,Definition and importance of manpower Planning:

Planning is nothing but using the available assets for the effective implementation of the
production plans. After the preparing the plans, people are grouped together to achieve
organizational objectives.
Planning is concerned with coordinating, motivating and controlling of the various activities within
the organization. Time required for acquiring the material, capital and machinery should be taken
into account. Manager has to reasonably predict future events and plan out the production. The
basic purpose of the management is to increase the production, so that the profit margin can be
increased. Manager has to guess the future business and to take timely and correct decisions in
respect of company objectives, policies and cost performances. The plans need to be supported
by all the members of the organization. Planning is making a decision in advance what is to be
done. It is the willpower of course of action to achieve the desired results. It is a kind of future
picture where events are sketched. It can be defined as a mental process requiring the use of
intellectual faculty, imagination, foresight and sound judgment.
It involves problem solving and decision making. Management has to prepare for short term
strategy and measure the achievements, while the long term plans are prepared to develop the
better and new products, services, expansion to keep the interest of the owners.

Advantages of manpower planning:

Manpower planning ensures optimum use of available human resources.
1. It is useful both for organization and nation.
2. It generates facilities to educate people in the organization.
3. It brings about fast economic developments.
4. It boosts the geographical mobility of labor.
5. It provides smooth working even after expansion of the organization.
6. It opens possibility for workers for future promotions, thus providing incentive.
7. It creates healthy atmosphere of encouragement and motivation in the
organization.
8. Training becomes effective.
9. It provides help for career development of the employees.

Steps in Manpower planning

1. Predict manpower plans
2. Design job description and the job requirements
3. Find adequate sources of recruitment.
4. Give boost to youngsters by appointment to higher posts.
5. Best motivation for internal promotion.
6. Look after the expected losses due to retirement, transfer and other issues.
7. See for replacement due to accident, death, dismissals and promotion.

Factors which affect the efficiency of labor:

1. Inheritance: Persons from good collection are bound to work professionally. The quality and
rate of physical as well as mental development, which is dissimilar in case of different individuals
is the result of genetic differences.
2. Climate: Climatic location has a definite effect on the efficiency of the workers.
3. Health of worker: worker’s physical condition plays a very important part in performing the
work. Good health means the sound mind, in the sound body.
4. General and technical education: education provides a definite impact n the working ability and
efficiency of the worker.
5. Personal qualities: persons with dissimilar personal qualities bound to have definite differences
in their behaviour and methods of working. The personal qualities influence the quality of work.
6. Wages: proper wages guarantees certain reasons in standard of living, such as cheerfulness,
discipline etc. and keep workers satisfy. This provides incentive to work.
7. Hours of work: long and tiring hours of work exercise have bad effect on the competence of the
workers.
Downsizing of manpower:
Downsizing of manpower gives the correct picture about the number of people to be employed to
complete given task in the predetermined period. It is used for achieving fundamental growth in
the concern. It can work out the correct price by the resource building or capacity building. It aims
at correct place, correct man on a correct job.
Thus manpower planning is must to make the optimum utilization of the greatest resource
available i.e. manpower for the success of any organization.

Steps involved in manpower planning:

 Anticipating manpower needs
 Planning job requirements and descriptions
 Analyzing skills to determine the nature of man power needs
 Selecting adequate source of recruitment.
 Determining the period for forecasting requirements of manpower in the future.
 From the number available at the commencement of the period, deducting the
expected wastage through deaths, resignations, retirements, and discharges.
 In case of shortages, deciding how shortages are to be met and whether any
training or developmental facilities would be required for this purpose. If
surpluses are anticipated, decide how these surpluses will be dealt with like
through early retirements, discharges, or lay offs.

LIMITATIONS

In order to make projections regarding demand and supply, there is a need of

description of characteristics of manpower which is not easy to define, classify and
provide for so far most of the information available is on demographic aspect of labor
force devised in terms of the definition of working age and sex distributions etc. but
this is only a part of manpower planning. Large part of the subject, concerned with
projections, cannot be done purely in demographic terms, rather the other qualities
of labor such skill and training etc. will have to be considered also.

There is another set of problems are associated with the concept of employment of
labor. There is no prices definitions and therefore criterion for classifying employable
labor. The employability requires the fulfillment of certain physiological conditions,
such as physical and mental capacity. Furthermore, it is also concerned with the
aspect; whether who is able for work should also be willing to work. This may be
related to the employability of a person with the market demand for him. If there is
a demand for him, he is employable, otherwise not. Each one of these criteria is not
sufficient in providing a permanent or fixed basis for collecting information on labor
force.

Steps involved in manpower planning:

 Anticipating manpower needs
 Planning job requirements and descriptions
 Analyzing skills to determine the nature of man power needs
 Selecting adequate source of recruitment.
 Determining the period for forecasting requirements of manpower in the future.
 From the number available at the commencement of the period, deducting the
expected wastage through deaths, resignations, retirements, and discharges.
 In case of shortages, deciding how shortages are to be met and whether any
training or developmental facilities would be required for this purpose. If
surpluses are anticipated, decide how these surpluses will be dealt with like
through early retirements, discharges, or lay offs.