A STUDY ON MANPOWER PLANNING AND HR AUDIT PRACTICES IN SMES WITH SPECIAL REFERENCE TO SIPCOT INDUSTRIES

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M.E-CONSTRUCTION ENGINEERING & MANAGEMENT
GUJARAT
TECHNOLOGICAL
UNIVERSITY
BIRLA
VISHVAKARMA
MAHAVIDHYALAYA
PREPAIRED BY:
TARUNA R. DESARIA (140080714003)
M.E-CONSTRUCTION ENGINEERING &
MANAGEMENT
B.V.M. ENGINEERING COLLEGE
VALLABH VIDHYANAGAR
UNDER GUIDANCE OF:
PROF. JAYESHKUMAR R.PITRODA
ASSISTANT PROFESSOR & RESEARCH SCHOLAR
CIVIL ENGINEERING DEPARTMENT
B.V.M. ENGINEERING COLLEGE
VALLABH VIDHYANAGAR
“ A STUDY ON MANPOWER PLANNING AND HR AUDIT
PRACTICES IN SMES WITH SPECIAL REFERENCE TO
SIPCOT INDUSTRIES ”
HUMAN RESOURCE MANAGEMENT
(2731404)

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S. Suresh Kumar (2014), “A STUDY ON MANPOWER
PLANNING AND HR AUDIT PRACTICES IN SMES
WITH SPECIAL REFERENCE TO SIPCOT INDUSTRIES
”, Asia Pacific Journal of Research , Vol: I, Issue XV,,
PP.101-105.
PAPER

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ABSTRACT
 Organization and individual should develop and
progress simultaneously for their survival and
attainment of mutual goals.
So every modern management has to develop
the organization through human resource
development.
 Employee training is a specialized function and
is one of the fundamental operative functions for
human resources management.
 The present study deals with manpower
planning and HR audit practices in SMEs of
SIPCOT industries in Perundurai.

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 Manpower planning aims at the optimal use of
the present and future workforce of the
organization, thus it is required for getting
maximum results from the investment in human
resources.
 Manpower planning involves both quantitative
and qualitative aspects.
While the quantitative aspects deal with the
right number of people at a job, the qualitative
aspect involves the search for the right kind of
people for a particular job.

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Introduction
 Manpower Planning which is also called as
Human Resource Planning consists of putting
right number of people, right kind of people at the
right place, right time, doing the right things for
which they are matched for the achievement of
goals of the organization.
Human Resource Planning has got an important
place in the field of industrialization.
Manpower Planning is a two-phased process
because manpower planning not only analyses
the current human resources but also makes
manpower forecasts and thereby draw
employment programmes.

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 Shortages and surpluses can be identified so
that quick action can be taken wherever
required.
All the recruitment and selection programmes
are based on manpower planning and it helps to
reduce the labour cost as excess staff can be
identified and thereby overstaffing can be
avoided.
Through manpower planning, human resources
can be readily available and they can be utilized
in best manner.
It helps the organization to realize the
importance of manpower management which
ultimately helps in the stability of a concern.

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Need For The Study
Increase in the size of Business—Manpower
planning is very helpful when there is expansion
of the plant.
 At the time of taking the decision for expansion
of the plant, a large number of workers are
required to be recruited.
For this purpose a stock of the existing
manpower should be taken and future need of the
personnel should be assessed.
It is very necessary to know whether personnel
are to be recruited from outside or from inside
and how the training facilities are to be set for all
this manpower planning is essential.

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STATEMENT OF THE PROBLEM
There is no denying the fact that the continual
encouraging development of a business is owing
to its successful planning.
Making preparations and arrangements on the
basis of what is expected to take place and
performing tasks in an organized and capable way
is one of the key roles of management in that it
involves effective planning process.
 It is through the process of planning as well as
designing the organizational structure by
assigning an mixture of responsibilities to the
employees that business organizations may
accomplish their set objectives.

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The concept that the right person should be
employed at the right place and at the right time
is vitally important to a business as it includes a
broad and comprehensive range of activities in
relation to the management of man, while it
entails man power planning, at the same time,
being focused on the effective utilization of
existing human element as well as fulfilling
future needs of manpower in the organizations
whenever the situations require.
The study aims at finding and analyzing the
man power planning practices in SMEs with
special reference to SIPCOT, Perundurai, Erode
District.
Two-way table and chi-square test was used for
further analysis.

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Objectives of The Study
1. To identify gaps, lapses, failure in applying man
power planning policies, procedures, practices
and HR-directives.
2. To analyse man power system and modify to
meet challenges in the organisations
3. To take the corrective steps to rectify mistakes,
shortcomings contesting effective work
performance of HR- Department.

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RESEARCH METHODOLOGY
 The research design is the analytical structure
with in which the research is conducted; it
constitutes the blue print for the collection,
measurement and analysis of data.
 This research is descriptive type and cross
sectional study has been made.
 The size of the sample used for the collection of
primary data is from 17 organizations in SIPCOT,
Perundurai.
 Random sampling method has been followed in
this research.
 Both primary and secondary data have been
used. The primary data were collected from the
organizations using questionnaire.
 The secondary data relating to the HR audit
have been gathered from various journal, books,
and website.

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TABLE. 1
MANPOWER PLANNING AND LEVEL
OF PREFERENCE ON HR AUDIT

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It is inferred from above table that manpower
planning and level of preference on HR audit of
the respondents belongs to high the ranges
between 23.8 and 28 with a mean score of
25.28 and the standard deviation of 1.79 and
the respondents belongs to medium ranges
between 13 and 26 with a mean score of 16.83
and the standard deviation 4.7 and the
respondents belongs to low ranges between 7
and 29 with a mean score of 15 and the
standard deviation 10.16.
Hence, the manpower planning was highly
preferred for the HR audit.
With a view to study the association between
the manpower planning and level of preference
on HR audit, the two- way table has been
prepared and presented as under.

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Table. 2
MANPOWER PLANNING AND LEVEL
OF PREFERENCE ON HR AUDIT
(TWO- WAY TABLE)

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It is concluded from table that the percentage of
high level of preference on HR audit of the
respondents is the highest 85.7 percentage among
the respondents are high manpower and the
lowest 25 percentage among the respondents of
low manpower.
The percentage of low level of Preference is the
highest 75 percentage among the respondents of
low level manpower and the lowest 14.3
percentage among the respondents of high level
manpower.
 Hence, the higher 85.7 percentage constitute
that the category of high respondents. In order to
study the relationship between manpower
planning and level of preference on HR audit of
the respondents, analysis of variance has been
applied and the result of the test is given below.

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Table. 3
MANPOWER PLANNING AND LEVEL OF
PREFERENCE ON HR AUDIT (ANALYSIS OF
VARIANCE)
The analysis of variance shows that the
calculated value of ‗F‘ is more than the table
value, which implies that the relationship
between manpower planning and level of
preference on HR audit of the respondents does
not holds good.

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SUGGESTIONS
1. The aim of the manpower planning is confined
to top level management. This affects the good
organizational conditions and it is better to
keep it open and all the employees of the
organization may be informed of the goal of the
organization.
2. The top management of this organization does
not give due attention and encouragement to
the highly skilled (potential) employees of
various departments. This affects good HRD
Climate of the organization and it reflects in
their job satisfaction which may affect the
productivity. Hence it is suggested that the top
management should give due emphasis in the
manpower planning.

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3. It is suggested that the selection, transfer and
promotion process may be transparent as far as
the competencies of the personnel are concerned.
Every employee should be aware of the
competencies required to be all-round employee
and move up to the next higher position
4. To maintain a good HR audit and practices, a
better communication method may be inculcated
among the peers, superiors and subordinates.
5. The observation of the researcher identified
that the employees are not given separate training
for their non technical skill development. Hence it
is suggested that a separate training centre may
be organized and the employees may be directed
to utilize it effectively to improve HR practices.

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Conclusion
The need for capable working force is ever
increasing. More and better trained employees
are constantly needed in all enterprises.
Particularly, the labour force in all SMEs is in
constant state of flux.
The observation of the present research shows
that there is definite positive relationship
between manpower planning and HR audit
practices in SMEs.
It also enables the higher officials to know how
well the employees know about their work and
where they stand.

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It enables them to identify their real position
and make them involve in training which helps
them to learn new aspects to perform better and
improve their work performance and HR audit
practices.
 Again it should not be misconstrued that the
need for sufficient supply of capable working
force and experienced executives is apparent
only in large companies, the very same need exist
in SMEs and even in one man shows.
So the study concluded that every SMEs should
estimate its manpower requirements so as to
carry on its operations smoothly.

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22. 22THANK YOU