REQUIREMENTS OF MANAGERIAL PERSONNEL FOR MANUFACTURING INDUSTRIES
The first step in the assessment of managerial personnel is the estimation of the managerial norm. The managerial norm is the over- all percentage of the number of managerial personnel to the total number of persons employed.
The managerial norms have to be fixed in relation to a particular point of time, The commencement of the Third Plan has been taken as the point of time for the purpose of calculation in this Report. Modern techniques of production, rationalisation, and increased efficiency would tend to lower manpower requirements. Consequently there would be an automatic reduction in managerial personnel requirements also.
A change-over from a medium-sized industry to a big- sized industry, would increase the requirements of managerial personnel by 20 per cent. If an industry is nationalised, a still higher percentage of managerial personnel would be required. To the extent possible, these considerations have been taken note of in fixing norms for the industry. The managerial norm for a particular industry or type of industry is decided on the basis of replies furnished to the questionnaire with such modifications as may be necessary taking into consideration the size of the concern and other relevant factors.
The following are the managerial norms for the various industries :
Norms for Norms for
Name of the Industry Technical General and
Management Commercial
Management
1. Industrial machinery 0.5% 0.5%
2. Equipment manufacturing industries 0.5% 0.5%
3. Iron & steel 0.38% 0.27%
4. Aluminium 0.5% 0.5%
5. Copper, lead and zinc 0.5% 0.5%
6. Precision instruments
(industrial and scientific) 1% 1.2%
7. Surgical instruments 1% 0.7%
8. Automobile and ancillary industries
Passenger cars, commercial vehicles,
jeeps & station wagons 0.65% 0-45%
Sewing machines 0.4% 1.1%
Bicycles 0.4% 1.1%
Ship building expansion of
Hindustan Shipyard and Second
Shipyard Dry Docks 1.5% 0.5%
9. Fertilizers 0.5% 0.5%
10. Cotton textiles 0-3% 0-3%
11. Salt 0.4% 0.2%
12. Vanaspati 1% 1%
13. Paper and paper board 1% 1.5%.
14. Cement 0.22% 0.33%
15. Glass & glassware 0.9% 1.00%
16. Soap 0.5% 1%
17. Synthetic rubber 1.26% 1.84%
18. Plastics 1% 0.5%
19. Refractors 1% 1%
20. Power & industrial alcohol 1% 1%
21. Industrial gases 0.9% 2.8%
22. Petroleum products crude oil 1% 2%
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The requirements of management personnel industry-wise are indicated below.
Industrial Machinery/Equipment Manufacturing Industries From the analysis of the figures of employment and production in the following industrial establishments, it has been deduced that for every crore of output the number of persons employed is 800 :
1. Hindustan Cables Limited 2. Chittaranjan Locomotive Works Limited 83. Ashok Leyland Limited
In regard to three items, however, viz., Machine Tools, Gear Industry and Ceramic Refractories, this ratio does not apply as these industries employ more persons per crore of production. Front the figures furnished by the Hindustan Machine Tools Limited, the Indian Telephone Industries Limited, etc., it was observed that this type of industry requires ],COO persons for every crore of production.
The managerial norm for the industry is 0.5% for Technical Management and 0.5 % for General and Commercial Management. The following is the statement indicating the additional management personnel required for achieving the targets of production indicated in the third Plan.
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Iron and Steel Industry Tata Iron and Steel Company Ltd., has been taken as the representative firm in this category. In 1960-61 this firm produced about 2 million tons of steel ingots and had a labour force of 38,000. On this basis, the then existing total labour force in the Steel industry was 66,500. The total additional labour force for the production of additional 6.7 million tons of steel will, therefore, be 126,550. The managerial norm for iron and steel production is 0.38% for technical management and 0.27% for general management.
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This managerial norm applies to all types of production in this category. The additional 6.7 million tons will be distributed as follows
Millions
Bhilai 2.0
Rourkela 1.8
Durgapur 1.6
Mysore Iron & Steel Works 0.1
Bokaro 1.0
Private sector (Tata Iron & Indian Iron) 0.2
6.7
The additional managerial personnel required for technical management is 483 and for commercial management is 335 for achieving this target.
Applied Tool and Special Steel 40,000 tons of applied tool and special steel were produced by the end of' 1960-61. By 1965-66, it is expected that production would be of the order of' 200,000 tons. The additional capacity will be in the following centres :
Tons
Durgapur plant 100,000
Ordnance Factory, Kanpur 25,000
Ordnance Factory, Ishapur 25,000
Private industry 10,000
160,000
For production of 25,000 tons of special steel, four managerial personnel under Technical Management and three for General Management is required. This would be the minimum irrespective of the tonnage produced. The total requirements of management personnel in this category is 28 for Technical Management and 18 for General and Commercial Management.
Grey Iron Castings, Steel Castings and Steel Forging About 700,000 Ions of grey iron castings, steel castings and steel forging were produced by the end of 1960-61. The third Plan targets for these are 1.2 million tons of grey iron castings and 200,000 tons each for steel castings and steel forging. The following is the distribution of additional centres :-
Steel Grey Iron Steel
Castings Castings Forging
Tons Tons Tons
Forge and Foundry, Ranchi 45,000 38,000 69,700
Durgapur Mining Machinery Plant 6,000 11,000 7,000
Hindustan Machine Tools, Bangalore - 6,000 -
Durgapur, Bhilai, Rourkela 15,000 75,000 -
Chittaranjan Loco 10,000 3,000 -
Foundries attached
to Railway Workshops - 6,000 -
76,000 139,000 76,700
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The following will be the share of the private sector
Steel Castings 74,000 tons
Steel Forgings 88,300 tons
On the basis of managerial norms as for special steel, the additional managerial personnel required is 100 for technical management and 75 for commercial and general management. The total managerial personnel required for Iron and Steel Industry to achieve the planned target of production is 631 for technical management and 428 for general and commercial management.
Non-Ferrous Metals In this category are aluminum, copper, lead and zinc. The following table gives the actual production in 1960-61, estimated production in 1965-66, number of persons in employment in 1960-61, additional persons required for development and the additional managerial personnel for technical management and general commercial management.
The returns furnished by the Indian Aluminium Company have been taken as the basis for the calculation of managerial norms which are 0.5% for technical management and 0.5% for general commercial management. The additional number of managerial personnel required for the non-ferrous industries during the third Plan is 518 for technical management and 518 for general commercial management. The development of the industry is in the following centres :
Aluminium
Tons
Indian Aluminium Company's Plant, Hirakud 10,000
Indian Aluminium Company's Plant, Alwaye 5,000
Smelter at Rihand 20,000
Smelter at Koyna 20,000
Smelter at Salem 10,000
Aluminium Corporation of India 5,000
Copper
Khetri and Deribo Copper Mines 11,500
Zinc
Zawar Mines, Rajasthan 15,000
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Miscellaneous Industries The following table gives the production in 1960-61, estimated production in 1965-66, persons employed in 1960-61, additional persons required for the development and managerial norms for technical management and general commercial management and additional managerial personnel required for technical and general management:
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Chemical Industries The largest and most important development under this head during the third Plan will be in the field of fertilisers. The following is the capacity for nitrogenous fertilisers in the public sector:-
(Tons of N)
Existing capacity (Sindri, Nangal, FACT). 217,000
Rourkela 120,000
Neyveli 70,000
Trombay 90,000
Nahorkatiya 32,500
Further expansion FACT 40,000
Gorakhpur 80,000
one more fertiiser undertaking in the public sector 80,000
TOTAL 729,500
The following development in the private sector has already been approved :
Tons
Sahu Chemicals 20,000
Ennore, Madras 8,250
Madhya Pradesh 50,000
Visakhapatnam 80,000
Kothagudiam 80,000
Rajasthan 80,000
West Bengal 58,000
The production capacity in 1960-61 was 110,000 tons of nitrogenous fertilisers. This is expected to increase to 1,000,000 tons at the end of the third Plan period. The number of persons in employment based on the analysis of the Sindri fertilisers was 16,000. The additional number of persons required for the development programme is 128,000. The managerial norms for this industry are 1% technical management and 0.5 % general and commercial management. The additional number that will be required, therefore, is 128 for technical management and 64 for general and commercial management.
In the field of heavy chemicals, the most important for which development is planned are :
Sulphuric Acid Caustic Soda and Soda Ash
In 1960-61, the Sulphuric Acid plants in the country produced 363,000 tons. By the end of the third Plan, it is proposed to increase this capacity to 1,750,000 tons.
The following is the position regarding production in 1960-61 and targets for 1965-66 :
1960-61 1965-66
Chemical Caustic 27,000 50,000
Electrolytic Caustic 97,435 350,000
TOTAL 124,435 400,000
Soda Ash (Light) 2,20,000 370,000
Soda Ash (Heavy) Nil 160,000
The investment for heavy chemicals comprising Sulphuric Acid, Soda Ash, Caustic Soda, Calcium Carbide, Sodium Hydro-sulphite and Hydrogen Peroxide is of the order of Rs. 420 millions. The managerial norms for this industry are estimated to be 1% for technical management and 1 % for general
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and commercial management. The additional number of persons required are 120 for technical management and 120 for commercial and general management.
The following table gives the position regarding production of other chemical products and drugs and pharmaceuticals in 1960-61, estimated for 1965-66, capital investment proposed and additional number of managerial personnel required.
Textile Industries The requirement of cotton textiles at the end of the third Plan has been calculated on the assumption that 8,450 million yards of cloth will be needed for domestic consumption and 850 million yards for exports. The actual availability of cloth in 1960-61 was of the order of 6,750 million yards. Out of the target of 9,300 million yards proposed, 3,500 million yards have been allocated as a share of handlooms, khadi, small power looms etc. The production target allocated to the mill sector is 5,800 million yards as against the effective capacity of about 5,000 million yards at present. The number of persons in employment in 1960-61 in the cotton textile industry is 150,000.
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The additional number for the development proposed is 24,000. In regard to the managerial norms, it may be pointed out that 5 textile mills have replied to the questionnaire and the figures of managerial personnel employed by them vary considerably. On this basis, the additional managerial personnel required will be of the order of 72 for technical management and 72 for general and commercial management. The actual production of rayon filament and staple fibre is about 95 million pounds. This is proposed to be increased to 215 million pounds by the end of the third Plan period. The additional number of persons that will be required is of the order of 36,000. On the basis of the managerial norms in the textile industry, the number of additional persons required is 108 for technical management and 108 for general and commercial management.
Food Industries
Salt Production in 1960-61 for salt was of the order of 3.7 million tons. This is expected to be increased to 6.5 million tons by the end of the Plan period. The additional number of persons required is 1,000. The managerial norms for this industry are .4% technical management and .2% general and commercial management. The total number of managerial personnel required is 4 for technical management and 2 for general and commercial management.
Vanaspati Estimated production of Vanaspati in 1960-61 was 330,000 tons. The development proposed is to increase this to 550,000 tons by the end of the current Plan period. The number of persons in employment in 1960-61 was 7,000. The additional number required for the development proposed is 5,000. Managerial norms are 1 % for technical management and 1 % for general and commercial management. Additional number of managerial personnel required for technical management is 50 and for general and commercial management 50.
Other Industries The following table gives the production in 1960-61, target for 1965-66, number of persons employed in 1960-61, additional number required for development, managerial norms and additional number of managerial personnel required during the third Plan :
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The requirements of managerial personnel for production management and general commercial management for the third Five-Year Plan period is given below. The basic assumption made in the calculation of personnel is that the targets of production as envisaged in the third Plan would be achieved and that the allocation of industries in the private and public sectors would be in accordance with the Industrial Policy Resolution of the Government of India. To quote an example, private industries are not keen to take up the manufacture of fertilisers and this has resulted in the enlargement of the public sector and consequent reduction in the private sector. Such mid-Plan changes obviously could not be taken into consideration in the preparation of these estimates. Another assumption is that industrial efficiency would remain the same throughout the five-year period. At best, these estimates are an indication of the order of requirements for the development envisaged in the third Plan.