HRP

2.  Manpower planning is also known as personnel
planning or human resource planning.
DEFINITION.
 Estimating or projecting the number of personnel
with different skills required over time or for a
project, and detailing how and when they will be
acquired.

3. It is the first step towards manpower management.
It refers to the process of using available assets for
the implementation of the business plans.
It also involves the process of coordinating and
controlling various activities in the organization.
Efficient utilization & skilled labour.
Higher productivity.

4. PROCESS OF HRP.
1. Assessing Human Resources
2. Demand Forecasting
3. Supply Forecasting
4. Matching Demand And Supply
5. Action Plan

5. 1. ASSESSING HUMAN RESOURCES
 The assessment of HR begins with environmental
analysis, under which the external environment and
internal (objectives, resources and structure) are
analyzed to assess the currently available HR
inventory level. After the analysis of external and
internal forces of the organization, it will be easier
for HR manager to find out the internal strengths as
well as weakness of the organization in one hand
and opportunities and threats on the other.
Moreover, it includes an inventory of the workers
and skills already available within the organization
and a comprehensive job analysis

6. 2. DEMAND FORECASTING
 HR forecasting is the process of estimating demand
for and supply of HR in an organization. Demand
forecasting is a process of determining future needs
for HR in terms of quantity and quality. It is done to
meet the future personnel requirements of the
organization to achieve the desired level of output.
Future human resource need can be estimated with
the help of the organization's current human
resource situation and analysis of organizational
plans an procedures. It will be necessary to perform
a year-by-year analysis for every significant level
and type.

7. 3. SUPPLY FORECASTING
 Supply is another side of human
resource assessment. It is concerned with the
estimation of supply of manpower given the
analysis of current resource and future availability
of human resource in the organization. It estimates
the future sources of HR that are likely to be
available from within an outside the organization.
Internal source includes promotion, transfer, job
enlargement and enrichment, whereas external
source includes recruitment of fresh candidates
who are capable of performing well in the
organization.

8. 4. MATCHING DEMAND AND SUPPLY
 It is another step of human resource planning. It is
concerned with bringing the forecast of future
demand and supply of HR.The matching process
refers to bring demand and supply in an equilibrium
position so that shortages and over staffing
position will be solved. In case of shortages an
organization has to hire more required number of
employees. Conversely, in the case of over staffing
it has to reduce the level of existing employment.
Hence, it is concluded that this matching process
gives knowledge about requirements and sources
of HR.


9. 5. ACTION PLAN
 It is the last phase of human resource
planning which is concerned with surplus and
shortages of human resource. Under it, the HR plan
is executed through the designation of different HR
activities. The major activities which are required to
execute the HR plan are recruitment, selection,
placement, training and development, socialization
etc. Finally, this step is followed by control and
evaluation of performance of HR to check
whether the HR planning matches the
HR objectives and policies. This action plan should
be updated according to change in time and
conditions.

10. ADVANTAGE OF MANPOWER PLANNING
 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 & inturn 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.

11. ADVANTAGE OF MANPOWER PLANNING
 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.

12. FACTORS AFFECTING MANPOWER PLANNING
 Working Hours
 Number of shifts
 Nature of Production
 Product mix
 Performance rate
 Hours lost

13. FACTORS AFFECTING MANPOWER PLANNING
 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.

14. FACTORS AFFECTING MANPOWER PLANNING
 Product mix :- the total range of products offered by a
company.If few products are offered then less manpower is
required & vice-versa
 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.

15. Shortages and surpluses can be identified.
All the recruitment and selection programs are
based on manpower planning.
Reduce labour cost & over staffing can be avoided.
Manpower can be utilized properly.

16. GETTING THE RIGHT PEOPLE
AT THE RIGHT PLACE
ON THE RIGHT TIME