Manpower Planning in HRM

1. MANPOWER PLANNING
DR. R. MUTHUKRISHNAVENI
ASST. PROF.

2. MANPOWER PLANNING - INTRODUCTION
 Manpower is a primary resource without which other resources like money, material etc. cannot be put
to use. Even a fully automatic unit such as an unmanned satellite requires manpower to execute it and
plan further improvements/activities
 Manpower planning requires not only a simple assessment of the number of men required but also their
categories and skills as well as their balanced allocation.
 Improper planning may lead to either over-staffing or under-staffing, both of which should be avoided.

3. MANPOWER PLANNING - INTRODUCTION
 Over-staffing not only increases direct cost (salary) but adversely affects the cost of training, housing
amenities etc., besides production cost. Under-staffing also affects production morale and, therefore,
industrial relations. Optimum manpower planning therefore assumes importance. It should aim at:
 Avoiding imbalances in distribution or allocation of manpower
 Controlling the cost aspect of human resources
 Formulating transfer and succession policy

4. MANPOWER PLANNING - INTRODUCTION
 Manpower planning is needed wherever production of goods and services is involved. It is an important
factor of labour productivity and profitability of the enterprise. In an industrial undertaking this is done
very carefully by External agencies and Internal agencies

5. MEANING
 Manpower Planning is the development of strategies to match the supply of manpower to the
availability of jobs at organizational, regional or national level.
 Manpower planning involves reviewing current manpower resources, forecasting future requirements
and availability, and taking steps to ensure that the supply of people and skills meets demand.
 Manpower planning is the rightsizing and achieving the balance of demand and supply of workforce.
The penalties for not being correctly staffed are costly.

6. DEFINITION
“Manpower Planning is the process of systematically forecasting the future demand and supply for
employees and the deployment of their skills within the strategic objectives of the organization. It is the
process by which Management determines how the management should move from its current manpower
to its desired manpower utilization.”

7. OBJECTIVES
 Demonstrate understanding of competency-based approach in human resource.
 Utilise tools in identifying current staff competencies and gaps, vis-a-vis, the organization’s goal and
targets.
 Demonstrate skills in conducting training needs analysis.
 Formulate strategies for addressing identified training needs, prepare and design training modules and
develop curriculum for training course and cost estimates.
 Demonstrate the abilities to have the human resources development plan approved by the appropriate
decision-making body.
 Design different training programmes to meet specific needs of particular group.

8. OBJECTIVES
 Formulate detailed implementation schedule.
 Design evaluation tool.
 Implement training and development activities, Programmes and plans.
 Write a professional report.
 Demonstrate knowledge on using relevant analytical tools for planning.
 Explain the relationship between the organization strategic plan and the strategic human resources
development planning process.
 Conduct a comparative study on the current human resources development planning process.

9. IMPORTANCE
Key to Managerial Functions
Efficient Utilization
Motivation
Higher Productivity
Better Human Relations

10. MANPOWER PLANNING BASES
 Growth plans which provide information about expansion, modernisation, diversification of business and
new projects to be commissioned with likely commissioning dates and details about manpower
requirements.
 Separation data available from company records. Separation due to superannuation may be known
easily, but those due to future resignations, transfers, terminations and voluntary retirements may be
projected based upon past experience and the company policy in this regard.
 Manpower used, various grades offered, etc., in similar plants outside. These may give broad guidelines
of the requirements. However, the guidelines may be modified to suit the process, layout, local
conditions and other associated factors like the extent of mechanisation, climatic conditions, statutory
requirements, social systems, etc.

11. MANPOWER PLANNING BASES
 The experience of the manager based on direct and intimate knowledge of the working of similar shops.
This can act as a guide to determine manpower requirement. However, ad hoc manpower decided on
this basis should be subjected to ‘work study’ and ‘activity sampling’ techniques for containment,
rectification of imbalances and manpower requirement.
 Job analysis and knowledge of work and historical records (if available) to determine manpower
requirements, skills, responsibilities required of the job holder, type of position to be manned, etc.

12. FACTORS TO BE CONSIDERED FOR WORKING OUT THE MANPOWER
PLANNING
 A decision regarding the fields in which the organisation will concentrate its main effort.
 A view should be taken on all share which an organisation can hope to achieve in the overall market
assessed for the line or products or service supplied by the organisation.
 The estimate will have to make of the resources and the production / sales capacity which would be
needed by the firm to take full advantage of the market potential.

13. FACTORS TO BE CONSIDERED FOR WORKING OUT THE MANPOWER
PLANNING
 General production and marketing plans and targets should be prepared for the period for which
planning is proposed to be undertaken.
 The area of activity of the firm is one of the potential factors affecting the manpower planning.
 A detailed assessment of the stage of socio-economic development is another important factor affecting
the manpower planning.
 A complete survey of Government Policy pertaining to the area of production should be undertaken
which would determine the prospective plans of Manpower

14. MANPOWER PLANNING PROCESS
Manpower Plan
and Objectives of
the Organisation
Assessment of the
Manpower
Situation
Projection of
Manpower
Requirements
Classification and
Interpretation of
Information
Developing Work
Standards and
Performance
Norms
Anticipating
Manpower
Problems
Costing Inventory
Supply of
Personnel
Research Studies

15. TYPES OF MANPOWER PLANNING
 On the basis of the level at which it is done
 Manpower Planning at Macro-Level (National Level):
 Manpower Planning at Micro-Level
 On the basis of the period for which it is done.
 Short-Term Manpower Planning
 Medium-Term Manpower Planning
 Long-Term Manpower Planning

16. ELEMENTS OF MANPOWER PLANNING PROCESS
 Forecasting Demand
 Analysing Human Resources Supply
 Matching Human Resource Requirements with Availability

17. PROBLEMS OF MANPOWER PLANNING
 Accuracy of Forecasts
 Identity Crisis
 Support of Top Management
 Expensive and Time Consuming
 Insufficient Initial Efforts
 Resistance from Employees
 Uncertainties
 Management Information System
 Coordination with Other Managerial Functions:
 Unbalanced Approach