Techniques for Improving Decision Making

There may be some common errors and difficulties in decision making. Managers need to avoid these errors and difficulties so as to increase the decision quality and improve the end results. There are two types of decision makings i.e. individual decision making and group decision making. Their brief introduction and ideas for improving quality of decision making are given below: 

a) Improving Individual Decision Making 

Individuals think and reason before they act. Under some decision situations, people follow the rational decision making model. But for most people, and for most non-routine decisions, this is probably more the exception than the rule. Few important decisions are simple or unambiguous enough for rational model's assumptions to apply. So, individuals look for solutions that satisfy rather than optimize injecting biases and prejudices into the decision process, and relying on intuition. For the quality improvement in individual decision making, following points can be taken for the considerations. 

1. Analyze the situation 

Adjust our decision making style to the different situations in which you are operating and to the criteria your organization evaluates and rewards. 

2. Be aware of biases and prejudices

We all bring biases to the decisions we make. If you understand the biases influencing your judgment you can begin to change the way you make decisions to reduce those biases. 

3. Combined rational analysis with intuition 

Rational analysis and intuition are not conflicting approaches to decision making. By using both, you can actually improve your decision making effectiveness. As you gain managerial experience, you should feel increasingly confident in imposing your intuitive processes on the top of your rational analysis. 

4. Don't assume that your specific decision style is appropriate for every job 

Your effectiveness as a decision maker will increase if you match your decision style to the requirements of the job. For example, if your decision making style is directive, you will be more effective working with people whose jobs require quick actions. Similarly, an analytic style on the other hand, would work well managing accountants, market researchers, or financial analysts. 

5. Try to enhance your creativity 

Openly or clearly look for novel solutions to the problems in new ways and use analogies. Additionally, try to remove work and organizational barriers that might hamper your creativity. 

6. Others 

Increase information inputs, proper communication, select appropriate timing, increase acceptance and commitment, create supportive environment, change personal negative habits and attitudes, proper reward and punishment system, calculate risk and return etc. for improving quality of individual decision making. 

b) Improving Group Decision Making 

Inspite of problems in group decision making, there are ways to minimize the effect of time constraint, groupthink, group polarization and conformity to peer pressures. Participation, communication, free flow of information, changes of interaction and respect for each individual member in the group are the main factors that lead to improved decision making. Below presented are some important techniques frequently used by organizations in making effective group decisions. 

1. Interacting Group 

Interacting groups are formally created to take a decision on a specific task. In these groups, members meet face to face and rely on both verbal and non-verbal interaction to communicate with each other. Interacting groups often censor themselves and pressure individual members toward the conformity of an opinion. It is the traditional but most common form of group decision making technique. 

2. Brainstorming 

It is one of the most popular forms of interactive group decisions. Under this technique, group members are free to generate different ideas and alternatives to solve novel problems. In other words, interaction is free and open and finally with the accumulation of pooled information and derived judgments, consensus is achieved. It is thus, an interpersonal free exchange and sharing of ideas converted into decision. It is applied during idea generation phase of decision making. Alex Osborn (1953) introduced the concept of brainstorming for the selection of different courses of action. There are different rules for brainstorming which are as follows: 

• Do not criticize ideas: Members are not allowed to criticize the ideas given by their colleagues during brainstorming. 
• Provide as many ideas as possible: Another rule for brainstorming is collection of ideas from as many members as possible. All the presented ideas are noted down for further discussion.
• Speak freely: Every member is free to put ideas no matter how wild they are. The only thing is that ideas are presented without any sort of hesitation. 
• Build on the ideas of others: Members should build on the different ideas provided by group members. This is the synergy process where ideas are to be modified and simplified by adding others' ideas. 

3. Nominal Group Technique 

The nominal group technique (NGT) was developed to gain the benefits of group participation. This is a structured technique for making decisions where members are invited and familiarized with problems or issues to be solved. Using this technique, members carefully listen and study the problems and they are given 5 to 10 minutes of time to work independently to generate and write down their ideas. Then they describe and clarify their ideas to other group members. To reach in an agreement, there will be voting. 

4. Electronic Meeting 

It is the group decision making technique designed to help decision-making in groups to reach a decision through an interactive, computer based system allowing members for anonymity of comments and aggregation of votes. Issues are presented to the participants and they type their responses onto their computer screen. Individual comments as well as aggregate votes are displayed on a projection screen in the room. 

The major advantages of electronic meetings are anonymity, parallel communication, honesty and speed. Participants can anonymously type any message they want and it flashes on the screen for all to see at the push of participant's keyboard. It allows people to be brutally honest without penalty. And it is fast because chitchat is eliminated, discussions are not digressed and many participants can talk at once without stepping on one another's toe. The future of group meetings undoubtedly will include extensive use of this technology. 

5. The Delphi Technique 

This technique was originally developed by Rand Corporation in the late 1940s to predict the demand for manpower in the organization. Using this technique, a series of questionnaires is distributed among experts for filling in who work independently and avoid any sort of face to face discussions. An intermediary establishes contracts with these experts and accumulated questionnaires. The main jobs of the intermediary are to collect and summarize responses along with the follow-up questionnaires. The panel members again send back their responses. This cycle is repeated until a convergence is reached for with final decision making. 

Delphi Process or Steps 

Step 1: A series of questionnaire is distributed among experts for filling solution independently. 

Step 2: An intermediary establishes contracts and accumulates questionnaires from experts. 

Step 3: Intermediary summarizes the responses and gives feedback to the panel of experts. 

Step 4: New follow-up questionnaires are prepared and distributed again. 

Step 5: Panel of experts again send back their responses. 

Step 6: Same process is repeated again and again until consensus is reached. 

6. The Step Ladder Technique 

This technique of decision making is effective to reduce the potential inhibiting effects of face to face meeting in group. Under this technique, group members are added one by one at each stage of decision making process so that their input is fresh and clear by the previous discussed point of view. The steps involved in this process are as follows: 

Step 1: Two individuals (eg. A and B) are given the same problem to come up with the solutions. They work independently and bring an independent solution to the problem. 

Step 2: Both A and B sit together and develop solution to the problem and meet with another member (eg. C) who had independently analyzed the problem and arrived at a decision point. 

Step 3: A, B and C meet to discuss on the problem and arrive at a consensus decision, and they are again joined by another member (eg. D), who has independently analyzed the problem and arrived at a decision. 

Step 4: A, B, C and D sit together, discuss on different solutions and make the final decision.

You may also like:

• The Dynamics of Inter-Groups Conflict
• Reasons of Awareness of Information Groups
• Different Stages of Group Development
• The Processes of Group and Types of Groups
• Group Dynamics
• Inter-Group Conflicts
• Group Decision Making Processes
• Structure of Group
• Informal Group: Nature and Significance of Informal Group in Organization
• Group Dynamics: A Social Process
• Concept of Group and Reasons for Forming and Joining Group
• Different Methods of Demand Forecasting

Environmental Scanning and Methods of Environment Scanning

Environmental Scanning

Scanning is generally defined as acquiring information. In the context of marketing programs and plan environmental scanning involves monitoring changes and developments in the marketing environment that have potential impact on the marketing activities. It is essential for formulating plans.

According to Richard Steers –“Environmental scanning involves monitoring changes and developments in the environment that have potential impact on the organization.”

In conclusion, environmental scanning is the process by which marketing management monitor its relevant environment to identify opportunities and threats affecting the business. Environmental scanning should be done to bring controllable environment in favor of the organization and plans.

Methods of Environmental Scanning

Environmental scanning is absolutely necessary for strategy formulation. As the environment is complex environmental scanning should be cautiously dealt. For the environmental scanning, some of following methods can be used.

1. Extrapolation method: These methods require information from the past to explore the future. The future is assumed to be some function of the past. There are a variety of extrapolation methods, including trend analysis, forecasting and regression analysis.
2. Historical analogy: When past data cannot be effectively used to analyze an environmental trend, the trend is studied by establishing historical parallels with other trends. This method assumes that sufficient information is available from the other trend. Turing points in the progression become guideposts for predicting the behaviors of the trend being studied.
3. Intuitive reasoning: This method calls for a rational intuition by the scanner. Intuitive thinking requires free thinking unconstrained by past experience and personal biases.
4. Scenario building: This procedure involves constructing a time-ordered sequence of events that have a logical cause-and-effect relationship to one another. The resulting forecast is based on interrelationships among the events.
5. Cross-impact matrix: When two different trends in the environment point to two conflicting futures, the trends are studied to see their potential impact on each other.
6. Morphological analysis: This method is used to identify all possible ways to achieve an objective. It can be used to anticipate and to develop ideal patterns for achieving desired objectives.
7. Network methods: Two types of network methods are popular: Contingency Trees and Relevance Trees.
1. Contingency Tree: A contingency tree is a graphic display of logical relationships among environmental trends that focuses on branch points, at which several alternate outcomes are possible.
2. Relevance tree: A relevance tree is a logical network similar to a contingency tree, but assigning degrees of importance to various environmental trends with reference an outcome.
8. Missing line approach: This approach combines morphological analysis and the network method. Many developments and innovations that appear promising may be hindered because something is missing. Under such circumstances this unique may be used to study new trends to see if they reveal the missing links.
9. Model building: This method is similar to network methods but relies more on developing mathematical representations of the environmental phenomena in question. Simulations are good examples of model building techniques.
10. Delphi technique: The Delphi technique is the systematic solicitation of experts opinion in varying stages, using feedback to develop new forecasts.

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You may also like to read:

• Approaches to Study of Marketing

• Meaning and Features of Marketing Information System

• Meaning and Scope of Marketing Environment

• Components of Marketing Information System

• Needs of Continuous Monitoring of Changing Forces in the Environment

• Meaning and Concept of Human Resource Planning (HRP)

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Different Methods of Demand Forecasting | Survey of Buyer's Intentions | Delphi Method | Time Series Analysis and Trend Projection | Market Studies and Experimentation | Regression Analysis

Demand forecasting is not an easy task. Two dangers must be guarded against. First, too much emphasis should not be placed on mathematical or statistical techniques of forecasting. Though statistical techniques are essential in clarifying relationships and providing techniques of analysis, they are not substitutes for judgment. The danger is that we may go to the opposite extreme and regard forecasting as something to be left to the judgment of the so-called experts.

Related Topic: Demand Forecasting

Commonly for pure guessing, we can use following methods:

1. Survey of Buyer’s Intentions

The most direct method of estimating demand in the short run is to ask customers what they are planning to buy for the forthcoming time period generally a year. This method is also known as public opinion surveys, the most useful when bulk of the sales is made to industrial producers. In this method, the burden of forecasting is shifted to the consumers. But it would not be wise to depend wholly on the buyers’ estimates and they should be used cautiously in the light of the sellers’ own judgment.

A number of biases may creep into the surveys. If shortages are expected, customers may tend to exaggerate their requirements. The customers may know what their requirements are but they may misuse or mislead or may be uncertain about the quantity they intend to purchase from a particular firm. This method is not very useful in the case of household customers for several reasons, viz. irregularity in customers’ buying intentions, their inability to foresee their choice when faced with multiple alternatives, and the possibility that the buyers’ plans may not be real only wishful thinking.

2. Delphi Method

A variant of the opinion poll and survey method is Delphi method. It consists of an attempt to arrive at a consensus in an uncertain area by questioning a group of experts repeatedly until the responses appear to coverage along a single line or the issues causing disagreements are clearly defined. The participants are supplied the responses to previous questions from others in the group by a coordinator or leader of same sort. The leader provides each expert with the responses of the others including their reason. Others given the opportunity to react to the information or considerations advance each expert but interchange is anonymous so as to avoid or reduce halo effect and ego involvement associated with publicly expressed opinions.

It has some exclusive advantages such as: (a) It facilitates the maintenance of anonymity of the respondent’s identity throughout the course. This enables the respondent to be candid and forth right in his view. (b) Delphi renders if possible to pose the problem to the experts at one time and have their response.

Though it posses wide knowledge and experience of the subject and have an aptitude and earnest disposition towards the participants.

3. Time Series Analysis and Trend Projection

The time series relating to sales represent the past pattern of effective demand for a particular product. Such data can be presented either in a tabular form or graphically for further analysis. The most popular method of analysis of time series is to project the trend of the time-series. A trend line can be fitted through a series either visually or by means of statistical techniques such as method of least squares.

The analyst chooses a plausible algebraic relation between sales and the independent variable such as time. The trend line is then projected into the future by extrapolation. It is popular method because it is simple and inexpensive and partly because time series data often exhibit a persistent so long as the time shows a persistent tendency to move in the some direction.

4. Market Studies and Experimentation

An alternative technique for obtaining useful information about a product’s demand function involves market experiments. The firm locates one or more markets with specific characteristics, and then varies prices, packaging, advertising, and other controllable variables in the demand function with the variations occurring either over time or between markets. One market experiment technique entails examining consumer behavior is actual markets. The firm may also be able to use census or survey data to determine how such demographic characteristics as income, family size, educational level and ethnic background affect demand.

Market experiments have many serious shortcoming, they are expensive and are therefore usually undertaken on a scale too small to allow high levels of confidence in the results. Market experiments are seldom run for sufficiently long periods to indicate the long-run effects of various price, advertising or packaging strategies. The experimenter is thus forced to examine short run data and attempt to extend it to a longer period.

Various difficulties related with the uncontrolled parts of the market experiment also reduce its value as an estimating tool. A change in economic condition during the experiment is likely to invalidate the results, especially if the experiment includes the use of several separated markets, a local strike or layoffs by a major employer in one of the market areas. There is also the danger that customers lost during the experiment as a result of price manipulations cannot be regained when the experiment ends.

Market experimentation procedure utilizes a controlled laboratory experiment where in consumers are given funds with which to shop in a simulated store. By varying prices, product packaging, displays, and other factors, the experimenter can often learn a great deal about consumer behavior. The laboratory experiment, while providing similar information as field experiments, has an advantage because of lower cost and greater control of extraneous factors.

5. Regression Analysis

Regression analysis is to specify the variables that are expected to influence demand. Product demand, measured in physical units, is the dependent variable. The list of independent variables, or those which influence demand, always includes the price of the product and simply includes such factors as the prices of complementary and competitive products, advertising expenditures, consumer income and population of the consuming group. Demand function for expensive durable goods such as the houses and automobiles, include interest rates and other credit terms, those for beverages, or air conditioners include weather conditions. Demand determinants for capital goods, such as industrial machinery, include corporate profitability output to capacity ratios and wage rate trends.

Regression analysis is to obtain accurate estimates of the variables, measures of price, credit terms, output, capacity ratios, advertising expenditures, incomes and so on. Obtaining estimates of these variables is not always easy especially if the study involves data for past years. Some key variables, such as consumer attitudes toward quality and their expectations about future business conditions – which are very important in demand functions for many consumer goods, may have to be obtained by survey techniques, which introduces on element of subjectivity into the data or by market or laboratory experiments, which may produce biased data.

6. Barometric Method

A barometric or indicator, forecasting is based on the observation that there are lagged relationships among many economic time series. Changes in some series appear consistently to follow changes in one or more other series. The theoretical basis for some of these lags is obvious. For example, building permits issued precede housing starts and orders for plant and equipment lead production in durable goods industries. The reason is that each of these indicators refers to plans or commitment for the activity that follows. Other barometers are not also directly related to the economic variables they forecast. An index of common stock prices, for example, is a good leading indicator of general business activity. Although the causal relationship here is not readily apparent, stock prices reflect an aggregation of profit expectation by business managers and others and hence composite expectation of the level of business activity.

Theoretically, barometric forecasting requires the isolation of an economic time series that consistently leads the series being forecast. This relationship established; forecasting directional changes in the lagged series is simply a matter of keeping track of movement in the leading indicator. Several problems prevent such as easy solution to the forecasting problem.

• Few series always correctly indicate changes in another economic variable. Even the best leading indicators of general business conditions forecast with only to go present accuracy.
• Second, even the indicators that have good records of forecasting directional changes generally fail to lead by a consistent period. If a series is to be an adequate barometer, it not only must indicate directional changes but also, additionally, must provide a constant lead-time. Few series meet the test of lead-time consistency.
• Finally, barometric forecasting refers that even when leading indicators proved to be satisfactory from the stand point of consistently indicating directional change with a stable lead time, they provide very little information about the magnitude of change in the forecast variable.

Mainly two techniques that have been used with some success to overcome at least partially the difficulties in barometric forecasting are composite indexes and diffusion indexes. Composites indexes are weighted averages of several leading indicators. The combining of individual series into a composite index results in a series with less random fluctuation or noise. The smoother composite series has a lower tendency to produce false signals of change in the predicted variable.

Diffusion indexes are similar to composite indexes. Instead of combining a number of leading indicators into a single standardized index, the methodology consists of noting the percentage of the total number of leading indicators that are rising at given point in time.

Even with the use of composite and diffusion indexes, the barometric forecasting technique is a relatively poor tool for estimating the magnitude of change in an economic variable. Thus, although it represents a significant improvement over simple extrapolation techniques for short term forecasting.

7. Input-output Analysis

A forecasting method known as input-output analysis provides the most complete examination of all the complex interrelationships within an economic system. It shows how an increase or decrease in the demand for one’s industry output will affect other industries. An increase in the demand for trucks will lead to increased production of plastic, steel, tires, glass and other materials. The increase in the demand for these materials will have secondary effects. The increase in the demand for glass will lead to a further increase in the demand for steel, as well as for trucks used in the manufacture of glass, steel and so on. Input-output analysis traces through all these inter-industry relationships to provide information about the total input on all industries of the original increase in the demand for trucks.

It is based on set of tables that describe the interrelationships among all the component and parts of the economy. Input output analysis has a variety of uses ranging from forecasting the sales of an individual firm to probing the implications of national economic programs and policies. The major contribution of input-output analysis it that it facilitates measurement of the effects on all industrial sectors that changes in activity in any one sector.

  SOME RELATED LINKS:      

• Meaning and Concept of HRP (Human Resource Planning)

• Different methods of demand forecasting

• Environmental Scanning and Methods of Environment Scanning

• Techniques for Improving Decision Making

• Expert’s opinion survey differ from survey of Sales forces

• Steps of Demand Forecasting

• Demand Forecasting

Meaning and Concept of HRP (Human Resource Planning)

Concept of HRP (Human Resource Planning)

In simple words, HRP is a process of sticking balance between human resources required and acquired in an organization. In other words, HRP is a process by which an organization determines how it should acquire its desired manpower to achieve the organizational goal. Thus, HRP helps an organization to have right number and kind of people at the right place and right number times to successfully achieve its overall objectives. The quality of an organization is, to large degree, considered merely the summation of the quality of people its hires and keeps. Therefore, before actually selecting the right people for right jobs, it becomes a pre-requisite to decide n the quantity and quality of people required in the organization. This is done through human resource planning.

Process of HRP

How to have the right number of people with right skills at right imes? The process of human resource planning helps in this regard. The human resource planning process consists of activities relating to future demand for and supply of manpower and matching the two in the context of overall organizational plans and objectives.

The various activities involved in the process of human resource planning are now discussed one by one.
1. Analyzing organization plans and objectives: The process of human resource planning begins with analyzing the overall plans and objectives of organization. The reason being the human resource plans stem from business plans. Analysis of business plans into sub-sectional and functional plans such as technology, production, finance, marketing, expansion and diversification provides for assessing the human resource requirements for each activity in each section and department.

Similarly, the analysis of organizational objectives also provides for human resources required by an organization. For example, if the objective of the organization is rapid growth and expansion, it would require more human resources for its all functional areas. Thus, it is evident that the human resource planning needs to be made in accordance to the overall organizational plans and objectives.

2. Analyzing Objectives of Human Resource Planning: The main purpose of human resource planning is matching employee’s abilities to enterprise requirements, with an emphasis on future instead of present arrangements. According to Sikula, “the ultimate mission or purpose of human resource planning is to relate future human resources to future enterprise need so as to maximize the future human resources to future resources.” For this, managers need to have the objectives of human resource planning with regard to the utilization of human resources in the organization. While developing specific objectives of human resource planning, questions need to be addressed like:

• Whether the vacancies, as and when these arise, will be filled in by promotion, transfer from external sources?
• What will be the selection procedure?
• How will provisions be made for training and development of employees?
• How to restructure job positions, i.e., how to abolish the old or boring jobs and replace by the challenging ones?
• How to downsize the organization in the light of changing business and industrial environment?

3. Forecasting Demand for Human Resources: The demand for human resources in an organization is subject to vary from time to time, depending upon both external and internal factors. External factors include competition, economic and political climate, technological changes, government policy, etc. Among the internal factors include growth and expansion, design and structural changes, management philosophy, change in leadership style, employee’s resignation, retirement, termination, death, etc. Therefore, while forecasting future demand for human resources of the organization, these factors need to be taken into consideration.

Forecasting demand for human resources is good for several reasons because it can help: (i) quantify the number of jobs required at a given time for producing a given number of goods, offering a given amount of services. (ii) ascertain in staff-mix needed at different points of time in the future and (iii) ensure adequate availability of people with varying qualifications and skills as and when required in the organization,.

How to forecast requirement for human resources in the future? There are various techniques varying from simple to sophisticated ones employed in human resource forecasting. These include:

a) Management Judgment: This technique is very simple and time-saving. Under this technique, either a “bottom-up” or a “top-down” approach is employed for forecasting future human resource requirement of an organization. In case of bottom-up approach, line managers prepare departmental requirements for human resource and submit it to the top managers for their review and consideration. In the “top-down” approach, the top managers prepare the departmental forecasts which are reviewed with the departmental heads or managers. However, neither of these approaches is accurate. Forecasts based on these approaches suffer from subjectivity. This technique is suitable only for small firms or in those organizations where sufficient data-base is not readily available.

b) Work-Study Method: This method can be used when it is possible to measure work and set standards and where job methods do not change frequently. In this method, as used by Fredrick Winslow Taylor in his ‘Scientific Management’, time and motion study is used to ascertain standard time for doing a standard work. Based on this, the number of workers required to do standard work is worked out.

c) Ratio-Trend Analysis: This is one of the quickest forecasting techniques. Under this method, forecasting for future human resource requirements is made on the basis of time series data. In other words, this technique involves studying past ratios (e.g. Total output number of workers, total sales volume/ number of sales persons, direct workers, is made for indirect workers) and based on these, forecasting is made for future ratios. While calculating future ratios, allowances can be made for expected changes in organization, methods and jobs. The demand for human resources is calculated on the basis of established ratios between two variables.

d) Delphi Technique: Delphi technique is named after the ancient Greek oracle at the city of Delphi. This is one of the judgmental methods of forecasting human resource needs. It is a more complex and time-consuming technique which does not allow group members to meet face-to-face. Therefore, it does not require the physical presence of the group members. 

• The members are asked to provide their estimates of human resource requirements through a series of carefully designed questionnaires. 
• Each member anonymously and independently completes the first questionnaire.
• Results of the first questionnaire are compiled at a central location, transcribed and copied.
• Each member receives the copy of the result.
• After viewing the results, members are again asked to review their estimates. The initial results typically trigger new estimates or cause changes in the original position.
• Steps 4 and 5 are repeated as often as necessary until a consensus is reached.

The Delphi technique insulates group members from the undue influence of others. Also, since it does not require the physical presence of group members, even a global company could use this technique with members/ managers stationed indifferent countries. As the technique is extremely time consuming, it is frequently not appropriate when a speedy decision is necessary. Further, the technique might not develop the rich pool of alternatives that interacting or nominal groups do. The ideas that might arise from the heat of face-to-face interaction might never come up.

• Flow Models: Among the flow models, the simplest one is called the Markov model. This model involves the following:
• Determination of time period that will be covered under forecast.
• Establishment of employee’s categories also called states. There should not be overlapping among the various categories.
• Enumeration of annual flows among various categories or states for several time periods.
• Estimation of probability of flows or movements from one categories to another based on past trends in this regard.

However, the Markovian model suffers from disadvantages like heavy reliance on past data, which may not be accurate in abnormal situations like periods of turbulent change, and individual accuracy in forecast is sacrificed at the cost of group accuracy.

f. Mathematical Models: Mathematical models express relationship between independent variables, (e.g. production, sales, etc.) and dependent variable (e.g. number of workers required).

4. Forecasting Supply of Human Resources: Having forecast human resource demand, the next task involved in human resource planning is to forecast human resource supply. Forecast of human resource supply gives the quantity and quality of people available from internal and external sources of manpower supply, after making due allowances for absenteeism, transfers, promotions, changes in the work hours, and other conditions of works.

Forecasting of human resources begins with the current human resource inventory, also called human resource audit. In brief, human resource inventory contains information about present human resources in the organization. It reveals what is available in the stock of manpower and what can be expected in future. Thus, it can indicate whether the supply of human resources is less than its demand or more than its demand. Whatever be the situation, the same will be made good accordingly.

5. Matching Demand and Supply: Once demand for and supply of human resources of an organization is forecast, the two need to be reconciled. Such reconciliation will reveal either shortage or surplus of human resources in future. Accordingly, action plans will be prepared to meet the situation, i.e., to strike a balance between the two. In the case of shortage of human resources, this will be met through recruitment, transfer, promotion, training and development, retention, etc. On the contrary, in case of surplus human resources, it can be made good through schemes like redeployment, retrenchment, voluntary retirement scheme (VRS) through golden handshake, etc. will be recommended and implemented. Yes, downsizing should be done in consultation with the employees union. This will help avoid employees’ resistance for change in job.

6. Monitoring and Control: the sixth and final step involved in human resource planning is monitoring and control. Once the action plans are implemented, these need to be reviewed, regulated and monitored against the set standards. Monitoring of action plans and programmes help reveal deficiencies, if any. Corrective measures help remove deficiency and, thus, control the implementation of action plans formulated earlier need to be modified in the light of changing needs of organization in the changed environment.