manpower planning (1)

MANPOWER MANPOWER PLANNINGPLANNING

INTRODUCTIONINTRODUCTION

MANPOWER PLANNINGMANPOWER PLANNING

DEFINITIONDEFINITION

James J.Lynch, “Manpower planning is the James J.Lynch, “Manpower planning is the integration of manpower policies, practices integration of manpower policies, practices and procedures, so as to achieve the right and procedures, so as to achieve the right number of the right people in the right job number of the right people in the right job at the right time.”at the right time.”


Human Resource Planning is the process Human Resource Planning is the process by which management determines how by which management determines how the organization should move from its the organization should move from its current human resource conditions to its current human resource conditions to its desired human resource condition.desired human resource condition.

HRP consists of-HRP consists of-- Forecasting future human resource needsForecasting future human resource needs- Improving and effectively utilising existing Improving and effectively utilising existing

human resources to meet org.’s needshuman resources to meet org.’s needs


- Acquiring new human resources to fill the Acquiring new human resources to fill the gap between actual needs and existing gap between actual needs and existing realitiesrealities

- Retaining human resources with the right Retaining human resources with the right background, qualifications, skills and background, qualifications, skills and attitudes.attitudes.

OBJECTIVES OF HRPOBJECTIVES OF HRP

To integrate planning and control of To integrate planning and control of manpower with organisational planning to manpower with organisational planning to ensure best possible utilisation of all ensure best possible utilisation of all resources.resources.

To coordinate manpower policies of the To coordinate manpower policies of the organisation with recruitment, selection, organisation with recruitment, selection, training and development, placement and training and development, placement and induction, promotions, transfers, induction, promotions, transfers, remuneration, rewards, etc. remuneration, rewards, etc.

OBJECTIVES OF HRPOBJECTIVES OF HRP

To achieve efficiency of work in all To achieve efficiency of work in all spheres of the organisation.spheres of the organisation.

Ensure cost minimization.Ensure cost minimization. Eliminate all types of wastages.Eliminate all types of wastages. Maintain required levels of skill and Maintain required levels of skill and

competency, matching present and future competency, matching present and future needs of the organisation. needs of the organisation.

BENEFITS OF HRPBENEFITS OF HRP

Timely and constructive intervention in the Timely and constructive intervention in the corporate planning activity.corporate planning activity.

HRP brings in human dimension to the HRP brings in human dimension to the corporate planning process.corporate planning process.

It leads to motivation of employees- It leads to motivation of employees- compensation and benefit strategies are compensation and benefit strategies are constantly geared towards dealing with constantly geared towards dealing with poor performers, surplus resources, high poor performers, surplus resources, high fliers and achievers. fliers and achievers.


Career planning, succession planning and Career planning, succession planning and career development increase the career development increase the organisation’s ability to develop the right organisation’s ability to develop the right resources at the right time and also take resources at the right time and also take care of employees’ needs for growth and care of employees’ needs for growth and development leading to motivation.development leading to motivation.

Appropriate hiring strategies minimize the Appropriate hiring strategies minimize the problem of hiring over or under qualified problem of hiring over or under qualified personnel.personnel.


A good HR plan focusses on productivity, A good HR plan focusses on productivity, workforce balancing, job redesigining. workforce balancing, job redesigining. These issues result in optimum utilisation These issues result in optimum utilisation of human resources, fuller realisation of of human resources, fuller realisation of potential and reduction in costs due to potential and reduction in costs due to productivity gains.productivity gains.

SCOPE OF HRPSCOPE OF HRP HRP at Macro LevelHRP at Macro Level HRP is influenced by general environmental HRP is influenced by general environmental

factors like employment-unemployment factors like employment-unemployment situation, demographic changes, legal control, situation, demographic changes, legal control, institutional policies, globalisation, opening of institutional policies, globalisation, opening of markets. markets.

These issues are exogenous, hence These issues are exogenous, hence uncontrollable.uncontrollable.

(i)(i) Population planning and control- National Population planning and control- National Population Policy (2000) of the government.Population Policy (2000) of the government.

(ii)(ii) Literacy and Education- National Policy on Literacy and Education- National Policy on Education (1986)Education (1986)

SCOPE OF HRPSCOPE OF HRP

(iii) (iii) Health and Medical CareHealth and Medical Care

(iv) Housing- National Housing and Habitat(iv) Housing- National Housing and Habitat

Policy, 1998Policy, 1998

SCOPE OF HRPSCOPE OF HRP

HRP at Micro LevelHRP at Micro Level At the organisation or Micro level, HRP is At the organisation or Micro level, HRP is

more influenced by technology changes, more influenced by technology changes, organisational restructuring, skill and organisational restructuring, skill and competency gap, strategic objectives, competency gap, strategic objectives, trade union pressures, lead time for trade union pressures, lead time for manpower procurement.manpower procurement.

These issues are endogenous, hence These issues are endogenous, hence controllable.controllable.

IMPORTANCE OF HRPIMPORTANCE OF HRP

Reservoir of talentReservoir of talent Prepares people for futurePrepares people for future Expand or contractExpand or contract Cut costsCut costs Succession planningSuccession planning

RESPONSIBILITY FOR HRPRESPONSIBILITY FOR HRP

Assist and counsel operating managers to Assist and counsel operating managers to plan and set objectivesplan and set objectives

Collect and summarise manpower data Collect and summarise manpower data keeping long run objectives and broad keeping long run objectives and broad organisational interests in mindorganisational interests in mind

Monitor and measure performance against Monitor and measure performance against the plan and keep top management the plan and keep top management informed about itinformed about it

Provide proper research base for effective Provide proper research base for effective manpower and organisational planningmanpower and organisational planning

ACTIVITIES REQUIRED FOR HRPACTIVITIES REQUIRED FOR HRP

Forecasting future manpower Forecasting future manpower requirementsrequirements

- Either in terms of mathematical - Either in terms of mathematical projections or judgmental estimates projections or judgmental estimates

Preparing an inventory of Preparing an inventory of present manpowerpresent manpower

- Data about employee skills, abilities, - Data about employee skills, abilities, work preferences.work preferences.

ACTIVITIES REQUIRED FOR HRPACTIVITIES REQUIRED FOR HRP

Anticipating problems of manpowerAnticipating problems of manpower Meeting manpower requirementsMeeting manpower requirements

STEPS FOR MANPOWER STEPS FOR MANPOWER PLANNINGPLANNING

JOB ANALYSIS- the process of JOB ANALYSIS- the process of determining the nature of a specific job determining the nature of a specific job through a detailed and systematic studythrough a detailed and systematic study

Job analysis provides following Job analysis provides following information-information-

• Job identification- title code for each jobJob identification- title code for each job• Job characteristics, location, physical Job characteristics, location, physical

setting, hazards and discomforts of a jobsetting, hazards and discomforts of a job• Job assignment, specific operations and Job assignment, specific operations and

taskstasks


• Materials, tools and equipments used Materials, tools and equipments used • Job performance, nature of Job performance, nature of

operationsoperations• Personal attributes- experience, Personal attributes- experience,

training, physical strength, etc.training, physical strength, etc.• Job relationship, scope for Job relationship, scope for

advancement, patterns of advancement, patterns of promotions, leadership, etc. promotions, leadership, etc.


Sources of informationSources of information

Information on a job is obtained from-Information on a job is obtained from-• Those who are supervising the job Those who are supervising the job

eg. Supervisors, foremeneg. Supervisors, foremen• Professional job analysts Professional job analysts

(consultants)(consultants)• Technology vendors who define job Technology vendors who define job

in their literaturesin their literatures


Job description and Job specification Job description and Job specification - Description- job content (tasks, Description- job content (tasks,

responsibilities)responsibilities)- Specification- job requirements Specification- job requirements

(qualities necessary)(qualities necessary) Job specifications translate job Job specifications translate job

descriptions into human descriptions into human qualifications required for the qualifications required for the successful performance of a job.successful performance of a job.


Developing work rulesDeveloping work rules- Predetermined decisions about certain Predetermined decisions about certain

courses of action that may be taken when courses of action that may be taken when certain contingencies arisecertain contingencies arise

- Documented formDocumented form- Is used as a control device to ensure Is used as a control device to ensure

predictability of behaviourpredictability of behaviour- Egs.starting and stopping of work, rest Egs.starting and stopping of work, rest

periods, time keeping, insubordination, periods, time keeping, insubordination, fighting or drinking, smoking, report of fighting or drinking, smoking, report of injuries, etc.injuries, etc.


Application of Industrial Engineering Application of Industrial Engineering TechniquesTechniques

- Provide opportunity for-- Provide opportunity for-• Effective use of plant and equipment Effective use of plant and equipment • Effective use of human effortsEffective use of human efforts• Measurement of human workMeasurement of human work• Better ways of doing thingsBetter ways of doing things• Developing pre determined standard Developing pre determined standard

time time


Other FactorsOther Factors- LayoutLayout- Statutory requirementsStatutory requirements- ShiftsShifts- Leave reserveLeave reserve

MANPOWER DEMAND MANPOWER DEMAND FORECASTINGFORECASTING

Two important factors-Two important factors-- Volume of outputVolume of output- Level of productivityLevel of productivityManpower requirement may change due Manpower requirement may change due

to change in output volume or mix to change in output volume or mix which calls for analysis of performancewhich calls for analysis of performance

As the level of productivity changes, it As the level of productivity changes, it also affects manpower requirements. also affects manpower requirements. This calls for an analysis of productivityThis calls for an analysis of productivity

HRP PROCESSHRP PROCESS

1. INVESTIGATION1. INVESTIGATION- Organisations try to develop their Organisations try to develop their

awareness about the manpower awareness about the manpower situationsituation

- Identify present and future skill gapIdentify present and future skill gap- Internal manpower review is done Internal manpower review is done

with a futuristic view with due with a futuristic view with due cognizance to strategic plans and cognizance to strategic plans and objectivesobjectives


2. FORECASTING2. FORECASTING- Analysis of demand and supply of Analysis of demand and supply of

human resources is donehuman resources is done- Supply analysis is done considering Supply analysis is done considering

internal and external supply.internal and external supply.- Career planning and development, Career planning and development,

training and development, training and development, succession plan are considered succession plan are considered


Planning and control of manpowerPlanning and control of manpower- Forecasts of HR are translated into HR Forecasts of HR are translated into HR

policiespolicies- Recruitment, training and developmentRecruitment, training and development- If recruitment, understand job If recruitment, understand job

description description - Document the status of recruitment i.e., Document the status of recruitment i.e.,

the time period for which recruitment the time period for which recruitment has to be madehas to be made


- Redeployment through retrainingRedeployment through retraining- Giving overtime to employees for Giving overtime to employees for

sharing extra job load may be sharing extra job load may be cheaper than recruiting an extra cheaper than recruiting an extra hand.hand.

- Need for control arises when Need for control arises when manpower costs exceed the budgetmanpower costs exceed the budget


UTILISATIONUTILISATION- Success is measured in terms of - Success is measured in terms of

achievement, quantitatively and achievement, quantitatively and qualititativelyqualititatively

- Quantitative achievement is visible - Quantitative achievement is visible from productivity trend, manpower from productivity trend, manpower costs, etc.costs, etc.

- Qualitative achievement is a - Qualitative achievement is a subjective appraisal on achievement subjective appraisal on achievement of organisational objectives.of organisational objectives.

MANPOWER PLANNING MANPOWER PLANNING PROCEDUREPROCEDURE

1. ANALYSING THE CURRENT 1. ANALYSING THE CURRENT MANPOWER INVENTORYMANPOWER INVENTORY Type of organization Type of organization Number of departments Number of departments Number and quantity of such departments Number and quantity of such departments Employees in these work units Employees in these work units

Once these factors are registered by a Once these factors are registered by a

manager, he goes for the future forecasting.manager, he goes for the future forecasting.


2. MAKING FUTURE MANPOWER 2. MAKING FUTURE MANPOWER FORECASTSFORECASTS

Manpower forecasting techniques used Manpower forecasting techniques used by organisations are-by organisations are-

a.a. Expert forecasts-Expert forecasts- informal decisions, informal decisions, formal expert surveys, delphi techniqueformal expert surveys, delphi technique

b.b. Trend analysis-Trend analysis- extrapolation extrapolation (projecting past trends),indexation (using (projecting past trends),indexation (using base year as basis) and statistical base year as basis) and statistical analysis (central tendency measure)analysis (central tendency measure)


c. Work load analysis- dependent on the c. Work load analysis- dependent on the nature of work load in a department, in a nature of work load in a department, in a branch or a division.branch or a division.

d. Work force analysis- Whenever production d. Work force analysis- Whenever production and time period has to be analysed, due and time period has to be analysed, due allowances have to be made for getting allowances have to be made for getting net manpower requirements. net manpower requirements.

e. Other methods- eg. Budget and planning e. Other methods- eg. Budget and planning analysis, regression, etc.analysis, regression, etc.


3.3. DEVELOPING EMPLOYMENT DEVELOPING EMPLOYMENT PROGRAMMES-PROGRAMMES- Once the current Once the current inventory is compared with future inventory is compared with future forecasts, the employment forecasts, the employment programmes can be framed and programmes can be framed and developed accordingly, which will developed accordingly, which will include recruitment, selection include recruitment, selection procedures and placement plans. procedures and placement plans.


4. DESIGN TRAINING PROGRAMMES4. DESIGN TRAINING PROGRAMMESThese will be based upon-extent of These will be based upon-extent of

diversification, expansion plans, diversification, expansion plans, development programmes.development programmes.

Training programmes depend on the Training programmes depend on the extent of improvement in technology extent of improvement in technology and advancement to take place.and advancement to take place.

It is done to improve the knowledge, It is done to improve the knowledge, skills and capabilities of workers. skills and capabilities of workers.

DEMAND GENERATIONDEMAND GENERATION

FACTORS THAT CREATE DEMANDFACTORS THAT CREATE DEMAND- GrowthGrowth- Employee TurnoverEmployee Turnover- Technological ShiftsTechnological Shifts

METHODS OF DEMAND ESTIMATIONMETHODS OF DEMAND ESTIMATION

1.Projection- analysis of past data 1.Projection- analysis of past data helps in the preparation of helps in the preparation of projections for the future.projections for the future.


2.RATIO ANALYSIS- the ratio between 2.RATIO ANALYSIS- the ratio between the output and the manpower the output and the manpower deployed to achieve that output is deployed to achieve that output is established at a given point of time.established at a given point of time.

Egs.- revenue per employeeEgs.- revenue per employee- Sales volume per sales personSales volume per sales person- Service contracts per service engineer Service contracts per service engineer - Units produced per employeeUnits produced per employee


3. LINEAR REGRESSION METHOD- 3. LINEAR REGRESSION METHOD- relationship between two or more relationship between two or more variablesvariables

- ‘‘Line of best fit’Line of best fit’

4. MULTIPLE REGRESSION METHOD- 4. MULTIPLE REGRESSION METHOD- more than one independent variable is more than one independent variable is used.used.

- ‘plane of best fit’- ‘plane of best fit’


5. BENCHMARKING- comparisons are 5. BENCHMARKING- comparisons are made with same or similar activitiesmade with same or similar activities

6. STANDARDS COMPARISONS- 6. STANDARDS COMPARISONS- standards that are established over a standards that are established over a period of time provide invaluable period of time provide invaluable data for demand estimation.data for demand estimation.

manpower planning (1)

Documents

job job assignment

right job

scope of hrp hrp

control of manpower

job performance

specific job

manpower data

objectives of hrp