Manpower Planning


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Manpower Planning

  1. 1. Manpower Planning
  2. 3. Objectives: <ul><li>To develop the analytical abilities for understanding the implications of changes in the manpower situation of a company and the availability of HR within the organization and outside, so as to advise and assist the authorities concerned in their manpower planning and development activities. </li></ul>
  3. 4. Objectives: <ul><li>To enable the students to acquire the knowledge and skill necessary for preparing the manpower plan of a business enterprise, or to understand such a plan drawn up by the manpower planning cell of the company. </li></ul>
  4. 5. Evaluation Pattern: <ul><li>Internal Assessment: 30% </li></ul><ul><li>Attendance: 10% </li></ul><ul><li>Presentation: 20% </li></ul><ul><li>Term End Assessment: 70% </li></ul><ul><li>Total: 100% </li></ul>
  5. 6. Topics: <ul><li>1. Manpower planning </li></ul><ul><li>• Objectives (micro and macro levels) </li></ul><ul><li>• Benefits, advantages, limitations problems </li></ul><ul><li>2. HR planning, linkage of HR planning with other HR functions, influencing factors in manpower planning. </li></ul>
  6. 7. Topics: <ul><li>3. Manpower planning: tools, methods and techniques </li></ul><ul><li>• Job analysis </li></ul><ul><li>• Skills analysis/skill inventory </li></ul><ul><li>• Performance appraisal </li></ul><ul><li>• Manpower inventory </li></ul><ul><li>• Use and applicability of statistical and mathematical models in manpower planning </li></ul><ul><li>• Census analysis </li></ul><ul><li>• Markov analysis </li></ul>
  7. 8. Topics: <ul><li>4. Case analysis and presentation </li></ul><ul><li>5. Organization as a matrix of jobs </li></ul><ul><li>• Organization structuring </li></ul><ul><li>• Traditional concepts </li></ul><ul><li>• Recent trends </li></ul><ul><li>• Role clarity, job enrichment, job enlargement </li></ul>
  8. 9. Topics: <ul><li>6. Career planning/succession planning </li></ul><ul><li>7. Improving manpower utilization and manpower control </li></ul>
  9. 10. Topics: <ul><li>8. Manpower planning techniques and formulation of manpower for: </li></ul><ul><li>• Running enterprises with no major expansion plans </li></ul><ul><li>• Running enterprise with major plans for expansion, modernization, diversification etc. </li></ul><ul><li>• A new enterprise about to be set up case analysis and presentation </li></ul>
  10. 11. Topics: <ul><li>9. National (macro level) manpower planning </li></ul><ul><li>• Various approaches </li></ul><ul><li>• Progress in India and abroad </li></ul><ul><li>10. Recent trends in HR planning </li></ul>
  11. 12. REFERENCES <ul><li>Manpower Planning by Dharmender Aggarwala – Deep & Deep Publications </li></ul><ul><li>The Manpower Planning Handbook by Malcolm Bennison and Jonathan Cassen, McGraw Hill Books Company (UK) Ltd. </li></ul>
  12. 13. What is Manpower? <ul><li>Human Resources </li></ul><ul><li>Personnel </li></ul><ul><li>People at Work </li></ul><ul><li>Manpower </li></ul>
  13. 14. Some Definitions of HRM: <ul><li>French: “Personnel Management is a major component of the broader managerial function and has roots and branches extending through out and beyond each organization. It is a major sub-system of all organization”. </li></ul>
  14. 15. Some Definitions of HRM: <ul><li>Edwin Flippo: HRM is “the planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished”. </li></ul>
  15. 16. Some Definitions of HRM: <ul><li>Michael Jucious: HRM is “that field of management which has to do with planning, organizing and controlling the functions of procuring, developing, maintaining and utilizing a labour force, such that the </li></ul><ul><li>(a) objectives for which the company is established are attained economically and effectively; </li></ul><ul><li>(b) objectives of all levels of personnel are served to the highest possible degree; and </li></ul><ul><li>(c) objectives of society are duly considered and served”. </li></ul>
  16. 17. Some Definitions of HRM: <ul><li>David De Cenzo and Stephen Robbins: “Human resource management is concerned with the ‘people’ dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives”. </li></ul>
  17. 18. Some Definitions of HRM: <ul><li>T. V. Rao: “HRD is a continuous planned process by which </li></ul><ul><li>employees are helped to: </li></ul><ul><li>(a) Acquire or sharpen capabilities required to perform </li></ul><ul><li>various functions associated with their present or </li></ul><ul><li>expected future roles; </li></ul><ul><li>(b) develop their general capabilities as individuals </li></ul><ul><li>and discover and exploit their own inner potentials </li></ul><ul><li>for their own and organizational purposes; and </li></ul><ul><li>(c ) develop an organizational culture in which </li></ul><ul><li>superior-subordinate relationships, team work and </li></ul><ul><li>collaboration among sub-units are strong and </li></ul><ul><li>contribute to the professional well-being, </li></ul><ul><li>motivation and pride of employees”. </li></ul>
  18. 19. Approaches towards Human Beings: <ul><li>Mechanical approach – commodity approach or factor of production concept – up to 1920. </li></ul><ul><li>Paternalistic Approach – from 1920 till great depressions – died during the Great Depressions of 1930s. </li></ul>
  19. 20. Approaches towards Human Beings: <ul><li>Social System or Humanistic Approach: 1930-40 Psychologists – Mayo, Mc Gregor, Leavitt etc. Sociologists – Blake, Dubin etc. </li></ul><ul><li>Human Resource Approach – 1940 onwards – (distinct needs, aspirations and personality) – MBO, two way communication, leadership quality circles etc. </li></ul>
  20. 21. Personnel vs. Human Resource Management <ul><li>Personnel Management </li></ul><ul><li>Personnel means persons employed. PM is the management of people employed. </li></ul><ul><li>Human Resource Management </li></ul><ul><li>HRM is the management of employees’ skills, knowledge, abilities, talents, aptitudes, creative abilities etc. </li></ul>
  21. 22. Personnel vs. Human Resource Management <ul><li>Personnel Management </li></ul><ul><li>Employee is treated as an economic man as his services are exchanged for wage/salary </li></ul><ul><li>Human Resource Management </li></ul><ul><li>Employee is treated not only as economic man but also as social and psychological man. Thus the complete man is viewed. </li></ul>
  22. 23. Personnel vs. Human Resource Management <ul><li>Personnel Management </li></ul><ul><li>Employee is viewed as a commodity or tool or equipment, which can be purchased or used. </li></ul><ul><li>Employees are treated as cost centre and therefore management controls the cost of labour. </li></ul><ul><li>Human Resource Management </li></ul><ul><li>Employee is treated as a resource. </li></ul><ul><li>Employees are treated as a profit centre and therefore, invests capital for human resource development and future utility. </li></ul>
  23. 24. Personnel vs. Human Resource Management <ul><li>Personnel Management </li></ul><ul><li>Employees are used mostly for organizational benefits. </li></ul><ul><li>Personnel function is treated as only an auxiliary. </li></ul><ul><li>Human Resource Management </li></ul><ul><li>Employees are used for the multiple mutual benefit of the organization, employees and their family members. </li></ul><ul><li>HRM is a strategic management function. </li></ul>
  24. 25. Three Basic responsibilities of HR Manager and his Department : <ul><li>To exert a line manager’s authority on his unit and employees in HR department. </li></ul><ul><li>He coordinates to ensure HR objectives and policies of the organization. </li></ul><ul><li>He provides various staff services to the line managers like recruiting, training, rewarding, disciplining of employees at all levels. </li></ul>
  25. 26. Environmental Scanning <ul><li>Internal Environment (Micro) </li></ul><ul><li>Organizational Objectives </li></ul><ul><li>Production </li></ul><ul><li>Organizational Structure </li></ul><ul><li>Finance </li></ul><ul><li>Organizational politics </li></ul><ul><li>Marketing </li></ul>
  26. 27. Environmental Scanning <ul><li>External Environment (Macro) </li></ul><ul><li>Technological </li></ul><ul><li>Customers </li></ul><ul><li>Human Resources in the country </li></ul><ul><li>Social including religious </li></ul><ul><li>Economic </li></ul><ul><li>Political </li></ul><ul><li>Governmental </li></ul><ul><li>Legal </li></ul><ul><li>Trade unions in other organizations </li></ul>
  27. 28. Functions of HRM <ul><li>Managerial Functions </li></ul><ul><li>Operative Functions </li></ul>
  28. 29. Managerial Functions <ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Directing </li></ul><ul><li>Controlling </li></ul>
  29. 30. Operative Functions <ul><li>Employment </li></ul><ul><li>Human Resource Development </li></ul><ul><li>Compensation Management </li></ul><ul><li>Human Relations </li></ul>
  30. 31. Employment <ul><li>Human Resource Planning </li></ul><ul><li>Recruitment </li></ul><ul><li>Selection </li></ul><ul><li>Induction </li></ul><ul><li>Placement </li></ul>
  31. 32. Human Resource Development <ul><li>Performance Appraisal </li></ul><ul><li>Training </li></ul><ul><li>Management Development </li></ul><ul><li>Organization Change & Development </li></ul>
  32. 33. Compensation Management <ul><li>Job Evaluation </li></ul><ul><li>Wage and Salary Administration </li></ul><ul><li>Fringe benefits </li></ul>
  33. 34. Human Relations <ul><li>Motivation </li></ul><ul><li>Morale </li></ul><ul><li>Job satisfaction </li></ul><ul><li>Communication </li></ul><ul><li>Grievance & Discipline Procedure </li></ul><ul><li>Quality of work life & quality Circles </li></ul>
  34. 35. Objectives of HRM <ul><li>To create and utilize an able and motivated workforce. </li></ul><ul><li>To accomplish the basic organizational goals. </li></ul><ul><li>To establish and maintain sound organizational structure. </li></ul><ul><li>To establish and maintain working relationships among all the members of the organization. </li></ul>
  35. 36. Objectives of HRM <ul><li>To secure the integration of individual and groups within the organization by co-ordination of the individual and group goals with those of the organization. </li></ul><ul><li>To attain an effective utilization of human resources in the achievement of organizational goals. </li></ul><ul><li>To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security measures for challenging work, prestige, recognition, security, status etc. </li></ul>
  36. 37. Objectives of HRM <ul><li>To maintain high employee morale and sound human relations by sustaining and improving the various conditions and facilities. </li></ul><ul><li>To strengthen and appreciate the human assets continuously by providing training and development programs. </li></ul>
  37. 38. Objectives of HRM <ul><li>To consider and contribute to the minimization of socio-economic evils such as unemployment, under-employment, inequalities in the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women and disadvantaged sections of the society etc. </li></ul><ul><li>To provide an opportunity for expression and voice in management. </li></ul>
  38. 39. Objectives of HRM <ul><li>To provide fair, acceptable and efficient leadership. </li></ul><ul><li>To provide facilities and conditions of work and creation of favourable atmosphere for maintaining stability of employment. </li></ul>
  39. 40. Role of Human Resource Manager <ul><li>Personnel Role </li></ul><ul><li>Welfare & Counsellor’s Role </li></ul><ul><li>Administrative Role </li></ul><ul><li>Fire-fighting and Legal Role </li></ul>
  40. 41. Personnel Role <ul><li>Advisory –effective use </li></ul><ul><li>Manpower planning, recruitment, selection etc. </li></ul><ul><li>Training & development </li></ul><ul><li>Measurement & Assessment of individual and group behaviour </li></ul>
  41. 42. Welfare & Counsellor’s Role <ul><li>Managing services –canteen, transport co.op., crèches etc. </li></ul><ul><li>Group Dynamics, councelling, motivation, leadership, communication </li></ul><ul><li>Research in personnel and org. problems </li></ul>
  42. 43. Administrative Role <ul><li>Salary & wage administration – incentives </li></ul><ul><li>Maintenance of records </li></ul><ul><li>Human-engineering, Man-machine relations </li></ul><ul><li>Effective utilization of human resources </li></ul>
  43. 44. Fire-fighting and Legal Role <ul><li>Grievance handling </li></ul><ul><li>Settlement of disputes </li></ul><ul><li>Handling of disciplinary & legal matters </li></ul><ul><li>Collective bargaining </li></ul><ul><li>Joint consultation and participation </li></ul>
  44. 45. Integration of Interest of Employees and Management: <ul><li>Employee’s Interest </li></ul><ul><li>Management’s Interest </li></ul>
  45. 46. Employee’s Interest <ul><li>Recognition as an individual </li></ul><ul><li>Opportunity for expression and development </li></ul><ul><li>Economic security and growth of employees </li></ul><ul><li>Interest in work </li></ul><ul><li>Safety, healthy working conditions </li></ul><ul><li>Acceptable hours of work and adequate wages </li></ul><ul><li>Fair and efficient leadership </li></ul>
  46. 47. Management’s Interest <ul><li>Lowest unit personnel cost </li></ul><ul><li>Maximum productivity of employees </li></ul><ul><li>Availability and stability of employees </li></ul><ul><li>Loyalty of employees </li></ul><ul><li>Co-operation and commitment of employees </li></ul><ul><li>High organizational morale </li></ul><ul><li>Intelligent initiative of employees </li></ul>
  47. 48. Qualities of Human Resource Manager <ul><li>Sense of vocation </li></ul><ul><li>Capacity of leadership </li></ul><ul><li>Personal Integrity </li></ul><ul><li>Sense of Social Responsibility </li></ul><ul><li>Dynamic personality </li></ul><ul><ul><li>Spontaneity of speech </li></ul></ul><ul><ul><li>Facial expressions </li></ul></ul><ul><ul><li>Courtesy and social awareness </li></ul></ul><ul><ul><li>Personal dignity </li></ul></ul>
  48. 49. Rising Prominence of the Human Resource Management: <ul><li>Emphasis on quality </li></ul><ul><li>Impact of technology </li></ul><ul><li>Liberalization of Indian economy </li></ul><ul><li>Privatization of Indian economy </li></ul><ul><li>Globalization </li></ul>
  49. 50. Rising Prominence of the Human Resource Management: <ul><li>Changes in political philosophy </li></ul><ul><li>Trade unionism </li></ul><ul><li>Cutthroat competition </li></ul><ul><li>International problems </li></ul>
  50. 51. Organization of HR Department
  51. 52. Human Resource Planning <ul><li>Human resources are regarded as the only dynamic factor of production. Other factors like materials, methods, machines, money etc. are useless without their effective use by the human resources. Thus, it is logical that there should be proper manpower or human resource planning in the organization to use the other resources effectively. </li></ul>
  52. 53. Human Resource Planning <ul><li>Planning is one of the basic functions of management of any organization. In commercial and industrial undertakings, planning has been focused on profit making, procurement, production, marketing, quality control and only most recently, manpower. Manpower planning has now been recognized as an important part of the overall planning of any organization. Without the procurement and maintenance of adequate number of personnel, it is not possible to realize the goals of the organization. Manpower planning is essential to put the plans of the organization into action for the achievement of its goals or objectives. </li></ul>
  53. 54. Definitions: <ul><li>E. W. Vetter , “Human resource planning is the process by which the management determines how an organization should move from its current manpower position to its desired manpower position to its desired manpower position. Through planning the management strives to have the right number and the right kinds of people at the right places, a t the right time, to do things which result in both the organization and the individual receiving the maximum long-range benefit”. </li></ul>
  54. 55. Definitions: <ul><li>E. Geisler , “Manpower planning is the process including forecasting, developing and controlling by which a firm ensures that it has the right number of people and the right kind of people at the right places, at the right time doing work for which they are economically most useful”. </li></ul>
  55. 56. Definitions: <ul><li>Leon Megginson, “Human resource planning is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members”. </li></ul>
  56. 57. Definitions: <ul><li>Coleman , “Human resource planning is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization”. </li></ul>
  57. 58. Nature/Features/Characteristics of Manpower Planning <ul><li>Ascertaining manpower needs in number and kind. </li></ul><ul><li>It presents an inventory of existing manpower of the organization. </li></ul><ul><li>Helps in determining the shortfall or surplus of manpower. </li></ul><ul><li>Initiation of various organizational programmes. </li></ul><ul><li>Acquisition, utilization, improvement and prevention of human resources. </li></ul>
  58. 59. Need/Importance/Advantages/Role of Human Resource Planning: <ul><li>It checks the corporate plan of the organization. </li></ul><ul><li>It helps to face the shortage of certain categories of employees and/or variety of skills despite the problem of unemployment. </li></ul><ul><li>The rapid changes in technology, marketing, management etc. and the consequent need for new skills and new categories of employees. </li></ul><ul><li>The changes in organization design and structure affecting manpower demand. </li></ul>
  59. 60. Need/Importance/Advantages/Role of Human Resource Planning <ul><li>The demographic changes like the changing profile of workforce in terms of age, sex, education etc. </li></ul><ul><li>The government policies in respect to reservation, child labour, working conditions etc. </li></ul><ul><li>The labour laws affecting the demand for and supply of labour. </li></ul><ul><li>Pressure from trade unions, politicians, sons of soil etc. </li></ul>
  60. 61. Need/Importance/Advantages/Role of Human Resource Planning <ul><li>Introduction of computers, robots etc. </li></ul><ul><li>It offsets uncertainty and change and helps to have right men at right time and in right place. </li></ul><ul><li>it provides scope for advancement and development of employees through training, development etc. </li></ul><ul><li>It helps to anticipate the cost of salary enhancement, better benefits etc. </li></ul>
  61. 62. Need/Importance/Advantages/Role of Human Resource Planning <ul><li>To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal, management etc. </li></ul><ul><li>To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organizations and government through remodeling organizational, industrial and economic plans. </li></ul>
  62. 63. Need/Importance/Advantages/Role of Human Resource Planning <ul><li>To plan for physical facilities, working conditions and volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centers, quarters, company stores etc. </li></ul><ul><li>It gives an idea of type of tests to be used and interview techniques in selection based on the level of skills, qualifications, intelligence, values etc. of future human resources. </li></ul>
  63. 64. Need/Importance/Advantages/Role of Human Resource Planning <ul><li>It causes the development of various sources of human resources to meet the organizational needs. </li></ul><ul><li>It helps to take steps to improve human resource contributions in the form of increased productivity, sales, turnover etc. </li></ul><ul><li>It facilitates the control of all the functions, operations, contribution and cost of human resources. </li></ul>
  64. 65. Factors Affecting Human Resource Plan <ul><li>External Factors </li></ul><ul><li>Internal Factors </li></ul>
  65. 66. External Factors <ul><li>Government’s policies </li></ul><ul><li>Level of economic development including future supply of HR </li></ul><ul><li>Business environment </li></ul><ul><li>Level of Technology </li></ul><ul><li>Natural Factors </li></ul><ul><li>International Factors </li></ul>
  66. 67. Internal Factors <ul><li>Policies and strategies of the company </li></ul><ul><li>Human resource policy of the company </li></ul><ul><li>Formal and Informal groups </li></ul><ul><li>Job Analysis </li></ul><ul><li>Time Horizons (long term or short term) </li></ul><ul><li>Type and quality of information </li></ul><ul><li>Company’s production operations policy </li></ul><ul><li>Trade Unions </li></ul>
  67. 68. Problems in Human Resource Planning <ul><li>Resistance by employer </li></ul><ul><li>Resistance by employees </li></ul><ul><li>Resistance by trade unions </li></ul><ul><li>Uncertainties </li></ul><ul><li>Inadequacies of Information system </li></ul><ul><li>Identify crisis </li></ul><ul><li>Slow and gradual process </li></ul><ul><li>Co-ordination with other management functions </li></ul><ul><li>Integration with organizational plans </li></ul>
  68. 69. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>1. Analyzing organizational plans. </li></ul>
  69. 70. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>2. Demand forecasting </li></ul><ul><ul><li>Managerial Judgement </li></ul></ul><ul><ul><li>Statistical Techniques – ratio analysis and econometric models </li></ul></ul><ul><ul><li>Work study techniques </li></ul></ul><ul><ul><li>Employment trends </li></ul></ul><ul><ul><li>Replacement needs </li></ul></ul><ul><ul><li>Growth and expansion </li></ul></ul><ul><ul><li>Productivity </li></ul></ul>
  70. 71. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>3. Supply Forecasting </li></ul><ul><ul><li>Existing inventory </li></ul></ul><ul><ul><li>Potential losses – temporary/permanent </li></ul></ul><ul><ul><li>Potential additions </li></ul></ul>
  71. 72. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>4. Estimating the net human resource requirement </li></ul>
  72. 73. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>5. In case of future surplus – plan for redeployment, retrenchment and lay-off </li></ul>
  73. 74. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>6. In case of future deficit – forecast the future supply of human resources from all sources with reference to plans of other companies </li></ul>
  74. 75. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>7. Plan for recruitment, development and internal mobility if future supply is more than or equal to net human resource requirements </li></ul>
  75. 76. Process/Procedure/Steps/Stages in Human Resource Planning: <ul><li>8. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements. </li></ul>