People and Information Management_F107MAN

Assignment No: 02

Manpower Planning Report

A report on Manpower Planning and barriers that exist for making good manpower plan

For:

Strathgammon Estates Ltd.

March 29, 2011

By:
Naveed Iqbal Trainee HR Manager Lyden Property Service

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Table of Contents
1. 2. 3. Executive Summary ................................ ................................ ................................ ................. 3 Introduction ................................ ................................ ................................ ............................. 4 Manpower Planning Process ................................ ................................ ................................ ... 5 3.1. Analyzing the current manpower inventory: ................................ ................................ .. 5 Type of organization ................................ ................................ ................................ .. 5 Number of departments ................................ ................................ ............................ 6 Number of employees in each department ................................ ............................... 6

3.1.1. 3.1.2. 3.1.3. 3.2. 3.3. 3.4. 4. 5. 6. 7. 8.

Making future manpower forecasting: ................................ ................................ ............ 8 Developing employment program: ................................ ................................ ................... 9 Design training programs: ................................ ................................ ............................. 10

Barriers exist for making good manpower Planning: ................................ .......................... 10 Suggested ways to avoid the manpower planning barriers: ................................ ................. 12 Training Session Plan ................................ ................................ ................................ ............ 13 Recommendations: ................................ ................................ ................................ ................ 19 References:................................ ................................ ................................ ............................. 20

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1. Executive Summary
The aim of this report is to develop manpower planning and management system throughout Startgammon Estate Group Ltd, and its subsidiary companies. The manpower planning is a key of business management process and its right approach will help management to utilizing manpower more efficiently and productively. The manpower planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Manpower Planning has a systems approach and is carried out in a set of procedure. The procedure is as: Analyzing the current manpower inventory, making future manpower forecasts, developing employment programs and design training programs. After complete presentation of manpower process this report explain about the barriers that exist in making of effective manpower plans, these barriers are inaccuracy in forecasting of manpower, insufficient support from Management, resistance from employees and trade union, uncertainties, expensive and time consuming activity unbalance Approach, under utilization of Manpower . We can avoid all of these barriers by following suggested ways, such as provide full and dedicated support from executive management to manpower planner, take in confidence to our employees and trade union while preparing manpower plan for future projects, adopt a balance approach to both qualitative and quantitative aspects of work force while preparing manpower plan. At the end there is brief training session plan to give training to SMT, which helps SMT to understand the manpower planning process and its need and importance to "Startgammon Estate Group Ltd" and barriers which exist in making a good manpower plans.

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2. Introduction
Planning provides a sense of purpose and direction. It is a comprehensive framework for making decisions in advance. It also facilitates the organizing, leading, and controlling functions of management. Planning allows us to make our decisions ahead of time, it helps us to anticipate the consequences of various courses of action, it provides direction and a sense of purpose, it provides a unifying framework against which to measure decisions, and thus helps us to avoid piecemeal decision making.
Manpower planning involves a precise analysis of the present and future manpower needs of the

organization and exploration of sources to the organization goals and objectives. Assessment of manpower requirements has numerical and qualitative dimensions, and it is intimately linked with immediate and long-run objectives and plans of the organization. Manpower planning process consist on an analysis of current manpower inventory, future forecasting of manpower related to organization future plans and objective, developing of the employment program includes recruitment, selection procedures and placement plans and in last the designing of training program which is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well.

While preparing a manpower plan, there are a lot of barriers came which leave impact on the efficiency of manpower planning process and fail to get desired result. These barriers are insufficient support from executive management, resistance from employees and trade union, inaccuracy during forecasting of manpower demand, unbalance approach between qualitative and quantitative aspects of workforce, rapid changes in the economic environment, Absenteeism, turnover, seasonal employment, technological changes and market fluctuation.

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3. Manpower Planning Process

Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:
y y y y

Analyzing the current manpower inventory Making future manpower forecasts Developing employment programs Design training programs

3.1.Analyzing the current manpower inventory:

The process of manpower planning start with analyzing current manpower inventory in relation with organization future plans. Analysis of organization future plans and programs help in forecasting the demand for manpower as it provides the quantum of future work activity. Analysis of the current manpower inventory contains data about each employees skills, abilities, work preferences and other items of information. It gives us an idea of manpower presently working in the organization. On the basis of this information, it will be possible to know whether organization can profitably expand its activities and which of the employees are to be trained, developed their skills, promote or transfer to other projects. To comprise a complete analysis of an organization we have to know the further details:
y y y

Type of organization Number of departments Number of employees in each department

For the sake of further explanation we take an example of Neville Construction Ltd, which is a subsidiary company of Strathgammon Estate Group Ltd.

3.1.1. Type of organization

Neville Construction is a medium size construction company founded in 1954 by Peter Neville and Robert Chessman. Neville Construction concentrated solely on house building. The firm is organized along traditional lines with departments for estimating, costing, quantity surveying,
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buying, accounts and contracts. Apart from small plant and equipment, general purpose vehicles for transporting materials and labor, the company does not own any plant.

3.1.2. Number of departments

1. Finance Department 2. Personnel Department 3. Procurement Department i. ii. iii. Estimating Department Costing Department Quantity Surveying Department

4. Contract Department i. ii. iii. House Building Department Neville Contracting Wickham Plant

3.1.3. Number of employees in each department

Departments
Level Position FIN PRE PRO CONT CONST Grand Total

5 4

Director Manager

18

HOD.

Line Manager Construction Managers Project Manager

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Officers

43

Material Engineer

Scheduler & Planner

Site Engineer

Quantity Surveyor

10

Clerical Personnel

20

Skilled Crafts & Trade Workers

88

Drivers

Operator

Mason

40

40

Technicians

35

35

Semi-skilled Manual Workers

93

Assistants

25

33

Helpers

20

20

Labor

40

40

FIN

Finance

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y y y y

PER PRO CONT CONST

Personnel Procurement Contracts Construction

Once the current manpower inventory analysis completed we forward toward second step of manpower planning which is future manpower forecasting.

3.2.Making future manpower forecasting:

The concept of future manpower forecasting implies the estimates need and demand for manpower for the fixed period for which the manpower planning activity is designed. When manpower forecasting process is completed, we find out the requirements of human resources inorder to accomplish the various future projects. The manpower forecast must be both in term of quantity as well as quality. During manpower forecasting demand process, forecasted supply of manpower is also required to be considered in order to adjust demand of manpower with supply. The Manpower forecasting techniques commonly employed by the organizations are as follows:

a. Managerial Forecasts: Manpower forecasting is often done subjectively by departmental managers when they are working out their draft programs and budgets for the coming year. This

includes informal decisions, formal expert surveys and Delphi technique. b. Trend Analysis: Manpower needs can be projected through extrapolation, indexation, and statistical analysis. c. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. d. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis. Now to elaborate this concept we use our model example company Neville Construction Ltd and apply the technique of Work Load Analysis to determine the future forecasting of manpower demand. In view of the fast pick up of the global economy and taking into account the effect on real estate industry, Neville Construction Ltd get two big housing project and which are expected to commence in year 2011-2012.
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Taking the above into consideration manager will forecast on manpower requirement in 20112012. The manager will consider that manpower of management department will be stable and an increase will be in technical sector to start new project. After a complete study of project requirement and its completion period, he reached at following manpower requirement demand.

Skill Level

Manpower 2011 4 5 10 20 9 4 40 35 33 20 40

Forecast Manpower 2012 6 9 14 26 12 8 60 60 60 35 75

Project Manager Site Engineer Quantity Surveyor Clerical Personnel Drivers Operators Masons Technicians Assistants Helpers Labors

3.3.Developing employment program:

Once the current inventory is compared with future forecasts, the employment program can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans. Whether the forecasting manpower requirement indicates shortage or surplus of manpower, if there is shortage of manpower, develop a employment plan for recruitment and selection of new employees and if instead of shortage, we found that there is surplus manpower available, we have to make arrangements to redeploy the surplus employees by providing training to them. So they can perform new tasks with their abilities and satisfaction.
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Employment plan should be designed for full utilization of human resources and for full use of their abilities. In our model example the Neville Construction is facing a demand of manpower for its future projects. Now the question is here, where it approaches for source of manpower supply. There are two main source of supply:

Sources of Internal supply

The sources of internal supply mean inter-department transfers of existing employees and promotions of employees to senior posts.
y

Sources of External supply:

External source of manpower supply have to be solicited from outside the organization.

3.4.Design training programs:

Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well. These will be based upon extent of diversification, expansion plans, and development programs. 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.

4. Barriers exist for making good manpower Planning:

4.1.Accuracy of manpower forecasting:
Manpower planning involves forecasting requirement and supply of manpower, thus the efficiency of planning depends upon the exactness of forecast, if forecast are not exact, and planning will not be exact. Inaccuracy increase when departmental forecast are just prepared without critical reviews.

4.2.Support of Management:
Manpower planning requires a full and dedicated support from executive management. In the absence of this support and commitment it would not be possible to ensure the necessary resources, cooperation and support for success of the manpower. If the top management reluctant
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to provide support and confidence to planning department, there designed planning will never get expected result. The lack of interest on the part of the top management may lead to frustration in the concerned personnel involved in manpower planning.

4.3.Resistance from Employees and Trade union:

Employees and trade union resist in manpower planning. They feel that this planning increase their overall workload and regulate them through productivity bargaining. They also feel that it would lead to wide spread un-employment especially of unskilled labour.

4.4.Uncertainties:
Uncertainties is one of major obstacle in designing of manpower planning, because it is

dangerous to depends upon general estimate of manpower in the face of rapid changes in the economic environment. Absenteeism, turnover, seasonal employment, technological changes and market fluctuation are different kinds of aspects which create uncertainties and these uncertainties serve as constrain to manpower planning.

4.5.Expensive and time consuming activity:

Manpower planning is as expensive and time consuming process. Employers are generally resist manpower planning in feeling that it increases the cost of manpower.

4.6.Unbalance Approach:
Many manpower planners give more importance on the quantitative aspect of manpower to ensure that there is adequate flow of people in and out of the organization. They overlook the qualitative aspects like career development and planning, skill level, morale etc. are overlooked by them. Such unbalanced approach affects the effectiveness of manpower planning, thus manpower planning suffers from two types of problems, and one is inherent because of problem of forecasting and second comes from human weakness.

4.7.Under Utilization of Manpower:

The biggest obstacle in manpower planning process is the fact that the organizations in general are not making optimum use of their manpower and once manpower planning begins, it encounters heavy odds in stepping up the utilization.

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5. Suggested ways to avoid the manpower planning barriers:

5.1.Well-Organized Manpower Planning Department:
Manpower requires certain detail and information to forecast the demand of manpower requirements. The more exact fact and figures leads to more exact planning. A well organized manpower department can perform this function very well. With help of a organized personnel department, we can overcome on this problem of inaccuracy of manpower forecasting.

5.2.Support from the Top Management:

The manpower planning will be effective only when top executive support it. It is not duty of HR manager. HR manager is a employee of organization and can advise or guide to top management. He cannot implement decisions. Action on advice of HR manager can be taken at the initiative of top management. Thus support of top management play a crucial role in the process of a effective manpower planning.

5.3.Balance Approach:
The manpower planner should give to equal importance to both qualitative and quantitative aspects of manpower. Instead of matching existing people with existing job, stress should be laid on filling future vacancies with right-people. Promotion should also be considered carefully. Career planning and development, skill level, morale etc. should also be given due importance by planners.

5.4.Proper Organization:
To be effective, the planning process should be properly organized. if it is possible, make a separate cell or committee within HR department and provide adequate membership to trade union in this committee. Take the suggestions and advises from trade union representative while preparing the manpower planning. In this way their confidence will build over the top management and they play their vital role in organization development.

5.5.Period of Manpower Planning:

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Period of manpower planning should be appropriate to the needs and circumstance of the organization; it will help in reducing the uncertainty of economic fluctuation. The manpower planner has to focus on intermediate level plans rather than long period plans.

6. Training Session Plan

COURSE: SESSION: COURSE OBJECTIVE: Manpower Planning Morning Session, Tuesday, March 22, 2011.
y To develop the analytical abilities for understanding the implications

of changes in the manpower situation of a Neville Construction Ltd and the availability of manpower within the organization, so as to advise and assist the SMT concerned in their manpower planning and development activities.

LEARNING OUTCOMES:

After the end of this training Session we will be able to understand

y

What is manpower planning?

y Manpower planning need and importance in property oriented

business
y Structure of manpower planning process

FACILITATOR: TRAINEE DURATION: EQUIPMENT:

Trainee Human Resource Manager, Lyden Property Service Senior Management Team (SMT) Strathgammon Estate Group Ltd 09:00 am 11:00 am ( 02 Hours ) Fully equipped meeting room with LCD projector and interactive whiteboard

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TIME

ITEM

AID

INTRODUCTION
09:00
y y

My name is Naveed Iqbal

From College of Estate Management

y Work as Trainee Manager in Lyden Property Service hope to

achieve
y Object of this training is to provide full understand of manpower

planning and its approaches to property oriented business

y After the end of this training session SMT will be able to

understand manpower planning process and its importance to property oriented business.

MANPOWER PLANNING
09:10

What is manpower planning?

Manpower planning involves a precise analysis of the present Presentation and future manpower needs of the organization and exploration slides of sources to the organization goals and objectives.

09:20

Presentation

Importance of manpower planning:

y Main managerial functions

slides

The main management function such as organizing, directing and controlling are based upon the manpower planning. Manpower planning helps in the implementation of all these managerial activities.
y Utilization workforce

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TIME

ITEM Well-organized management of workforce becomes an

AID

important function in the property industry. Setting out of large organization requires management of large scale manpower.
y Motivation

Manpower planning not only includes putting right men on right job, but it also comprises of motivational programs such as 09:30 incentive plans to be framed for further participation and employment of employees in a concern. Presentation

Needs of manpower planning:

Manpower Planning process is based on two phases. In phase one it analyses the current manpower inventory and second phase it forecast future manpower demand. requirement Manpower according to Planning is

slides

organization

advantageous to firm in following manner:

y It identify shortages and surpluses of workforce y It helps to reduce the labour cost as excess staff can be

identified and thereby overstaffing can be avoided.

y With manpower planning, workforce can be readily available

and they can be utilized in best manner.

PROCESS OF MANPOWER PLANNING

09.45 Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:
y Analyzing the current manpower inventory y Making future manpower forecasts y Developing employment programs

Presentation slides Report and

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TIME

ITEM
y Design training programs

AID

y Analyzing the current manpower inventory

The process of manpower planning start with analyzing current manpower inventory in relation with organization future plans. Analysis of organization future plans and programs help in forecasting the demand for manpower as it provides the quantum of future work activity.

y Making future manpower forecasts

The concept of future manpower forecasting implies the estimates need and demand for manpower for the fixed period for which the manpower planning activity is designed.

y Developing employment programs

Once the current inventory is compared with future forecasts, the employment program can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.

y Design training programs

Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well.

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TIME 10:00

ITEM

AID

BREAK BARRIERS EXIST IN MAKING EFFECTIVE MANPOWER PLANING

10.15
y Accuracy of manpower forecasting:

Presentation slides The efficiency of planning depends upon the exactness of forecast, if forecast are not exact, and planning will not be exact. Inaccuracy increase when departmental forecast are just prepared without critical reviews.

y Support of Management:

In the absence of this support and commitment it would not be possible to ensure the necessary resources, cooperation and support for success of the manpower.

y Resistance from Employees and Trade union:

Employees and trade union resist in manpower planning. They feel that this planning increase their overall workload and regulate them through productivity bargaining.

SUGGESTED WAYS TO AVOID THE MANPOWER PLANNING BARRIERS:

10.35
y

Well-Organized Manpower Planning Department:

Presentation

With help of a organized personnel department, we can overcome on slides this problem of inaccuracy of manpower forecasting.
y Support from the Top Management:

The manpower planning will be effective only when top executive

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TIME

ITEM support it. Action on advice of HR manager can be taken at the initiative of top management.
y Balance Approach:

AID

The manpower planner should give to equal importance to both qualitative and quantitative aspects of manpower.
y Period of Manpower Planning:

Period of manpower planning should be appropriate to the needs and circumstance of the organization; it will help in reducing the uncertainty of economic fluctuation.

SUMMARY AND RECOMMANDTIONS

10:50 Summary:
y Manpower planning process y Manpower need and importance y Barriers exist in manpower planning y How to avoid these barriers

Presentation slides Report and

11.00

END

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7. Recommendations:
1. Manpower planning should be properly organized and a separate manpower planning division must be created. 2. An adequate database should be developed for human resource to facilitate planning. 3. The quantity and quality of human resource should be stressed in a balance manner. The emphasis should be on filling future vacancies with the right people rather than merely matching existing people with the existing jobs. 4. The period of a human resource plan should be appropriate to the needs and circumstances of organization. 5. Provide adequate support from top management. The manpower planning will be effective only when top executive support it. 6. The manpower planner has to focus on intermediate level plans rather than long period plans. 7. The manpower planning have to ensure maximum utilization of workforce which are presently employed in the organization. 8. Manpower planning have to decide which type to workers will be needed in future and make arrangement for their recruitment. 9. Manpower planning also has to bring to the notice of the top executives those workers who from the company point of view are indispensable. 10. Manpower planning has to design not only the benefit of organization, but it also expected to benefit of employees.

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8. References:
Book References:
Manpower planning Study Papers 0293 CEM: By Alan Chapman Principles of Management: By Tripathi Human Resource Management; Strategic Analysis Text and Cases: By Raj Kumar Human Resource Management: By Prakash Ved, H.S Elements of Human Resource Management: By S.D.Geet

Internet Reference:
"Management Study Guide" Available at: http://www.managementstudyguide.com/manpower-planning.htm [Access on March 03, 2011] "Business Performance Pty Ltd (2003) Training session plan template instructions". Available at:
www.businessperform.com/downloads/free/TrainingSessionPlanTemplate.doc 2010]

[Accessed March 05,

"Reilly P (1996) Human Resource Planning: An Introduction, Report 312, Brighton: Institute for Employment Studies" Available at:
www.employment-studies.co.uk/pubs/summary.php?id=312 [Accessed 15 March 2011].

"Human Resource Management" Available at:

http://www.accel-team.com/human_resources/hrm_07.html [Access on March 15, 2011]

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