definition, importance and objectives

1. BY
Kothakota Venkata Ramana,
Assistant Professor, MBA
Dept.,Giacr Engg. College,
Rayagada

2.  MEANING OF MANPOWER PLANNING
 DEFINITION OF MANPOWER PLANNING
 IMPORTANCE OF MANPOWER PLANNING
 OBJECTIVES OF MANPOWER PLANNING

3. Manpower planning is the process of estimating the
optimum number of people required for completing
a project, task or a goal within time. Manpower
planning includes parameters like number of
personnel, different types of skills, time period etc.
It is a never ending continuous process to make
sure that the business has the optimized resources
available when required taking into consideration
the upcoming future projects and also the
replacement of the outgoing employees. It is also
called as Human Resource Planning.

4. Edwin B. Geisler defined as, “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 me,
doing work for which they are economically
most useful.”

5. Example of Manpower Planning:
IT companies are often faced with the business problem of hiring
right people for upcoming projects as well as attrition. These
companies have multiple projects going on at a single time and
upcoming projects in the pipeline. If they hire more people
without planning they would end up with many resources on the
bench which would eat into profits and if they keep waiting till
the last, they would not have enough skilled people to set up the
project and start delivering eventually leading to customer
dissatisfaction and losses.
So, these companies keep on forecasting and planning as per the
market requirements, latest skill set and their project pipeline.
Most of the times, hired resources cannot be productive straight
away so they need to train them which would require further
planning and time.

6. Importance of Manpower Planning
Manpower planning is an essential requirement for any business. It
helps the company to be prepared well in advance for the type of
employees they would be requiring in their organization in the
future. With constantly changing business requirements,
technological advancements etc the skills and knowledge of
employees tend to become obsolete over a period of time.
Also, if a business is growing, then the workforce needs to be
expanded if the company wants to have its business at different
locations, different business domains etc. If a company fails to
prepare before hand, it can create issues in the future and can
collapse the business model for a company. Hence, timely
preparation of manpower planning would always help a business
grow.

7. The objectives or importance of manpower planning are given below:
1. Optimum Productivity:
Skilled and qualified workers are recruited or they become so through the
training programme provided by the organization, through the manpower
planning. Hence, an organization can achieve the effective optimum
utilization of human potential, which will result in optimum productivity
and thereby, the production is carried out on uninterrupted.
2. Reduction in Labour cost:
Effective use of manpower, and optimum productivity will reduce the
wastage. It will reduce the labour cost.

8. 3. Effective Recruitment and Selection:
Right person can be placed at the right job and at right time
through manpower planning. Because future need can be
predicted by manpower planning. Therefore, effective
recruitment and selection can be achieved so that no need to
spend much amount on the training and labour turnover can be
reduced.
4. Group Satisfaction:
By establishing mutually satisfying work relationship between all
the members of the organization, group satisfaction and team
spirit can be achieved.
5. It helps in maximizing individual development.
6. Effective manpower planning may help the management in
developing the good employer-employee relationship. It leads
to improve the industrial relations.

9. 7. It maximizes the contributions and the satisfaction of the
employees of a business.
8. It gives due consideration to the capacities, interests,
opportunities and reactions of the workers.
9. To develop the future training and management development
needs.
10. To avoid the staff surplus and unnecessary dismissals in the
manpower planning.
11. To control the wages and salary costs.