Human Resource Planning and Audit

696 Pages·2015·5.31 MB·English

by  Arun Sekhri

Human Resource
Planning and Audit
Arun Sekhri
Director, Search Right Consultants
Prof. Mahatma Gandhi Mission,
Institute of Management Studies and Research
Visiting Faculty
Institute of Technology and Management, Kharghar
Mumbai School of Business, Belapur
(Navi Mumbai)
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No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form of by any means, electronic,
mechanical, photocopying, recording and/or otherwise without the prior written permission of the publishers.
First Edition : 2010
Edition : 2012
Edition : 2013
Edition : 2016
Edition : 2017
Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd.,
“Ramdoot”, Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004.
Phone: [phone], Fax: [phone]
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Branch Offices :
New Delhi : Pooja Apartments, 4-B, Murari Lal Street, Ansari Road, Darya Ganj,
New Delhi - 110 002. Phone: [phone]; Fax: [phone]
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Bengaluru : Plot No. 91-33, 2nd Main Road Seshadripuram, Behind Nataraja Theatre,
Bengaluru - 560020. Phone: [phone], Mobile: [phone]
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Hyderabad - 500 027. Phone: [phone]
Chennai : New No. 48/2, Old No. 28/2, Ground Floor, Sarangapani Street, T. Nagar,
Chennai - 600 012. Mobile: [phone]
Pune : First Floor, Laksha Apartment, No. 527, Mehunpura, Shaniwarpeth
(Near Prabhat Theatre), Pune - 411 030. Phone: [phone];
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Lucknow : House No. 731, Shekhupura Colony, Near B.D. Convent School, Aliganj,
Lucknow - 226 022. Phone: [phone]; Mobile: [phone]
Ahmedabad : 114, SHAIL, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura,
Ahmedabad - 380 009. Phone: [phone]; Mobile: [phone]
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Printed at : Geetanjali Press Pvt. Ltd., Nagpur. On behalf of HPH.
The Moving Finger writes; and, having writ, Moves on……
“We are in another critical moment: the transition from the industrial to the knowledge-based economy. We
have begun experiencing radical changes in the society as well as in the business.
Business, as we know, is disappearing. Companies are not selling products; they are selling experience. There
are no longer competitors, just better solutions and more choices that can be put together in more ways. In other
words, companies focused on competitors are focused on the past, not a future full of technological and demographic
opportunities and challenges.
In the new economic order, you don’t “empower” people. You help them measure themselves by their contribution
to the whole. You will attain the greatest results in business if you drop the word “achievement” from your vocabulary.
Replace it with “contribution.”
“Do you deliver the results by ‘contributing’ to the business of the organisation” Peter Drucker continues to
pose challenges to the human resource professionals, “is your HR strategy innovative enough to work well with your
business strategy? What is your company’s target role or influence in defining the emerging markets? What is the
scope of human resource offering to these markets? How do your opportunities fit with your business strategy? Do
you collaborate with your chief executive officer to set the course for the company and commit to the goals that will
define the company and its common business objectives? What is your strategy for investing in human capital and
knowledge for effective human resource planning?
The first sign of decline of a company is loss of appeal to qualified, able and ambitious people. Human Resource
must systematically develop people. They have to provide people with the means to make their maximum contribution
to the organisation’s success.
Human resource’s ‘contribution’ to become the company’s strategic business success partner is the best tribute
we can offer to Peter Drucker.

Conceptual Framework of Book
Human Resource in Search of Excellence
Realizing he was lost, a balloonist dropped down to ask directions. “Excuse me, but I’m a
little off course” he shouted. “I promised to meet a friend an hour ago; I don’t know where I am.”
A woman hollered back: “You’re in a hot air balloon hovering approximately 30 feet above
the ground. You’re at exactly 40 degrees, 22 minutes, and 21 seconds North latitude and 70
degrees, 30 minutes, and 33 seconds West longitude.”
“Amazing,” the balloonist replied. “You must be an engineer!”
“I am,” she replied, “How did you know?”
“Well,” answered the balloonist, “everything you told me is technically correct, but I can’t
use your information. I’m still lost and you haven’t been much help at all. If anything, you’ve
delayed my trip.”
The woman thought for a moment, then replied: “You must be from human resource
management.” “I am,” replied the balloonist, “but how did you know?”
“Well,” said the woman, “you don’t know where you are or where you’re going. You’ve
risen to your position due to a large quantity of hot air. You made a promise that you have no idea
how to keep, and you expect people beneath you to solve your problems.”
“In fact,” she said, “you’re in exactly the same position you were before we met, but
somehow it’s now my fault.”

Acknowledgements
Writing a book is similar to entering a long-term relationship with an obsessive partner. Throughout the six
months it took to write this book, life went on. The book demanded constant attention. I’d like to thank the people that
made it possible to focus on the book to the exclusion of nearly everything else. My wife, Neeru and daughters,
Sargam and her hubby Rahul (New Zealand) and Vandana supported and encouraged me throughout, even when I
was little more than a reclusive houseguest hunched over the computer in the study. Additionally, Neeru acted as my
editor as and when I needed her assistance. Rahul and friend Joi helped in designing the cover page of the book.
Thanks, all of you.
“If you want to make a new contribution, you have got to make a whole new preparation”, Shri. K. N. Pandey,
the partner of Himalaya Publishing House, told me during my meeting with him in the presence of my friend Shrawan
Kumar Srivastava, Sales Manager (Himalaya Publishing House) whom I owe gratitude for introducing me as member
of the HPH family and for helping and directing to complete the project. “I want you to write a very simple text book,
adhering to the norms and syllabus of the various universities and business schools, with lots of Indian examples and
case studies from industry to enable the students to internalise the concepts and real life events in the business”
K. N. Pandey concluded the meeting with his broad smile and a warm hand-shake.
Months later, I met Sudhakar Patil, Head of the Production, an unassuming and a generous personality, always
in readiness to extend his help. I shall always remember his cooperation and dedication to edit and finally produce and
print the book. I shall remember Nimisha Kadam, Deepali Bobhate and Sarita Pandey and the other staff members
in production for their valuable time they spent in desk-top operations and Mr. Joy Jacob for his brilliant editing. Once
again, thanks, all of you.
I say my thanks to Anuj Pandey, director, and Ms. Meena Pandey, publisher, Himalaya Publishing House, for
their useful suggestions and guidelines for writing the book.
I am very proud of my Human Resource students (MMS 2008-10) from ‘MGM Institute of Management
Studies and Research’, Navi Mumbai; Neha, Shalini, Shadab, Arshee, Sandhya, Shradha, Snehal, Pooja, Mridulika,
Megha, Rucha, Chitra and Neha Wankhede. Besides contributing to the contents presented in the various chapters of
the book, they arranged and conducted an interview with Raghunath Medge, President of the Nutan Mumbai Tiffin
Box Supply Charity Trust (Dabbawalas) and wrote it in the form of a case study in’ Strategic Planning’. I am
thankful to Shalini for giving her permission to include part of her project in the Chapter Eight of this book on ‘360
Degree Performance Appraisal System and its Linkage to Compensation in a Public Sector Undertaking’.
Asma Velani, my student from Human Resource (MMS 2008-10) from ‘Indira Institute of Business Management’,
Navi Mumbai, needs special mention. She has contributed a very detailed and a well researched subject (appearing
in Chapter Eight) on ‘Strategic Planning in Preparing Standard Operating Procedures (SOP) in Compensation and
Benefits’.
I am individually thankful to all my bright Human Resource students (PGDM-HR-2008-10) from the ‘Institute
for Technology and Management’ (ITM), Navi Mumbai, who have contributed part of their research projects on
Human Resource Audit appearing in the tenth, eleventh and twelfth chapters of the book.
I am personally obliged and thankful to Dr. Jack J. Phillips and Dr. Patti P. Phillips, the directors of ROI Institute
Birmingham, UK for their permission to use the various concepts of ROI in Chapter three of the book.
Dr. Linda Gravett, a Human Resource Management practitioner, founded Gravett and Associates in Cincinnati,
Ohio, USA. I acknowledge, with gratitude and thanks, her permission to quote some of her articles on Return on
Investment.
My thanks are due to Dr. John Sullivan, the well-known author, educator and provocateur and the chief executive
officer of Dr. John Sullivan & Associates, Pacifica, California, USA, whose articles on human resource planning find
space in this book.
I thank ‘The Drucker Institute - Claremont Graduate University’, Claremont, California, USA for having sent its
permission to quote Peter Drucker throughout the book.
News items, interviews, frequently asked questions, quotes of authors have been cited in the book from the
archives of newspapers and magazines and websites. I thank The Times of India, The Indian Express, The Economic
Times, Hindustan Times, Mint, India Today, Business Today, Rediff. Com, Google and Yahoo.Com.
My friends and colleagues in academics, who have encouraged, guided and helped me throughout deserve a
very special mention and profound thanks: Dr. A K. Dasbiswas, Dean and Dr. C.S Adhikari, Director, ITM Business
School, Prof. B.V. R Murthy, Deputy Director, and Ms. Genevieve Tandon, Senior Manager-Academics, Global
Leadership Centre, ITM, Navi Mumbai, Dr. C Babu, Director, YMT Institute of Management Studies, Navi Mumbai,
Dr. Ritu Bhattacharya, Director and Prof. Ashwini Arte, MGM Institute of Management Studies and Research, Navi
Mumbai, Dr. D Y Patil, Director, Suresh Parekh, Advisor- Placements and Corporate Relations, Bharti Vidyapeeth’s
Institute of Management Studies and Research, Navi Mumbai, Ms. Rupa Vasudevan, Director and Vijay Chandorikar,
Chairperson, Mumbai School of Business, Navi Mumbai and Prof. Vijay Handa, Director, Indira School of Career
Studies and Gahlot Institute of Management Studies, Navi Mumbai.
I thank all my well wishers: S. Naidu, Director, Naidu’s Academy of Developmental Studies, Mumbai, Neetu
Dixit, Librarian, MGM Institute of Management Studies & Research, Palekar, Librarian, ITM, Suryavanshi, Librarian,
Bharti Vidyapeeth’s Institute of Management Studies & Research, Prof. Mohan Das Pai, Prof. Tikku, Dean, and
Shelly Pandya, Human Resource Executive from Mumbai School of Business and many others close friends.
Author
DISCLAIMER
Publishing and republishing, reproducing, transmitting, storing or facilitating transmission and storage
of the contents of this book or any other information therein in whole or part thereof in any form
or by any means, verbal or written, electronically or mechanically for any purpose, other than
educational purposes, shall be in violation of the provisions of the Copy Right Act, 1957 and/or the
Information Technology Act, 2000.
The names used in the case studies are fictitious and bear no resemblance to any person, living or
dead, except those which are mentioned in the real-life case studies and were reported by the
visual, electronic and the print media as a part of their news coverage or the ones contributed by
the human resource students from the various management institutes. Any resemblance to actual
persons, living or dead is unintentional and purely coincidental.
In particular but without limiting anything here, we disclaim any responsibility for typographical
errors and/or any inaccuracy of the information contained in the book.