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INTRODUCTION TO MANPOWER PLANNING

Introduction, Need , Benefits, Process , Components.

Personnel determine the success of the company".

INTRODUCTION
Manpower or human resource may be thought of as the total knowledge, skills, creative abilities, talents and aptitudes of an organizations work force as well as the values, attitudes and benefits of an individual involved.

WHAT IS HR PLANNING?
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 achieve its overall objectives.

DEFINITION
HRP is a process by which a management determines how an organization should move from its current manpower position to its desired manpower position. - Eric W Vetter

MANPOWER PLANNING DEFINED


Coleman defines human resources or manpower planning as the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.

Stainer defines manpower planning as strategy for the acquisition, utilization, improvement, and preservation of an enterprises human resources. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources of manpower.

ACCORDING TO WICKSTROM, ACTIVITIES IN MANPOWER PLANNING


Forecasting future manpower requirements.


Making Inventory of Present Manpower resources. Anticipating Manpower Problems. Planning different HR Programmes. i.e. selection , recruitment ,promotion etc.

ACCORDING TO WICKSTROM, HUMAN RESOURCE PLANNING


CONSISTS OF A SERIES OF ACTIVITIES
(a)

Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in industry, or in terms of judgemental estimates based upon the specific future plans of a company;

(b) Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally; (c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy , both quantitatively and qualitatively; and (d) Planning the necessary programmes of requirement, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

NEED FOR MANPOWER PLANNING.


To

fulfill the manpower requirements of the organization in terms of skills ,knowledge qualification and experience. need for replacing such personnel Frequent Labour Turnover. To meet needs of expansion programmes. To meet the challenges of new technology. Identify areas of surplus personnel.

FEATURES OF HUMAN RESOURCE PLANNING


Well

defined objectives Determining personnel needs Having Manpower Inventory Adjusting demand and supply Creating power work environment

FACTORS AFFECTING HRP


Type

and strategy of organization Organizational growth cycle and planning Environmental uncertainties Time horizon Type and quality of forecasting information Nature of the job being filled

OBJECTIVES OF HR PLANNING
Assessing

manpower needs for future and making plans for recruitment and selection.

Determining

training and development needs of the organizations. Anticipating surplus or shortages of staff.
Controlling

wage and salary costs.

Ensuring

optimum use of human resource in the organization.


the organization to cope with the technological developments & modernizations. high labour productivity.

Helping

Ensuring

Ensuring

career planning of every employee of the organization.

IMPORTANCE OF HR PLANNING
Reduced

Labour Costs Optimum Utilization of Manpower Force Identification of Gaps in Existing Manpower Improvement in Overall Business Planning Growth of the Organization Succession Planning

PROCESS OF HR PLANNING
The process of HR Planning involves following steps: Analysis of the Objectives and strategic Plans Preparing manpower inventory Forecasting the demand for Human Resources Determining Manpower gaps Formulating Manpower plans Training and Development Programmers' Manpower Planning Appraisal

HRP PROCESS
1. Strategic planning : It is the process by which top management determines overall organizational purposes and objectives and how they are to achieved. 2. HR Planning : It is the process of systematically reviewing human resources requirements to ensure that the required numbers of employees, with the required skills, are available when and where they are needed. Effective staffing decisions begin with human resource planning. Preparing a Skills Inventory is the most effective way of searching the right person.

3.FORECASTING HR AVAILABILITY A process of determining whether the firm will be able to secure employees with the necessary skills, and from which sources. Information required for managerial employees Work history and experience Educational background. Assessment of strengths and weaknesses. Developmental needs. Personal history. Field of specialization. Job preferences.

4. FORECASTING HR REQUIREMENTS
An

estimate of the numbers and kinds of employees an organization will need at future dates to realize its stated objectives. How to Forecast Personnel Needs : Forecast revenues and then estimate size of staff required to achieve this volume.

TECHNIQUES FOR FORECASTING HR NEEDS


Analysis means studying a firms employment levels over a period of years to predict future needs. Ratio Analysis means making forecasts based on the ratio between (1) some causal factor, like production units, and (2) number of employees required, like number of technicians. Zero base technique: A method for estimating future employment needs using the organizations current level of employment as the starting point. The Scatter Plot shows graphically how two variables (such as a measure of business activity and a firms staffing levels) are related.
Trend

Using Computers to Forecast Personnel Requirements The use of software programs can enable employers to quickly translate projected productivity and sales levels into forecasts of personnel needs, while estimating how personnel requirements will be affected by various productivity and sales levels. Managerial Judgment and expert opinion plays a big role in employment planning and forecasting

5. BOTTOM-UP TECHNIQUE FOR SUPPLY OF INSIDE CANDIDATES

A forecasting method beginning with the lowest organizational units and progressing upward through an organization ultimately to provide an aggregate forecast of employment needs.

6.SURPLUS OF EMPLOYEES FORECASTED


Identify what a firm can do when surplus workers exist. Ways must be found to reduce the number of employees some of these methods are: Restricted hiring Reduced hours Early retirement Layoffs

7. SHORTAGE OF WORKERS FORECASTED


When there is shortage of workers organizations will have to intensify their efforts to recruit the necessary people to meet the needs of the firm. Some methods are: Creative recruiting Compensation incentives Training programs Different selection standards

RESPONSIBILITY FOR HRP


Assist

and counsel operating manager to plan and set objectives. Collect and summarize man power data keeping long run objective and broad organizational interest in mind. Monitor and measure performance against the plan and keep top management informed about it Provide proper research base for effective man power and organizational planning

LIMITATION OF HRP

Accuracy of forecast Identify crisis Support of top management Resistance from employee Uncertainties Expensive and time consuming Coordination with other managerial function Unbalanced approach