Manpower planning

E.W.Vetter viewed human resource planning

as a process by which an organisation

should move form its current manpower
position to its desired manpower
position .Through planning management
strives to have the right number and right
kind of people at the right places at the
right time , doing things which result in
both the organisation and the individual
receiving maximum long-run benefit.

Stainer Manpower planning is the strategy for the

acuisition,utilisation,improvement and preservation of an
organisations human resource s, It is aimed at coordinating the
requirements for and the availibility of different types of
employees.

HRP has the following characteristics:HRP is all about looking forward. It involves forecasts of the
manpower needs in a future time period so that adequate and
timely provision may be made to meet the needs.
HRP is a continuing process
Is an integral part of corporate planning
Basic purpose is to make optimum use of current and future HR
HRP has both quantitative and qualitative aspects.

objectives

To recruit and retain

To foresee the impact of technology
To foresee the employee turnover and make
arrangements for minimising the turnover
To improve the standards, skill , knowledge,
ability
To assess the surplus and shortage
To minimise imbalances right no, right type ,
right time , right place
To make the best use of human resource.

HRP at different level

National Level-central govt- entire nation

Sectoral sector-particular sector likeagricultural sector,Industrial sector
Industry level -particular industry
Unit level-organisation
Department Level- particular department
Job level- Particular job family like Mechanical
engineer

Factors affecting Human

resource plan

External Factors
Government Policies-labourpolicy,policy towards
reserving certain jobs, sons of the soil
Level of Economic Development: determines the
level of HRD in the country and thereby the future
demand for human resource
Business Environment-External business
environmental factors influence the volume and mix
of production and thereby the future demand for
human resource
Level of technology- kind
International factors-demand for than resources and
supply of human resources in various countries.

Internal factors

Company policies and strategies-expansion ,

diversification, alliances
Human resource policies-quality, compensation
Job analysis job description and job
specification determines the kind of employees
required
Time horizons-companies with stable competi
tive environment can plan for a long period
whereas companies with unstable competitive
environment can plan only for short term
range
Type and quality of information-any planning

Process needs qualitative and accurate

information
Companys production and operation policycompany policy like how much to produce and
how much to buy from outside
Trade unions-no of working hours, recruitment
sources
Process of Manpower planning

(1).Analysing organisational plans- production

plan, marketing plan, sales plan.detail
programme should be formulated on the basis
of unit wise plan

 (2)Forecasting the overall Human resource

requirement- the existing job design and
analysis may thoroughly be reviewed keeping
in view the future capabilities, knowledge and
skills of present employees. Jobs are
redesigned-future plans and programmes,
work quantity and future activity or task
analysis. Job analysis and future components
forecast the quality of H.R in addition to
quantity of human resource.

Important forecasting methods are

Managerial judgements

Where there is no systematic data banks for

manpower information and job analysis there
organisations resort to the management judgement
approach. The managers who are well acquainted
with the workload , efficiency and ability of
employees , think about their future load , future
capabilities of employees and decide in the number
and type of human resources to be required. Here
there is bottom up approach . The management at
the top compares the proposal with the organisational
plans and make necessary arrangements. This can
also be a top-bottom approach or participative
approach

STATISTICAL TECHNIQUES
Ratio trend analysis-The ratios are calculated, for the past data
relating to number of employees of each category and
production level, sales level, activity level/work load share
estimated with an allowance for changes in the organization,
methods and jobs
Ex present level of production 1-1-2006
1500 units
Present number of foremen
3
Ratio is 3: 1500 i.e 1:500
Estimated production
2500
Foreman required is
Any change may include-increase in social activities, change in
values
1:420

Mathematical models

A mathematical Model expresses the

relationship between independent variable(e.g
investment, production,sales etc) and
dependent variable(e.g number of employees
required).
Various factors influencing manpower needs
are expressed in the form of a formula.
Several types of models e.g regression,
optimization models, probabilistic models can
be used. These are complex and appropriate
only for large organisations.

Demand forecasting

Analysis of performance
Analysis of
productivity
The volume of output and
analysis of the
change
Its impact on manpower.
In manpower
by
Change in manpower demand
changing
productivity
Occasioned by changing the output
which alters
over
In volume or mix.
time

Direct analysis: ratios and

regression

Derive ratio between two variables ( work load

and manpower of a certain category) .
Example A
Company 1
Rs x of sales require 10 salesmen
Rs 2x of sales requires 20 salesmen
Company 2
Rsx of sales requires 10 salesman
Rs2x of sales requires 15 salesman (economies
of scale)
Opposite situation in case of saturation of market

Example B
Company 3
Rs x of sales last year required 10 salesmen
Rs x of sales requires 10 salesmen
Company4
Rs x of sales last year required 10 salesmen
Rs x of sales this year requires 8 salesmen
The changing ratio can be dealt by linear regression
and we are concerned at the moment to apply such a
method to analyse performance.

The changing ratio can be dealt with by linear regression which

can be applied to analyse performance.

Manpower

Razor blades
It establishes the line of best fit and also provides a measure of its
accuracy

The relationship between the variable is in the

linear form:
Y=a+bx
Where a and b are constants
Once the line of best fit has been established, it is
possible to predict changes.Thus for example
regression analysis mighr give a formula:
Y=70+0.1x
If production was 800 million blades in a year

Work study techniques

In this method time and motion are used to analyze and

measure the work done .With the help of each studies
standard time required per unit of work is decided. The
following example illustrates this method:

Example
Planned output for next year 50,000 units
Standard hours per unit
2
Planned hours required 50,000x2= 1,00,000
Productive hours per worker in the year 2000
Number of workers required 1,00,000/2000=50
If the span of control is 10 then the no of supervisors
required
Is 50/10=5

(1)

Future demand for human resource depends on

several factors, some of which are given below:
Employment trends- Trends in the companys
manpower can be judged by comparing and
analyzing the staff during the past five years.

(2) Replacement needs- These depend on death ,

retirement, resignation, and termination of
employees. These can be assessed on the basis
of past experience and retirement situation in
future.
(3) productivity- improvements in productivity
influence manpower requirements. Better
utilisation of existing manpower is one method of
securing gains in productivity.

(4) Absenteeism- while estimating demand for

manpower, the prevailing rate of absenteeism in the
company should be considered.The rate of
absenteeism can be calculated as follows:

Absenteeism= Mandays lost due to absenteeism

Mandays worked + Mandays lost
(5) Expansion and growth- The companys growth plans
and expansion programmes should be carefully
analysed to judge their impact on manpower
requirements in future .

(3) Supply forecasting

The first step of forecasting the future supply of

human resource is to obtain the data and
information about the present human resource
inventory

Existing inventory
1.
Head counts regarding total, department wise, sex wise,
designation-wise, skill wise, payroll wise etc
1.

3.

Job family inventory it includes the number and category of

employees of each job family related to same category like
clerks, cashiers- similar skill, similar operation like
production engineer and maintenance engineer (Mechanical)
Age inventory- it includes age wise number and category of
employees. It indicates age wise imbalances which can be
correlated in future selections and promotions

Age Composition of human resource

DESIRABLE
NVENTORY STRUCTURE
AGE-WISE IN EACH
JOB FAMILY

PRESENT
INVENTORY
AGE-WISE
JOB FAMILY

LOSS
AGEWI
SE IN
EACH
JOB
FAMILY

DEFICIT AGE
WISE IN EACH
JOB FAMILY

ADDIT
IONAL
AGEWISE
IN EACH
JOB
FAMILY

ACTION PLAN
FOR RECRUITMENT
AGE WISE

NET FUTURE
SUPPLY
AGEWISE
IN EACH JOB
FAMILY

SURPLUS
AGE-WISE IN
EACH JOB
FAMILY

PLAN FOR
REDOPLY
MENT

illustrated in Figure 1, the average age of the registered

nurse (RN) workforce, which has risen steadily since the
mid-1980s,). As the nursing workforce ages, organizations
that are able to both retain their aging nursing staff and
attract older nurses from outside their organization will be
best suited to continue to operate successfully in an
increasingly challenging labor marketplace.

SKILLS INVENTORY RENEWALFORECAST

MODEL

Name
Age
Dependants
Marital status

PERSONAL FACTORS

Birth place
Occupation of parents
present address
permanent address
telephone number if any)
EDUCATION AND TRAINING
School attended with years
Degrees, Diplomas obtained
Training achieved
EXPERIENCE AND SKILLS
Job areas
special skills ( such as ability to speak/write
Job titles
foreign languages
Job dates

Additional information
Salary
Grade

ratings
Absenteeism record
relatives
Disciplinary record
Career plans
information

test results
performance
location of
appraisal data
Any other

 Inventory of skill, experience,values, capabilities

Inventory of qualifications and training including minute

qualifications and training received.

Inventory of salary grades- pay wise, allowances-wise
and total salary wise.
Gender wise inventory
Inventory of past performance and future potentialities

Employee information card

Employee No Address..

Town..
Dept..
Code
Position
Exp Date..
Employee status
: Regular/ part time/
Shift
:1/2/3
Marital status
Married/Single/Widowed/separated
No of dependent children
: 1/2/3/4..
Relatives in company
: yes/No
Union membership (Which one)..
Experience of skills
:
clerical/Mechanical/sales/supervisory/others
Special training
:Departmental/on- the
job/ vestibule

 Accidents
Members of the credit union
Absenteeism
Date

: Loss time (mts)..

Hospitalisation..(Y/N)
: Y/N
: Days
Operator.

Potential losses

The second step of supply is estimation of future

losses of human resources of each department.

The reasons for potential loss can be classified as (a)
Permanent total loss (b) permanent partial loss (c)
temporary total loss (d) temporary partial loss

(a) Permanent total loss is due to labour turnover .

Labour turnover rate= number of employees left during
a specified period
Average number of employees during the same period x
100

 Management has to calculate the rate of labour

turnover, conduct exit interviews. This helps to forecast
the rate of potential loss, reasons for loss and reduce it.
Management also calculates labour stability index (rate
of employees with certain period of experience to total
numb of employees)

(b) Permanent Partial loss:- consist of wastage of skills,

capabilities etc due to ill health of employees, working
conditions and occupational diseases. Conclusion of
morale studies or surveys are helpful to forecast the
loss of values, aptitude etc of the existing employees

 Temporary total loss absenteeism and deputation out

.past data about absenteeism, the reasons therefore,
measures already taken or under implementation to
minimise absenteeism help to forecast loss of human
resource due to absenteeism. Deputation can be anticipated
through agreements of one organisation with other
organisation.

Temporary partial loss- include consultancy, advisory and

other services.

Potential additions- should also be estimated

after forecasting potential loss.

Potential additions
Permanent total additions to the organisation is new

hires. It can be estimated based on workload, interim

programme etc. In case of departments include
promotions, demotions and transfers within the
organisation
Permanent partial addition consist of acquisition of new
skills, knowledge, values, aptitudes etc by the existing
employees.
Temporary total additions can be foreseen with the help
of morale studies, surveys, organisational programmes,
general level of values. Deputation in, are estimated on
the basis of agreement of the organisation

 The multiple effect of promotions and transfers on

the total moves should be analysed.

Future supply of Human = Present inventory of

human resources
difference

Resources + The

between the potential

additions and potential loss of human resources
OR
Present inventory of
Human resource
+ Potential additions
potential loss

Analysing sources of supply

Sources of supply should be ensured with a view to

ensure the availability. Both internal and external

factors affecting manpower supply should be analysed.

Internal factors include- training facilities, salary

levels, benefits, inter-personal relations, company

programmes, scope for self advancement and growth,
promotional opportunities, pride for creative and
innovative ideas, providing challenging work etc.

The external factors are classified into local factors

and national factors

 Local factors- population density in the area, local

unemployment level, availability of employees on part

time, temporary and casual basis, current and future
competition for the similar categories ,outcome from
local educational and training institutes, local transport
and communication facilities, the attractiveness of the
area as a place to live, the traditional pattern of
employment and availability of manpower with
required qualifications and skills.
National factors-Trend in the growth of working
population, training institutes and schemes in the
country, outcome from technical, professional ,
vocational, and general educational level, cultural
factors, customs, national demand for certain categories
of manpower like technologists, scientists, management
graduates, impact of government

 Employment regulations
(4)Estimating the net human resource requirements
Net human resource requirements in terms of number and
components are to be determined in relation to the overall
human resource requirements (Demand forecast) for future
date and supply forecast for that date. The difference between
overall human requirements and future supply of human
resource is to be found out.
(5) Action plan for redeployment, redundancy/ Retrenchment
If future supply is estimated , the organization has to plan for
redeployment , redundancy etc transferred- training or
reorientation before redeployment. If surplus consult with
trade unions and redundancy/ retrenchment

Programmes for redeployment, redundancy/retrenchment

programmes

Outplacement
Lay off
Leave of absence without pay- Help in

eliminating the unnecessary job in the phased manner

WORK SHARING- share the job among two employee work
in or one-half time each
REDUCED WORK HOURS- work less receive less
VRS
HIRING FREEZES

 (6) FORECAST FUTURE SUPPLY FROM ALL THE

SOURCES
-if deficit is forecasted- labour market, campus ,
consultancies, internal sources etc
(7) Action plan for recruitment , development etc.
SUITABLE CANDIDATES
INTERNAL RESOURCES

EXTERNAL SOURCE
NO

YES

PROMOTION, TRANFER, T&D

R&S

 (8) Modify the organisational plan-

railways
(9) Retention plan- adjustment of salary with
the competitors, opportunities for career
development, provide training facilities, internal
promotion, assignment of challenging work, more
conducive work environment, extensive
participation in decision making