Manpower planning is a very important part of the overall planning of a business organization. It is obvious that a business cannot prosper unless the right number of employees, having required skills, talents & qualifications is available at right time.
Manpower planning is done to fulfill the two main objectives, namely:
The scientific process of allocating the right quantity of right men to be required in future at right time on the right job.
According to James J. Lynch “Manpower planning is the integration of manpower policies, practices & procedures so as to achieve the right people in the right jobs at the right time.”
According to Vetter, manpower planning is: “The process by which management determines how the organization should move from its current manpower position to its desired manpower position. Through manpower planning management strives to have right number of & the right kind of people at the right place at right time, doing things which result in both the organization & the individual receiving maximum long term benefits.”
In developing country like India, manpower planning is absolutely essential. Manpower planning is done on the national level as a part of the planning for overall economical development of the country. The objective is to provide more & more opportunities of employment, while utilizing the human resource of the nation most efficient. In India manpower planning is a part of overall planning & so its responsibilities lie with planning commission.
Manpower planning at the organizational level is also important, because it decides the various measures to be taken such as recruitment, selection, promotion, transfer etc. by an industrial unit. Depending upon the size of the industry manpower planning may be done at three levels:
At the departmental level.
If there are number of branches of the industry planning can be done at the level of each individual branch of the factory.
At the top level, i.e. by the board of directors of the company.
Short term plans are prepared for the period of one year. Short term plans are made as a part of five year plans at national level. These plans are very much useful at company level.
Medium term plans are those which are made for 2 to 5 years. At national level, medium terms plan are essentially prepared as a financial planning. These plan gives special attention towards employment opportunities & training & development of employees.
Long term manpower planning is prepared for a longer period such as 10 to 15 years. This is done at national level. It is important to estimate man power needs of a nation and accordingly to raise educational and training facilities keeping in view long term interest of the nation.
Working Hours :- Manpower requirement is directly related to the working hours per day by the employees. If number of working hours is more, then less man power is required and vice versa, for e.g. due to complexity in process & working condition in a chemical plant, instead of eight hours per shift worker may be required to work for six hours in a shift, so man power planning basis will be different in a chemical industry to any other industry.
Number of shifts :- If the factory is running in shifts, it should be remembered that production falls in night shift.
Nature of Production :- Ideal time, setting time, cycle time etc all varies greatly with the nature of production and hence the manpower requirement also. In mass production & continuous production automatic machines are used because of automation less manpower will be required as compared to job order and batch production system industries.
Product mix :- It means a production program based optimum productive capacity and sales forecast, this is based optimum utilization of human and material resources and also for balancing the production line.
Performance rate :- Performance rate depends upon the working conditions, bonus schemes, suitable incentive plan, training program, motivation etc. If the employees are motivated to do their best, their performance rate will be quite more & less number of workers will be needed.
Hours lost :- If productive man hours lost are less, there available productive hours will be more and less manpower will be needed.
Basis of recruitment & selection of employees : Manpower planning provides a basis for recruiting new employees considering the future manpower needs. As a result, the production & any other related work does not stop for lack of employees of desired skills & abilities .
To plan the development of employees :- The present employees can be trained for some higher position this gives encouragement to the exiting employees & intern creates psychological climate for motivation
Through performance appraisal :- Manpower planning enables through performance appraisals, identification of gaps of existing manpower so that corrective training could be imparted. Thus the training program becomes more effective.
Reduction in personnel costs :- It reduces personnel’s cost because the management’s ability to anticipate shortage or surpluses of manpower and correct these imbalances before they become unmanageable and expensive.
Manpower Inventory :- Personnel or manpower inventory can provide information to management for the internal succession of managerial personnel if there is a turnover which is not anticipated.( expected)
Greater awareness among employee :- It is the importance of sound manpower management throughout at all levels of organization.
Better industrial relation’s :- Information on surpluses manpower would facilitate the introduction of an exit plan or scheme for surplus labour. A systematic approach to deal with surplus manpower would check the problem of industrial relation.
Improvement in business planning process :- It leads to improvement of business planning process.
Employment opportunities :- It provides better employment opportunities and identifies the specific development & training program needed today to make specific skills available tomorrow.