EXECUTIVE SUMMARY

The progress of Kamani Industries, its contribution in the growth and development of the nations industries
and its service to the nation all three aspects leave no room for doubt about the fact that Kamani
Industries played a major role in the history of the nations industrial growth and success. In an extremely
short time, Kamani took giant strides in the field of industry. Its great achievements and memorable
successes can be considered landmarks in the industry. All the credit for this goes to the founder of this
industry, Shri Ramjibhai.

By now we are familiar with the workings of the three main companies of Kamani Industries. In the factory
of the company, W. Leslie in Lahore, Punjab, copper and brass rods having a diameter of three and a half
inches and more were rolled and in addition agricultural implements like hammers and augers (a tool for
boring holes in wood) other tools were produced. In the factory of W. Leslie in Mumbai, copper, brass and
aluminium vessels were manufactured. In the factory in Kurla, which went under the name of Kamani
Enamel Industries, enamel utensils and other items that were used in hospitals and jails were
manufactured. In March 1945, these three companies were merged to form a new public limited company
Kamani Engineering Corporation.

After the success of manufacturing Japanese tin mass (dinner plates) in the factory at Kalyan, Mumbai, this
factory was shifted to Kurla. The factory in Kalyan was closed in 1945. The field of activities was expanded
and it was decided to establish a large public limited company. In May 1945, Kamani Engineering
Corporation was set up. Its factories operated in Mumbai and Lahore. Due to the partition of the country in
August, 1947, two nations, India and Pakistan came into existence. Since Lahore was now in Pakistan, the
factory there went into the hands of the Pakistanis. Negotiations went on for years to regain this factory,
but there was no success and the factory was lost. Kamani Industries suffered considerable losses due to
this but there was no point in wasting time over regrets.

In addition to Ramjibhai the first directors of this company (i.e. Kamani Engineering Corporation) were
Chunila Bhaidas Mehta, Sardar Bahadur, Sir Shobhasingh, Dr. Jivraj Mehta, Dawood Haji Nasar, Nyalchand
Sheth, Chhabildas Jamb, Bhaichand Gopalji Panchmiya, Poonamchand Kamani and Ratilal Zatakia.

The production of stainless steel vessels was also started in the Kurla factory.

Since the number of companies manufacturing utensils in the country had grown considerably, Kamani
Industries did not have much interest in this line of work. So in 1949, when the aluminium pool scheme
was closed, they gradually decreased the production of aluminium utensils. Ramjibhais sights then turned
towards the production of engineering goods. Meanwhile, in 1950, tenders were announced for 2000 tons of
transmitter line towers for the Bhakra Nangal Electricity project. Ramjibhai wanted to take a leading part in

1
the Five Year plans, so as per his wishes, the agency departments were converted into electrical and
mechanical departments and he contacted eminent foreign engineering companies.

For the Bhakra Nangal towers, Kamani contacted a French company called Furce and in cooperation with
John Porters office in Paris set up a new company called Furce Structural Ltd. Kamanis tender was
accepted on the condition that they would import the design and required steel parts from France and then
assemble the towers. But unfortunately the finished products manufactured in Indian industry were not up
to the mark. Industrialists in this field started an intense movement against the government, insisting that
these goods should not be imported but should be manufactured only in India. From the very beginning,
Ramjibhai was extremely patriotic and always insisted on indigenous goods. So he called for a meeting of
the industrialists in Simla to discuss this matter. None of these industrialists had shown any inclination to
manufacture these goods in India. However, they were all ready to add their voice to the opposition. The
government officials were also exasperated with this dog in the manger attitude of the industrialists. Finally
Ramjibhai took up the challenge. But when the government officials came to know that Kamanis factories
did not have the necessary machines and instruments to produce these towers, they were taken aback and
doubts also arose in their minds. But, Kamanis reputation had been built on taking up such challenges and
supplying the goods as promised, so Kamani got the order to make the towers. However, there was a
condition involved that half the quantity should be imported from France and the other half should be
manufactured in the Kurla factory.

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 COMPANY PROFILE

In October 1950, a factory to produce the towers was set up in Kurla. In this factory, the most important
department for this work, that for creating the design was set up. Along with this, the work of plating the
towers with zinc galvanizing was started from the 15 th August, 1951. A sherardizing plant for galvanizing
the nuts and bolts used in the towers was also set up in June 1952. Thus the only factory in India to
produce towers was set up. The parts of the towers were manufactured in India, but the design mostly
came from England. If the design of the towers was good and appropriate the towers would be solid and
strong. The credit for being the first in India to design such a tower goes to Kamani Industries. However,
the factories which produced the other parts of the towers did not have the facilities to galvanize these
parts. Further there were no facilities in the country to test the towers that were manufactured to see
whether they came up to expectations or not. Kamani Engineering Corporation also took the first steps in
creating all these facilities. An erection department to raise the towers at the desired location was also
started in a few years time. Thus a complete factory was established to manufacture the towers. The
engineers were also Indians and in addition, all the parts required to manufacture the towers were also
produced in Indian factories. Thus Ramjibhais sentiments of one hundred percent Indian, were fulfilled.

The work of making these towers was very demanding in many ways because there were innumerable
difficulties. For example, the required parts angles were not available and even if they were available
they would not be supplied on time. The project planning was also quite weak on many fronts, so exactly
how many towers would be required could not be estimated in time. Since Pandit Nehru was concerned, all
the plans relating to electrical installations were being carried out as fast as possible. So the towers were
needed quickly and cries of the work has come to a stop, would be heard and orders for haste were given.
In addition the railways were not extending the required cooperation. Either the required wagons were not
available or if they were, they would be limited in number or would come late. But in spite of all these
difficulties, the Kurla factory flourished. The towers were the jewel in Kamanis crown of fame.

Due to one reason or another, the production of towers was not as high as was required. In April 1958,
when Ramjibhais fifth son, Navnit, joined the production department in the factory as per his (Ramjibhais)
wishes, the factorys monthly output was at the most 450 tons. A time limit of three months was given to
Navnit to increase this monthly production to 1,000 tons. For one month he underwent training. During this
month the output was only 400 tons. Navnit put in a lot of hard work, took a lot of care and remained firm

3
and increased the factorys monthly production from 400 to 1000 tons in May 1958. To mark this notable
success a grand celebration was organised. Every worker was given a silver ingot weighing ten tolas (about
116 grams) engraved with the words 1000 tons and a picture of a tower.

With such continued encouragement from Ramjibhai, Navnit brought the factorys output up to 1,500 tons a
month in December 1958 and to commemorate this success every worker was given a gold coin.

Up until June 1958, Indias requirement of towers was about 34,000 tons. This entire requirement was met
by Indian industries and out of this 17,225 tons or about 51% was supplied by this factory.

Thus, within a period of three to four years this factory showed remarkable progress.

Despite the fact that Indian industry was able to reach significant heights, due to poor planning they could
not fulfil the immediate requirements of the towers, so the government allowed the import of towers from
abroad. The government decided to impose an import duty of only 5.25% on the imported goods. The
results of this became clear in the period from July 1954 to June 1955. During this time the governments
requirement of towers was 13,320 tons. A decision was taken to import 7,475 tons, i.e. 57% from abroad
with the remaining 5,745 tons or 43% being supplied by the countrys factories. An order was given to the
world renowned, giant Italian company, S.A.E. for the required towers. The output of this Italian factory
was indeed extremely high. Along with this the factorys tensile steel (very strong but very lightweight steel)
and other small and large parts or sections were available. In comparison, this type of extremely strong and
light steel and sections were not available in Indian factories, so they had to make do with ordinary steel
parts, which resulted in certain differences. Further the Italian government gave its factories a lot of
facilities and encouragement for export of goods. In addition the government also gave financial aid.

Under these particular circumstances, it was felt that all the industrial facilities in the country should be
utilised before any imports were allowed and this important matter went all the way up to the prime
minister. Ramjibhais argument was indisputable and logical. The factories were ready to do the work.
Under the current situation regarding steel, the factories were also willing to produce as many goods as
possible in the shortest possible time. An effort was made to impress upon the government that in these
circumstances it was wrong not to encourage the countrys industry and workers, and to waste precious
foreign exchange. With the amount of foreign exchange that was spent, steel could be produced, the
factories would have work and the workers would earn a living the government officials finally understood
this argument and a decision was take to import only steel and not the finished towers from abroad.

After Navnit joined the factory in Mumbai its production increased day by day. In 1960 its output reached
over 14,000 tons. This was almost four and a half times the output in 1952.

There was even a film entitled, The story of the transmission tower, which was produced in 1959, and

4
which covered all the noteworthy facts about the factory.

Up until 1958 this factory had produced 50,000 tons of material and fulfilled two thirds of the countrys
needs. The erection department had constructed lines over a distance of a thousand miles. Due to the
indigenous production of towers, the country was able to save foreign exchange worth Rs. 6.25 crores, up
until 1957 and credit goes to the Kamani factories for saving almost Rs. 4 crores of foreign exchange.

Until 1971, (when this book was published) the total output of towers was over 1,32,000 tons. In addition a
total of 17,000, substation structures, heavy structures, aerials and communication masts were produced.
Lines, over a distance of 31,000 miles were erected. A total of 391 designs for the towers and 121 designs
for other structures were created.

In 1952, a 122 foot (about 37.2 metre) high sample tower was erected in the 85,000 square yard (71,000
square metres) factory in Kurla. A new, sample tower was made as per each new design. The condition of
the land at the site where the tower was to be erected, the wind force at the height of the tower, the effect
of storms and cyclones and the capacity of the conductors, were all taken into consideration when
calculating the load bearing capacity of the tower. This load bearing capacity of the sample tower was
tested by tying steel ropes to it and pulling on them with the required force. Towers that could withstand
two and a half to three times more force than they were actually required to were built. If the force was
greater than this the tower would break this was called a destruction test.

Since the aforesaid tower was a hazard to aeroplanes and jets, especially during the monsoon, it was
dismantled in June 1964.

In the meantime the annual capacity for the production of towers increased from 24,000 to 60,000 tons.
Out of this, 30,000 tons was retained in this factory and the remaining 30,000 tons was taken to the factory
in Jaipur. A new factory to produce towers was constructed there and a 125 foot (38 metre) tower was also
erected there for testing purposes.

Ramjibhai was not satisfied with the fact that the towers produced in India were only sufficient for the
countrys needs. Towers manufactured in India should also be exported abroad as soon as he thought of
this lofty aim an export department was set up. Good progress was made in the export of towers. During
these years (up until 1971) goods worth Rs. 1 crore were exported, which included 10,000 tons of towers
and 550 tons of other parts.

These towers were exported to New Zealand, Nigeria, Philippines, Taiwan, Tanzania and Thailand amongst
others. The countries the other parts were exported to included Canada and the West Indies. The credit for
being the first to take steps to export complicated structures like transmission towers also goes to Kamani
Engineering Corporation.

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This is not an ordinary achievement. It is a noteworthy result of Ramjibhais remarkable efforts arising from
his own inspiration.

In the history of Kamani Industries, Saturday, 4 th Ocober, 1959 was a red letter day, because on that day,
the late Pandit Jawaharlal Nehru, the beloved leader of the people, visited the factory in Kurla. He was very
impressed with the factory and congratulated the Kamani brothers on their hard work and success.

In his speech, Panditji said, There are many things which are important for India, but the most important
is the generation of electricity. I extend my heartfelt thanks to the Kamani brothers for the excellent work
being carried out in this factory .

Welcoming Panditji, Ramjibhai described how Panditji had been an inspiration to him in his gradual
progress. He also refreshed everybodys memory as to how firm Panditji and Rafi Ahmed Kidwai had been in
encouraging indigenous products when the towers were to be imported from abroad.

On this occasion a purse of Rs. 1,00,001 was presented to Pandit Nehru on behalf of Kamani Industries and
its workers, by the senior most worker in the factory, Aziz. In addition, to commemorate the production of
51,000 tons of towers, a silver model of a tower was presented to him by the senior most worker in Kamani
Engineering Corporation, Shri Ramlal Jawahar.

A special jeep was arranged to take Panditji on a tour of the factory. The jeep was driven by Hasmukh
Kamani and Shri Punamchand explained all the operations of the factory to Panditji. He was extremely
impressed and pleased with the working of the factory. Panditji wrote in the visitors book, Over the last
few years, this institution has made considerable progress very rapidly, which gives me great satisfaction. I
wish the institution success.

Panditji enthralled the five thousand strong audience, including Mumbais prominent citizens, industrialists,
the countrys ministers and officials and foreign dignitaries, with an eloquent and impressive, 45 minute
speech. After this he laid the foundation stone for the Kamani Community Centre.

To commemorate this occasion a special illustrated book was brought out in both Hindi and English. In
addition a film with commentary covering this occasion was also made. Moreover, as Kamani Industries had
become famous, a special issue of the Kamani newsletter was published. Thus Panditjis visit became an
occasion for a great celebration.

In 1953, when the agreement for the agency that they had for the English made Fergusson tractors and
their related parts, came to an end, it was decided to collaborate with the export department of the English
company E.T. Todds (Manufacturing) Ltd. and produce road rollers that could be used with the help of
tractors. Very few road rollers were manufactured in India and in addition they were very expensive to

6
produce, so they were costly. When they were not in use the capital invested would be blocked. When this
Kamani - Todds , tractemount roller was not in use, the tractor could be used to plough the fields,
transport goods etc., which would reduce the burden of the capital investment and in addition this 8 to 10
ton roller which could be attached to a tractor could be produced at two thirds the cost of any other
comparable 8 to 10 ton roller. Anyone who had a suitable tractor would only have to pay one third the price.
Thus this was a unique and extremely useful item.

In 1954, as soon as the contract was signed, this work started. In October 1955 a tracte-mount roller was
manufactured in this factory for the very first time. It was inaugurated by Shri Malojirao Nayak, who was
the minister of public construction in the state at that time, on 23 rd June, 1956, in the presence of invited
industrialists, government and municipal officials and prominent citizens. A film was also produced
describing the functions of this roller.

Rollers that could be used with tractors having different types of wheels were also produced. A new,
improved version of the roller, Mark 2 was manufactured in 1959 and until the end of 1965, 450 such
rollers were produced. The licence granted to Kamani Engineering Corporation to manufacture these rollers
covered the following countries: India, Nepal, Bhramadesh ( formerly known as Burma and now as
Myanmar), Ceylon (Shri Lanka) and Indonesia. These rollers were very well received in India and got a
number of recommendations from the local improvement boards and municipalities of various cities. These
rollers were also exported to Ceylon and Indonesia.

When the railways started to implement their plans for electrical installations in the country, Kamani
Industries had the courage to take up this venture and opened a separate department for this purpose. An
engineer who had retired from the Central Railways was engaged for this work. This type of work was
totally new, so the cooperation of the export department of a Belgian company The Traction was
sought. However, during the first phase of the work, that of laying a 185 kilometre long line from Khadakpur
to Tatanagari for the south eastern railways, their intentions became clear and the collaboration was
brought to an end. The factory got the work done by its own engineers, who completed it successfully and
on time. Thus a new avenue of work opened up.

The factory received a lot of appreciation for its capability of being able to complete the work so effectively.
After the success and acclaim received for this work, the industry took up similar work under Ramjibhais
instructions. In mid 1965, they got a contract, from the Central Railways, to install a 370 kilometre long
electrical line from Igatpuri to Nandgaam.

In 1952, Kamani Industries received an enquiry from the Railway Board as to whether it would be possible
for them to assemble the imported parts of railway wagons and supply the wagons (to the railways) on
time. This work was also worth taking up. On getting an assurance the work of assembling the wagons was

7
 started in Okha. The scattered wagons of the meter gauge line of the Western Railways were brought to
Okha and a temporary plant was set up, which was looked after by Prabhulal Acharya. Fixing the price with
the railways, taking orders and seeing that the wagons were delivered in the appointed time, getting the
bills passed and collecting payments all this was looked after by Prabhulal Acharya.

In some ways this was a critical time for Kamani Industries. The reason for this was that the production of
towers had not increased as per the requirements. In addition, the agreement with Fergussons tractor
agency was not working out very well. So the work of assembling these wagons turned out to be a boon.
Twenty one thousand wagons were produced as per the orders received from the Western Railways. The
wagons were produced satisfactorily and on time for the first order received, as a result of which the railway
board and the officers of the Western Railways were satisfied. After this the orders were received regularly.
This work went on until 1957, with a short gap in between. During this time at least six hundred people
were employed for this work. From 1957 the foreign exchange situation weakened and in addition many
wagons were being produced in the country. So the government stopped importing wagons, due to which
this work of assembling wagons had to be discontinued. Shri Acharya had carried out his work very well and
had earned Rs. 33 lakhs for the factory and had played a crucial role in making the company financially
stable.

Shri Ramjibhai giving the welcome address during a function to felicitate Shri Jawaharlalji during his visit to
the Kurla factory. Next to him are seated, Shri Dheberbhai, Jawaharlalji, Shri Yashwantrao Chavan and Shri
Balwantrai Mehta.

8
Shri Ramjibhai and Shrimati Jadavlaxmiben performing the ground breaking ceremony of New Kamani
Chambers, in 1964: Behind them are Shri Rasiklal Kamani, Shri Sharad Shridharani, Shri Dolarkumar Bhatt,
Shri Gangadas Sanghvi, Poorvi Navnit Kamani and Shri Ravirchand Doshi.

Ramjibhai giving a congratulatory speech to the workers on the occasion to celebrate the fact that in July
1958, the production of towers reached 1,000 tons per month, under the supervision of Shri Navnit Kamani.
On his left are Prataprai Mehta and to his right are Shri Punamchand and Rasiklal Kamani.

Since the production of vessels had been discontinued a new problem arose how could the specialists who
made the vessels and the machinery that had been used to produce the vessels be made the most of. After
due consideration it was decided to set up a company Ceylon Metal Industries Ltd. - with the help of Shri
Chhotubhai Bhatt, who was involved in the business of utensils and other items, in Colombo. Accordingly a
company was set up on 10 th October, 1955. Its first directors were Shri Chhotubhai (Chairperson), Shri
Poonamchand Kamani, Shrimati Kumudben Bhatt, Ratilal Zatakia, Narhari Chunilal Bhatt, Aliadura Jeremias
DSouza and Morarji Udeshi. Under Ceylonese law, managing agents were termed, agents and secretaries.
The agents and secretaries of this company were Bhatt and Kamani Ltd. The vessel manufacturing

9
equipment and an expert were sent to Colombo in May 1955. The latter stayed there for three months and
trained the staff before returning home.

Here it may be remembered that in 1947-48, Rasiklal Kamani had gone abroad. He gave an advertisement
in the papers for a skilled person who could source agencies in Europe on behalf of Kamani and oversee
their operations. John Porter, the representative of Kamanis Vienna office responded to this advertisement.
John Porter was a second class officer in Germany, which had become a friendly nation after World War II.
He wanted to get into business. At that time, as we have seen previously, Ramjibhai had also gone on a
tour of Europe and America. Ramjibhai and Rasiklal went to Switzerland and called Porter to meet them in
Interlaken. Porters wife, Olga also came with him. During his conversation with Porter, Ramjibhai realised
that he would be very useful to him. So he took his own decision to employ him. Porter initially had his
office in Paris, but then he moved it to Vienna. When he was in France, he had negotiated with Furce
Company, with whom they had collaborated to fulfil the first order of the towers for the Bhakra Nangal
project.

In the mean time, a large order was expected from the railways, so Rasiklal went to England and acquired
an agency for Fergusson tractors. In addition he also finalised an agency for Fiat tractors, Olivetti
typewriters and tele-printers from Italy.

Amongst all these major agencies, the agency for the world famous Dimag company of West Germany was
the first to be acquired and Kamani supplied the steel rolling mills manufactured by this company to the
Rourkela steel plant. They also supplied excavators, cranes and other machine parts manufactured by this
company to various public organisations. In addition they also supplied electric hoist blocks to a number of
companies.

Kamani also supplied flood gates, to close the canals (from dams), manufactured by Dortyunder Union (or
Hindstyle Union as it is known today). They first supplied and even fitted the gates for the Tilpara dam in
West Bengal under the Mayurakshi plan. Despite the fact that this was the first job of its kind the work was
completed two months before schedule. Whether these gates were functioning properly would only be
known when the canals were flooded and since there were still two months remaining before this, an
artificial flood was created and the gates were checked and found to be perfect. Dr. Bidhanchandra Roy,
who was the chief minister of West Bengal at that time, was extremely pleased about this and warmly
congratulated Ramjibhai for the skilled work.

Over and above this, Kamani Industries took the agencies for many well known European engineering
companies including Miag, Castorling, Columeto, Winnerloko, Motiv, Wagner Biro, Ensaldo, Galileo, Pohling
Bohp and Ruther.

10
In addition they also acquired agencies, for electrical instruments and other goods, of Fuji, Furukawa,
Hitachi, Mitsubishi, Nippon Geyshi Kisha and other world famous Japanese companies.

Gradually the number of agencies increased, so in 1948 the agency division expanded into electrical and
mechanical departments. A department for agricultural machinery was also added, so now there were three
departments.

The work of Fergusson tractors settled down very well. Kamani acquired agencies (for the tractors) in
Gujarat, Saurashtra, Kutch, Maharashtra and Madhya Pradesh, along with the states of Madras and Mysore
(as they were then known). To expand the operations related to the agencies and to see that the work went
smoothly, to increase business skills and to be able to take up the increasing responsibilities without
difficulty, Hasmukh Kamani and an engineer from the agricultural machinery department went to Coventry
in England for training in 1949. It is but natural that an engineer would understand machines, but the fact
that Hasmukh Kamani, who had no knowledge of machines could pay as much attention as any expert, was
a sign of his extraordinary faculties. Not only did he take part in tractors trials in competitions, but he came
first every time.

Over and above these three departments another one was opened. Rasiklal had finalised the agency of
Olivetti from Italy. They had to take agencies for both the tele-printers and typewriters manufactured by
this company. For the typewriters a new department, a department of office equipment was opened.
However this was only in operation for a couple of years, after which it was closed down. The activities
related to tractors went on until the end of 1953. After this work stopped, all these departments were
amalgamated into one, which was known by the new name of the Engineering Sales Division.

The electrical and mechanical divisions supplied huge machines worth lakhs of Rupees to leading electrical,
hydraulic and industrial plants. The main ones are given below.

1,000 miles of telephone cable; boilers for the Chola thermal power station and Madura thermal power
station; wagons, engines, wheel sets and axle boxes for the railways; transformers for Muchkund,
Tunghabhadra and Corba; switch gear for Corba and Bhakra Nangal; flood gates for Mayurakshi and
Sangulam; head regulators and large pipelines; rope ways and belt conveyors for Vaitarna, Tansa and
Indian Iron; turbo alternators sets for the Burani thermal power station in Bihar; thermal sets for the
Trishuli plant in Nepal; cement plant for Porbundar; rolling mills and coke oven plants for the Hindustan
Steel plant in Rourkela. In addition they supplied different types of cranes, escalators and electrical hoist
blocks, water meters and meters for other types of flow-meters and also lakhs of high tension insulators to
various electrical plants and control centres.

11
 Mr Chetan Kamani for conceptualising, planning, spear heading efforts and providing guidance for the translation of
the book,

Mr Sameer Kamani for his skilful co-ordination among the cousins, arranging the contributions and his support, and

Ms Poorvi Kamani for short listing translators, identifying the best, and arranging the translation,

This translation has taken several months and was done for the benefit of the grandchildren and great grand children
and for the future generationsof Shri Ramjibhai Kamani, so that they could read about his early life, struggles and
achievements.

With gratitude and thanks, a list of grand children who contributed unconditionally for the translation, is as follows :

BOARD OF DIRECTORS
1 Mr Deepak Kamani
2 Mr Sunil Parekh
3 Mr Apoorva Kamani
4 Ms Priya Kamani
5 Ms Poorvi Kamani
6 Mr Chetan Kamani
7 Ms Kosha Patel (nee Kamani)
8 Ms Latika Amersey (nee Kamani)
9 Ms Vaishali Kamani Doshi
10 Mr Sameer Kamani
11 Ms Suman Kamani

Thanks also to Soham Chetan Kamani ( great grand son ) who took time, and effort and used his expertise to upload
the translation through the internet.

OBJECTIVES OF THE STUDY

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 Study of requirement of Man power planning in various time durations
Study Of Man Power Planning
Study of importance of Manpower Planning and its role in the
succession of any organization.
To find out the view of Employee regarding Manpower Planning.

13
 REVIEW LITERATURE

MANPOWER PLANNING

Manpower planning depends on the process & seats billed to client.

Beforeplanning, the process & nature of billing has to be understood &
requirementsare calculated likewise.Methods of billing are as under:

No of seats basis.

Per call/ per hour basis.Manpower planning directly affects the revenue of
company.There are no government policies /company HR Policies now in
K.E.C.P.L.S whichdirectly impact manpower planning.Trade Unions do not exist.
Level of I.T is a client mandate in a K.E.C.P.L. and does notimpact manpower
planning as there is barely any automation or productioninvolved.

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STEPS INVOLVED IN MANPOWER PLANNING
DEMAND FORECASTING

A forecast is taken from operations by HR for 3 months. Hence this is called as

a3 months rolling plan. For eg: In February the forecast is taken for March, April&
May.The factors to be considered will be:

Business ramp up (if any) which depends on the client.

Attrition (back fill) which is necessary for the organization.A 6% buffer is

considered over the existing headcount required.

Billiable HeadCount Approved HeadCount Buffer

Absenteeism (unscheduled & scheduled)

HR bench (absconding, serving notice period, maternity leaves etc).

For March/April & festive occasions buffer is 10%

SUPPLY

The HR team works backwards after getting recruitment numbers.

The HR increases the offers against joinees by 60%. Hence if the HR has
toplan & recruit 200 people, they make anywhere between 280-320 offers. Insuch
cases the training department may need only 150 while operationsmay need only
80.

The buffer shall cover up for rejectors, HR attritions, CCT &

PST attritions,abscondings etc.

Manpower planning plans for training also & mandates are made well
inadvance.

15
 The company however does not have to spend on the buffer. The
buffermostly assist in revenue additions to the company.

THE BENEFITS OF MANPOWER PLANNING

Key to managerial functions-

The four managerial functions, i.e.,planning, organizing, directing and controlling

are based upon themanpower. Human resources help in the implementation of
all thesemanagerial activities. Therefore, staffing becomes a key to all
managerialfunctions.

Efficient utilization-

Efficient management of personnels becomes an important function in the

industrialization world of today. Setting of large scale enterprises require
management of large scale manpower. It can be effectively done through
staffing function.

Motivation-

Staffing function not only includes putting right men on right job, but it also
comprises of motivational programmes, i.e., incentive plans to be framed for
further participation and employment of employees in a concern. Therefore, all
types of incentive plans becomes an integral part of staffing function.

Better human relations-

A concern can stabilize itself if human relationsdevelop and are strong. Human
relations become strong trough effectivecontrol, clear communication, effective
supervision and leadership in aconcern. Staffing function also looks after
training and development of thework force which leads to co-operation and better
human relations.

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Higher productivity-

Productivity level increases when resources are utilized in best possible manner.
higher productivity is a result of minimum wastage of time, money, efforts and
energies. This is possible through the staffing and it's related activities
( Performance appraisal, training and development, remuneration)

Manpower planning leads to a fixed plan for the next 3 months. HR, training
& operations are aware of the number to be hired. Operations can calculate
parameters depending upon manpower expected, and forecast the same for
negotiations with clients

NEED FOR MANPOWER PLANNING IN AN ORGANIZATION

Shortages and surpluses can be identified so that quick action can be taken
wherever required.

All the recruitment and selection programmes are based on

manpowerplanning. It also helps to reduce the labour cost as excess staff can
beidentified and thereby overstaffing can be avoided.

It also helps to identify the available talents in a concern and

accordinglytraining programmes can be chalked out to develop those talents. It
helpsin growth and diversification of business. Through manpower
planning,human resources can be readily available and they can be utilized in
bestmanner.

It helps the organization to realize the importance of man power

management which ultimately helps in the stability of a concern.

17
APPLICATION OF RETENTION STRATEGIES

HR receives updates in a program called EWS (Early warning system)from

operations early every week.

The agents are marked red (attrition in 1 month), yellow (possible attrition in
30-90 days), green (happy employee).

HR then meets employees marked red & yellow to comprehend why he/she
wants to move.

The HR tries to comprehend the problem and tries to provide a possible

solution for the same

HR only steps in as a last effort after operations fails to retain the

employee. When all possible methods fail , they have to let the employee leave
the organization

THE IMPACT OF MANPOWER PLANNING IN ANORGANIZATION

Man power planning in Human Resource Management is a core factor. Here the
penalties for not being correctly staffed are costly. Understaffing loses the
business economies of scale and specialization, orders, customers and profits.
Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate
because of modern legislation in respect of redundancy payments, consultation,
minimum periods of notice, etc. Very importantly, overstaffing reduces the
competitive efficiency of the business.

18
Planning sufficiently

Planning staff levels requires that an assessment of present and future needs of
the organization be compared with present resources and future predicted
resources. Appropriate steps then be planned to bring demand and supply into
balance.

The pros and cons

Thus the first step is to take a clear and average view of the existing work force
profile such as numbers, skills, ages, flexibility, gender, experience, forecast
capabilities, character, potential, etc. of existing employees and then to adjust
this for one or three and ten years ahead by amendments for normal turnover,
planned staff movements, retirements, etc, in line with the business plan for the
corresponding time frames. The result should be a series of crude supply
situations as would be the outcome of present planning if left unmodified. This,
clearly, requires a great deal of information accretion, classification and statistical
analysis as a subsidiary aspect of personnel management

19
Future plan

The future demands will be is only influenced in part by the forecast of the
personnel manager, whose main task may well be to scrutinize and modify the
crude predictions of other managers.

Staffing in the future needs is derived due to some factors:

1. Variations in the efficiency, productivity, flexibility of labor as a result of

training, work study, organizational change, new motivations, etc.2. Changes in
employment practices (e.g. use of subcontractors or agency staffs, hiving-off
tasks, buying in, substitution, etc.)3. Sales and production forecasts4. Variations,
which respond to new legislation, e.g. payroll taxes or their abolition, new health
and safety requirements5. The effects of technological change on task needs6.
Changes in Government policies (investment incentives, regional or trade grants,
etc.)What we understand from the above factors is that a thought out and logical
staffing demand schedule for varying dates in the future which can then be
compared with the crude supply schedules. The comparisons will then indicate
what steps must be taken to achieve a equilibrium.

20
 INTRODUCTION

IT-as-a-Service is an innovative service model delivering a bouquet of products and services on-demand. That
means it allows you to choose what is relevant to your present needs from an integrated suite of hardware,
network, and software solutions provisioned by iON and its partner network. You only pay subscription charges
for what you actually use. All of this is backed by business, technical and consulting services by iON.

Why us?

Cloud services- software hosted by us runs on the Internet and users can use it on standard browsers.
Our hosting ensures:

High performance in normal broadband

Stringent security and data privacy

Guaranteed availability (99% uptime)

Disaster recovery

No need of IT staff at client side

In other words, we manage everything while you use the software.

Connected solutions

You may use a CRM along with an ERP. And a document management system could help you organize your files.
When we provide all of these, we ensure they are connected. Each solution talks to the other when there is the
common process touching it. So for you, it is simply IT, and not applications - because we make them work as
one.

Changing business, IT changing in tandem

You may be frequently changing processes, or you may set up a new line of business. That is the agility that
makes you grow. So in the course, you keep defining the IT. Configure the processes to work differently or
simply choose new practices recommended by the software.

For us it is part of the show. Our activation system flags on best practices while the system is running. And as
you pick and choose, we keep churning out more options.

21
Pay as you use

No capital investment required since we provide the IT infrastructure and software on rent. You pay as you use
and only for the number of users who would actually use the software. The rent is charged monthly. Typically,
the cumulative rental for three years is equal to the capital cost of acquiring similar or lesser software with
one-time payment. Usually ROI exceeds rental within 3 months, when best practices are well followed. The
rental includes maintenance plus training and there are no hidden costs.

Personalised

While it is a cloud service, the software is configurable to each business. You will always get the flavour of
your own business by picking and choosing what processes you would need.

Automatic upgrades

The software is under continuous development and your feedback counts. We keep enriching the software
based on user feedback and business and statutory changes. The upgrade happens behind the scene without
disrupting the user.

Our Solution Stack

Click on the blocks in the picture to view more details.

22
 At Layer-1 iON provides all the necessary on-premise hardware needed to run the enterprise. This

includes the needed desktops, laptops, printers, hand-held devices and so on. These are devices that

customers use to connect to and access the solutions that iON provides. iON also facilitates procurement of

additional hardware through its Procurement Facilitation Services.

At Layer-2 iON provisions the needed network equipments and bandwidth to connect to the iON

applications hosted in a data center. Based on the bandwidth required, we provision the necessary network

connections in partnership with our network providers.

At Layer-3 iON delivers all the office solutions relevant for SMBs. These include solutions such as

document management, email, collaboration suite and other office software.

23
 At Layer-4 iON addresses the solution needs at a business level. This includes Finance & Accounting,

CRM, HR management, Payroll and Project Management System. Until Layer-4, all our solutions are

predominantly vertical or domain agnostic.

At Layer-5 iON addresses core industry vertical solution needs through a comprehensive ERP. For

instance, in the case of the Manufacturing vertical, the solutions will include Material, Sales, Stock,

Production, etc, while in the case of Retail, it is Point of Sales, Warehouse, Store Inventory, etc. These

applications help customers to drive their core business processes in their organisations.

The Layer - 6 iON addresses niche vertical application requirements including detailed business

analytics.

A Manufacturing nervous system

Recording orders, sales and purchases would have little meaning unless they were
connected. At the heart of our manufacturing solution lies a production system that ensures
that these are in sync. You procure as much as you produce; and produce as much as you are
able to sell. The goal is as simple as keeping the lowest inventory.

At iON, we tend to make the complex manufacturing process look simple by connecting the
different parts of the operations. The software is organized into planning and execution.
Production plan for instance, would tell your operations to expect the right amount of sales,
and then initiate the right quantity of procurement.

But what happens when the execution slips from what is planned? Vigilant reports and
dashboards would alert you in time.

24
Treat each client differently, and personally
When you have a chain of Wellness centers, be it spas, slimming clinics or salons, you have
one worry - Do all centers run the same way?

A wellness brand is known by its distinctive approach to treating clients. Yet, all centers and
franchisee outlets may not be consistent with it. So the software, which sits at your
franchisee centre for the purpose of billing and collections, may not understand the
idiosyncrasies of each client.

Our wellness solution helps centralize your processes - bringing the control centre closer to
each client. So, as your centre receives an online or call-centre appointment, your analyst
sitting at the Head Office knows what pattern of preferences needs to report. A slimming
centre then has centrally managed report cards; a spa has a predictable clientele; and a
salon knows what apparatus should be ready at each centre.

When every day is new season

The goal of every retail store, whether it is a super mart or a coffee shop, is to create a
seller's market. A customer walks in knowing what they would buy, and impulsively buy more
once inside. That is because every day you have a new scheme or a new way of displaying
merchandize. The business of retailing is precisely this.

So if you are looking for software that would help only in billing or running the till, you could
look beyond.

Our retail solution is designed to boost sales, and to support the sales with smooth
operations. It is like a scheme is put on merchandise each day, and the till knows exactly
how to bill it. With that happening, technologies like Bar code and RFID are only incidental.

25
A good institution has traditions and a changing outlook
When an institution looks at its campus as a site of heritage, it actually cherishes its way of
teaching. With Google and Wikipedia helping students, the old ways of teaching are often
put to question. There are two sides to this - Teaching traditions define a school; new
teaching channels define its influence.

iON education solution can help you build institutions-schools of influence.

So when we offer our campus management solution, new channels of teaching come along
with it. The campus is extended through the cherished corridors to an open world of internet
classrooms, professional faculty and distance education. You then make a choice, balancing
your tradition and outlook.

And having done that, the campus administration becomes simpler but powerful. You enroll
students from distant places, en masse. As they apply online, your curriculum works out the
classrooms for them within your campus. And if the faculty was not in town, how about
having a classroom over the internet? A power point displayer, chat room and VOIP
(telephone on internet) - they are all ready to take one.

Differing tastes, differing demands. Enabling you deliver a

consistently superior dining experience
Catering to discerning customer tastes, delivering service efficiency, ensuring consistency in
delivery and ensuring it all at a competitive price, is a key challenge for the restaurant
business today. An integrated system which allows seamless flow of information between the
front end and back end, and builds in the ability to cater to customized demands ensures
that your restaurant creates a long lasting impression and builds a loyal customer base. And
that is what the iON Restaurant Solution delivers.

Our iON Restaurant Solution is designed to be intuitive and interactive giving you operational
visibility, flexibility and control. Fast and accurate Point of Sale (POS), an interactive menu

26
and comprehensive waste management options help you deliver efficient operations and
top-of-the-class customer experiences.

ur fabric - how complex could it be?

A shade different, a size that is odd - perhaps this defines most of the items in your
inventory. Why not? You sell fine products and ones that are different each time. Your
procurement, spinning, packaging and dyeing are all made to a customer, who chooses not
be typical with every order. So when you choose an ERP to manage the daily blends of
textile manufacturing, you probably would not opt for one that is too standard.

Trust the iON Textile Solution. It is made for the dynamic textile making company, which
fashions unique products and unique ways to produce and sell those. It is an ERP made to
handle the complexities not seen in general manufacturing. For instance, the Shade and Size
Matrix helps you play with all combinations that you could choose, to produce for the next
run. And all the inventory and projections are then at your fingertips.

27
 Human Resource Planning with
Manpower

1 INTRODUCTION: The United Nations has calculated the HDI for its
member states since 1975. The first Human Development Report was published in 1990
with leadership from Pakistani economist and finance minister Mahbub ul Haq and
Indian Nobel Prize Laureate for Economics, Amartya Sen.

The main motivation for the Human Development Report itself was a focus on
only real income per capita as the basis for a countrys development and prosperity. The
UNDP claimed that economic prosperity as shown with real income per capita, was not
the only factor in measuring human development because these numbers do not
necessarily mean a countrys people as a whole are better off. Thus, the first Human
Development Report used the HDI and examined such concepts as health and life
expectancy, education, and work and leisure time.

The HDI combines normalized measures of life expectancy, educational

attainment, and GDP per capita for countries worldwide . It is claimed as a
standard means of measuring human developmenta concept that, according to the
United Nations Development Program (UNDP), refers to the process of widening the
options of persons, giving them greater opportunities for education, health care, income,
employment, etc. The HDI attempts to measure a country's development.

The HDI combines three dimensions:

Life expectancy at birth, as an index of population health and longevity

Knowledge and education, as measured by the adult literacy rate (with two-

28
 thirds weighting) and the combined primary, secondary, and tertiary gross
enrollment ratio (with one-third weighting).

Standard of living , as measured by the natural logarithm of gross

domestic product per capita at purchasing power parity.

In other word we can say that thE HDIhuman development indexis a summary
composite index that measures a country's average achievements in three basic aspects of
human development: longevity, knowledge, and a decent standard of living. Longevity is
measured by life expectancy at birth; knowledge is measured by a combination of the
adult literacy rate and the combined primary, secondary, and tertiary gross enrolment
ratio; and standard of living by GDP per capita (PPP US$).

2. Acronyms

ECLAC - Economic Commission for Latin America and

the Caribbean
EIU - Economist Intelligence Unit
EU - European Union
GATS - General Agreement on Trade in Services
GDP - Gross domestic product
HDI - Human Development Index
HDR - Human Development Report
HDRO - Human Development Report Office
ILO - International Labour Organization

29
IOM - International Organization for Migration
MIPEX - Migrant Integration Policy Index
NGO - Non-governmental organization
OECD - Organisation for Economic Co-operation and
Development
PRS - Poverty Reduction Strategy
PRSP - Poverty Reduction Strategy Paper
UNDP - United Nations Development Programme
UNESCO- United Nations Educational, Scientific
and Cultural Organization
UNICEF - United Nations Childrens Fund
UNODC - United Nations Office on Drugs and Crime
USSR - Union of Soviet Socialist Republics
WHO - World Health Organization
WTO - World Trade Organization

3. Significance :
The human development index is calculated each year by the U.N. Development
Program as a summary indicator of "Human Development," combining data on life
expectancy at birth, adult literacy, educational enrollment, and average income also
measured by G.D.P. per capita. Both the HDI and GDP (per capita) have similarities for
example On GDP Norway have the second largest GDP per capita for 2008 as well as the
2 highest HDI for 2008 as well as Ireland being 6th in the world for GDP and HDI for
2008 There is a correlation between HDI and GDP when ever GDP goes up HDI goes up
meaning that HDI can be seen as an alternative according to Francisco Rodriguez.

30
 Countries are ranked according to GDP however this is not necessarily the best
way to think about differences in living standards across countries. For example, GDP per
capita is influenced by how much spending and output is created in that country however
this does not mean that standard of living or resources are used to their full potential as
huge output could be focused on army or other good/services not necessarily improving
the country. GDP cannot tell you much about key issues such as human development
literature rates and life expectancy, unlike HDI, which covers a wide range of factors that
help to make a country.

So where does this leave us, as regards the question above? Do we understand
more now that we have sixteen years of HDI statistics?

Clearly the HDI gives a wider measure of development than GDP/capita, but it
does not capture distribution (inequality), gender and sustainability.

Having an index which captures (only) four essential components of human life is
obviously limited - even if the lack of complete information from sufficient
countries is the reason.

But accepting therefore that limited statistical information was bound to limit the
scope of the HDI, we now have a composite measure of longevity, education and
income, we can compare countries with each other, and with themselves over
time we certainly know more, and in a digestible form, since the HDI condenses
four components of development into one (and even more indirectly)

Having more digestible knowledge of a vast range of countries provides the basis
on which we can ask further questions.

why does a certain country have such a good / poor performance?

why do certain aspects of a countrys development correlate,

31
 whilst others do not?
what needs to be done to help the poor performers catch up?

More and better statistics can help us address these practical questions, and at the
same time help to refine our theories and indeed advance our understanding of
development.

Definitions and Terminology

Gender Empowerment Measure (GEM) : The GEM gender

empowerment measureis a composite indicator that Captures gender inequality in three
key areas:

political participation and decision-making, as measured by womens and

mens percentage shares of parliamentary seats;
economic participation and decision-making power, as measured by
two indicatorswomens and mens percentage shares of positions as
legislators, senior officials and managers and womens and mens percentage
shares of professional and technical positions;

power over economic resources, as measured by womens and mens

estimated earned income (PPP US$).

Uses of the GDI and the GEM To draw attention to gender issues. The GDI adjusts
the HDI for inequalities in the achievement of men and women. A comparison of a
countrys ranking on the HDI and its ranking on the GDI can indicate the existence of
gender discrepancy. To illustrate that gender empowerment does not depend on income, it
is useful to compare relative rankings on the GEM and the relative level of national
income. For example,

Poland ranks 25th in the GEM, ahead of Japan, in 44th place, yet income per
person in Poland is about one third that of Japan's (9,450 PPP US$ vs. 25,130 PPP
US$ for 2001).

32
 The UK and Finland have very similar income per person (24,160 PPP US$
and 24,430 PPP US$ for 2001) yet in the GEM Finland ranks 5th, the UK 17th.
Both indicators can be disaggregated to highlight gender inequality within
countries, which can vary widely across regions.

Gender-related development index (GDI) :A composite index measuring average

achievement in the three basic dimensions captured in the human development indexa
long and healthy life, knowledge and a decent standard of livingadjusted to account for
inequalities between men and women.

Gini index: Measures the extent to which the distribution of income (or consumption)
among individuals or households within a country deviates from a perfectly equal
distribution. A Lorenz curve plots the cumulative percentages of total income received
against the cumulative number of recipients, starting with the poorest

individual or household. The Gini index measures the area between the Lorenz curve and
a hypothetical line of absolute equality, expressed as a percentage of the maximum area
under the line. A value of 0 represents

Human development index (HDI) : A composite index measuring average

achievement in three basic dimensions of human developmenta long and healthy life,
access to knowledge and a decent standard of living.

Human poverty index (HPI-1) : A composite index measuring deprivations in the

three basic dimensions captured in the human development indexa long and healthy
life, access to knowledge and a decent standard of living.

33
Human poverty index for OECD countries (HPI-2) : A composite index
measuring deprivations in the three basic dimensions captured in the human development
indexa long and healthy life, access to knowledge and a decent

standard of livingand also capturing social exclusion.

For HPI-1 (developing countries): deprivations in longevity are measured by the

probability at birth of not surviving to age 40; deprivations in knowledge are measured
living are measured by two variables: the percentage of people not having sustainable
access to an improved water source and the percentage of children below the age of five
who are underweight.

For HPI-2 (selected high-income OECD countries): deprivations in longevity are

measured by the probability at birth of not surviving to age 60; deprivations in knowledge
are measured by the percentage of adults lacking functional literacy skills; deprivations in
a decent standard of living are measured by the percentage of people living below the
income poverty line, set at 50% of the adjusted median household disposable income; and
social exclusion is measured by the rate of long-term (12 months or more) unemployment
of the labor force.

Uses of the HPI

To focus attention on the most deprived people and deprivations in basic human
capabilities in a country, not on average national achievement. The human poverty
indices focus directly on the number of people living in deprivationpresenting a very
different picture from average national achievement. It also moves the focus of poverty
debates away from concern about income poverty alone.

To highlight the presence of human poverty in both the rich and poor countries.
High income per person is no guarantee of a poverty-free country. Even among the
richest countries, there is human poverty. The HPI-2 for selected high-income OECD
countries (HPI-2) shows that out of 17 European and North American countries, the U.S.
has the second highest level of income per person, but also the highest rate of human
poverty.

34
 To guide national planning for poverty alleviation. Many National Human
Development Reports now break down the HPI by region or other socioeconomic
groups to identify the areas or social groups within the country most deprived in terms of
human poverty. The results can be dramatic, creating national debate and helping to
reshape policies.

Life Expectancy at birth : The number of years a newborn infant could expect to
live if prevailing patterns of age specific mortality rates at the time of birth were to stay
the same throughout the childs life.

Life Expectancy index : One of the three indices on which the human development
index is built.

Literacy rate, adult : The proportion of the adult population aged 15 years and older
which is literate, expressed as a percentage of the corresponding population (total or for a
given sex) in a given country, territory, or geographic area, at a specific point in time,
usually mid-year. For statistical purposes, a person is literate who can, with
understanding, both read and write a short simple statement on their everyday life.

Medium-variant projection Population projections by the United Nations

Population Division assuming medium-fertility path, normal mortality and normal
international migration. Each assumption implies projected trends in fertility, mortality
and net migration levels, depending on the specific demographic characteristics and
relevant policies of each country or group of countries. In addition, for the countries
highly affected by the HIV epidemic, the impact of HIV is included in the projection. The
United Nations Population Divisionalso publishes low- and high-variant projections. For
more information, see http://esa.un.org/unpp/assumptions.html.

Migrant : An individual who has changed their usual place of residence, either by
crossing an international border or moving within their country of origin to another
region district or municipality. Migrant stock, annual rate of growth Estimated average
exponential growth rate of the international migrant stock over each period indicated,
expressed in percentage terms. Migrant stock as a share of population Estimated number
of international migrants, expressed as a percentage of the total population.

35
Mortality rate, under-five The probability of dying between birth and exactly five
years of age, expressed per 1,000 live births.

36
4. METHODOLOGY WITH ILLUSTRATION
In general, to transform a raw variable , say x, into a unit-free index between 0 and
1 (which allows different indices to be added together), the following formula is used:

x-index =
where and are the lowest and highest values the variable x can attain,
respectively.

The Human Development Index (HDI) then represents the average of the
following three general indices:

Life Expectancy Index =

Education Index =

Adult Literacy Index (ALI) =

Gross Enrollment Index (GEI) =

GDP =

Illustrations
Development Indicators (ratios) for each component are calculated asfollows, and then
summed, giving equal weight to each.

Development Indicator = Country Value Minimum Value

Maximum value Minimum value

37
 2006
Max Min
Life Expectancy 85 25
Adult Literacy % 100 0 ) combined 2/3, 1/3
Combined Enrolment 100 0 ) into Education Index

GDP / Capita (PPP US$) 40,000

The calculation for Brazil (2006) is as follows:

Life Expectancy Index = 70.8 - 25 = 0.764

85 25

Literacy Index = 88.6 - 0 = 0.886 ) 2/3 weight

100 0 ) Education Index = 0.876

Enrolment Index = 86 0 = 0.86 ) 1/3 weight

100 0

GDP / capita Index = log (8195) log (100) = 0.735

log (40,000) log(100)

Human Development Index = 1/3 of each, summed = 0.792

In acknowledgement of the diminishing real returns to standard of living that

increasing GDP per capita provides, and the log scale calculation is very effective, as
follows for Brazil:

GDP/capita Index without logs = 8195 100 = 0.202

38
 40,000 100

GDP/capita Index with logs = 3.91 - 2 = 0.735

4.60 - 2

In other words, on a scale of 0 (low) - 1 (high) , Brazil comes in at 0.735 rather than
0.202

5 CAUSES FOR REJECTION OF DATA

Differences in interpretation of data in districts and sometimes within
districts

Accountsled approach to collection of much of the data, where

accounting or target-filling is the prime objective rather than reporting a
truer picture. This approach creates problems in health programmes like
immunization, where each shot or medicine given is accounted for as one,
even though the full process of medical treatment may not take place,
thereby leaving a large gap between reported application of medicines and
actual effect.

Programme target-led data collection. As many programmes and

objectives are specified in terms of targets, data collection on these
programmes also becomes target oriented and tends to show target
achievement. This does not indicate that data is untrue, but that it does not
truly reflect the picture. For example, in school enrollment, the tendency is
to show full or near enrollment by teachers (under pressure of full
enrollment targets) even though the children enrolled may not attend
school.

Benefit-led data reporting. In data drawn from surveys, people surveyed

tend to show a worse picture of themselves than actual, as it leads to
39
 benefits, such as the IRDP poverty survey. In this case functionaries
conducting surveys tend to be partial towards the surveyed and there are
errors on the side of over reporting of numbers and under-reporting of
ncomes, assets, etc.
Lack of data across districts and during a comparable period of time.
Much data is not reported for periods, and districts thus cannot be
compared.
Differences in data between department, and district and state levels.
This occurs as departments often lack proper coordination on new data or
changes in data. Thus, changes in old data are not uniformly reported and
collected across districts. For example, there are different figures for
number of villages, and departments often use different figures without
clearly reporting the figures; this causes confusion in districts and in
comparing village-level data

Much of the good data collected and available, is not accessible, simply because
the departments and agencies managing them either do not have the resources to collect,
collate and publish them regularly, or just do not do it. There is seriousness in data for
state-level indicator, but not for districts, since districts presently do not allocate
resources in a significant way. The Finance Department, other nodal departments and the
State Planning Board are state-level decision making bodies.

There are a lot of studies, estimates and surveys made at the national and state
levels that enable many of the calculations and estimates that go into developing the state
NSDP. These are absent at the district level, either totally or at the same level of detail,
whereby it becomes extremely difficult to make district-level estimates of incomes,
district domestic product etc.

6 Criticisms :
The Human Development Index has been criticized on a number of grounds,
including failure to include any ecological considerations, focusing exclusively on
national performance and ranking, and not paying much attention to development from a
global perspective.

40
 Two authors claimed that the human development reports "have lost touch with
their original vision and the index fails to capture the essence of the world it seeks to
portray".

The index has also been criticized as "redundant" and a "reinvention of the wheel",
measuring aspects of development that have already been exhaustively studied.

The index has further been criticized for having an inappropriate treatment of
income, lacking year-to-year comparability, and assessing development differently in
different groups of countries.

Some authors have proposed alternative indices to address some of the index's
shortcomings.

Economist Bryan Caplan has criticized the way scores in each of the three
components are bounded between zero and one, so rich countries effectively cannot
improve their ranking in certain categories, even though there is a lot of scope for
economic growth and longevity left, "This effectively means that a country of immortals
with infinite per-capita GDP would get a score of .666 (lower than South Africa and
Tajikistan) if its population were illiterate and never went to school." Scandinavian
countries consistently come out top on the list," he argues, "because the HDI is basically
a measure of how Scandinavian your country is."

The HDI has been criticized as a redundant measure that adds little to the value of
the individual measures composing it; as a means to provide legitimacy to arbitrary
weightings of a few aspects of social development; as a number producing a relative
ranking which is useless for inter-temporal comparisons, and difficult to compare a
country's progress or regression because the HDI for a country in a given year depends on
the levels of, say, life expectancy or GDP per capita of other countries in that year.
However, each year, UN member states are listed and ranked according to the
computed HDI. If high, the rank in the list can be easily used as a means of national
aggrandizement; alternatively, if low, it can be used to highlight national insufficiencies.
Using the HDI as an absolute index of social welfare, some authors have used panel HDI
data to measure the impact of economic policies on quality of life .

Ratan Lal Basu criticizes the HDI concept from a completely different angle.
According to him the Amartya Sen -Mahbub ul Haq concept of HDI considers that
provision of material amenities alone would bring about Human Development, but Basu
41
opines that Human Development in the true sense should embrace both material and
moral development. To quote: So human development effort should not end up in
amelioration of material deprivations alone: it must undertake to bring about spiritual and
moral development to assist the biped to become truly human.

42
Relevance of The Human Development
Index Today

Today, the HDI examines three basic dimensions to measure a countrys growth and
achievements in human development. The first of these is health for the countrys people.
This is measured by life expectancy at birth and those with higher life expectancies rank
higher than those with lower life expectancies.

The second dimension measured in the HDI is a countrys overall knowledge level
as measured by the adult literacy rate combined with the gross enrollment ratios of
students in primary school through the university level.

The third and final dimension in the HDI is a countrys standard of living. Those
with higher standards of living rank higher than those with lower standards of living. This
dimension is measured with the gross domestic product per capita in purchasing
power parity terms, based on United States dollars.

In order to accurately calculate each of these dimensions for the HDI, a separate
index is calculated for each of them based on the raw data gathered during studies. The
raw data is then put into a formula with minimum and maximum values to create an
index. The HDI for each country is then calculated as an average of the three indices
which include the life expectancy index, the gross enrollment index and the gross
domestic product.

43
RESEARCH METHODOLOGY

Center and State Govt s Human development policies

and evaluation studies :-

44
 Sl.No Name of the Scheme . Status of Evaluation Study
.
1 Sharda Sahayak
Pariyojana
2 Western Ghat Design prepared in house by PEO. Survey is
development to be
programme
and Hill Area Development programme

3 Agro Economic Interim report submitted to Ministry of

Research Centre Agriculture.

Detailed Study deferred on the request of

the Ministry.
4 Construction of Hostels Draft evaluation report under process.
for SC Boys and Girls

5 Long-term Action Plan Fieldwork related to data collection is in

for KBK Districts of progress through outsourcing.
Orissa

6 Special Central The Ministry of Tribal Affairs, which had

Assistance to Tribal initially requested PEO to take up this
Sub-Plan evaluation study have now indicated that
study has now been entrusted to Water and
Power Consultancy Organisation Pvt. Ltd.
(WAPCO). Hence it has been decided to
wait till the evaluation report is received
from WAPCO.

7 Evaluation of Centrally Reports pertaining to all 4 districts

Sponsored Schemes in Anantnag, Kupwara, Doda and Rajouri are
4 Militancy Affected received.
Districts of J & K

8 Indira Awas Yojana Quick Evaluation study to be outsourced as

directed by Member-Secretary, Planning
45 Commission.
9 National Shedule Tribe Draft evaluation report is under process.
The status of evaluation studies prioritized by DEAC in its meeting held

Evaluation Studies of Plan Schemes/Programmes in progress in PEO in 2006-07 is as

follws :

46
S.No State/UT 2003-2003 2003-2004 2004-2005
1 Sl.No.
A & N Name
islands of the Scheme
3.4 Status ofNA
Evaluation Study
NA
2 1 AndhraNational
Pradesh Rural 3.8 A detailed in-depth study has
9.0 6.4 been entrusted
Employment. Guarantee to IAMR.
3 Arunachal (NREGS) 5.2
Pradesh
Scheme 7.0 1.7

4 2 Assam Rajiv Gandhi Drinking

4.7 Action to5.5
be initiated for outsourcing.
5.9
Water Mission
5 Bihar 15.7 -9.0 12.1
3 Integrated Child A study has already been conducted by
6 10.7
Development Scheme
Chandigarh NIPCCD.10.3 11.2 an in-depth
PEO is also launching
(ICDS) study through outsourcing in the current
7 Chattisgarh 1.6 financial 16.8
year itself NA

8 4 Delhi Cooked Mid-Day Meals

4.7 Study design
9.8 approved. Evaluation
11.7 being
(CMDM) conducted exclusively through PEO staff.
9 Goa 10.6 6.2 NA
Survey has been launched in November,
10 Gujarat 7.5 2006. 15.1 5.1
5 Rajiv Gandhi Gramin Information on MIS developed by Ministry of
11 Haryana 5.0 8.6 8.4
Vidyutikaran Yojana Power being received on monthly basis. The
preliminary design of the evaluation study of
12 Himachal Pradesh 4.8 8.1 7.6
this scheme has been framed and the
13 Jammu & Kashmir 5.0 presentation
5.3 has been made before Member
5.5
(AS) and Member (KP) on 23.11.2006. It was
14 Jharkhand 7.4 decided that
4.3 in the first stage
5.3case study of UP
and Karnataka may be done for electrification
15 karnataka 4.3 done under
4.8this scheme up10.2to 30.09.2006.

16 Kerala 8.3 Parallel, design

10.7 and schedules
8.8 for All India
study are under Preparation. The survey for
17 Madhya Pradesh -6.3 this study16.2
will be outsourced.
3.4

6 Sarva Shiksha Abhiyan Action to be initiated for outsourcing. Draft

18 Maharashtra 8.3 7.9 8.4
analytical report received from Dr. Bibek
19 Manipur 1.7 Debroy. 2.8 7.9
7 Vocationalisation of As advised by Ministry of HRD the
20 Meghalaya 4.6 7.0 6.0
Secondary Education evaluation of the studyis postponed.
21 8 Mijoram
Intensive ComputerNA Scheme implementation
NA started
NA in 2005-
Training in Secondary 06.Ministry of HRD has requested that
22 Nagaland
Schools 10.3 NAbe taken up at least
evaluation NA after the
completion of second year i.e. after 2006-07.
47
23 Orissa 0.6 15.3 8.9
48
Figure : 1- 6 Literate Life Expectancies at birth: India and Major States

49
Figure 7: Gender gap in Literate Life expectancy at birth across States

LLE at birth in Rural and Urban India across states

50
Table 2: LLE at birth and HDI of Major states of India

51
Literate Life Expectancy at birth, India

52
 Note
1 Poverty Ratio of Assam is used for Sikkim, Arunachal Pradesh, Meghalaya,
Mizoram, Manipur, Nagaland and Tripura.
2 Poverty Ratio of Tamil Nadu is used for Pondicherry and Andaman & Nicobar
Islands.
3 Poverty Ratio of Kerala is used for Lakshadweep; Poverty Ratio of Goa is used
for Daman & Diu.
4 Poverty Line of Maharashtra and expenditure distribution of Goa is used to
estimate poverty ratio of Goa.
5 Urban Poverty Ratio of Punjab is used for both rural and urban poverty of
Chandigarh.
6 Poverty Line of Maharashtra and expenditure distribution of Dadra & Nagar
Haveli is used to estimate poverty ratio of Dadra & Nagar Haveli; Poverty Ratio of
Himachal Pradesh is used for Jammu & Kashmir.
7 Urban Poverty Ratio of Rajasthan may be treated as tentative.
8 Poverty line is in Rupees per capita per month; 1 Lakh is equivalent to 100,000.
SourcePlanning Commission, Government of India.

53
BIBLIOGRAPHY
Anand, S., and A. K. Sen (1995), Gender inequality in human development :
theories and measurement, New York: United Nations Development Programme.

Anand, S., and A. K. Sen. (2000), "The income component of the human
development index", Journal of Human Development, 1 (1): 83-106. Also, printed
in (1999) mimeo, New York: UNDP Human Development Report Office.

Anand, S., and A. K. Sen. (2003), "Concepts of human development and poverty :
a multidimensional perspective" in Readings in human development : concepts,
measures and policies for a development paradigm, eds. S. Fukuda-Parr and A. K.
Shiva Kumar, New Delhi: Oxford University Press, pp. 204-220.

Foster, J. E., L. Lopez-Calva, and M. Szekely. (2003), "Measuring the Distribution

of Human Development: Methodology and an Application to Mexico" presented
at the WIDER Conference on Inequality, Poverty and Human Well-Being, 30-31
May, Helsinki, Finland: WIDER.

Hicks, D. A. (1997), "The Inequality-Adjusted Human Development Index: A

Constructive Proposal", World Development, 25 (8), 1283-1298.

Anand, S. (2002), "The concern for equity in health", Journal of Epidemiology

and Community Health, 56 (7): 485-487.

Sen, A. K. (2002), Why health equity?, Health Economics, 11: 659-666.

54
The real wealth of a nation is its people. And the
purpose of development is to create an enabling
environment for people to enjoy long ,healthy and
creative lives This simple but powerful truth is to
often forgotten in the pursuit of material and
financial wealth
(Opening lines of 1st Human
Development Report 1990)

55
CONCLUSION

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 suited for the achievement of goals
of the organization. It will involve the further planning of recruitment, training,
retraining, labor reductions such as early retirement/redundancy or changes in
work force utilization as will bring supply and demand into equilibrium, not just as
a one-off but as a continuing workforce planning exercise the inputs to which
will need constant varying to reflect actual as against predicted experience on the
supply side and changes in production actually achieved as against forecast on
there quired surface. Human Resource Planning has got an important place in
the arena of industrialization. Thus manpower planning in Human Resource
Management is a core factor. Here the penalties for not being correctly staffed
are costly

56