hi can you tell me something about the concepts of "Stock taking and manpower mapping and how it is used by managers in manpower planning? waiting for your reply shieba
From India, Faridabad
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From India, Faridabad
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It seems you did not have any sort of degree or diploma in Human Resources. According to the International Labour Organization: "Labour or human resource is not a commodity." So you cannot use the word "stocktaking" as applicable to materials. As far as the word "mapping" is concerned, it means "analysis".
Badlu
From Saudi Arabia
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15Badlu
From Saudi Arabia
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CONCEPT " stock taking and manpower mapping".
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
=================================
STOCK TAKING
-taking counts human resources in quantitative / qualtitative terms,
in an organization.
STEP 1---REVIEW THE FOLLOWING
-Corporate Mission
-Corporate Objective
-Corporate Strategy
-Corporate Organization Policy/ Budget Guidelines.
-Corporate HR objective/ strategy
-Corporate Industrial Relations Policy
=====================================
STEP 2 --- CONDUCT HR AUDIT
[ IN SOME ORGANIZATIONS, THEY SKIP THIS STEP
AND GO STRAIGHT INTO ''HR PLANNING''.
The Human Resources (HR) Audit is a process of examining policies, procedures, documentation,
systems, and practices with respect to an organization's HR functions.
PURPOSE
The purpose of the audit is to
reveal the strengths and weaknesses in the human resources system, and any issues needing
resolution.
The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are
missing or need to improve, but it can't tell you what you need to do to address these issues. It is most
useful when an organization is ready to act on the findings, and to evolve its HR function to a level where
its full potential to support the organization's mission and objectives can be realized.
FOR EFFECTIVENESS/ EFFICIENCY
Like any other function, the performance and contribution of HR should be audited
regularly. The questions to which answers should be obtained are:
1. What strategic contribution is being made by HR to the achievement of business/corporate objectives?
2. To what extent are there well-articulated and agreed HR strategies which are aligned to the business strategy and which are integrated with one another?
3. What role does HR currently play? Is this role appropriate in the context of the organization?
4. To what extent has the responsibility for HR issues been devolved to the management?
5. How well does HR reconcile the need for devolution with the need to ensure that organizational, ethical and legal obligations and requirements are being mf consistently?
6. What evidence exists that HR is being innovative in a practical and business way, based on an analysis of the business and people needs of the organizational and benchmarking?
7. How well is HR performing by reference to quantitative measures such as added value per employee, absenteeism and attrition?
8. How well is HR performing in terms of service delivery in fields such as recruitment, training, reward management, health and safety, the management of equal opportunity and diversity, advice on employment law and legal obligations, the provision of employee assistance programmes and the maintenance and use of personnel information systems?
9. To what extent does HR express proper concern for ethical considerations, the interests of all stakeholders (employees as well as management), enhancing the quality of working life and achieving a satisfactory work/life balance?
10. What ' contribution has HR made to the improvement of the employee relations climate?
11. How well is HR regarded by its customers - management, line managers, employees generally, employee representatives, as measured by formal assessments or opinion surveys?
12. Is the HR function well-organized and properly staffed with qualified professionals who are actively concerned with continuous professional development?
Who should conduct the audit?
The team that is responsible for the audit should represent a cross-section of the organization's staff,
including line staff, middle and upper management, and those responsible for HR functions.
or you may use an external consultant to assist.
How should it be conducted?
The audit process consists of a series of questions covering the primary components of the HR
function:
-Roles, head count, and HR information systems (HRIS)
. Recruitment
. Documentation
. Training, development, and career management
. Compensation and benefits
. Performance measurement and evaluation
. Termination and transition
. Legal issues and personnel policies
9. Health / Welfare systems
10.Employee Relations
11. Safety
12. Resourcing
PLUS ANY OTHER ITEMS PERTAINING TO YOUR ORGANIZATION
The team works to collect information to answer the HR audit questions in each of these categories. The
focus is on how these activities and tasks are actually performed in the organization. The first step is to
collect all the pertinent information. The process of getting information, in and of itself, can be quite
informative.
============================================
How are needed improvements identified?
Once information is gathered, the audit team reviews each major section and notes disparities between
paper (what we think or say we do) and practice (what we actually do, as revealed by the answers to the
audit questions). This can then be compared to best practice (what we should do to best support our
organization's mission).
How is follow-up and correction done?
ACTION PLAN WITH TIME FRAME.
Improving the HR system takes some time. A workplan — with a timeline, accountability, and
deliverables — should be created after the team reviews the completed audit and identifies areas where
improvement is needed. Follow-up and review should be a regular management function, performed on
an ongoing basis.
=================================================
STEP 3 - HR PLANNING
STEP A
Discuss with the various other departments like sales/ production/
distribution/accounting/ IT etc about their requirements
-for manpower
-recruitments
-replacements
-training
etc etc
Once HRM gets their departmental requirements, HRM develops
-HUMAN RESOURCE PLANNING
which includes
-recruitment /selection plans / programs/ procedures/ priorities
-training plans / programs/ procedures/ priorities
-rewards plans / programs/ procedures/ priorities
-development plans / programs/ procedures/ priorities
-payroll plans / programs/ procedures/ priorities
- performance management plans / programs/ procedures/ priorities
-staff/organization communication plans / programs/ procedures/ priorities
etc etc
-HR POLICIES
-HR PROCEDURES
-HR PRACTICES.
ETC.
================================================== ========
STEP 4
NOW THE HR MANAGEMENT DEVELOPS
MANPOWER PLANNING IN CONJUNCTION WITH THE
DEPARTMENT MANAGERS/ LINE MANAGERS.
Manpower Planning includes
1.Assessment / Audit of the current manpower profile
-numbers
-skills
-ages
-flexibility
-sex
-experience
-capabilities
-character
-potential
and also
-normal turnover,
-staff movements planned
-retirements
-succession planning
etc.
2.Corporate Organization Policy/ Budget Guidelines.
3. Corporate HR objective/ strategy
4. Corporate Sales forecasts [ 3 or 5 or 10 years ]
5. Corporate Product Plans [ 3 or 5 or 10 years ]
6. Corporate Production forecasts. [ 3 or 5 or 10 years ]
BASED ON THE ABOVE , hrm/ department managers DEVELOP A SERIES OF
CRUDE FORECASTS OF STAFF REQUIRED.
Now review the following
1.The impact of technological change on task needs.
2. Variations in the efficiency, productivity, flexibility of labor as a
result of training, work study organizational change, new motivations, etc.
3. Changes in employment practices [ e.g. subcontractors or
outsourcing etc ]
4.Other variations due to new legislations like new health requirements,
safety requirements etc.
5.Changes in government policies like tax/ tariff etc
6. Labor demand and supply .
7. Skills levels availability
What should emerge from this analysis / reviews is a "thought out"
and logical staffing demand schedule for varying dates in the future
which can then be compared with the crude supply schedule.
The comparison will then indicate what steps must be taken to
achieve a balance.
This will involve now
-recruitment / selection plan.
-training plan
-retraining plan
-early retirement plan
-redundancy plan
-changes in workforce utilization plan
-succession plan.
-personnel and career plans
These plans will help to bring supply and demand into equilibrium,
not just as a one-off but as a continual workforce planning
exercise the inputs to which will need constant varying to reflect
the actual as against predicted experience on the supply side
and changes in production actually achieved as against forecast
on the demand side.
=======================================
STEP 5
MANPOWER MAPPING
is the process of identifying the gap between
-WHAT IS THE CURRENT BUSINESS SITUATION/ CURRENT MANPOWER
AND
-WHAT IS THE FUTURE BUSINESS SITUATION / MANPOWER NEEDS
AND
-DEVELOPING A PLAN TO FILL THE GAP WITH
BY INDIVDUAL POSITIONS.
*numbers of additional workers/staff / managers etc
*skills of different levels
*flexibility in job handling
*achieving equal employment opportunities
*experience- lifting the experience levels
*capabilities-- improving capabilities for performance
* increase potential of people
*training
etc etc
==================
From India, Mumbai
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Dear User,
Do you understand Mr. Leo Lingham and Mr. Azure, what this post is all about? :idea: He described the procedure for human resource audit and pasted it under the title of "Stock Taking and Manpower Mapping" very cleverly.
In this way, you are going to be fired if I were in place of your vice president and asked you to give me a PowerPoint presentation and establish this methodology as "Stock Taking and Manpower Mapping Process." This is how most of the members confuse the subjects here and misinform everyone.
Best regards,
BADLU
From Saudi Arabia
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Do you understand Mr. Leo Lingham and Mr. Azure, what this post is all about? :idea: He described the procedure for human resource audit and pasted it under the title of "Stock Taking and Manpower Mapping" very cleverly.
In this way, you are going to be fired if I were in place of your vice president and asked you to give me a PowerPoint presentation and establish this methodology as "Stock Taking and Manpower Mapping Process." This is how most of the members confuse the subjects here and misinform everyone.
Best regards,
BADLU
From Saudi Arabia
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Stock taking and Manpower Mapping
I understand what you Boss wants from this glossary of “stock taking and manpower mapping”
Such glossary is used either by some top management person with technical or some hybrid qualification background that obviously not belongs to Human Resources. These words are very generic words and have no definitions in the books of Human Resources Management
You can use many methodologies; you may also engage some world class consulting companies in the business such as:
1. Deloitte
2. Price Waterhouse Coopers
3. Mckinsey & Co.
4. Arthur D Little
5. Boston Consulting
6. Booz, Allen, Hamilton
7. Ernst & young
8. etc
These consulting companies charge in US$ price for project ranging from 400,000 to 14,00,000 UD$.
Hence, Indian companies cannot afford such price for world class knows-how. Therefore we have to depend on shortcut methods tailored made to apply on Indian business models. I work on technical evaluation of several projects assigned to these consulting companies mentioned above hence can easily differentiate what matter for Indians and what is global phenomenon. Except TATA I did not seen any other Indian company approach to them because of its price.
Be simple and short:
1. Prepare Organization Chart
2. Then prepare department wise and section wise as well as unit group wise organization chart with exact location and positions of the job.
3. Take over view of department functions and process cycle.
4. Describe the activities of each position in the chart (Job Description) with reporting and its work load.
5. Work on sample case how departments are being functioned.
- Take account of the skills sets required by the organization for conduct of the business by listing job positions and number of jobs with job roles.
- Works on what amount of activities being engaged by each position.
- Work on volume of the transitions which been conducted in the past to know whether this structure is feasible or not.
- Or is there any surplus manpower exists or redundancies.
- Or whether some positions have no job. Or jobs which can be outsourced.
6. Once you are sure of your analysis through job audit report and identified the surplus jobs then restructure of department by redesigning the process to identify more efficient and thin model to reduce the size of the department.
7. Then prepare one power point presentation describing new model and weakness of old model where you find surplus or shortages or lack of competencies.
This is only approach and broader guidelines to design action plan how you are going to conduct this management jargon of so called “stock taking and manpower mapping”
.
BADLU
From Saudi Arabia
Acknowledge(0)Amend(0)
I understand what you Boss wants from this glossary of “stock taking and manpower mapping”
Such glossary is used either by some top management person with technical or some hybrid qualification background that obviously not belongs to Human Resources. These words are very generic words and have no definitions in the books of Human Resources Management
You can use many methodologies; you may also engage some world class consulting companies in the business such as:
1. Deloitte
2. Price Waterhouse Coopers
3. Mckinsey & Co.
4. Arthur D Little
5. Boston Consulting
6. Booz, Allen, Hamilton
7. Ernst & young
8. etc
These consulting companies charge in US$ price for project ranging from 400,000 to 14,00,000 UD$.
Hence, Indian companies cannot afford such price for world class knows-how. Therefore we have to depend on shortcut methods tailored made to apply on Indian business models. I work on technical evaluation of several projects assigned to these consulting companies mentioned above hence can easily differentiate what matter for Indians and what is global phenomenon. Except TATA I did not seen any other Indian company approach to them because of its price.
Be simple and short:
1. Prepare Organization Chart
2. Then prepare department wise and section wise as well as unit group wise organization chart with exact location and positions of the job.
3. Take over view of department functions and process cycle.
4. Describe the activities of each position in the chart (Job Description) with reporting and its work load.
5. Work on sample case how departments are being functioned.
- Take account of the skills sets required by the organization for conduct of the business by listing job positions and number of jobs with job roles.
- Works on what amount of activities being engaged by each position.
- Work on volume of the transitions which been conducted in the past to know whether this structure is feasible or not.
- Or is there any surplus manpower exists or redundancies.
- Or whether some positions have no job. Or jobs which can be outsourced.
6. Once you are sure of your analysis through job audit report and identified the surplus jobs then restructure of department by redesigning the process to identify more efficient and thin model to reduce the size of the department.
7. Then prepare one power point presentation describing new model and weakness of old model where you find surplus or shortages or lack of competencies.
This is only approach and broader guidelines to design action plan how you are going to conduct this management jargon of so called “stock taking and manpower mapping”
.
BADLU
From Saudi Arabia
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Try and contain your disdain and wrath......I would also suggest you use spell check prior to sending any email PVQ
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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I am not an English teacher. This is an internet service; no one has time to waste on these minor errors. Spell check and grammar check... bla bla. After all, what matters is substance and not presentation format.
Badlu
From Saudi Arabia
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Badlu
From Saudi Arabia
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Guys,
Let's ignore such users who have unfortunately become members (fortunate for them, unfortunate for us). Such people make up the majority of those who are actually frustrated; maybe because they didn't get a satisfactory HR job, or because they are constantly being mistreated in their workplace due to their poor parochial attitude, incompetency, etc., or simply because they were born with this priceless attitude of finding faults with others. They are the typical show-offs who don't possess much substance but like to pretend as if they are God's gift to mankind.
So folks, let's have pity for such people because sympathy is the only thing we can share with them.
Thanks,
Prashant
From India, Bangalore
Acknowledge(0)Amend(0)
Let's ignore such users who have unfortunately become members (fortunate for them, unfortunate for us). Such people make up the majority of those who are actually frustrated; maybe because they didn't get a satisfactory HR job, or because they are constantly being mistreated in their workplace due to their poor parochial attitude, incompetency, etc., or simply because they were born with this priceless attitude of finding faults with others. They are the typical show-offs who don't possess much substance but like to pretend as if they are God's gift to mankind.
So folks, let's have pity for such people because sympathy is the only thing we can share with them.
Thanks,
Prashant
From India, Bangalore
Acknowledge(0)Amend(0)
Hi,
Find the below information on Stock Options. Maybe useful.
1. What is ESOS?
A compensation package for key employees of a company should be designed to attract, motivate, and retain individuals who can help the business succeed. Deferred compensation can be used as a technique to encourage top employees to stay with the company by combining a delayed vesting arrangement with a deferred compensation plan. An organization committed to being a high-performing entity aims to encourage every individual to elevate their performance levels to ensure that individual efforts combine to maximize both corporate performance and shareholder value. Universally, these objectives are aimed to be achieved through the use of a potent instrument, namely the Equity Stock Option Scheme (ESOS).
Employees' stock options are one of the most exciting and innovative ways, developed in the post-liberalization period, by which a company can design a compensation package that helps achieve these goals at the lowest possible cost. Establishing a successful share scheme and tailoring it to a particular company's needs is a challenge. Under a well-designed scheme, there can be major benefits for both the company and its employees.
2. What is the purpose of ESOS?
The purpose of the Employee Stock Options Scheme (ESOS) is to advance the interests of the company and its shareholders by offering those employees responsible for the long-term growth of the company's earnings the opportunity to acquire or increase their equity interests in the company. This helps achieve a greater commonality of interest between shareholders and employees, enhances the company's ability to retain and attract highly qualified employees, and provides an additional incentive for employees to achieve the company's long-term business plans and objectives.
3. What are the benefits of ESOS?
The benefits of ESOS/ESPS to employees are that they are given a chance to become shareholders of the company at a discounted price to the market price. Thus, employees are given an opportunity to share the profits of the company by making them shareholders.
4. How will the scheme be exercised?
The company will constitute a Compensation Committee for the administration and superintendence of the ESOS. It will be a Committee of the Board of Directors consisting of a majority of independent directors. The Committee shall formulate the terms and conditions of the ESOS like:
- The quantum of options to be granted per employee and in aggregate.
- The conditions under which the option vested in an employee may lapse.
- In case of termination of employment for misconduct.
- The time period within which the option is to be exercised in case of termination or resignation of an employee.
- The right of an employee to exercise the options.
- The procedure for making a fair and reasonable adjustment to the number of options and to the exercise in case of rights issues, bonus issues, and other actions.
- The grant, vest, and exercise of options in case of employees who are on long leave.
- The procedure for cashless exercise of options.
No scheme will be offered unless the shareholders of the company approve it by passing a special resolution in the general meeting.
5. Requirement of a separate resolution?
It will be required in case of:
- Grant of options to employees of a subsidiary or holding company.
- Grant of options to identified employees, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of the grant of the option.
6. Can there be any variation in terms of ESOS?
- The company shall not vary the terms of ESOS in any manner that may be detrimental to the interests of the employees.
- The company may, by special resolution in a general meeting, vary the terms of ESOS offered pursuant to an earlier resolution of a general body but not yet exercised by the employee, provided such variation is not prejudicial to the interests of the option holders. These shall apply to such variations of terms as they do to the original grant of options.
- The notice for passing special resolution for variation of terms of ESOS shall disclose full details of the variation, the rationale therefore, and the details of the employees who are beneficiaries of such variation.
7. What will be the effect of the scheme on the rights of the employee?
The employee shall not have the right to receive any dividend or to vote or in any manner enjoy the benefits of a shareholder in respect of the option granted to him until shares are issued on the exercise of the option.
8. Other Legal Aspects?
The Board of Directors shall, at each annual general meeting before the shareholders, present a certificate from the auditors of the company stating that the scheme has been implemented in accordance with the SEBI guidelines and in accordance with the resolution of the company in the general meeting.
9. Will there be any lock-in period for the transfer of shares?
There shall be a minimum period of one year between the grant of options and vesting of options. The company shall have the freedom to specify the lock-in period for the shares issued pursuant to the exercise of the option.
10. Who is eligible?
It will be applicable to all classes of employees working in India or abroad at the discretion of the Compensation Committee. However, the following classes of employees are not eligible:
- An employee who is a promoter or belongs to the promoter group.
- A director who either by himself or through his relative or through any body corporate, directly or indirectly holds more than 10% of the outstanding equity shares of the company.
11. Employee Stock Options through Trusts?
Employee Stock Options are also implemented through the creation of Trusts. Trusts are formed under the Indian Trust Act and registered under the relevant Trust Act of the state in which the Trust's activities are based. The objectives of the Trust are to administer the Scheme for the employees of a certain organization. The Company issues a certain number of shares at par to the Trust. The Trust then issues these shares to the Company employees following pre-set guidelines. Under such an arrangement, the employees receive shares from the Trust. The Trust can also buy back the shares from employees in circumstances specified in the Trust Deed. This arrangement provides liquidity in the scheme and is suited to companies whose shares are not listed.
12. What will be the Tax Implications of the scheme?
The employees are liable for Capital Gains tax at the time of sale of the shares. The taxable amount being Full value of Consideration as reduced by the Indexed Cost of Acquisition. The cost of acquisition being the amount paid for the purchase of shares.
13. Effect in certain situations?
a. In case of the Death of an Employee while in employment, all the options granted to him till that date shall vest in the legal heirs or nominees of the deceased employee.
b. In case the employee suffers permanent incapacity while in employment, all the options granted to him as on the date of permanent incapacitation shall vest in him on that day.
c. In the event of resignation or termination of the employee, all options not vested as of that day shall expire. However, the employee shall be entitled to retain all vested options. Options once granted to any employee shall not be transferable to any person and also cannot be pledged, hypothecated, mortgaged, or otherwise alienated in any other manner.
14. Options outstanding at Public issue?
i. The provisions of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines prohibiting an initial public offering by companies having outstanding warrants and financial instruments shall not be applicable in the case of outstanding options granted to employees in pursuance of ESOS.
ii. If any option is outstanding at the time of an initial public offering by a company, the promoters' contribution shall be calculated with reference to the enlarged capital that would arise on exercise of all vested options.
iii. If any options granted to employees in pursuance of ESOS are outstanding at the time of the initial public offering, the offer document of the company shall disclose all the information required in the Director's Report.
15. Accounting Policies?
- The options granted to the employee will be treated as employee compensation in the financial statements of the company.
- The accounting value of options shall be equal to the aggregate, over all employee stock options granted during the accounting period, of the fair value of the option.
For this purpose:
1. Fair value means the option discount, or, if the company so chooses, the value of the option using the Black Scholes formula or other similar valuation method.
2. Option discount means the excess of the market price of the share at the date of grant of the option under ESOS over the exercise price of the option (including upfront payment, if any).
- Where the accounting value is accounted for as employee compensation, the amount shall be amortized on a straight-line basis over the vesting period.
- When an unvested option lapses due to the employee not conforming to the vesting conditions after the accounting value of the option has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense equal to the amortized portion of the accounting value of the lapsed options and a credit to deferred employee compensation expense equal to the unamortized portion.
- When a vested option lapses on the expiry of the exercise period, after the fair value of the option has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense.
A FEW SPECIMEN SCHEMES:
1. Employee Retention Scheme: The idea of this type of scheme is that employees who are consistent performers are retained and available to the Company. The employees who are consistently performing in their relevant fields shall be eligible for incentives under this type of scheme. The incentives shall be over and above their salaries. The incentives can be provided at the end of each year.
The employees can be rewarded as under:
On completion of year-1, an eligible employee shall receive X no of shares.
On completion of year-2, an eligible employee shall receive 2X no of shares.
On completion of year-3, an eligible employee shall receive 3X no of shares, and so on.
The
From India, Hyderabad
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Find the below information on Stock Options. Maybe useful.
1. What is ESOS?
A compensation package for key employees of a company should be designed to attract, motivate, and retain individuals who can help the business succeed. Deferred compensation can be used as a technique to encourage top employees to stay with the company by combining a delayed vesting arrangement with a deferred compensation plan. An organization committed to being a high-performing entity aims to encourage every individual to elevate their performance levels to ensure that individual efforts combine to maximize both corporate performance and shareholder value. Universally, these objectives are aimed to be achieved through the use of a potent instrument, namely the Equity Stock Option Scheme (ESOS).
Employees' stock options are one of the most exciting and innovative ways, developed in the post-liberalization period, by which a company can design a compensation package that helps achieve these goals at the lowest possible cost. Establishing a successful share scheme and tailoring it to a particular company's needs is a challenge. Under a well-designed scheme, there can be major benefits for both the company and its employees.
2. What is the purpose of ESOS?
The purpose of the Employee Stock Options Scheme (ESOS) is to advance the interests of the company and its shareholders by offering those employees responsible for the long-term growth of the company's earnings the opportunity to acquire or increase their equity interests in the company. This helps achieve a greater commonality of interest between shareholders and employees, enhances the company's ability to retain and attract highly qualified employees, and provides an additional incentive for employees to achieve the company's long-term business plans and objectives.
3. What are the benefits of ESOS?
The benefits of ESOS/ESPS to employees are that they are given a chance to become shareholders of the company at a discounted price to the market price. Thus, employees are given an opportunity to share the profits of the company by making them shareholders.
4. How will the scheme be exercised?
The company will constitute a Compensation Committee for the administration and superintendence of the ESOS. It will be a Committee of the Board of Directors consisting of a majority of independent directors. The Committee shall formulate the terms and conditions of the ESOS like:
- The quantum of options to be granted per employee and in aggregate.
- The conditions under which the option vested in an employee may lapse.
- In case of termination of employment for misconduct.
- The time period within which the option is to be exercised in case of termination or resignation of an employee.
- The right of an employee to exercise the options.
- The procedure for making a fair and reasonable adjustment to the number of options and to the exercise in case of rights issues, bonus issues, and other actions.
- The grant, vest, and exercise of options in case of employees who are on long leave.
- The procedure for cashless exercise of options.
No scheme will be offered unless the shareholders of the company approve it by passing a special resolution in the general meeting.
5. Requirement of a separate resolution?
It will be required in case of:
- Grant of options to employees of a subsidiary or holding company.
- Grant of options to identified employees, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of the grant of the option.
6. Can there be any variation in terms of ESOS?
- The company shall not vary the terms of ESOS in any manner that may be detrimental to the interests of the employees.
- The company may, by special resolution in a general meeting, vary the terms of ESOS offered pursuant to an earlier resolution of a general body but not yet exercised by the employee, provided such variation is not prejudicial to the interests of the option holders. These shall apply to such variations of terms as they do to the original grant of options.
- The notice for passing special resolution for variation of terms of ESOS shall disclose full details of the variation, the rationale therefore, and the details of the employees who are beneficiaries of such variation.
7. What will be the effect of the scheme on the rights of the employee?
The employee shall not have the right to receive any dividend or to vote or in any manner enjoy the benefits of a shareholder in respect of the option granted to him until shares are issued on the exercise of the option.
8. Other Legal Aspects?
The Board of Directors shall, at each annual general meeting before the shareholders, present a certificate from the auditors of the company stating that the scheme has been implemented in accordance with the SEBI guidelines and in accordance with the resolution of the company in the general meeting.
9. Will there be any lock-in period for the transfer of shares?
There shall be a minimum period of one year between the grant of options and vesting of options. The company shall have the freedom to specify the lock-in period for the shares issued pursuant to the exercise of the option.
10. Who is eligible?
It will be applicable to all classes of employees working in India or abroad at the discretion of the Compensation Committee. However, the following classes of employees are not eligible:
- An employee who is a promoter or belongs to the promoter group.
- A director who either by himself or through his relative or through any body corporate, directly or indirectly holds more than 10% of the outstanding equity shares of the company.
11. Employee Stock Options through Trusts?
Employee Stock Options are also implemented through the creation of Trusts. Trusts are formed under the Indian Trust Act and registered under the relevant Trust Act of the state in which the Trust's activities are based. The objectives of the Trust are to administer the Scheme for the employees of a certain organization. The Company issues a certain number of shares at par to the Trust. The Trust then issues these shares to the Company employees following pre-set guidelines. Under such an arrangement, the employees receive shares from the Trust. The Trust can also buy back the shares from employees in circumstances specified in the Trust Deed. This arrangement provides liquidity in the scheme and is suited to companies whose shares are not listed.
12. What will be the Tax Implications of the scheme?
The employees are liable for Capital Gains tax at the time of sale of the shares. The taxable amount being Full value of Consideration as reduced by the Indexed Cost of Acquisition. The cost of acquisition being the amount paid for the purchase of shares.
13. Effect in certain situations?
a. In case of the Death of an Employee while in employment, all the options granted to him till that date shall vest in the legal heirs or nominees of the deceased employee.
b. In case the employee suffers permanent incapacity while in employment, all the options granted to him as on the date of permanent incapacitation shall vest in him on that day.
c. In the event of resignation or termination of the employee, all options not vested as of that day shall expire. However, the employee shall be entitled to retain all vested options. Options once granted to any employee shall not be transferable to any person and also cannot be pledged, hypothecated, mortgaged, or otherwise alienated in any other manner.
14. Options outstanding at Public issue?
i. The provisions of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines prohibiting an initial public offering by companies having outstanding warrants and financial instruments shall not be applicable in the case of outstanding options granted to employees in pursuance of ESOS.
ii. If any option is outstanding at the time of an initial public offering by a company, the promoters' contribution shall be calculated with reference to the enlarged capital that would arise on exercise of all vested options.
iii. If any options granted to employees in pursuance of ESOS are outstanding at the time of the initial public offering, the offer document of the company shall disclose all the information required in the Director's Report.
15. Accounting Policies?
- The options granted to the employee will be treated as employee compensation in the financial statements of the company.
- The accounting value of options shall be equal to the aggregate, over all employee stock options granted during the accounting period, of the fair value of the option.
For this purpose:
1. Fair value means the option discount, or, if the company so chooses, the value of the option using the Black Scholes formula or other similar valuation method.
2. Option discount means the excess of the market price of the share at the date of grant of the option under ESOS over the exercise price of the option (including upfront payment, if any).
- Where the accounting value is accounted for as employee compensation, the amount shall be amortized on a straight-line basis over the vesting period.
- When an unvested option lapses due to the employee not conforming to the vesting conditions after the accounting value of the option has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense equal to the amortized portion of the accounting value of the lapsed options and a credit to deferred employee compensation expense equal to the unamortized portion.
- When a vested option lapses on the expiry of the exercise period, after the fair value of the option has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense.
A FEW SPECIMEN SCHEMES:
1. Employee Retention Scheme: The idea of this type of scheme is that employees who are consistent performers are retained and available to the Company. The employees who are consistently performing in their relevant fields shall be eligible for incentives under this type of scheme. The incentives shall be over and above their salaries. The incentives can be provided at the end of each year.
The employees can be rewarded as under:
On completion of year-1, an eligible employee shall receive X no of shares.
On completion of year-2, an eligible employee shall receive 2X no of shares.
On completion of year-3, an eligible employee shall receive 3X no of shares, and so on.
The
From India, Hyderabad
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Dear Dr. Anurehr,
I am not sure what exactly you understand of this response. Could you please prepare one presentation to establish the relationship between two terms "Manpower Mapping" and "Stock Taking" from the responses you received for our understandings? Also, let us elaborate on how much, in percentage, this process fulfills the requirements of "Stock Taking" and "Manpower Planning" objectives.
Badlu
From Saudi Arabia
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I am not sure what exactly you understand of this response. Could you please prepare one presentation to establish the relationship between two terms "Manpower Mapping" and "Stock Taking" from the responses you received for our understandings? Also, let us elaborate on how much, in percentage, this process fulfills the requirements of "Stock Taking" and "Manpower Planning" objectives.
Badlu
From Saudi Arabia
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STOCK TAKING
It means taking the stock or looking at the human inventory of the organisation. In most of the organisation, it's done through HRIS (Human Resources Information System) where the data about each individual working inside the organisation are kept. This entire detailing can be based upon each division inside the organisation.
Then under each division, the people's data can be gathered and regularly updated on these major fonts –
Name, age, designation, personal details, professional details, qualifications, achievements, awards, trainings, total experience, experiences with us, objections (if any) etc. etc!
These data, combined together, will clearly depict what's the human resources competency of the organisation and where it lacks! Then the management should do the following analysis –
• What kind of industry we belong to?
• What are generally followed industry standards?
• What is our long term and short term business goals?
• What the shape of the human sources should look like for our future goal?
• What are the necessary changes that we should bring in?
Source:"THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT" material handout
[/SIZE]
From India, Kozhikode
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It means taking the stock or looking at the human inventory of the organisation. In most of the organisation, it's done through HRIS (Human Resources Information System) where the data about each individual working inside the organisation are kept. This entire detailing can be based upon each division inside the organisation.
Then under each division, the people's data can be gathered and regularly updated on these major fonts –
Name, age, designation, personal details, professional details, qualifications, achievements, awards, trainings, total experience, experiences with us, objections (if any) etc. etc!
These data, combined together, will clearly depict what's the human resources competency of the organisation and where it lacks! Then the management should do the following analysis –
• What kind of industry we belong to?
• What are generally followed industry standards?
• What is our long term and short term business goals?
• What the shape of the human sources should look like for our future goal?
• What are the necessary changes that we should bring in?
Source:"THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT" material handout
[/SIZE]
From India, Kozhikode
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Hello everybody,
I need your suggestions and guidelines for the "optimization of man-machine ratio for the Indian apparel industry compared with the Western apparel industry."
1. What should be the methodology?
2. Can I get materials/references for this topic? If yes, then where and how.
Please help me out.
Thank you,
Mehtre
From India, Mumbai
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I need your suggestions and guidelines for the "optimization of man-machine ratio for the Indian apparel industry compared with the Western apparel industry."
1. What should be the methodology?
2. Can I get materials/references for this topic? If yes, then where and how.
Please help me out.
Thank you,
Mehtre
From India, Mumbai
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Competency mapping.ppt
Manpower Planning Form(1).xls