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MANPOWER PLANNING

Man power planning or human resource planning is “the process by which


management determines how an organization should move from the current
manpower to the desired manpower position. Through planning, a
management strives to have the right number and the right kind of people at
the right place, to do things which result in both individual and the
organization receiving the maximum long range benefit.

Coleman has defined human resource or manpower planning as “the process


of determining manpower requirements and the means for meeting those
requirements in order to carry out the integrated plan of the organization.”

Stainer defines manpower planning as “strategy for the acquisition, utilization,


improvement, and preservation of an enterprise’s human resources. It relates
to establishing job specifications or the quantitative requirements of jobs
determining the number of personnel required and developing sources of
manpower.
According to Wickstrom, manpower planning consists a series of activities ie
1. Forecasting future manpower requirements
2. Making an inventory of present manpower resources
3. Anticipating manpower problems by projecting present resources into
the future and comparing them with the forecast of requirements to
determine their adequacy, both quantitatively and qualitatively
4. Planning recruitment selection, training, development, utilization,
transfer, promotion motivation and compensation to ensure that future
manpower requirements are properly met

Thus, it will be noted that manpower planning consists in projecting future


manpower requirements and development manpower plans for the
implementation of the projections.

Manpower planning is a double edges sword. If used properly, it leads to the


maximum utilization of human resources, reduces excessive labor turnover
and high absenteeism, improves productivity and aids in achieving
organizational goals. If not used properly, it leads to disruption in the flow of
work, lower production, less job satisfaction, high cost of production and
constant headaches for management
personnel. Therefore, for the success of an enterprise, manpower planning is
very important function.

For an individual it is important because it helps to improve his skills and


potential to the utmost. For an organization it is important as it improves its
efficiency and productivity. It is only through initial manpower planning that
capable hands are available for promotion.

NEED FOR MANPOWER PLANNING

Manpower planning is essential because of the following reasons

1. To carry out its work, each organization needs personnel with the
necessary qualifications, skills, knowledge, work experience and
aptitude foe work. These are provided through effective planning.
2. Since large number of persons have to be replaced who have grown old,
or who retire, die or become incapacitated because of physical or mental
ailments, there is a constant need for replacing such persons. Otherwise
the work will suffer.
3. Human resource planning is essential because of frequent labor turnover
which is unavoidable and even beneficial because it arises from factors
which are socially and economically sound such as voluntary quits,
discharges, marriage etc
4. In order to meet the needs of expansion programs hr/manpower
planning is unavoidable.
5. The nature of the present workforce in relation to its changing needs
also necessitates the recruitment of new labor. To meet the challenge of
new and changing technology and new techniques of production,
existing employees need to be trained or new blood injected in an
organization.
6. Manpower is also needed to identify the areas of surplus as well as
shortage of labor

THE OBJECTIVE OF HR/MANPOWER PLANNING

The objective of manpower planning is to maintain and improve the


organizations ability to achieve its goal by developing strategies that will
contribute its optimum contribution of human resources. Manpower planning is
the responsibility of both line and staff manager. The line management is
responsible to give estimate of manpower requirements and staff manager is
responsible to take actions on selection and recruitment in association with
line manager who needs the man power.

Importance of Manpower Planning

1. 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.
2. 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.
3. 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.
4. Better human relations- A concern can stabilize itself if human
relations develop and are strong. Human relations become strong
through 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.
5. 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)

BENEFITS OF MANPOWER PLANNING.

• Less costs because management can anticipate imbalances before they


become unmanageable and expensive
• More tine is provided to locate the talent
• Better opportunities exist to include women and minority groups in
future growth plans
• Better planning of assignments to develop managers can be done.
• Major and successful demands on local labor markets can be made

Problems in HRP

a) Inaccuracy: HRP is entirely dependent on the HR forecasting and supply,


which cannot be a cent per cent accurate process.
b) Employee resistance: Employees and their unions feel that by HRP, their
workload increases so they resist the process.
c) Uncertainties: Labor absenteeism, labor turnover, seasonal employment,
technological changes and market fluctuations are the uncertainties which
HRP process might have to face.
d) Inefficient information system: In Indian industries, HRIS is not much
strong. In the absence of reliable data it is not possible to develop effective
HRP.
e) Time and expense: HRP is time consuming and expensive exercise, so
industries avoid.

GUIDELINES FOR MAKING HRP EFFECTIVE


Few guidelines to improve effectiveness of HRP process are discussed below.
a) Tailormade: HRP should be balanced with corporate objectives.
b) Appropriate time: The period of HRP process should be appropriate to the
needs
and circumstances of an organization.
c) Adequate organization: HRP process should be adequately/properly
organized.
d) Top management support: Before starting the HRP process the support and
commitment of top management should be ensured.
e) Participation: HRP will be successful if all in an organization are
participating.
f) Information system: An adequate database should be developed for
facilitating
HRP.
g) Balanced focus: The quantity and quality should be stressed in a balanced
manner

PROCESS OF MANPOWER PLANNING

It is a multi-step process as follows


• Deciding goals and objectives
• Estimating future organizational structure and manpower requirements
• Auditing human resources
• Planning job requirements and job descriptions
• And developing human resource plan

DECIDING OBJECTIVES

In effect the main purpose is one of matching or fitting employee abilities to


enterprise requirements, with an emphasis on future instead of present
arrangements. The ultimate mission or purpose is to relate future human
resources to future enterprise need so as to maximize the future return on
investment in human resources.

ESTIMATING THE FUTURE ORGANIZATIONAL STRUCTURE OR


FORECASTING THE MANPOWER REQUIREMENTS.

The management must estimate the structure of the organization at a given


point of time. The number and type of employees needed have to be
determined. Many environmental factors affect this determination. They
include business forecasts, expansion, growth, design, structural changes,
management philosophy, government policy, product and human mix and
competition

Forecasting is necessary because,


• The eventualities and contingencies of general economic business cycles
(such as inflation, wages, prices, costs and raw material supplies) have
an influence on the short range and long run plans of all organizations.
• An expansion following enlargement and growth in business involves the
use of additional machineries and personnel and a reallocation of
facilities, all of which call for advance planning of human resources.
• Changes in management philosophies and leadership styles.
• The use of mechanical technology necessitates changes in the skills of
workers as well as a change in the number of employees needed.

After estimating what future organization structure should be, the next step is
to draw up the requirements of manpower, both for existing and new
vacancies. For this requirement details should be obtained from various
departments. Vacancies occurring in any department should be notified in
writing to the personnel department, stating clearly the number of vacancies
to be filled category or job wise, their qualification and experience and the
reasons for acquisition. A statement of duties, type of jobs, pay scale and
previous experience should also be made.

In determining the requirements of manpower, the expected losses which are


likely to occur through labor turnover- quits, retirement, death, transfers,
promotions, demotions, dismissals. Disability, resignations, lay-offs, and other
separations – should be taken into account. Additional resources are gained
through new employment of personnel, promotions, transfers etc.

After making all adjustments, the real shortages and surplus may be found off.
If a shortage is there, efforts are made to fill up the vacancies. If there is
surplus deal it by transfers, retrenchments etc.

AUDITING HUMAN RESOURCES

Once the future requirement is estimated the next step is to determine the
present supply of manpower resources. This is done through what is called
“skills inventory” which contain data about each employees skills, abilities,
work preference which indicated his overall value to the company. Other data
pertaining his performance ratings and superior’s evaluation may also be
tabulated and all these are fed into computers. These details are required by
personnel departments for transfers, promotions and manpower requirement
filling.

JOB ANLYSIS

After having decided how many persons would be needed, it is necessary to


prepare job analysis, which records details of training, skills, qualification,
abilities, experience and responsibilities etc which are needed for the job. Job
analysis includes the preparation of job descriptions and job specifications.

DEVELOPING MANPOWER PLAN

This consists in finding out the sources of labor supply with a view to making
an effective use of these factors.
The best policy which is followed by most organizations is to fill up higher
vacancies by promotion and lower level positions by recruitment from labor
market. A labor market is a geographical area from which employees recruit
their workforce and labor. The personnel manager should have a thorough
knowledge about labor market.

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