THE STUDY

DefinitionA process in which an organizations predict the exact demand for labour and to evaluate the size, nature and sources of supply that will be required to meet that demand

Demand should match Supply

Need For Manpower PlanningPlanning for substantive reasons, that is, to have a practical effectPlanning because of the process benefitsPlanning because of Organizational Strategies

Steps in Manpower PlanningPredict manpower plans Design job description and the job requirements Find adequate sources of recruitment. Give boost to youngsters by appointment to higher posts. Best motivation for internal promotion. Look after the expected losses due to retirement, transfer and other issues. See for replacement due to accident, death, dismissals and promotion.

Process of Manpower PlanningSatellite picture' of the existing workforce profile (numbers, skills, ages, flexibility, gender, experience, forecast capabilities, character, potential, etc. of existing employees) and then to adjust this for 1, 3 and 10 years ahead by amendments for normal turnover, planned staff movements, retirements, etc, in line with the business plan for the corresponding time frames.

Forecasting TechniquesManagerial JudgmentRatio-trend analysisRegression analysisWork study techniquesDelphi techniqueBusiness Process Reengineering

Markov AnalysisThe heart of Markov analysis is the transition probability matrix which describes the probability of an incumbents staying in his or her present job for the forecast time period (usually one year), moving to another job in the organisation or leaving the organisation.When this matrix is multiplied by the number of people beginning the year in each job, the results show how many people are expected to be in each job by the end of the year.

Choosing forecasting methodStability and certaintyAvailability of dataNumber of employeesResources (HR) available for forecastingTime horizon (judgemental methods may be more suitable for long term whereas statistical methods may be good for short term)Credibility to management (many-a-times judgemental methods have a higher credibility if it includes substantial management input over statistical methods)

Employment Scenario in Manufacturing SectorIIntense CompetitionShort Product LifecycleHighly Volatile Market

Employment Scenario in Manufacturing Sector IIFactories ActPermanent & Contingent LabourTrade UnionsDemand Volatility of labour

Type of PlanningShort Term PlanningLong Term PlanningShift Based PlanningStrategic Planning

Benefits of Manpower PlanningFuture Personnel needsPart of strategic planningCreating highly talented personnelInternational strategiesFoundation of Personnel functionsIncreasing investments in HRResistance to change and moveOther benefits.