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A PROJECT REPORT

ON
MANPOWER PLANNING

Submitted As A Requirement For Internal Assessment


MMS-Semester-II (2010), University of Mumbai
Under The Guidance Of Dr. Anjali Kalse
MMS- 2nd SEM, DIVISION A

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SUBMITTED BY: 
 
 
 
NAMES                                                                            ROLL NO.  
 
 
MAYUR JAGTAP                                                                    19 
 
VISHAL KATARIA                                                                 22 
 
THARA NAIR                                                                         38 
 
SUNIL NAMBIAR                                                                   42 
 
KAVITA SHAMBERAO                                                         52 
  
ABHIJEET TIWARI                                                                  56 
 

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ACKNOWLEDGEMENT

We take immense pleasure and satisfaction in presenting our report on


“ MANPOWER PLANNING”

This project was performed as part of the curriculum in the subject “HUMAN
RESOURCE MANAGEMENT” in Bharati Vidyapeeth Institute of Management
Studies & Research. We take this opportunity to acknowledge all the people who
have contributed to this project's involvement.

We acknowledge with deep sense of gratitude the support given by our


Professor Dr. Anjali kalse who encouraged us to take such a challenging
endeavor.

We express our sincere acknowledgement to Ms. Swapna Marathe ( Assistant


HR Manager) at Sparsh BPO for her enthusiastic support in our project. Her
support helped us gain a practical insight on the project.

We thank the authorities of our college for providing us with good environment,
library resources and facilities to complete this project. It gave us an opportunity
to learn more about the importance of manpower planning in Human Resource
Management. This project was definitely a positive learning experience for all
involved.

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TABLE OF CONTENTS

SR. NO TITLE PG. NO


1. Introduction 4

2. Steps Involved In Manpower Planning 5

3. The Benefits Of Manpower Planning 6

5. Need For Manpower Planning & retention strategies 7

6. The Impact Of Manpower Planning In An 8


Organization

8. Conclusion 10

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INTRODUCTION

Aim: To study manpower planning in an organization.

Objective: To understand the significance of manpower Planning in Human


Resource Management & to analyse how it can benefit the firm.

Design/methodology/approach: The current report gives an overview on the


manpower planning in a BPO and analysis on the same.

MANPOWER PLANNING IN A BPO

Manpower planning depends on the process & seats billed to client. Before
planning, the process & nature of billing has to be understood & requirements
are calculated likewise.

Methods of billing are as under:


ƒ No of seats basis.
ƒ Per call/ per hour basis.

Manpower planning directly affects the revenue of company.

There are no government policies /company HR Policies now in BPO’S which


directly impact manpower planning.

Trade Unions do not exist. Level of I.T is a client mandate in a BPO and does not
impact manpower planning as there is barely any automation or production
involved.

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STEPS INVOLVED IN MANPOWER PLANNING

DEMAND FORECASTING

A forecast is taken from operations by HR for 3 months. Hence this is called as a


3 months rolling plan. For eg: In February the forecast is taken for March, April
& May.

The factors to be considered will be:


• Business ramp up (if any) which depends on the client.
• Attrition (back fill) which is necessary for the organization.

A 6% buffer is considered over the existing headcount required.

Billiable HeadCount Approved HeadCount Buffer


120 125 133

The buffer is made to cover up for:


• Absenteeism (unscheduled & scheduled)
• HR bench (absconding, serving notice period, maternity leaves etc).
• For March/April & festive occasions buffer is 10%

SUPPLY

ƒ The HR team works backwards after getting recruitment numbers.

ƒ The HR increases the offers against joinees by 60%. Hence if the HR has to
plan & recruit 200 people, they make anywhere between 280-320 offers. In
such cases the training department may need only 150 while operations
may need only 80.

ƒ The buffer shall cover up for rejectors, HR attritions, CCT & PST attritions,
abscondings etc.

ƒ Manpower planning plans for training also & mandates are made well in
advance.

ƒ The company however does not have to spend on the buffer. The buffer
mostly assist in revenue additions to the company.

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THE BENEFITS OF MANPOWER PLANNING

ƒ 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.

ƒ Efficient utilization- Efficient management of personnels becomes an


important function in the industrialization world of today. Seting of large
scale enterprises require management of large scale manpower. It can be
effectively done through staffing function.

ƒ Motivation- Staffing function not only includes putting right men on right
job, but it also comprises of motivational programmes, 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.

ƒ 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.

ƒ 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 it's related activities ( Performance appraisal,
training and development, remuneration)

ƒ Manpower planning leads to a fixed plan for the next 3 months. HR,
training & operations are aware of the number to be hired. Operations can
calculate parameters depending upon manpower expected, and forecast
the same for negotiations with clients.

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NEED FOR MANPOWER PLANNING IN AN ORGANIZATION

ƒ Shortages and surpluses can be identified so that quick action can be taken
wherever required.

ƒ All the recruitment and selection programmes are based on manpower


planning. It also helps to reduce the labour cost as excess staff can be
identified and thereby overstaffing can be avoided.

ƒ It also helps to identify the available talents in a concern and accordingly


training programmes can be chalked out to develop those talents. 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.

ƒ It helps the organization to realize the importance of manpower


management which ultimately helps in the stability of a concern.

APPLICATION OF RETENTION STRATEGIES

ƒ HR receives updates in a program called EWS (Early warning system)


from operations early every week.

ƒ The agents are marked red (attrition in 1 month), yellow (possible attrition
in 30-90 days), green (happy employee).

ƒ HR then meets employees marked red & yellow to comprehend why


he/she wants to move.

ƒ The HR tries to comprehend the problem and tries to provide a possible


solution for the same

ƒ HR only steps in as a last effort after operations fails to retain the


employee. When all possible methods fail , they have to let the employee
leave the organization.

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THE IMPACT OF MANPOWER PLANNING IN AN
ORGANIZATION

Man power planning in Human Resource Management is a core factor. Here the
penalties for not being correctly staffed are costly. Understaffing loses the
business economies of scale and specialization, orders, customers and profits.
Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate
because of modern legislation in respect of redundancy payments, consultation,
minimum periods of notice, etc. Very importantly, overstaffing reduces the
competitive efficiency of the business.

Planning sufficiently

Planning staff levels requires that an assessment of present and future needs of
the organization be compared with present resources and future predicted
resources. Appropriate steps then be planned to bring demand and supply into
balance.

The pros and cons

Thus the first step is to take a clear and average view of the existing workforce
profile such as numbers, skills, ages, flexibility, gender, experience, forecast
capabilities, character, potential, etc. of existing employees and then to adjust this
for one or three and ten years ahead by amendments for normal turnover,
planned staff movements, retirements, etc, in line with the business plan for the
corresponding time frames.

The result should be a series of crude supply situations as would be the outcome
of present planning if left unmodified. This, clearly, requires a great deal of
information accretion, classification and statistical analysis as a subsidiary aspect
of personnel management.

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Future plan

The future demands will be is only influenced in part by the forecast of the
personnel manager, whose main task may well be to scrutinize and modify the
crude predictions of other managers.

Staffing in the future needs is derived due to some factors:

1. Variations in the efficiency, productivity, flexibility of labor as a result of


training, work study, organizational change, new motivations, etc.

2. Changes in employment practices (e.g. use of subcontractors or agency staffs,


hiving-off tasks, buying in, substitution, etc.)

3. Sales and production forecasts

4. Variations, which respond to new legislation, e.g. payroll taxes or their


abolition, new health and safety requirements

5. The effects of technological change on task needs

6. Changes in Government policies (investment incentives, regional or trade


grants, etc.)

What we understand from the above factors is that a thought out and logical
staffing demand schedule for varying dates in the future which can then be
compared with the crude supply schedules. The comparisons will then indicate
what steps must be taken to achieve a equilibrium.

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CONCLUSION

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.

It will involve the further planning of recruitment, training, retraining, labor


reductions such as early retirement/redundancy or changes in workforce
utilization as will bring supply and demand into equilibrium, not just as a one-
off but as a continuing workforce planning exercise the inputs to which will need
constant varying to reflect actual as against predicted experience on the supply
side and changes in production actually achieved as against forecast on the
required surface.

Human Resource Planning has got an important place in the arena of


industrialization. Thus manpower planning in Human Resource Management is
a core factor. Here the penalties for not being correctly staffed are costly.

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