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Unit

Unit 2:
2: Manpower
Manpower Planning
Planning
Contents
•Objectives
•Estimating manpower requirements
•Recruitments and selection
•Retention of manpower
•Succession Planning
Books to be referred
• Need and Importance- CB Gupta
• Process- CB Mamoria
• Sources- CB Mamoria
• Retention - notes
• Succession -Notes
Meaning
 Manpower planning and human resource
planning are synonymous. HRP is the
process of forecasting a firm’s future
demands for, and supply of the right type of
people in the right number.
 It is continuous process. It is not rigid and is
amenable to modifications, review and
adjustments in accordance with the needs of
the organization or the changing
circumstances.
Definitions
 Eric Vetter:
 “MP is the process by which management
determines how an organization should move
from its current manpower position to its
desired manpower position. Through
planning, a management strives to have the
right number and the right kind of people at
the right places, at the right time, to do things
which result in both the organization and the
individual receiving the maximum long- range
benefit”
Stainer
 MP is the “ Strategy for the acquisition,
utilization , improvement and preservation of
a unit’s manpower resources”
Dale S Beach
 HRP is a process of determining and
assuming that the organization will have an
adequate number of qualified persons,
available at the proper times, performing jobs
that meet the needs of the enterprise and
which provide satisfaction for the individuals
involved”
OBJECTIVES
 To ensure optimum use of HR currently
employed
 To assess and forecast future skills required
 To link HRP with Organizational Planning
 To assess the surplus and shortage of human
resource
 To anticipate the impact of technology on HR
OJECTIVES
 To determine levels of recruitment and training
 To estimate the cost of HR and housing needs
of employees
 To provide a basis for management
development programmes.
 To facilitate productivity bargaining
 To meet the needs of expansion and
diversification programmes.
Need and Importance
 Helps in filling future job vacancies
 To forecast the compensation cost
 Identify gaps in terms of talent and quantity
 Replacement in case of retire, death,
resignation or accident
 Facilitates expansion and diversification
 Reduce wastage of manpower which can be
tackled by providing adequate training
Need and Importance
 Facilitates succession planning
 Helps in planning for physical facilities like
canteen, staff quarters, dispensary and
school for children of the employees
 At the national level, HRP facilitates
educational reforms, geographical mobility of
talent and employment generation.
Stages in HRP
1. Deciding goal or objectives of HRP According to
Sikula “ The ultimate mission or purpose of human
resource planning is to relate future human
resource to future enterprise needs so as to
maximize the future return on investment in human
resource”
2. Estimating the future Organizational structure or
forecasting manpower requirements
3. Auditing Human resources
4. Job Analysis
5. Developing Human Resource Plan
RECRUITMENT
 Meaning
 Recruiting is the discovering of potential
applicants for actual or anticipated
organizational vacancies.
DEFINITIONS
 Flippo
“Recruitment is a process of searching for
prospective employees and stimulating and
encouraging them to apply for job in an
organization”
DEFINITIONS
 Dale S Beach
“Recruitment is the development and
maintenance of adequate manpower
resources. It involves the creation of a pool of
available labour upon whom the organisation
can depend when its needs additional
employees”
DEFINITIONS
 Yoder
“Recruitment is a process to discover the
sources of manpower to meet the
requirements of staffing schedule and to
employ effective measures for attracting that
manpower in adequate numbers to facilitate
effective selection of an efficient working
force”
Process Of Recruitment
 Planning and strategy Development: this begins
when personnel department receives requisition for
recruitment from any department
 Searching : Locating required number and type of
employees
 Screening: Identification
 Communicating : Terms and conditions of work and
information about the job given
 Encouraging: attract employees to apply
 Evaluating: this is evaluating the effectiveness of the
recruitment process
Sources of Recruitment
 INTERNAL  EXTERNAL
 Present employees  Media advertising
 Employee referrals  Recommendations by
 Former employees present employees
 Previous applicants  Government
employment agencies
 Private employment
agencies
External sources continued
 On- Campus recruitment
 Labour Unions
 Casual Applicants
 Leasing
 Head hunting
Internal recruitment
 MERITS  DEMERITS
 Less costly X Stagnation without new
 Morale of employees blood
increase X candidate may not be
 Existing employees are the best in the market
more reliable as record X may cause friction
available internally
 Promotes loyalty and X may not be possible for
commitment jobs requiring creativity
 Retain talent
EXTERNAL SOURCES
 MERITS  DEMERITS
 People having requisite  More expensive and
skill, education and time consuming
training can be obtained  Orientation and training
 Best selection possible is necessary
 Expertise and  Motivation and loyalty of
experience can be existing staff are
made available affected if higher post
are filled thru external
sources
Selection
Procedure to be referred from
Management by Manmohan Prasad
SELECTION

MEANING
Selection is the process of choosing the most
suitable persons out of all the applicants.
Selection may regarded as a process of
rejection because generally more candidates
are turned away than hired.
STEPS IN THE PROCESS OF
SELECTION
1. Scrutiny of application forms
2. Preliminary interview
3. Application blank – has information about
*Identification *Education
*Experience*Expected
Salaries*Community activities* References
4.Employment Test
a. Trade test
b. Psychological test: Aptitude test,
Intelligent tests, interest test, knowledge
test, projective tests, personality tests,
Judgement tests, Dexterity tests.
5. Employment Interview
6. Physical /Medical examination
7. Reference Check
8. Final Selection
Retention of manpower
 Refer to the notes given at the photo copy
centre on the old and new methods of
retention.
Retention of manpower
Traditional methods
1. Competitive Pay 6. Training
Rates 7. Mentoring Programs
2. Comprehensive 8. Life/Work Balance
Benefits 9. 9.Incentive Programs
3. Performance Reviews
4. Communication
Strategies
5. Career Development
Manpower Retention
The new approach
1. Compensation
2. Job Design
3. Job customization
4. Social Ties
5. Location
6. Hiring
Career Planning and Succession
Planning
 Career is viewed as a sequence of positions
occupied by a person during the course of his
life time. Objective Career)

 Career may also be viewed as an amalgam of


changes in values, attitudes and motivation
that occur as a person grow older. Subjective
Career)
Career planning is important because
it helps the individual to explore,
choose and strive to derive
satisfaction with his own career
objectives.
Succession planning
 Meaning :
Succession planning is the process or activities
connected with the succession of persons to
fill key positions in the organization hierarchy
as vacancies arise.
The focus of attention is WHICH person
Why is a succession plan necessary?
 Without a succession plan, every time an
employee leaves, is promoted or changes
jobs, performance of the new employee will
suffer. If a replacement needs to be found
outside, costs go up and performance goes
down for at least one year, according to
research. A succession plan is also the core
of any program to develop high-potential
employees.
Succession planning
 Refer to the notes at the photo copy centre+
 Case study on succession at GE
Case study
 CEO succession planning at GE ( available at
the Xerox centre)

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