2. INTRODUCTIONINTRODUCTION
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:
(1) To utilize the present employees fully.
(2) To fill up future manpower requirements.
3. DefinitionDefinition
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 people &
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.”
4. Types of Manpower planningTypes of Manpower planning
Types of manpower planning can be distinguished:
1. On the basis of the level at which it is done.
2. On the basis of the period for which it is done.
Manpower Planning
On the basis of level On period basis
Macro-level
(national level)
Micro-level
(Industrial
Unit level)
Short
period
Medium
period
Long
period
5. Macro & MicroMacro & Micro
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.
6. On the basis of termOn the basis of term
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.
7. Factors affecting ManpowerFactors affecting Manpower
PlanningPlanning
• Working Hours
• Number of shifts
• Nature of Production
• Product mix
• Performance rate
• Hours lost
8. Factors affecting ManpowerFactors affecting Manpower
PlanningPlanning
• 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 requirements. 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.
9. Factors affecting ManpowerFactors affecting Manpower
PlanningPlanning
• Product mix :- It means a production program based on
optimum productive capacity and sales forecast. This is for
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.
10. Advantage of ManpowerAdvantage of Manpower
PlanningPlanning
• 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
• 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.
11. OBJECTIVESOBJECTIVES
• Accurate estimates of manpower
requirements
- The most important object of manpower
planning is to make as far as possible correct
estimates of future manpower requirements.
- The technique of forecasting is
very helpful in selecting right type of man for
the right type of job.
- Additional jobs are created by retirement,
retrenchment, discharge, demotion and
separation etc.
12. • Inventorying of Personnel
- Personnel inventorying is concerned with
working details with regard to present
employees pertaining to their educational
qualifications, professional skill, proficiency in
job and training received etc.
- The main object of preparing the inventory is
to know about the number of persons with
varied qualifications and skill etc. available in
the organisation.
13. • Achieving and maintaining
production level
– Manpower planning helps in achieving
and maintain production level in an
organisation.
– There is reduction in labour turnover,
absenteeism and accidents etc.
– These industrial hazards are properly
estimated by manpower management.
– These estimates in advance are helpful
in maintaining desired production levels.
14. • Helpful in recruitment and
selection
- Human resource or manpower
management is immensely helpful in the
process of recruitment and selection
also.
- It brings down the recruitment and
selection costs by pursuing sound
procedures of recruitment and selection.
15. Advantage of ManpowerAdvantage of Manpower
PlanningPlanning
• 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.
• Greater awareness among employee :- It is the importance of
sound manpower management throughout at all levels of
organization.
• Better industrial relations :- 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.
16. Problems in ManpowerProblems in Manpower
planningplanning
• The lack of sensitivity to problems
and solutions
- Management still seems to be particularly concerned
about financial and material resources and has a tendency
to neglect the critical factor of human resources.
- Over the past few decades, productivity has increased as
a result of improved technology, but any further
improvement will depend, to a very great extent, upon
improved manpower utilisation.
- In this respect, management is required to show a
greater respect to the role of manpower in profitability.
17. • Short term profit goals
- In the short term there is a tendency to view manpower‐
planning as unprofitable and too costly.
- This represents the traditional view that costs of
personnel are overhead costs and not direct costs. It is
essential that management review this problem and weigh
the benefits against the costs.
- It is possible that this lack of concern over manpower
planning could be attributed to lack of information.
- If information is not forthcoming, then manpower
planning is a futile exercise.
18. • Lack of criteria
- The lack of information can lead directly to the absence of
criteria against which to measure performance.
- It is not an easy task to measure human performance
without the use of adequate quantitative data.
- It is easy to measure the depreciation of material goods,
out human beings tend to appreciate with the passing of
time, and this appreciation quality has never been
measured.
- The tendency of management is to measure human
beings, only in terms of their cost to the organisation.
- Management should become aware of the fact that the
evaluation of performance is long, complex, uncertain and
abstract, and it is necessary that they continue their
planning without the use of objective criteria.
19. • Complexity of the organisation
- Many organizations have increased tremendously in
recent years and some appear to have difficulty in
determining the exact size of the workforce.
- They appear to be incapable of updating the retrievable
information which is essential to manpower planning.
- Because of the increasing complexity of organisations, it
is becoming more essential to keep a track on the
movements of employees, as well as all the personal details
which may be of use in planning.
- This is where the personnel manager and his staff must
exercise a keen supervision.
20. • Rapid changes
- The rate of technological change causes difficulties in
manpower planning.
- This is because, at times, it is difficult to keep up with the
technical development.
- There is always resistance to change within an
organisation, but somehow this resistance must be
overcome if manpower is to be utilized effectively.
- One possible method of overcoming this resistance to
change on part of the existing staff is to introduce new
employees, with new ideas from outside of the
organisation.
21. • Lack of communication
- This problem is the oldest and most common in
personnel administration.
- Manpower planning is now becoming a sophisticated
process, only involving the use of experts, and these
experts must have rapid access to accurate information.
22. CONCLUSIONCONCLUSION
• Manpower planning may be viewed as foreseeing the
human resources requirement of an organization and the
future supply of human resources.
• Human Resource Management focuses on matching the
needs of the business with the needs and development of
employees.
• Personal development plans enable every individual to grow
both professionally and personally within the business.
