MANAGERIAL PERSONNEL REQUIREMENT FOR SECTORS OTHER THAN INDUSTRY
The Committee, at its meeting held on the 10th June, 1962, decided that it was necessary to have a separate questionnaire for commercial establishments. The questionnaire was drawn up in consultation with Dr. V. K. H. V. Rao and Shri R. Prasad. A copy of the questionnaire may be seen at Appendix-IV. The questionnaire sought information regarding number of persons employed in managerial capacity in purchase and sales management, organisational and personnel management, and the total gross value of purchase and sales. Though this questionnaire was issued to about 100 business houses, only a few replied. The replies are analysed below :
Burmah Shell
Total Gross value of annual business Rs. 1,840 millions
No. of personnel employed in managerial
capacities 417
Approximate average per managerial personnel Rs. 4.4 millions
Acharya Bros.
Total gross value of annual business Rs. 15 millions
No. of personnel employed in managerial
capacities 7
Approximate average per managerial personnel Rs. 2 millions
Sen & Pandit (Pvt.) Ltd.
Total gross value of annual business Rs. 41.4 millions
No. of personnel employed in managerial
capacities 9
Approximate average per managerial personnel Rs. 4.4 millions
State Trading Corporation of India
Total gross value of annual business. 650 millions
No. of personnel employed in managerial
capacities 140
Approximate average per managerial personnel Rs. 4.6 millions
On an average, therefore, Rs. 4.5 millions is fixed as the norm for calculation of managerial personnel required by trade and commerce in the export and import business.
The total import at the commencement of the third Plan was of the order of Rs. 10,720 millions and the total likely imports at the end of the third Plan inclusive of P L. 480 imports is estimated to be of the order of Rs. 12,700 millions The increase in imports over the plan period is, therefore of the order of Rs. 2,000 millions. The annual exports at the commencement of third Plan is of the order of Rs. 6,140 millions. It is expected that by end of third Plan period this would be doubled. The total increase in the value of import and export business is of the order of Rs. 8,140 millions and applying the norm of Rs. 4.5 millions to each managerial personnel the number of additional personnel required is of the order of 1700.
Banking Of the banks addressed, four replied to the questionnaire. They are
1. Reserve Bank of India 2. State Bank of India 3. Punjab National Bank 4. Bank of India
15
16
The Reserve Bank of India have informed that they have their own arrangements for the training of their personnel and would not ordinarily depute persons for management studies. The Bank has a sandwich system of instruction under which training in the various departments of' a bank is imparted together with theoretical instruction in such subjects as are necessary for banking personnel. Tile course of instruction covers certain management subjects. The reply of the State Bank is also in the same vein. The Bank of India has also informed that they utilise the training facilities organised for the Reserve Bank and hence do not propose to depute any persons for management training. The Punjab National Bank has 10,540 persons in employment out of which 1,800 persons come under the category of general management.
There are at present 83 scheduled banks in the country. The total number of offices of scheduled banks at the commencement of the third Plan was 4,401. By the end of the third Plan, it is expected that there would be a 20% increase in the number of branches of the banks. The number of persons in employment at the commencement of the Plan was of the order of 60,000 At the end of the Plan, therefore, an additional number of 12,000 persons is likely to be employed. The figures furnished by the Punjab National Bank show that about 17% of the persons employed in the Bank have managerial responsibilities and supervisory functions. On this basis, the number of additional personnel required for banking in the third Plan is 2,040. Since, however the Reserve Bank of India and the State Bank of India and others have their own arrangements for training which, inter alia, includes management subjects, the requirement of managerial personnel for banking establishment may be estimated at 1/4th of the number i.e., say 500.
Insurance The Chairman of the Life Insurance Corporation has informed that though he agrees in principle that training in management subjects would benefit the employees of the Life Insurance Corporation, yet as the present staff has to be trained in the Life Insurance itself, it becomes a question of priority and naturally priority has to be given to training of personnel in the techniques of Life Insurance Business itself. In the circumstances, it has not been envisaged that the Life Insurance Corporation would be taking advantage of the training facilities for the management studies in the present juncture. In the overall calculation for managerial personnel, requirements of insurance industry need not be taken into consideration.
The Committee is, however, of the view that executives employed in Life insurance business should have managerial training and it would be to their advantage if the junior and senior executives could be deputed to educational institutions imparting instruction in Management.
Small-Scale Industries In the estimates of personnel made in the report of the third Plan, the additional employment under small-scale industries is shown as 9 lakhs. The National Productivity Council and the Small-Scale Industries Institutes have organised short-term courses of three-month duration for small-scale industries and such other persons desirous of equipping themselves with managerial know-how and techniques are likely to prefer this course as it aims at imparting instructions in the modern industrial techniques in addition to management principles and practices. It is, therefore, doubtful whether many persons start- ing small-scale industries would take advantage of the training scheme for
17
managerial personnel. In the circumstances, the requirements of the small-scale industries need not be taken into consideration in the overall estimates of the managerial personnel, though it is likely that a few persons desirous of having better knowledge in Management theory and practice may join this course.
Construction and Transportation The managerial norms for Construction and Transportation have been worked out on the basis of published statistics in the following reports.t
Report on Occupational Pattern of Employees in the Public Sector in India, and
Report on Occupational Pattern of Employees in the Private Sector in India (1961).
At the beginning of the third Plan, the number of workers in Construction industry in the private and public sectors was 118,500 and 531,193 respectively, totalling 649,693, or say 0.65 millions. Managerial personnel for construction industry fall into two categories, viz., (i) technical personnel, civil engineers and overseers, and (ii) business and commercial management personnel. The number of civil engineering personnel in construction industry was 3,115. The employment pattern in this industry is one civil engineering degree holder for every four overseers and hence 620 civil engineers with degree qualification may be presumed to be in position. This works out to 0.33 % and this may be taken as the managerial norm for technical personnel employed in construction industry. The number of non-technical managerial personnel is 5,400 for the total labour force of 0.65 millions. This works out to 0.38% and this may be taken as the norm for General and Commercial Management.
In 1960-61, the National Income under the head Construction was Rs. 3,310 millions.* At the end of the third Plan this is expected to increase to Rs. 5,400 millions, ie. an increase of 63%. Providing for increased effeciency of construction due to mechanical devices and higher labour output and such other factors, a reduction of 21/2% per annum, ie. an overall adjustment of 12 1/2 %, may have to be provided to arrive at man-power requirements. Making this adjustment, the additional working force required to achieve the national targets of the third Plan is 50%, i. e. 0.325 millions. Applying the managerial norms, the number of managerial personnel required for technical management is 1,072 or 1,070. For General and Commercial Management, it is 2,700.
Transportation In this category are
(i) Railways,
(ii) Shipping,
(iii) Airways, and
(iv) Road Transport.
18
The Railways The Railways have been traditionally a storehouse of technical and managerail man-power which have been unstintedly spared by the Organisation for the development of public sector industry. The recent success of the Integral Coach Factory, Madras and the Chittaranjan Locomotive Factory, West Bengal are in no small measure due to their awareness of the latest techniques of production, the need for work study and other management practice,; leading to increased efficiency. In the circumstances, for the purposes of the estimates of managerial personnel, it may be presumed, the requirements of Railways would be in the main taken care of by the Organisation itself.
Shipping At the beginning of the third Plan, the capacity of Indian shipping was 0.9 million G. R. T. It is expected to increase to 1.7 million G.R.T by the end of the third Plan. The share of the overseas shipping is expected to move up from 0.6 million G. R. T. in 1960-61 to 1.3 million G.R. T. in 1965-66. The managerial personnel required are for employment in the head office, representation in foreign countries and also in Indian ports. Additional managerial personnel has been estimated as 2 persons for every 10,000 tons and hence the total requirement of managerial personnel in the category of General and Commercial Management is 160.
Airways The third Plan provides for an expenditure of 255 millions on Civil Aviation which is distributed between the various categories as shown below :
(i) Works at aerodromes 185 millions.
(ii) Aeronautical telecommunication equipment 50 "
(iii) Air routes and aerodromes 10 "
(iv) Training and education equipment 8.4 "
(v) Research & development equipment 1.6 "
TOTAL 255 millions.
A sum of Rs. 295 millions for the expansion of the air corporations has also been included in the third Plan. The Air India International had, at the commencement of the third Plan, three Boeings and nine Super-Constellations. The programme for the third Plan provides for the purchase of four additional jet aircrafts. The operating fleet of the Indian Airlines Corporation, at the commencement of the third Plan, consisted of 54 Dakotas, 5 Skymasters and 10 Viscounts. The Programme in the third Five-Year Plan provides for the purchase of four Viscounts and 25 modern air-crafts to replace Dakotas. A provision of Rs. 150 millions has been made in the third Plan for the Corporation.
The managerial personnel required for the Airways fall into two categories:
(i) Maintenance Engineers required at the aerodromes; and (ii) General and commercial management personnel required at the head offices and branch offices in India and abroad.
Engineers and other personnel are eligible to work as ground- engineers at the aerodromes and in workshops after obtaining a certificate issued by the Department of Civil Aviation. As these executives deal with the labour, it would be an advantage if some managerial training is given to them. Currently, this is not the practice. The functional courses organised by the National
19
Institute for Training in Industrial Engineering Bombay, National Pro- ductivity Council, would be able to cover the requirements in this respect. The Corporation requires general and commercial management personnel. On an average, one managerial personnel is required for Rs. 4 millions of capital investment and on this basis; the number of persons required would be about 60.
Road Transport The number of personnel employed at the commencement of third Plan is 90,000 and that of the managerial personnel is 2,900. The managerial norm is, therefore, 3.2%. The position at the commencement of the third Plan regarding commercial vehicles is as follows :-
Goods Trucks 170,000
Passenger Buses 58,000
TOTAL 228,000
This is expected to increase by 132,000 by the end of the third Plan period : the increase in goods trucks is 110,000 and in passenger buses 22,000. The increase in vehicles, therefore, is of the order of 58%, Providing for increased efficiency and optimisation of the facilities, the increase in personnel may be fixed at 50 %. Applying the managerial norm of 3.2 % , the additional General and Commercial Management Personnel required is 1,450.
Summary total for Transportation--
Road Transport 1,450
Shipping 180
Air Transport 60
TOTAL 1,690
The following is the summary of the requirements of managerial personnel in the various non-manufacturing sectors :
The figures represent the requirements if the targets of export and import trade, shipping, road transport and construction as envisaged in the third Plan, are reached. There have been mid-term variations. The shipping target is expected to be exceeded whereas the target for export is not likely to be achieved. The figures given indicate the order of requirement rather than the exact requirements.
Technical General
Management and
Commercial
Management
Trade & Commerce - 1,700
Banking - 500
Construction 1,070 2,700
Transportation - 1,690
TOTAL 1,070 6,590