Professional Documents
Culture Documents
Unit 1
Unit 1
Structure:
1.1 Introduction
Objectives
1.2 Factors Affecting Manpower Planning
1.3 Need for Manpower Planning
1.4 Five Steps in Manpower Planning
Evaluate Present Manpower Inventory
Manpower Forecasting
Develop a Manpower Sourcing Plan or Retrenchment Plan
Manpower Allocation & Retention
Building Requisite Competencies
1.5 Importance of Manpower Planning
1.6 Obstacles in Manpower Planning
1.7 Advantages of Manpower Planning
1.8 Successful Manpower Planning
1.9 Consolidated Demand Forecast Development
1.10 Effective Decision Making
1.11 Gaining Senior Management Support
1.12 Meeting the Organization's Goals and Objectives
1.13 Summary
1.14 Glossary
1.15 Case Study
1.16 Terminal Questions
1.17 Answers
1.1 Introduction
Human resource planning is very essential for continued existence of the
business. It is a process in which the HR department tries to understand
their strength of current manpower and prepares for the future.
Effectiveness of Manpower planning is to hiring the right number of people
at the right place and at the right time for doing the right things. Effective
manpower planning helps in achieving the goals and objectives of the
organization.
Page No.: 1
Unit 1
Page No.: 2
Unit 1
Page No.: 3
Unit 1
Page No.: 4
Unit 1
Page No.: 5
Unit 1
Page No.: 6
Unit 1
Page No.: 7
Unit 1
The following case will acquaint you well with the Human Resource
Planning Process:
CASE:
FENMORE CHILDREN CLOTHING COMPANY: PLANNING FOR CHANGE
Two years ago, Janet had five employees. She now has 10 employees yet
business has only increased by 10 per cent. She has a feeling that some
employees are not as busy as they could be. She now has two choices:
quickly hire a replacement to do the same work as the departing employee
or do an assessment of her business needs, shift other employees and look
for a person who will fill a new position that truly fits her business needs.
Step 1: Identify Business Strategy and Needs
Janet has identified both external and internal pressures and opportunities.
To remain competitive, Janet must use new technologies in the
manufacturing process. This means purchasing new equipment, as well as
hiring a qualified technician to operate the new equipment. Her sewers and
cutters are busy all the time but the packers are only busy when enough
product is available to be shipped. The two order clerks are also not
consistently busy because orders come in sporadically. Janets strategy is to
continue to grow revenues at 10 percent each year by introducing more
innovative and efficient processes.
Step 2: Conduct a Job Analysis and Write a Job Description
Janet believes that if she automates the current manual manufacturing
process, she will need one less employee within the year. She decides to
shuffle Johns duties to the other order clerk and one of the packers, who
have the necessary skills and are able to absorb the additional duties. She
quickly identifies that even with this shift she still needs a technician since
no one internally has the necessary skills. In addition, she feels it is not
likely her existing staff could acquire these skills in the short term to medium
term.
Since the technician position is new, she does not have an existing job
description. She begins to draft one, identifying what she requires of all her
employees (customer-service orientation, ability to work independently,
team players, previous industry-related experience). She gathers
information on the position by networking with others in the industry and
talking with the equipment supplier regarding requirements of an operator.
Sikkim Manipal University
Page No.: 8
Unit 1
She also speaks to her employees. She makes calls to people she knows in
the industry to determine the appropriate salary level.
Step 3: Determine the Feasibility of Hiring
Janet is able to provide a strong business case for her hiring decision. She
will not incur any additional salary expenses since the new position will
replace Johns. She will incur an additional expense with the purchase of the
new equipment and some training of employees, but these expenses will be
paid for with additional revenues by the end of the first year. Her revenues in
the years following implementation of the new equipment are expected to
double. Janet believes she is ready to hire.
Self Assessment Questions
6. Manpower allocation is a step in the __________ planning process.
7. Expert forecasts and trend analysis are two types of _____________
techniques.
8. ________ and ________ can be identified and quick action can be
taken in planning.
9. Manpower planning reduces ______ costs as excess staff can be
identified thereby avoid _______.
Page No.: 9
Unit 1
Page No.: 10
Unit 1
Page No.: 11
Unit 1
there are other costs apart from manpower costs and this would mean the
business is making losses as the expenditure far exceeds revenues.
Successful manpower planning is when the manpower costs are closely
following industry benchmarks if not beating them. The outcome of
successful manpower planning is all positions are filled as per the
requirement plan.
Self Assessment Questions
10. The main purpose of manpower planning is to increase the _________
of the organization and the total value created by the organization in a
given unit of time.
11. Non Optimal Utilization of Manpower is one of the ______________ in
manpower planning.
12. Optimum use of human resources currently employed is one of the
major ______________ of manpower planning.
Page No.: 12
Unit 1
Page No.: 13
Unit 1
Page No.: 14
Unit 1
1.13 Summary
Manpower planning is a very vital process where the management
determines how the organization should move from its present manpower
position to a desired manpower position. Manpower planning may be
defined as a strategy for the procurement, development, allocation and
utilization of an enterprises human resources. Human beings alone have
the ability to think, grow, feel, show pleasure at achievements, show
displeasure or dissatisfaction etc.
There are five steps in the manpower planning process. They are:
Evaluate present manpower inventory
Manpower forecasting
Develop a manpower sourcing plan or retrenchment plan
Manpower allocation
Building requisite competencies
The main purpose of the manpower planning is to increase the productivity
of the organization and the total value created by the organization in a given
unit of time.
The major obstacles in manpower planning are non optimal utilization of
manpower; absenteeism; lack of employable labor; and modern manpower
control and review processes.
Successful manpower planning involves only two critical steps. Estimating
the demand forecast for manpower accurately and ensuring that the supply
forecast for manpower meets the demand forecast.
Sikkim Manipal University
Page No.: 15
Unit 1
1.14 Glossary
Manpower: Refers to the number of people working or available for work in
an organization.
Manpower Inventory: It involves the classification of characteristics of
personnel in an organization, in terms of their knowledge, skills and abilities,
in addition to counting their number.
Manpower forecasting: The process of calculating how many employees will
be needed for the organization in the future, and how many will actually be
available.
Page No.: 16
Unit 1
1.17 Answers
Self Assessment Questions
1. Organizational plan
2. Economic value
Sikkim Manipal University
Page No.: 17
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Unit 1
Human capital
Strategy
Number
Manpower
Forecasting
Shortages, Surpluses
Labor, Overstaffing
Productivity
Obstacles
Advantages
Department representatives
Terminal Questions
1. Human resource planning is a process in which the HR department
takes a look of its current scenario and prepares for the future.
Effectiveness of Manpower planning is to hiring the right number of
people and the right kind of people at the right place and at the right time
for doing the right things.
Human resource planning is influenced by many factors both within and
outside the organization like internal and external factors (refer 1.1, 1.2)
2. The 5 steps in the manpower planning process are:
Evaluate present manpower inventory. Manpower forecasting, Develop
manpower sourcing plan or retrenchment plan ,Manpower allocation,
Building requisite competencies. (refer 1.4)
3. The major obstacles in manpower planning are as follows:
Non Optimal Utilization of Manpower, Absenteeism, Lack of employable
labour, Modern manpower control and review process. (refer: 1.6)
4. Manpower planning ensures maximum utilization of available resources.
a) Human resource planning is necessary of all organization b) It offsets
uncertainty and change c) It provides scope for advancement and
development of employees through training, development etc. d) It helps
to satisfy the individual needs of the employees for the promotions
transfers, salary enhancement, better benefits etc. e) It helps in
anticipating the cost of salary, benefits and all the cost of human
resources facilitating the formulation of budgets in a society. (refer 1.7)
Page No.: 18
Unit 1
Recommended Reading
Prakash A. V. (2000). Manpower Planning and Development. India: ABD
Publishers.
Details of these books are available at www.sapnaonline.com and
www.infibeam.com.
References:
Books
E-references:
http://www.managementstudyguide.com/manpower-planning.htm
(Retrieved on 13 May 2010)
http://www.buzzle.com/editorials/9-12-2004-59200.asp
(Retrieved on 13 May 2010)
http://www.chrmglobal.com/Replies/1680/1/Manpower-planning.html
(Retrieved on 13 May 2010)
http://www.ehow.com/about_6551930_introduction-human-resourceplanning.html
http://www.articlesbase.com/college-and-university-articles/introductionto-human-resource-hr-class-notes-human-resource-planning828440.html
http://datapole.hubpages.com/hub/advantages-of-human-resourceplanning
Page No.: 19