government or Corporation on behalf of contractors undertaking to make payment of penalty in the event of non-fulfillment of their performance of contract or supplying goods as per contract.

(3)        Shipping Guarantee : Banks give guarantee/indemnity to shipping companies for release of goods in the absence of shipping documents, in case goods arrive before receipt of such documents by the consignee and are incurring demurrage or original shipping documents have been lost after retirement from bank.

(4)        Customs Guarantee : This guarantee is issued in favour of customs authority on account of custom duties/excise duties on imported goods and machinery or export commodities on behalf of clients.

ISSUANCE OF FOREIGN BANK GUARANTEE AND ITS DIFFERENT TYPES                                                

Sometimes Foreign Correspondent on behalf of its customer requests the Bank in Bangladesh to issue a guarantee in favour of beneficiary in Bangladesh. When the Authorised Dealer issues the guarantee against Counter Guarantee of Foreign Correspondent is called Foreign Bank guarantee. Normally there are two major types of Foreign Guarantees that Bank issues one Bid Bond and another Performance Bond/Guarantee. Generally Foreign Guarantee is issued in the Convertible currency such as, Dollar, Pound Starling, Yen, Deutsche Mark on in the Domestic Currency of the issuing country. Foreign letter of guarantee may be issued other than the above currency provided Foreign Correspondent undertakes that reimbursement claim would be settled in the convertible currencies.

i.          An authorised dealer may without prior approval of Bangladesh Bank, issue guarantee Bid Bond, or Performance Bond in foreign currency on behalf of non-resident firm/company-favouring residents in Bangladesh provided a Back-to-Back guarantee covering the guaranteed amount from an overseas correspondent or other Band abroad is held by the Authorised Dealer. The Authorised Dealer should satisfy itself about the bonafieded of the overseas guarantee before issuing its own Guarantee/Bid Bond/Performance Bond there against.

ii.         Non-resident international agencies may demand Bank guarantees from non-resident contractors against supply of materials/down payment for the on going projects in Bangladesh financed by them. Such guarantee on behalf of a non-resident contractor in favour of the non-resident beneficiary may be issued by an Authorised Dealer against 100% Counter Guarantee from a reputed international Bank abroad, or against 100% cash collateral in Foreign Exchange received from aboard through Banking channel.

iii.        Authorised Dealers may not, without prior approval of Bangladesh bank furnish guarantees to or hold collaterals on behalf of overseas Bank branches or correspondents in respect of credit facilities or guarantees to be extended by them on for any other purpose.

iv.        Authorised Dealers may furnish Performance Bonds/Guarantees in favour of overseas buyers on account of Bangladeshi Exporters subject to the following donations.

a)      The tender floated by the Freeing buyer call for Bank Guarantees/Performance Bond.

b)      The tender is a bonafide merchandise exporter.

c)      There is no export bank on the commodity to be supplied.

d)     The past performance of the tendered (exporter) is considered satisfactory by the Authorised Dealer.

The remittance, if any, to the beneficiary as a result of invocation of the bond or guarantee can be made subject to report to the Bangladesh Bank.

PROCEDURE FOR ISSUANCE OF FOREIGN BANK GUARANTEE

Before issuing a Foreign Guarantee an Authorised Dealer should be very much careful and it is to be ensured:

i.          That the Foreign Correspondent has requested to issue guarantee under Tested Telex treating the instruments as operative or through letter signed by two authorized signatories whose specimen signature are available with the Bank and test have been agreed.

ii.                  That the name and address of the beneficiary along with contest and all other terms and conditions of the guarantee is clearly incorporated.

iii.                That the amount of the guarantee is specific and validity have been mentioned.

iv.                That the Foreign Correspondent has indemnified and undertaken to pay the claim on demands if any arises out of the guarantee issued at their request.

v.                  That the Foreign Correspondent provided counter Guarantee valid upto additional 30 days after expiry of the guarantee to facilitate lodging of claim and settlement thereon.

Having being satisfied with the above, the Foreign Guarantee should be issued on Non-Judicial Stamp Paper and to be sent to beneficiary directly or through the local agent of the principal debtor. Lodgment voucher should be passed in convertible currencies at the rate of T.T. Clean. Commission should be calculated and letter to be sent to Foreign Correspondent requesting to credit the proceeds of commissions to our Head Office Account abroad maintained by International Division. The Foreign Correspondent should also be informed the issuance of Foreign Guarantee against their Counter Guarantee immediately.

PAYMENT OF FOREIGN GUARANTEE

Bank should honour the claim Foreign Guarantee without delay and hesitation in accordance with terms and conditions agreed upon. Generally Performance Guarantee provide a clause under which Banks liability is not affected or suspended because of any dispute between the beneficiary and principal debtors. So Banks should not wait for settlement of such disputes and must make the payment immediately when called upon and such payment is deemed to have been made rightfully and lawfully.

It is now well settled in law that in the event of default, the Bank would pay, on first demand, the guaranteed amount without any contest or protest or without any reference to the customer and/or without questioning the legal relationship subsisting between the customer and the beneficiary. Payment of Foreign Guarantee is made debiting Suspense Account Sundry Debtors after obtaining Head Office approval. Before payment, it is to verified that the claim have been lodged within validity as per terms and conditions of the guarantee and the original Bank Guarantee have been surrendered. Bank recovers the amount paid from the Foreign Correspondent who has given counter Guarantee. Upon receipt of claim from the beneficiary the Bank should lodge its claim to Foreign Correspondent requesting to credit the precedes of Counter Guarantee to Head Office A/C maintained abroad and thus reconciled.

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