Manpower Planning

Defining manpower planning Activities required for HRP/manpower planning Responsibilities of HR Department in manpower planning Steps for manpower planning/HRP Objectives of HRP/manpower planning Manpower demand forecasting Analysis of performance Analysis of productivity Macro and Micro manpower planning Macro level manpower planning models Labor economics

Definition of manpower Planning/HRP

Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization in achieving its overall objectives. MP is a strategy for acquisition, utilization, improvement and retention of human resources

Activities required for HRP/manpower planning

Forecasting future manpower requirements
Mathematical projections, judgmental estimates, economic environment, development trends in industry

Preparing an inventory of present manpower

Employee s skills, abilities, work preference

Anticipating problems of manpower

Helps in determining quantitative and qualitative adequacy of manpower

Meeting manpower requirements

Can be done through planning, recruitment and selection, training, development, promotion, transfer, motivation,

Responsibilities of HR Department in Manpower Planning

Put pressure on the operating management to plan and establish objectives. Organization wide data collection and ensuring that manpower planning is in line with long range objectives and business plan of the organization. Measuring and monitoring performance against plan and provide feedback to top management. Carrying out research for effective manpower and organizational planning.

Steps for manpower planning/HRP

Job analysis
Job identification Job characteristics Job assignment Tools, equipments required for a job Job performance, nature of operations Personal attributes Job relationship, scope for advancement

 Sources of information for JA

Supervisors and foreman Professional job analysts (consultants) Technology vendors Organizational structure Recruitment and selection Wage and salary administration Job re-engineering Industrial engineering activity Employees training and management development Performance appraisal Health and safety

Purposes of JA

 Job description and job specification

JD explains duties, responsibilities, condition and tasks and JS explains necessary skills, competence, education, training required for a particular position.

Developing work rules

Starting and stopping of work, rest period, time keeping etc.

Application of industrial engineering techniques

Effective use of plant and equipment, human efforts, better ways of doing thingd, etc.

Other factors
Layout Statutory requirements Shifts Leave reserve

Objectives of HRP/manpower planning

To integrate planning and control of manpower with organizational planning to ensure best possible utilization of all resources. Coordinating manpower policies of the organization recruitment and selection, training and development, placement and induction, promotion, remuneration and reward Achieving efficiency of work in all spheres Ensure cost minimization Eliminate all types of wastage including waste of time Maintain required level of skill and competency, matching present and future needs of the organization.

Manpower demand forecasting

Depends on two things primarily
Volume of output Level of productivity

Analysis of performance
Estimating manpower requirement relating with the workload Direct analysis reviewing past performance to derive a ratio between two variables. Indirect analysis is based on the estimates made in the past

Analysis of productivity
Productivity has two major components
Technological change Manpower utilization

Macro and Micro Manpower Planning

Macro level manpower planning influenced by general environmental factors like employment, unemployment situation, demographic changes, legal control and institutional policies, globalization and impact of technology etc. Micro level manpower planning concerned about factors within an organization

Issues for Manpower planning at Macro level

Population planning and control Literacy and education Health and medical care Housing

Macro level Manpower Planning Models

The manpower requirement approach (MRA) The Rate of Return Approach (RRA); also known as cost benefit analysis of human capital

The manpower requirement approach (MRA)

It establishes a linear relation between employment and output and then extrapolates manpower requirements in different categories for years to come.

Rate of return approach(RRA)

RRA is applied to decide the aggregate investment requirement for different skill development. Cost and earnings of an individual over his productive life is computed first and then their discounted value is estimated to assess the rate of return.

Labour Economics
Studies demand and supply of labour Human capital concept is the most important development in labour economics Social relations of production, long-term contractual arrangement, problems of motivation, wages, working hours, labour unions are important issues of labour economics Internal and external labour market Influence on different policies .tranfer, promotion, hiring, rotation by internal labour market.

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