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Manpower Planning

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Neeta Sharma
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34 views10 pages

Manpower Planning

Uploaded by

Neeta Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Manpower Planning

• Manpower Planning which is also called as Human Resource Planning consists


of putting right number of people, right kind of people at the right place, right
time, doing the right things for which they are suited for the achievement of
goals of the organization. Human Resource Planning has got an important
place in the arena of industrialization. Human Resource Planning has to be a
systems approach and is carried out in a set procedure. The procedure is as
follows:
• Analysing the current manpower inventory
• Making future manpower forecasts
• Developing employment programmes
• Design training programmes
Steps in Manpower Planning

1. Analysing the current manpower inventory- Before a manager


makes forecast of future manpower, the current manpower status has
to be analysed. For this the following things have to be noted-
• Type of organization
• Number of departments
• Number and quantity of such departments
• Employees in these work units
• Once these factors are registered by a manager, he goes for the future
forecasting.
2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts
are known, planning can be done for the future manpower requirements in several work
units.The Manpower forecasting techniques commonly employed by the organizations are as
follows:
• Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.
• Trend Analysis: Manpower needs can be projected through extrapolation (projecting past
trends), indexation (using base year as basis), and statistical analysis (central tendency
measure).
• Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch
or in a division.
• Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
• Other methods: Several Mathematical models, with the aid of computers are used to forecast
manpower needs, like budget and planning analysis, regression, new venture analysis.
3. Developing employment programmes- Once the current inventory is
compared with future forecasts, the employment programmes can be
framed and developed accordingly, which will include recruitment,
selection procedures and placement plans.
4.Design training programmes- These will be based upon extent of
diversification, expansion plans, development programmes,etc. Training
programmes depend upon the extent of improvement in technology
and advancement to take place. It is also done to improve upon the
skills, capabilities, knowledge of the workers.
Importance of Manpower Planning

• Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and
controlling are based upon the manpower. Human resources help in the implementation of all these
managerial activities. Therefore, staffing becomes a key to all managerial functions.
• Efficient utilization- Efficient management of personnels becomes an important function in the
industrialization world of today. Seting of large scale enterprises require management of large scale
manpower. It can be effectively done through staffing function.
• Motivation- Staffing function not only includes putting right men on right job, but it also comprises
of motivational programmes, i.e., incentive plans to be framed for further participation and
employment of employees in a concern. Therefore, all types of incentive plans becomes an integral
part of staffing function.
• Better human relations- A concern can stabilize itself if human relations develop and are strong.
Human relations become strong trough effective control, clear communication, effective supervision
and leadership in a concern. Staffing function also looks after training and development of the work
force which leads to co-operation and better human relations.
• Higher productivity- Productivity level increases when resources are utilized in best possible manner.
higher productivity is a result of minimum wastage of time, money, efforts and energies. This is
possible through the staffing and it's related activities ( Performance appraisal, training and
development, remuneration)
Need of Manpower Planning
• Manpower Planning is a two-phased process because manpower planning not only
analyses the current human resources but also makes manpower forecasts and thereby
draw employment programmes. Manpower Planning is advantageous to firm in
following manner:
• Shortages and surpluses can be identified so that quick action can be taken wherever
required.
• All the recruitment and selection programmes are based on manpower planning.
• It also helps to reduce the labour cost as excess staff can be identified and thereby
overstaffing can be avoided.
• It also helps to identify the available talents in a concern and accordingly training
programmes can be chalked out to develop those talents.
• It helps in growth and diversification of business. Through manpower planning, human
resources can be readily available and they can be utilized in best manner.
• It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.
Obstacles Manpower Planning
• Following are the main obstacles that organizations face in the process of
manpower planning:
• Under Utilization of Manpower: The biggest obstacle in case of manpower
planning is the fact that the industries in general are not making optimum
use of their manpower and once manpower planning begins, it encounters
heavy odds in stepping up the utilization.
• Degree of Absenteeism: Absenteeism is quite high and has been increasing
since last few years.
• Lack of Education and Skilled Labour: The extent of illetracy and the slow
pace of development of the skilled categories account for low productivity in
employees. Low productivity has implications for manpower planning.
• Manpower Control and Review
a. Any increase in manpower is considered at the top level of
management
b.On the basis of manpower plans, personnel budgets are prepared.
These act as control mechanisms to keep the manpower under certain
broadly defined limits.
c,The productivity of any organization is usually calculated using the
formula: Productivity = Output / Input
• But a rough index of employee productivity is calculated as follows:
• Employee Productivity = Total Production / Total no. of employees
d. Exit Interviews, the rate of turnover and rate of absenteesim are
source of vital information on the satisfaction level of manpower. For
conservation of Human Resources and better utilization of men
studying these condition, manpower control would have to take into
account the data to make meaningful analysis.

e. Extent of Overtime: The amount of overtime paid may be due to real shortage of men,
ineffective management or improper utilization of manpower. Manpower control would
require a careful study of overtime statistics.

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