Strathgammon Estate Group Ltd (SEG) Senior Management Report for Manpower

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In the current markets, clients demand the execution of projects to be done on Time and on Budget in a professional manner, one of the ways the Senior Management Team (SMT) of Strathgammon Estate Group (SEG) plans to respond to this demand is by initiating a Centralised Manpower Planning Management.

This report highlights the importance and practical steps to achieving desired results through manpower planning on individual companies and as a group.

We will be reviewing current SEG manpower systems, manpower systems that have worked in renowned companies and suggest ways to implement and coordinate manpower solutions in SEG to not only meet clients demand but to increase revenue and efficiency in project execution within the group.

This will include strategic current and future estimation of manpower requirements by individual companies, training modules and adequate communication and feedback methods to the concerned managers who in turn will pass the information to the Human Resource team, which will be under close supervision from the SMT.

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With the Primary factors been applying centralised manpower solutions and keeping a constant monitoring system relying on feedbacks from individual companies with the aim of generating statistics on the cost versus revenue, so that it can be presented to the shareholder that they may know the financial commitment SEG is planning to invest on manpower and plan for it.

Secondary factors been that, the group could gain from an effective manpower planning management, better reputation from clients, boost of morale of the employees, tapping of potential clients, increase in revenue and profits, no loss of productive staff and more professional touch in projects.

Introduction

Following recent statistics, they have shown that SEG has grown precariously over a 70 year period, with inconsistent financial growth in all sectors.

This report is a result of this statistics, to try and highlight some of the inconsistencies of the financial growth and offer possible and practical solutions through manpower planning in individual companies and manpower management as a group.

This report will further highlight benefits, barriers and solutions of manpower solutions, way of implementing a centralised manpower system and ways of maintaining a positive manpower solutions and how it can be communicated to the individual companies as well as the shareholders.

Manpower Planning

3.1 Why is Manpower Planning Important to Business

There are several ways in which Manpower Planning can improve a company. One of the most important is improving company's productivity and cost effective ways to meet organisational goals. SEG upgrade to a centralised manpower solution might seem costly initially; however, the end result will justify the means.

In the modern market, clients demand a project to be executed on time, on budget with a professional touch. Pour manpower planning can be a major hindrance to client satisfaction with serious consequences such as; company losing reputation, no repeat business and losing of current or potential clients.

Thus measures have to be taken to ensure the smooth transition of systems from individual companies to a central system of manpower planning. This will raise new morale and confidence not only to clients but to the existing staff which may increase productivity and overall group profits.

3.2 Manpower Planning

Human resource is one of the most important assets in an organisation as it works to meet the set organisation goals and objectives.

Manpower Planning and Management forms the core of Human Resource Management. This can consist of a rational selection or upgrade of existing employees based on their skill to suit their roles in the organisation.

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 in an organisation.

Those in charge of manpower planning need to have a foresight about the business plans. They are required to estimate the business needs of the organization and plan for the manpower requirements and resources needed to realize the business goals.

Human Resource Planning has to be systematically approached and is carried out in a set procedure as follows;

Review of current manpower access

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Estimating future manpower forecasts

Developing employment programmes

Design training programmes

3.2.1 Analysing the current manpower inventory

Before a manager makes forecast of future manpower, the current manpower status has to be analysed. - this can be done managers providing all the manpower they currently have to the HR -example of Appendix B Manpower Planning sheet

3.2.2 Making future manpower forecasts

Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units.

The Manpower forecasting techniques commonly employed by the organizations are as follows:

Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.

Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure).

Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division.

Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements.

Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis. (Managers (n. d.) Management Study Guide [online])

3.2.3 Employment programme

Following the provided future manpower requirements, the process can commence by the HR Manager choosing an ideal candidate and conducting Job Analysis - preparing job descriptions and specifications in which his skills can be compared with the needs of the organisation - example Manpower Requisition form Appendix C

Additionally, the HR Manager will have to take into consideration Job Evaluation which is the evaluating the job, not the person doing it, the value of the job in relation the other job opportunities in the organisation.

There are two ways of performing job evaluation analytical method - skilled consultants and Non-analytical method - Managers decisions. (College of Estate Management (2004) Manpower Planning)

Manpower staffing - selection of suitable candidates on the basis of their skill-set and requirements of the job, can be newly recruits or advancement of existing staff, involve the process of defining the position structures in the organization and preparing job profiles for the positions to be filled.

Recruitment process - when all the above stages have been passed, the HR can start the recruitment process, where they invite a candidate to physically come to be interviewed - example manpower Planning Hiring approval form Appendix D

Once the candidate meets the requirements set by the job analysis, evaluation and staffing then he can join the organisation and commence training to familiarise him to the new environment.

3.2.4 Design training programmes

Training modules will be an important tool, to the existing and newly recruited staff to pass along new and existing information as well as improve skills of potential existing employees - example of Local Staff Requisition Form Appendix E

Example 1

Lamprell Energy is an International company with growing demand of its services. They are based in Dubai, one of the fastest property growing markets in the world. They recently launched a Manpower planning campaign and their business has never been better.

In their manpower planning they decided to train their surveyors further to meet a uniform standard by enrolling them in RICS course. Like College of Estate Management Degree course, which it led to their surveyors morale been boosted as well as been up to date with the latest surveying knowledge.

Example 2

In PNJ Ltd, there is a workforce of eighty-five been supervised by one person Harry Soamers, who is a member of the board in the company additionally the sale team of five, and is supervised by Gerry Street who is a member of the board - this managers may be too busy to undertake day to day running of the company.

We can suggest a division of the eighty-five employees into four groups with a team leader who can be dealing directly with the managers for the day to day running of the business.

This can be done by recruitment from outside sources or a promotion and training of existing employees

Example 3

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Additionally in Kessner Waldpoduckt GmbH there are only two people (manager and assistant manager) supervising a workforce of twenty two.

There is need for breaking up of the workforce into smaller groups which can be easily managed. This will create a more "personal" relationship between the supervisors and the workforce, which will led to contribution of ideas, and morale boost which in return increase productivity.

3.3 Benefits and Advantages of Manpower Planning

There are many benefits in adapting manpower planning, however we shall concentrate in the ones that can be most influential in SEG as a group, such as;

Smooth running of business - this can be achieved by estimation of manpower and shortages or surpluses identified for quick action.

Better recruitments methods, which will led to better selection of candidates which can execute project more efficiently.

Reduction of labour cost as surpluses can be easily identified.

Easy identification if need for subcontract labour source which can be hired and off hired at strategic times in the business cycle.

Better tapping of existing talent, which can reduce the costs of training and recruiting new staff.

New ideas can be introduced to the business as a result of hiring experienced employees which in turn can attract new business.

Boost the morale of employees as with internal promotions, training sessions which in turn will lead to better productivity thus better results.

With better manpower planning the organisation over time might try and venture on new markets e.g developing complex projects like in The Palm in Dubai.

Managers can be in full control of the manpower requirements as there is a protocol in place which effectively communicates requirements or shortages.

Provides smooth working even after the organisation expands.

Barriers and solutions to manpower planning

Barriers of manpower Planning

For every new system to be fully appreciated, we have to look at some of the challenges we have to face and deal with them in a practical and professional way for maximum results.

Identifying surplus or excess manpower - this will be a major obstacle, especially in SEG that is trying to introduce a central system of MP, this is due many facets in the group.

This can be met by implementing good communication methods from individual companies to the central HR. Hire of temporary labour subcontract till the full statistics have been evaluated and then the Managers and SMT to make strategic decisions.

Raising degree of Absenteeism - This is as a result of employees feeling neglected or been demoralised.

By implementing training sessions and internal promotions, the employee confidence will raise, thus they will feel secure reducing the number of absent staff.

Time Consuming - allot of time will be invested in MP. This will be as a result of collecting necessary data from individual companies, processing that data, and trying to streamline the process to adjust to all the facets in the group.

This specific barrier, there is little we can do as and estimated one year and half will be needed to effectively turn this system into a culture within SEG, however, incentives can help employees feel that something is been done.

Lack of skilled labour - every business has a certain aspect of skill which is needed to perform the works. This skill sometimes is not readily available at the time which actually required.

Through training potential employees academically or technically, those business needs can be met more efficiently at the required time with minimum disruption of the works.

Lack of Management support - this occurs when the management is not adequately informed of the need and benefits of MP.

This can be resolved by training sessions, and seminars about MP, which in turn will make the managers appreciate the whole cycle of effective MP, thus make it part of their day to day running of the business.

Implementation of manpower planning in SEG

By highlighting the benefits and hurdles to a company it will be more obvious to know what to change. The main issue then becomes where do we start, what do need and how do we convince everyone that it's the right step.

Set up a manpower planning system, organising staff, plan and set standards, measure performance and, learn from the experience - audit and review.

Each company should have followed these steps when they started out however to bring the group together with a united manpower system will mean revisiting these guidelines to ensure the basic steps are covered before developing the new MP system.

SEG companies do not have sufficient records and information on manpower. Several of those who have them do not have a proper retrieval system. There are complications in resolving the issues in design, definition and creation of computerized personnel information system for effective manpower planning and utilization. Even the existing technologies in this respect are not optimally used. This is a strategic disadvantage.

Firstly decide what the new Manpower Management and practices should be as a group. The next step is to ensure all the companies are working to the same standards. There are many ways to do this, with the amount of companies within the group following a more systematic approach and setting up a Centralised Manpower Management System (CMMS) would be a good way to go.

With an improved Manpower Planning record will result to better execution of projects, which will led the talent to be recognised thus attract potential business hopefully bringing in more profitable business, better management of current resources thus retain existing clients.

To implement this system across the group will take money, time and training, and most importantly positive reinforcement from management. This system is just a framework which means that the entire group will need to come together to decide the right routes to use for the organisation as a whole.

From research on Manpower planning websites and case studies of recognised companies, Lamprell Energy, www.lamprellar.com, Nakeel Constructions www.nakeel.as.com one this is evident, that with efficient planning you can tap allot of talent which will distinguish your company skills and workmanship in the market.

There are open seminars and training modules available which can inform and expand on the magnitude manpower planning which can eventually strategically position SEG to be distinguished in the property market by the new ideas and way of doing business.

There are many highly skilled individuals and experienced workers within the group by tapping to their knowledge and know how and using it, can be a clear signal to all that SEG is willing and able to implement Manpower Planning solutions.

Centralised Manpower Planning for SEG

How to communicate the new Manpower Planning practice to all employees & companies;

In a period of six month the centralised system should be fully implemented and in a year the first effect should be felt by the SMT down to the employees which will reflect in the increase in revenue and client satisfaction.

However, that is only half the battle; the other half will be to communicate the system to the employees and stakeholders.

Firstly, start with management across all companies. They need to have a clear understanding if they are to support and reinforce it to their subordinates and co-workers.

The SMT have to explain and clarify that, this system of manpower planning; will not take powers from individual companies in running the business or otherwise so that a mutual understanding can be reached. This then will promote the manager to dedicate fully to achieving this goal.

Regular feedback from managers to a central HR department will promote a cycle of communication and in time will be self sufficient. Supervisors and Managers spend more time on the floor - being available to interact with the workforce encourages open communication.

Creating and open forum where, the employees can freely express themselves and expect feedback. This will boost their confidence in the management. Additionally, managers can offer incentives from employees that promote the system by their commitment to achieving this goal.

How to communicate it to the stakeholders

One of the major concerns of the stakeholders will be financial commitment.

This will have to be dealt with in a professional and organised manner, as a large financial commitment will be required to hire and train staff. The SMT should introduce this in terms of Phases.

Phase one

Collection of data from individual companies Human Resource. This will require each company to organise and present their data in a period of two months.

Phase two

All the data collected in phase one to be communicated to the central body in two months, which will analyse, organise and evaluate the information and report to the SMT with accurate figures of current the current situation.

Phase Three

SMT to be trained on manpower planning, and to turn this information collected from the central body to statistics and goals of the organisation as a whole in a period of two month and come up with direct and indirect cost that will result to an estimate of the overall cost to implement the manpower system.

A simple presentation of these figures to the stakeholders should convey where the savings can come from and how much could be improved in the group should these measures be implemented.

Conclusion

By analysing, what Manpower Planning is, and its benefits, barriers and practical solutions to the individual companies and organisation as a whole, it is self evident that it will be a strategic advantage to not only increase productivity but hopefully increase revenue and profits.

Additionally, a better image can be portrayed to potential clients, boost employee morale, add new employees to the workforce which can come with better ideas, maybe even expand the business to new ventures.

Effective ways to communicate the importance of manpower planning to the managers and clarify that this system is not there to replace their powers but to strengthen them and statistical and organised way to communicate all this to the shareholders

Recommendations

Six month preparation for the preparation of statistics to be presented to the shareholders.

Full commitment of the SMT and the mangers of individual companies to achieving this goal.

Open forum from employees to managers and managers to a central body that will be monitored by the SMT.

Lyden Properties Services to be given full authority to analyse and implement the manpower system and to act as the central body to communicate to the SMT.

Initial identification of potential existing staff that can be trained and promoted to send clear signals to all, the commitment of the group to manpower planning

Establish a Central Manpower Management System (CMMS) which can be easily accessed inform of intranet on administration staff and suggestion box and regular meeting of the non administration staff.

References

IES authors (n. d.) Human resource Planning; and Introduction [online] available from <http://www.employment-studies.co.uk/pubs/summary.php?id=312> [2 April 2011]

Managers (n. d.) Management Study Guide [online] available from <http://www.managementstudyguide.com/manpower-planning.htm> [17 March 2011]

College of Estate Management (2004) Manpower Planning - Job Evaluation. Reading: CEM Page 9

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CEM: (2009) Study Papers Management Studies Module 2, Reading: The College of Estate Management

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