Manpower Planning

Manpower Planning also generally referred to as Human Resource Planning comprises of the task of putting right number of persons, right kind of persons at the right place, right time, doing the right things for in order to ensure the achievement of organization’s goals. To be effective, manpower planning must be approached as a system and executed in a set procedure.

Steps in Manpower Planning

  1. Analyze the current level of manpower - Before a forecast of future manpower requirements is done, the current manpower status has to be analyzed with key considerations to the following -
    • Type of organization
    • Number of departments
    • Number and quantity of such departments
    • Employees in these work units
  2. Create manpower forecasts - Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations includes;
    1. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.
    2. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure).
    3. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division.
    4. Work Force Analysis: Whenever production and time period has to be analyzed, due allowances have to be made for getting net manpower requirements.
  3. Develop recruitment program- Once the current staff inventory is compared with future forecasts, employment program can be developed accordingly, which will include recruitment, selection procedures and placement plans.
  4. Design training program- These will be based upon extent of diversification, expansion plans, development program, etc. Training program depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.
Importance of Manpower Planning
  • Efficient utilization- Efficient management of personnel becomes an important function in the industrialization world of today. Setting of large scale enterprises requires management of large scale manpower. It can be effectively done through staffing function.
  • Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.
  • Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational program, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function.
  • Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.
  • Higher productivity- Productivity level increases when resources are utilized in best possible manner. Higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and its related activities ( Performance appraisal, training and development, remuneration)
Need of Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment program. Manpower Planning is advantageous to firm in following manner:

  1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
  2. All the recruitment and selection program are based on manpower planning.
  3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided.
  4. It also helps to identify the available talents in a concern and accordingly training program can be chalked out to develop those talents.
  5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.
  6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.