manpower planning

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Introduction Planning for manpower is more important than planning for any other resource as demand for the latter depends upon the size and structure of the former whether it is in a country or in an industry. Further, management of human resource hardly begins from human resource planning. In fact it is the basis for most of the other functions. Through planning management strives to have the right number and right kind of people at the right places at the right time, doing things, which result in both the organisation and the individual receiving maximum long-run benefit. It is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet Organisational objectives and satisfy the individual needs and goals of Organisational members. Manpower planning may be viewed as foreseeing the human resource requirements of an organisation and the future supply of human resources and (i) making necessary adjustments between these two and Organisational plans; and (ii) foreseeing to possibility of developing the supply of human resources in order to match it with requirements by 1

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Manpower Planning

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Page 1: Manpower Planning

Introduction

Planning for manpower is more important than planning for any other resource as

demand for the latter depends upon the size and structure of the former whether it is in a

country or in an industry. Further, management of human resource hardly begins from

human resource planning. In fact it is the basis for most of the other functions.

Through planning management strives to have the right number and right kind of

people at the right places at the right time, doing things, which result in both the

organisation and the individual receiving maximum long-run benefit. It is an integrated

approach to performing the planning aspects of the personnel function in order to have a

sufficient supply of adequately developed and motivated people to perform the duties and

tasks required to meet Organisational objectives and satisfy the individual needs and

goals of Organisational members.

Manpower planning may be viewed as foreseeing the human resource

requirements of an organisation and the future supply of human resources and (i) making

necessary adjustments between these two and Organisational plans; and (ii) foreseeing to

possibility of developing the supply of human resources in order to match it with

requirements by introducing necessary changes in the functions of human resource

management. In this definition, human resource means skill, knowledge, values, ability,

commitment, motivation etc., in addition to the number of employees.

Manpower planning like production planning, financial planning and marketing

planning, should be an unified, comprehensive and integrated part of the total

corporation. Manpower manager provides inputs like key HR areas, HR environmental

constraints and internal HR capabilities and HR capability constraints to the corporate

strategists. The corporate strategists in turn communicate their needs and constraints to

the HR manager.

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Objectives of the study1) Understand the nature and importance of manpower planning

2) Identify and describe the factors affecting manpower planning

3) Identify the employee process and delineate different steps

4) Identify prerequisites for successful planning and various barriers, which

render planning ineffective.

Need of the study In todays in cutthroat competition, every resource has cost attached to it and

human resource is no exception. Each and every organisation is cutting down the cost and

posing a stiff competition. This being the situation, the optimum utilization of resources

is necessitate including human resources. For the optimum utilization of human resources

manpower planning plays an important role. Therefore the researcher chose the topic to

understand manpower planning in a broader sense through the study, which would help

him in his future endeavours.

Limitations of the Study

Every thing and every body has their own limitation this study is not an

exception. The study was conducted in a single division by which the researcher could

not compare the system with that of other division / organisation. As the time was limited

the researcher could not so in depth of the subject.

The researcher has taken the study as an IPW and has carried out the study,

however his individual ideas & perceptions would have taken the lead than the real

observations.

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Research MethodologyResearch Design

The design of the study is descriptive in nature, which is also called as system

study, through the study the researcher enriched his knowledge about manpower planning

and various factors influencing manpower planning. The study also helped in

understanding the problem while making an effective manpower plan.

Data Collection Tool

The researcher used observation as a tool for collecting primary data and

unstructured interviews were also carried out with the MSD and Shop floor officers.

During the interview the researcher had a detailed description with regard to procedures

adopted and problems of the manpower planning.

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CHAPTER -II

Review of literature

Manpower planning, also known as human resources planning (HRP), is the

starting point in staffing function. HR planning basically deals with forecasting of the

additional human resources required in an organisation in future, though there is not

complete agreement among writers and practitioners on the exact scope of HR planning

function. Although manpower planning means different things to different people,

general agreement exists on its ultimate objectives---the most effective use of scarce

talent in the interests of the labour and the organisation.

The employment function of the Personnel or Human Resource Manager is

concerned with the task of hiring people to fill current or future job vacancies in the

organization. For making the hiring practices most effective, answers must be sought to

the following questions:

1.What are the requirements of the jobs to be filled?

2.What kinds of and how much manpower must be hired?

3.What sources of recruitment may be utilized for procurement?

4.What procedures should be adopted to screen the candidates for employment?

5.What is the utility of employment test and interviews in the selection process?

6.What is the place of transfers and promotions in employment and placement?

Manpower may be regarded as the quantitative and qualitative measurement of

work force required in an organization and planning in relation to manpower may be

regarded as establishing objectives to develop human resources in line with broad

objectives of the organization. Manpower Planning may thus be expressed as a process

by which the management ensures the right number of people and right kind of people ,

at the right place, at the right time doing right things for which they are suited for the

achievement of goals of the organization.

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Meaning of Manpower Planning

Manpower Planning aims at ascertaining the manpower needs of the organization

both in right number and of right kind. It further aims at the continuous supply of right

kind of personnel to fill various positions in the organization.

According to Decenzo and Robbins, “Manpower Planning is the process by which

an organization ensures that it has the right number and kind of people at the right place,

at the right time, capable of effectively and efficiently completing those tasks that will

help the organization achieve its overall objectives.”

To quote Dale S. Beach, “ Manpower Planning is the process of determining and

ensuring that the organization will have an adequate number of qualified persons,

available at the proper times, performing jobs which meet the needs of the enterprise and

which provide satisfaction for the individual involved.”

Manpower Planning is a continuous process. It cannot be rigid or static, it is

amenable to modifications, review and adjustments in accordance with the needs of the

organization or the changing circumstances. In simple terms it is the process of

determining manpower requirements and the means for meeting those requirements in

order to carry out the integrated plan for the organization. It is a two-way process by

which management can project the future manpower requirements and develop suitable

action plans to accommodate the implications of projections. Thus, manpower planning is

the process of developing and determining objectives, policies and programmes that will

procure, develop and utilize human resources so as to achieve the goals of the

organization.

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Nature of Manpower Planning.

1. Manpower Planning aims at ascertaining the manpower needs of the organization

both in number and kind.

2. It presents an inventory of existing manpower of the organization. An analysis of

the inventory of manpower helps in ascertaining the status of available personnel

and to discover untapped talent presently available with the organization.

3. It helps in determining the shortfall (or surplus) of manpower by comparing the

total manpower needs with the present supply of manpower. It also helps in

projecting future manpower needs.

4. It is concerned with initiation of various organization programmes depending

upon the demand and supply of human resources. If the future needs exceed

presently available talent, this gap becomes the basis for a programme of

employment and training .If the presently available talent exceeds the future

needs, this difference may become the basis for a programme of retirements,

discharge, etc.

5. Effective manpower planning encompasses the acquisition, utilization,

improvement and preservation of the organization’s human resources.

Objectives Of Manpower Planning.

1. To ensure optimum use of Human Resources currently employed.

2. To avoid imbalances in the distribution and allocation of Human Resources.

3. To assess or forecast future skill requirements for the accomplishment of the

organisation’s overall objectives.

4. To provide control measure to ensure availability of necessary resources when

required.

5. To control the cost aspect of human Resources.

6. To formulate transfer and promotion policies.

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Elements of Manpower Planning.

1. Listing of current manpower with the organization.

2. Assessing the extent to which the current manpower is utilized to the advantage

of the organization.

3. Phasing out the surplus manpower, if any.

4. Analysing the requirements of manpower in future in the light of expansion

plans, retirement of personnel, etc.

5. Making manpower procurement plans.

6. Designing training programmes for different categories of manpower.

Importance of Manpower Planning

Manpower Planning is a two-phased process by which management can

project future requirements and develop manpower plans. It helps in proper recruitment

and selection so that right type of people are available to occupy various positions in the

organization. It also facilitates designing of training programmes for the employees to

develop the required skills in them. Thus, manpower planning plays an important role in

the effective management of personnel.

Systematic manpower planning provides lead-time for the acquisition and training

of employees to meet future requirements. It is all the more crucial because the lead time

for procuring personnel is a time consuming process and in certain cases, one may not

always get the requisite type of personnel needed for the jobs. Non-availability of suitable

manpower may result in postponement or delays in executing new projects and expansion

programmes, which ultimately lead to lower efficiency and productivity. To overcome

this, an organization must plan out its manpower requirements well in advance so that it

could compete effectively with its competitors in the market.

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Benefits of Manpower Planning.

1. It results in reduced labour costs as it helps the management to anticipate

shortages and/or surpluses of manpower and correct these imbalances before they

become unmanageable and expensive.

2. It is a better basis for planning employee development that is designed to make

optimum use of workers skills with in the organization.

3. It enables identification of the gaps of the existing manpower so that corrective

training could be imparted. Thus, the training programme becomes more

effective.

4. It leads to improvement in the overall business planning process.

5. It helps in formulating managerial succession plan as apart of the replacement

planning process, which is necessitated when job-change plans for managers are

formulated. Besides, this exercise would provide enough lead-time for identifying

and developing managers to move up the corporate ladder.

6. It leads to a greater awareness of the importance of sound manpower management

throughout the organization.

7. It serves as a tool to evaluate the effect of alternative manpower actions and

policies.

Manpower Planning at Different Levels.

There are various levels of manpower planning in an industrial enterprise, but

each has it own objectives and techniques. It may broadly be carried out at corporate,

divisional and plant levels. The purpose of carrying out manpower planning at various

levels is a systematic projection of manpower requirements for the future. It is done to

determine the effects of anticipated changes in technology, markets and products on

manpower requirements and training requirements.

It is better for manpower planning to start at the lowest organizational level and

the move upward. There is no doubt that a corporate plan is developed by the body of top

executives with the help of corporate staff planners. However, if personnel lower down in

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the organization start the planning process, the organization shall reap the benefits of

thinking of persons who are more familiar with the day to day problems and will be more

interested in fulfilling the plans if they have had a hand in formulating them. Therefore,

manpower planning should begin at the lowest organization level and be reviewed at

successively higher organizational echelons.

Manpower Planning at the plant level (or other decentralized units such as

warehouse, sales office, branch and the like) can be conducted by an operating committee

on the basis of past data and future projections. The committee would formulate a

manpower plan for the next year, including the number of employees required and the

sources, which could be utilized to meet these requirements. It would also determine the

number of promotable employees for the annual manpower plan. Finally, the committee

will evaluate these plans in the light of expected changes of all kinds within the next five

years with the help of manpower experts. In line with the principles of functional and

administrative supervision, this plan would in turn be submitted to the next organization

level, which would be the departmental level. Each division or department of the

organization will have the divisional committee, which would review the manpower

plans submitted by all the plants in the division. The divisional committee would

integrate all the manpower plans of its plants as well as those of its divisional staff

sections into a comprehensive divisional manpower planning report, which in turn would

be submitted to the top management.

At the highest level, a committee of top executives will review all the plans

submitted by divisional committees and will develop similar plans for the headquarter

staff. It will make projections of manpower requirements of various kinds during the next

five years. At this level, adequate emphasis will be given to executive manpower

planning because it takes a long time before a person is developed into a better executive.

The committee will have at its disposal all the records and statistics regarding employees

turnover during the previous years, employees going to retire in future and so on. Past

records regarding employees turnover due to death, retirements, resignations,

terminations, etc., and absenteeism can be a good guide for manpower planning. After the

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manpower planning has been done at the top level, it will be integrated with the other

organizational plans.

Process Of Manpower Planning.

The process of manpower planning involves the following steps;

1. Determination of objectives of manpower planning.

2. Preparation of current manpower inventory.

3. Demand forecasting.

4. Supply forecasting.

5. Estimating the net manpower requirements.

6. Action plan for redeployment and redundancy.

7. Determination of job requirements of jobs to be filled.

8. Employment plan.

9. Training and development program.

Manpower planning is a continuous process as shown in Fig.1. The manager

responsible for manpower planning has to be concerned with all the steps at all time. He

may have to revise employment plan and training and development programme from time

to time depending upon the changes in circumstances such as sudden changes in volume

of production, unexpected high rate of labour turnover, obsolescence of existing skills

and so on. A brief explanation of the steps in the manpower planning process is given

below:

Fig.1. The Manpower/Human Resource Planning Process.

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Objectives of Human Resource Planning

Inventory of Human Resource Skills (Finding gaps)

Demand and Supply forecasting

Determine Net manpower Requirements

Appraisal of Human resource Planning

Training and Development Program

Employment Program

Redeployment and Redundancy Plan

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1. Objectives of manpower Planning

“The ultimate purpose of manpower planning is to relate future

human resources to future enterprise needs so as to maximize the future return on

investment in human resources”. Manpower planning must be integrated with the

overall organizational plans. Manpower planning should be done carefully as it has

got long-term repercussions. Once the wrong forecast of future requirement of human

resources and the wrong analysis of the available manpower inventory are made, it

may not be possible to rectify the errors in the short-run. Therefore, manpower

planning should be more concerned with filling future vacancies with right type of

people rather than with matching existing personnel with existing jobs.

1. Current Manpower Inventory

Analysis of current manpower supply may be undertaken by

department, by function, by occupation, or by level of skill or qualifications.

Appropriate adjustments in these would need to be made in the light of any

foreseeable changes in weekly hours of work, holidays, leave entitlements, etc. It may

be noted that assessment of demand for the operative personnel presents less

problems of uncertainty and current manpower supply can be adjusted accordingly.

But projections of manpower requirements for supervisory and managerial levels

presents a complex problem because the required talents are not available at a short

notice. This explains the need to ascertain the present manpower inventory in the

enterprise. This will also help in drawing recruitment and development plans to meet

the needs of certain skills in the future.

Systematic steps must be taken in order to ensure that a reservoir of talent

is available when vacancies occur. The search for talented employees in the

organization must be continuous. To be sure that available talent has been included,

the inventory of various skills in the enterprise should be indexed.

Detailed bio-data of each individual included in the manpower inventory

must be obtained separately for the purpose of manpower planning. This record will

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provide the foundation for a programme of individual development. It will also reveal

the scarcity or non-availability of certain talents for which outside sources of

manpower may be tapped.

2. Demand Forecasting

A proper forecast of manpower required in the future (say, after one year,

two years, three years and so on) must be attempted. The factors relevant for

manpower forecasting are as follows:

(i) Employment Trends. The manpower planning

committee at the corporate level should make an examination of number of the

employees on the payroll during the past five years to know the trend within each

group. With the help of this, it would be possible to determine whether a particular

group has been stable or unstable and whether it has been expanding or contracting.

(ii) Replacement Needs. The need for replacement arises

due to death, retirement, resignation and termination of employees. The

examination of replacement needs may relate to specific manpower groups:

supervisory, skilled, clerical, unskilled, etc. For some groups like managerial or

supervisory, it is very difficult to predict the needs. One of the major difficulties

involved in predicting the need for managerial skill is that the management

development cycle takes a long time. So the needs for managerial manpower should

be anticipated sufficiently in advance.

(iii) Productivity. An important area to which the manpower

planning is related is the improvement in productivity. Gains in productivity add to

the growth potential of the organization and can make possible healthy wage

increase. Gains in productivity will also influence the requirements of manpower.

Planning for productivity gains has several aspects. The first and the

important one relates to affecting gains by improvements in existing manpower

utilization. Current levels of utilization and indications about the needed

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improvement can be obtained by the application of various analytical techniques of

industrial engineering or work study such as activity charts, flow charts, multiple

activity charts, activity sampling studies and so on. Methods improvement

techniques help reduce work content. Conceptually, similar approaches aimed at

upgrading management performance help secure productivity gains at the

managerial level.

The second aspect relates to installation of more productive tools

equipments or processes. Any anticipated change due to the introduction of

automation will affect manpower needs in the plants as well as in the divisional

offices. The manpower planning experts should attempt to learn about such changes

with sufficient time to appraise their possible impact on the number and kinds of

employees required in the future.

The last aspect relates to the matching of skills with the requirements of

the jobs. Job analysis techniques facilitate a clear specification of the skills and

experience requirements of jobs. The immediate products of this analysis are job

description and job specification, which have been discussed, in a subsequent

chapter.

(iv) Growth and Expansion. Another aspect relevant for manpower planning

is personnel requirements for growth and expansion of the organization. The

expansion plans of various plants and divisions should be carefully reviewed to

assess their probable effects on the number of employees required in each group.

The accuracy with which such manpower requirements can be forecast will depend,

among other things,. On the degree of accuracy, which can be achieved in relation

to the time perspective is larger, uncertainties will also be greater.

A going concern is a living and growing organism. It is not contended

with the existing level of production or profits. It also wants to grow and increase

its share in the total activities of industry. One of the basic aspirations of most

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business managers is to perpetuate the enterprise in which they are engaged. In this

world of competition, perpetuation would mean that every organization has its plans

ahead of its activities and aims at a better growth rate and at diversification of its

activities and at a better image of itself. All these aims and aspirations result in

expansion and growth creating numerous positions for work force at various levels.

These aims and aspirations can be fulfilled if there is a sufficient number of capable

persons to handle various positions in the organization.

(v) Absenteeism. It means a situation when a person fails to come for work

when he is scheduled to work. The rate of absenteeism can be calculated by the

following formula:

Absenteeism = Man-days lost

Man-days worked + Man-days lost

There are certain employees who are more prone to absenteeism in any

organization. 10 to 20 percent of such employees may account for 70 to 80

percent of absences. It should be noted that excessive absenteeism (more than the

irreducible minimum, say 3% to 5%) involves a considerable cost to the firm even

when the absent employees receive no pay. Work schedules are upset leading to

overtime work, which in turn leads to increased cost of production. The

management should go into the causes of absenteeism and attempt to reduce the

absenteeism as far as possible. The manpower planning experts will have to

consider the known rate of absenteeism in their decision regarding estimation of

manpower requirements.

(vi) Work Study. Work Study technique can be used when it is possible to

apply work measurement to know how long operations should take and the

amount of labour required. This is also known as ‘Workload analysis’. On the

basis of the workload of each plant during the forthcoming years, workforce

analysis is done considering the rates of absenteeism and labour turnover.

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3. Supply Forecasting.

Along with demand forecasting, it is equally important to forecast the

supply of different types of personnel with the organization at the cut off date of

manpower planning. There are two sources of supply of manpower- internal and

external. But internal supply is more important for manpower planning. It

comprises of the employees working in organization who can be promoted or

transferred to fill up various jobs as and when they fall vacant. This would

require evaluation of the present personnel abilities, their strengths and

weaknesses, so as to gauge their suitability for different jobs. In order to

estimate internal supply of personnel, it is necessary to conduct human resource

audit and prepare replacement charts in advance.

(i) Human Resource Audit: -

Systematic audit of executive personnel or managers would lead to

creation management inventories while that of non-managerial employees

would lead to preparation of skill inventories. Human Resource audit gives a

thorough idea of potential and capabilities of persons working in the

organization. Personal records of all the personnel should be updated

periodically so as to record the new accomplishments or qualifications and skills

obtained by different types of personnel over the time.

(ii) Replacement Charts: -

These are meant for listing each key position and indicating time when it

is likely to be vacated. They also list the most likely candidates working in the

organization suitable to fill vacancies and also the time when they would be ready

for promotion. In short, a replacement chart presents clearly who will replace

whom in case of vacancy. Often, large enterprises use computers to record job

analysis information and human resource audits and replacement summaries.

4. Estimating the Net Manpower Requirements.

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The Manpower planner must compare the demand forecast for human

resources with the projected internal supply of human resources before coming

to any conclusion. This exercise should be carried out department and skill wise

to know the deficiencies or surplus of various types of personnel in future. The

possibilities of transfer personnel from one department to another and

promotion of personnel to higher jobs must also be considered to determine net

manpower requirements in the organization as a whole.

5. Action Plan Redeployment or Redundancy

The management has to plan for redeployment and redundancy in case of

surplus staff position. If surplus is estimated in some jobs/departments,

employees can be redeployed in other jobs/departments, where the deficit of

employee is estimated. The management should also plan for training or re-

orientation before redeployment of employees. Redundancy plan has to be made

if the surplus employees can’t be redeployed. It would include the type and

number of employees to be retrenched or offered golden handshake under

voluntary retirement scheme (VRS), type of help to be extended to retrenched

employees in the form of compensation, type of help in getting new jobs outside

the organization, priority to the retrenched personnel in filling future vacancies

and so on.

6. Determining job Requirements of Positions to be Filled

Job analysis is the qualitative aspect of manpower planning since it

determines the demands of a job in terms of responsibilities and duties and then

translates these demands in terms of skills, qualities and other attributes. It helps

in determining the requirements of jobs and qualifications needed to fill these

jobs. Thus, job analysis is an essential element of effective manpower Planning.

Accurate job descriptions help in finding suitable candidates for vacant jobs and

developing training programs for them.

7. Employment Plan

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This phase deals with planning how the organization can obtain the

required number and right type of personnel. In other words, there is a need to

prepare programmes of recruitment, selection, transfer and promotion so that

personnel needs of various departments of the organization are met timely.

8. Training and Development Program

The preparation of human resource inventory helps in identifying the

training and development needs of the organization. Training is necessary not

only for the new employees, but also for the existing employees. Executive

development programmes have to be devised for the development of managerial

personnel. No enterprise has a choice of whether to provide training or not, the

only choice is that of methods or techniques. All types of jobs usually require

some sort of training for their efficient performance. Even when the persons

appointed have job experience, they must be given some training to renew their

knowledge and skills and to tell them what they are expected to do. The talents of

the employees are not fully productive without a systematic programme of

training and development.

Evaluation of Effectiveness of Manpower Planning

After the employment and training programme have been implemented, an

appraisal must be made of the effectiveness of manpower planning. Deficiencies

in the programme should be pointed out and the catalogue of manpower inventory

should be updated periodically. Corrective actions should take wherever it is

necessary to remove the deficiencies in manpower planning. An appraisal of the

existing manpower plans will also serve as a guide in the future manpower

planning. Manpower power planning is closely linked to the goals of manpower

management and those of the organization. Shortage or surplus of manpower

planning in any department or at any level should be minimized. Human resource

planning will be said to be effective if it can anticipate the deficiencies of various

skills well in time so that steps initiated for procurement for required manpower.

Similarly, if some types of personnel are surplus, they should be adjusted after

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giving them appropriate training. If it is not possible, they may be phased out

through voluntary retirement scheme.

QUANTITATIVE ASPECTS OF HUMAN RESOURCE PLANNING

The quantitative aspects of manpower planning involve demand

forecasting and supply forecasting as discussed below.

Demand Forecasting

It is the process of estimating the requirement of different kinds of

personnel in future. The basis of manpower forecasts should be the annual budget

and long-term corporate plan, translated into activity levels for each function and

department. In a manufacturing company, the sales budget would be translated

into a manufacturing plan giving the number and types of products to be made in

each period. From this information, the number of man-hours by skill categories

to make the quota for each period would be computed. In an insurance company,

forecasts of new business would be computed. In an insurance company, forecasts

of new business would be translated into the number of proposals that would have

to be processed by the underwriting department. In a mail order company,

forecasts would be made of the number of orders that might have to be processed,

assembled and dispatched.

There are three basic techniques of demand forecasting:

1. Managerial judgment; 2. Work-study techniques;

3. Statistical techniques.

In many cases, a combination of methods, say managerial judgment and statistical

techniques might be more useful. A brief description of these methods is given

below.

1. Managerial judgment

The most typical method of forecasting used in smaller companies, or those who

do not have access to work study data, is managerial judgment. This simply requires

managers to sit down, think about their future workloads and decide how many people

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they need. It might be done on a ‘bottom-up’ basis with line managers submitting

proposals for approval by the top management.

Alternatively, a ‘top-down’ approach can be used in which company and

departmental forecasts are prepared by the top management, possible acting on advice

from the personnel and organization and methods (O&M) departments. These forecasts

are reviewed and agreed with the departmental managers.

Perhaps the best way of using managerial judgment is to adopt both the ‘bottom-

up’ and ‘top-down’ approach. Guidelines for departmental managers should be prepared

which indicate broad company assumptions about future activity levels which will affect

their departments. Targets are also set, whenever necessary armed with these guidelines,

departmental managers prepare their forecasts to a laid-down format. They are

encouraged to seek help at this stage from personnel, O&M, or work-study departments.

Meanwhile, the personnel department, in conjunction, as necessary, with planning, O&M

or work study departments, prepares a company manpower committee consisting of

functional heads. This committee reconciles with departmental managers any

discrepancies between the two forecasts and submits the final amended forecast to top

management for approval. This is sometimes called the ‘right-angle method.’

2. Work Study Technique or Workload Forecasting

Work-study technique can be used when it is possible to apply work

measurement to know how long operations should take and the amount of labour

required. This is also known as ‘workload analysis’. On the basis of the workload of each

plant during the forthcoming years, workforce analysis is done considering the rates of

absenteeism and labour turnover.

Work-load Analysis. In work-load analysis, the manpower planning expert needs

to find out sales forecasts, work schedules and thus determine the manpower required per

unit of product. The sales forecasts are translated into work performance for the various

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departments of the enterprise. In a manufacturing enterprise, one shall first find out the

master schedule and then departmental schedules. The departmental work-loads are

converted into man-hours in terms of different skills required. Work loads analysis is

used to determine how many employees of various types are required to achieve total

production targets. Similarly, plans are made concerning the amount of work that all

other departments (marketing department, purchase department, etc.) of the organization

are expected to accomplish during the coming year. It is essential to determine the

workload in some tangible units so that they may be translated into man-hours required

per unit. Past experience can, of course, be utilized for translating workloads into man

hours required.

Work-force Analysis. In the above illustration, we came to a conclusion that 360

Workers are required to make 3,60,000 units in a year. Assuming that all other factors are

favorable, this conclusion is illusory because it is almost certain that all the 360 workers

will not be available on all working days because of the two major problems: (i)

Absenteeism, and (ii) Labour Turnover. Both these factors operate to reduce the number

of workers available. Therefore, it is essential to do work-force analysis in the light of

these major problems which have been discussed later in the book. In other words, it is

necessary to keep a sufficient margin for absenteeism, labour turnover and idle time on

the basis of past experience. If it is essential to keep a margin of 20% of the manpower

required as per workload analysis, the company must ensure that it has at least 432

workers on its payroll to meet the annual production target.

3. Statistical Techniques

The earlier techniques provide only a rough approximation of the number of

employees required and are suitable only for short range demand forecasting. Long range

personnel forecasting is more amenable to statistical and mathematical techniques. This

has been particularly true in recent years as new mathematical techniques have been

developed and high-speed computers are used to rapidly analyse large amount of

personnel planning data. Some of the important statistical tools for forecasting are

discussed as under:

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(a) Ratios and Trend Analysis. Under this method, the main emphasis

is on the ratios which are calculated for the past data relating to number of employees of

each category, of production level, sales level, activity lever/ workload level, and direct

employees and indirect employees. Future production level, sales level, activity

level/work load are estimated with an allowance for changes in organization, method and

jobs. Future ratios are also estimated when changes are expected in the organization of

human resources. Then future manpower requirement is calculated on the basis of

established ratios.

These techniques, although crude, are easy to understand and use. Their value

depends upon accurate records and realistic estimates of future activity levels and the

effect of improved performance or changed methods.

(b) Econometric models. To build an econometric model for manpower

planning purposes, it is necessary to analyse past statistical data and to formula. The

variables affecting manpower requirement may be identified under heading such as

investment, sales or the complexity of the product line. The formula could then be

applied to forecasts of movements in these variables to produce a manpower forecast.

This is a complex process which is suitable for large organizations.

(c) Regression Analysis. This technique is used to estimate the

manpower requirements of an organization’s at a future point of time, based upon such

factors as sales, output, services rendered, etc. Regression analysis is used when

dependent and independent variables are functionally related to each other. Electronic

computers are used to solve the regression equations and forecast the demand for

personnel.

Supply Forecasting

Supply forecasting is concerned with the estimate of supply of manpower

given the analysis of current resources and future availability. Here the personnel planner

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must consider both the external supply (employees available for higher position in the

organization’s geographic work force) and the internal supply. (Organization’s current

employees). External supply of personnel is important for two reasons. Firs, the normal

separation of employees through voluntary turnover, retirement, illness, death and

discharge may require that the organization look to employment agencies, colleges and

universities and other sources to replenish lost personnel. Second, organizational growth

and diversification require the use of external sources to obtain additional numbers and

types of employees.

The internal supply of personnel is influenced by the following factors:

(a) Existing manpower resources;

(b) Potential losses to existing resources through labour wastage;

(c) Potential changes to existing resources through internal promotions;

(d) Effect of changing conditions of work and absenteeism;

(e) Sources of supply from within the firm.

Based on the above information, the following techniques may be used to anticipate the

supply of human resources:

(i) Markov Analysis. This method uses historical information on the

movement of personnel that takes place during a typical plan period. Data are collected

and reviewed for a number of years in order to estimate the likelihood that persons in a

particular job will remain in that job or be transferred, promoted, demoted, terminated or

retired. These historical flows of personnel (transitions) through the organization are

represented by probabilities. The probabilities are arranged in a ‘transition matrix’ and

future personnel flows are estimated on the basis of the matrix.

(ii) Simulation. Based on Markov analysis, the simulation technique considers

alternative flows, which are examined for effects on future manpower supplies.

Alternative flows reflect the anticipated results of policy or programme changes

concerning voluntary turnover, retirement, promotion, etc.

(iii) Renewal Analysis. This technique estimates future flows and supplies of

manpower by calculating (i) vacancies created by the organization, and (ii) the results of

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decision rules governing the filling of vacancies. Alternative models may assess the

effect of changes in growth estimates, turnover, promotions, etc.

(iv) Goal Programming. It is operational research technique under which the planner

tends to optimize goal. In this case, the goal to optimize is the desired staffing pattern

subject to a set of constraints concerning such factors as the upper limits on flows, the

percentage of new recruits permitted and total salary budget.

MANPOWER ANALYSIS

The manpower planners should classify employees by function or department,

occupation, level skill and status. The aim should be to identify ‘resource centers’

consisting of broadly homogeneous groups for which forecasts of supply need to be

made. There is endless scope for cross analysis in preparing manpower inventories.

Some detailed analysis may be essential. For example, the review of current

resources may need to cut across Organisational and occupational boundaries to provide

inventories of skills and potential. It may be important to know how many people the

organisation has with special skills or abilities, for example, chemists, physicists,

mathematicians, economists or linguists. From the point of view of management

succession planning and preparation of management development programme, it may be

equally important to know how many people with potential for promotion exist and

where they can be found.

An analysis of manpower by age helps to identify problems arising from a sudden

rush of retirements, a block in promotion prospects, or a preponderance of older

employees. Length of service analysis may be even more important because it will

provide evidence of survival rates, which are a necessary tool for use by planners in

predicting future resources.

The analysis of current resources should look at the existing ratios between

different categories of staff. Recent movements in these ratios should be studied to

provide guidance on trends and to highlight areas where rapid changes may result in

manpower supply problems.

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Labour Wastage

Labour wastage should be analyzed in order to forecast future losses and to

identify the reasons for people leaving the organisation. Plans can then be attached to the

problems causing unnecessary wastage and to replace uncontrollable losses. The

manpower planner therefore has to know how to measure wastage and I analyse its

causes.

Labour Turnover Index. The traditional formula for measuring wastage is the labour

turnover index:

Number of leavers in a specified period (usually 1 year) X 100

Average number of employees during the same period

This method is in common use because it is easy to calculate and to understand.

This formula can be misleading also. The main objection to the measurement of labour

turnover in terms of the figure may be inflated by the high turnover of a relatively small

proportion of the labour force. Thus, a company employing 1,000 people might have had

an annual wastage rate of 20% meaning that 200 jobs had become vacant during the year.

But this could have been spread throughout the company, covering all occupations and

long as well as short service employees. Alternatively, it could have been restricted to a

small sector of the labour force-- only twenty jobs might have been affected although

each of these had to be filled ten times during the year. These are totally different

situations, and unless they are appreciated, inaccurate forecasts would be taken to deal

with the problem.

The labour wastage percentage is a suspect if the average number of employees

upon which the percentage is based is unrepresentative of recent trends because of

considerable increases or decreases during the period in the number employed.

Labour Stability Index. One measure which is considered by many to be an

improvement is the labour stability index:

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Number of employees with one year’s service or more X 100

Number of employees one year ago

This index provides an indication of the tendency for longer service employees to

remain with the company, and therefore, shows the degree to which there is a continuity

of employment. But this too can be misleading because the index will not reveal the

vastly different situations that exist in a company or department with one where the

majority of employees are short service.

Length of Service Analysis. The disadvantage of the labour stability index may be partly

overcome if an analysis is also made of the average length of service of people who

leave. This analysis also gives the index of labour turnover. It is still fairly crude because

it only deals with those who leave. A more refined analysis would compare for each

service category the numbers leaving with the numbers employed. If, for example, the

total with more than five years was 80, the proportion of leavers in each category would

be, respectively; 50% and 10% --much more revealing figures, especially if previous

periods could be analyzed to reveal adverse trends.

Survival Rate. Another method of analyzing labour turnover which is particularly useful

for manpower planners is the survival rate, i.e. the proportion of employees who are

engaged within a certain period and who remain with the firm after so many months or

years of service. Thus, an analysis of apprentices who have ‘finished their time’ might

show that after two years, ten of the apprentices out of twenty ex-apprentices were still

with the company, a survival rate of 50%.

This would tell the manpower planner that he has to allow for half the number of

recruits in any one year to be lost over the next five years, unless something can be done

about the factors causing wastage. Thus, to achieve a requirement of 50 trained staff in

five years’ time, 100 people would have to be engaged during this period.

Effect of internal Promotions and Transfers

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The supply forecast should indicate the number of vacancies that will have to be

filled up to meet the demand forecast. Vacancies arise because people leave but the exit

of a senior manager any produce a chain reaction of replacements. Transfer between

departments and divisions may also have to be allowed for. In a large organisation,

persistent patterns of promotion or transfer may develop and it may be possible to predict

the proportions of employees in particular categories who are likely to be promoted or

moved in the future by starting with a forecast of the chain reaction factor. To give a

broad indication of the number of displacements that may occur.

However, this is a very crude estimate and so succession planning has to be

worked out specifically by reference to known retirements, resignations, and transfers.

Further, it is also important to determine the impact of factors such as changes in normal

weekly hours of work; overtime policies; the length and timing of holidays, retirement

policy; the policy for employing part-timers; and shift system.

Succession Planning

Succession planning is the process that is used by manpower planners to convert

information about current employees into decisions about future internal job placements

that might be caused by promotions, transfers, resignations, retirements, etc. Since

promotions and other placement decisions are usually the responsibility of operating

(line) managers, the personnel department serves in a advisory role. Owing to the

complexities and time-consuming nature of succession plans, succession planning is

usually limited to key employees in middle management and top executive positions, and

to those employees identified as having long-term potential. By identifying successors to

key jobs and high-potential employees, an organisation may ensure a steady flow of

internal talent to fill important vacancies, whenever they arise.

Succession planning encourages hiring from within and creating an environment

in which employees have careers, not merely jobs. Moreover, it identifies manpower

shortages and skill deficiencies before vacancies occur. Through special assignments, job

rotation and other forms of development techniques, internal candidates may be prepared

to accept greater responsibilities of nature job openings. All this results in greater

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continuity of organisation’s operations, better-qualified incumbents, and more unified

corporate culture.

Sources of Manpower

Internal sources of manpower supply will include the output from established

training schemes or management development programmes and the inventory of skills

and potential that exist within the organisation. But the availability of manpower from

outside the enterprise is also a vital factor when preparing growth plans. Too often,

corporate or functional plans may be based on assumptions about the availability of

human resources of required caliber, locally or nationally, which could easily be proved

wrong after a brief investigation. It is particularly necessary to identify at an early stage

the job category where there might be difficulties in recruiting the numbers required. This

would help to prepare a recruitment campaign to tap alternative sources, or to develop

training or retraining programmes to convert available manpower to meet the company’s

needs. The local factors which can have an important bearing on the supply of manpower

are listed below.:

(i) Population densities within reach of the company.

(ii) Current and future competition for labour from other employers.

(iii) Local unemployment levels.

(iv) The traditional pattern of employment, locally, and the availability

of people with the required qualifications and skills.

(v) The output from the local educational system and government or

other training institutes.

(vi) The pattern of immigration and emigration within the area.

(vii) The attractiveness of the area as a place to live.

(viii) The attractiveness of the company as a place to work in.

(ix) The availability of part-time labour such as married women.

(x) Local housing, shopping and transport facilities.

The macro level factors affecting the supply of manpower are as under:

(i) Trends in the growth of the working population.

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(ii) National demands for special categories of manpower-graduates,

professional staff, technologists, technicians, craftsmen, and

secretaries.

(iii) The out put of the universities, polytechnics and professional

institutions.

(iv) The effect of changing educational patterns-children staying longer

at school, or different emphasis in university or school curricula.

(v) The impact of government training schemes.

(vi) The impact of government employment regulations.

QUALITATIVE ASPECT OF HUMAN RESOURCE PLANNING

After determining the number of personnel for each department in the

organization, it is necessary to determine the precise nature of different jobs in terms of

functions, duties and responsibilities. This would help determine the minimum acceptable

qualities on the part of personnel required for adequate performance of the job in

question. This aspect is referred to as the qualitative aspect of manpower planning. The

phenomenon of determing the nature of the job together with the minimum acceptable

qualities on the part of personnel required for adequate performance of the job is termed

as job analysis. to quote Edvin B. Flippo, “Job analysis is the process of studying and

collecting information relating to the operation and responsibilities of a specific job.

With the help for the facts and information obtained through job analysis, two

statements are prepared: (i) Job description—it contained details about the contents of a

job; and (ii) job specification—it reveals physical, educational, and other qualifications as

well as the experience required in an individual to perform the job satisfactorily.

A job description is an organized, factual statement of the duties and

responsibilities of a specific job. In brief, it should tell what is to be done, how it is done,

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and why. A job description is a summary of the tasks, duties, and responsibilities of a job.

Basically the job description indicates what is done, why it is done, where it is done, and

briefly, how it is done,. Performance standards flow directly from a job description,

telling what the job accomplishes and the satisfactory performance accepted in each area

of the job description. The logic here is very clear, if employees know what is expected

and what is good or poor performance, then they have a much better chance of

performing better. Unfortunately performance standards, while beneficial, are often

omitted from most of the job descriptions.

“A Job specification is a statement of the minimum acceptable human qualities

necessary to perform a job properly. In contrast to the job description, it is a standard of

personnel and designates the qualities required for acceptable performance”. Thus, a job

specification lists the various qualifications, skills, and experience an individual needs to

do the job satisfactorily. The job description describes the job; the job specification

describes the person needed for the job. The major use of job specifications is to guide in

the recruiting and selecting of people to fill jobs.

DIFFICULTIES IN MANPOWER PLANNING

Human resource planning is not always effective. Some of the major problems are

described below:

(i) Lack of Understanding of Rationale of Planning. There is generally identity

crisis and many managers as well as manpower specialists do not fully understand

the rationale or purpose manpower planning. There can be little doubt that unless

the manpower planning specialists develop a strong sense of purpose; they are

more likely to fail.

(ii) Insufficient Top management’s Support. In the long-run, manpower planning

must have the full support of top management, otherwise it is going to be

ineffective. The support of top management, otherwise it is going to be

ineffective. The support from top management is essential to ensure the necessary

resources, cooperation and support for the success of human resource planning.

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(iii) Insufficient initial effort. Manpower planning might fail because of lack of

sufficient initial effort. To be successful, human resource planning should start

slowly and expand gradually. Development of accurate skills inventory, and

preparation of replacement chart are integral parts of manpower planning.

(iv) Lack of Coordination with other Functions. To be effective, manpower planning

must be coordinated with other management functions. Unfortunately, there is a

tendency on the part of manpower planners to become totally absorbed in their

own world keeping aloof from the other functional managers.

(v) Lack of integration with Organisational Plans. Manpower planning must be

based on organizational objectives and plans. This requires development of good

communication channels between organization planners and the human resource

planners. In many organizations, such a communication is lacking and the human

resource plans are prepared in isolation of organizational plans.

(vi) Non-cooperation of Operating Managers. Manpower planning may fail because

of non-cooperation between the personnel and other functional managers.

Successful manpower planning requires a coordinated effort on the part of

manpower planners and the operating managers.

In order to ensure effective human resource planning, it is essential to take

necessary action to bridge the gap between the present resources and the estimated future

needs, otherwise, the mass of information collected by manpower planners will have no

use. Future action should be planned for both short-term and long-term to include:

(i) Better job descriptions and human profiles.

(ii) A hard look at the recruitment and selection policy.

(iii) A better scheme for assessing performance and potential of individuals.

This need not be a complicated one but should be consistent.

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(iv) An examination of the current training and retraining schemes for all

employees.

(v) An examination of the conditions of employment, which would include

pay structure, shift work, working hours, etc.

MANPOWER UTILISATION

Manpower utilization is concerned with the efficient use of the organisation’s

existing human resources. Effective utilization of human resources requires two things.

Firstly, people must be placed on jobs in such a way that the organization’s total

manpower resources are most effectively allocated. Secondly, manpower utilization

involves achieving optimum productivity from the work force after work has been

allocated. This involves the complex of motivational factors affecting individual, group

and Organisational performance and is concerned with such areas as leadership and

morale.

There are two methods for assessing human resource utilization. The first one is the

manning ratio, which is based on the relationship between the number of people

employed in the organisatiion and a specified measure of productivity. This manning

ratio will help in identifying the extent of the manpower problem but will not help to

identify the causes of misutilisation or under utilization. The second method is by use of

work-study. By careful observation and recording, it will be possible to ascertain how the

worker spends his time during the work period. This will give answers to certain

important questions, such as:

(a) What is the total number of employees?

(b) What is the quality of employees?

(c) What is the breakdown of males and females?

(d) What is the age span of employees?

(e) What skills and abilities do they have?

(f) How long will it take to bring them up to the required

standard and speed?

(g) Who are suitable for future promotions?

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As shown in Fig. 2, the study of manpower utilization will help to identify three

crucial factors namely, organization structure, job requirements and manpower required.

Each of these will have an effect on the individual or groups in the work unit.

Organization Job Structure Manpower

Requirements Required

Work Unit Feedback

Fig.2.Manpower Utilisation.

The organisation structure can be conditioned by the system of production. The

job requirements will be influenced by the type of technology used. In order to make full

use of existing manpower, we have two factors to consider, namely:

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Manpower

JobCompetence

JobSatisfaction

EffectiveUtilization

Page 33: Manpower Planning

(a) The competency of existing staff and their suitability for the new positions must be

analyzed.

(b) Work satisfaction must be identified, otherwise there will be mis-utilisation caused

by people in the wrong jobs, absenteeism and labour turnover. If all the factors can

be brought together, we have a good chance of achieving full utilization of human

resources.

An Overview of Manpower Planning in the Division

Manpower resources more important as compared to capital and physical resources.

Therefore, it has given very high importance to manpower management and undertakes

various activities for the purpose. Long-term manpower planning is one of these

activities.

Manpower Planning Process

The company adopts a systematic manpower planning which goes through the

following steps :

1. ANALYSING THE ORGANISATION PLANS:

The process of manpower planning starts with analyzing the

organization/divisions plan into production plan plans for expansion, diversification etc.

each plan is further analysed into sub-units and detailed programmes are being

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formulated on the basis of unit wise plans. Analysis of organizational / divisional plans

and programmes helps in forecasting the demand for human resources as it provides the

quantum of future work activity.

2. BASIS FOR REQUIREMENT: -

In order to forecast the future requirement of hr is necessary to obtain the data and

information about the present human resource inventory.

The data relating to present hr inventory in terms of number, dept-wise,

designation wise is taken into consideration. Usually the analysis of existing manpower is

undertaken by MSD by function, by occupation, by level of skill/ qualification.

Appropriate adjustments is made in the light of any foreseeable changes in weekly hours

of work, holidays, leave entitlements etc.

It is noticed that requirement of operative personnel presents less problem of

uncertainty and current manpower supply can be adjusted accordingly. Further, work

load for the current year, superannuation & other known wastages are also taken into

consideration for projecting future requirements of hours.

Usually, the dept/gives a breakup of people with different trades who are going to

superannuate in the current year as well as in the next 5 years so that we can get clear

picture about the number of people existing in a particular trade and in particular shop.

Basing on this we can project the requirements.

All the shops/departments project their requirement to the respective division and

in turn they compile and forward it to complex office.

3. FORECASTING THE MANPOWER REQUIREMENT:-

It is one of the essential ingredient of manpower planning in any industry i.e.

forecasting the needs for human resources in an organization over a period of time.

In our division, it can be said that it depends on the scale of operations of the

organizations over a period of time. However, total human resource needs do not have

complete relationship with volume of operation. This happens because there are factors

which affect this relationship such as change in machine man ratio, change in

productivity.

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Therefore in making forecast for human resource requirements, all those factors

which have impact on the relationship between volume of operation and number of

employees must be taken into consideration. This provides clear answer to the critical

question ‘how many persons will be required in future?’ while the volume of operation of

the division is available from its plan documents and respective shops / departments

makes a forecast for the requirement of human resources based on the targets.

Important forecasting methods which are commonly used are

(1) Managerial Judgment

(2) Statistical Technique

(a) Ratios and Trend Analysis

(b) Econometric models

(c) Regression Analysis

(3) Work study Technique

In our division, work study Technique is used for forecasting for the requirement of

HR.

Calculation of Standard Man Hours.

1 man’s 1 day’s work = 7.5 hrs.

No. of working days in a month = 25 days

1 man’s SMH in a month = 25 X 7.5 = 187.5hrs.

1 man’s SMH per year = 187.5 X 12

= 2250 hrs.

Calculation of No. of employees required

a) Annual production =360000 units

b) SMH required per unit =2hrs.

c) Planned man-hours for the year =720000 (a x b)

d) Annual SMH of a worker =2250 hrs

e) No. of workers required =720000

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2250

=320 employees will be required.

4. Analysis by Complex Office.

Manpower proposals received from divisions are analysed at the complex level

with respect to the workload projection for the next two years. As mentioned earlier

analysis is done based on the following factors.

1. Workload for each division.

3. Trade wise / shop wise requirement for the division.

4. Wastages during the year.

5. Superannuation during the year

6. Induction during the year from the previous year sanctions.

Based on the above factors actual projections in respect of various divisions are

made to corporate office for approval. Projection is always made in a conservative

manner, where actual divisional requirement are reduced to some extent. This is done in

order to ensure that sufficient workload is available to the personnel who are inducted

during the year.

5. Approval by Corporate Office.

After getting projections from the divisions all the data is consolidated and

analysed properly so that sufficient manpower can be sanctioned. Corporate office takes

into consideration all the materialistic and relevant facts i.e. existing strength, workload,

retirements, resignations, transfers etc before sanctioning the posts for which the

divisions have asked for. A detailed study is carried out taking into account the

justification and projections sent by the division regarding the manpower requirement.

Net manpower requirements in terms in terms of number and components are to be

determined in relation to overall requirements.

6. Deployment by the Division.

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After getting the sanctions from the corporate office i.e. the total number of posts

to be filled in different categories such as direct labour, indirect labour and officers, the

division based on the number of superannuations, transfers etc. identifies the actual

number to be recruited for the year. After identifying the actual number to be recruited,

MSD (Management Services Department) plays a role in breaking the number of posts

into trade / discipline in consultation with the respective divisions. Once the number to be

recruited is the trade wise / discipline wise break up list is passed on to Personnel

department. Based on the number of posts to be filled, Personnel Department works out

the percentage of reservation and in turn notifies the posts.

Responsibility for Manpower

Since the company attaches very high importance to manpower management,

it believes that the overall responsibility for manpower planning must lie on the Board of

Directors. This is because Board members are in a position to direct the future course of

business, set appropriate goals for management concerned in the formulation of personnel

policy. Besides, senior managers of various functions and divisions are also involved in

the process. The role of personnel department in this context is coordinative. Its function

is to recommend relevant personnel policies in respect of manpower planning. Devise

methods and procedures for determination of quantitative aspects of manpower planning.

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Suggestions

Manpower Planning must be recognized as an integral part of corporate planning. The planners must be aware of organisation’s objectives.

Personnel records must be complete, up-to-date and readily available.

The time horizons should be long enough to permit any remedial action.

The techniques of planning should be best suited to the data available and the degree of accuracy required.

Plans should be prepared by skills levels rather than aggregates.

Data collection, analysis, techniques of planning and the plans themselves need to be constantly revised and improved in light of experiences.

Employment plan and Training & Development programmes from time to time depending upon the changes in the volume of production, unexpected labour turnover.

Manpower Planning should be more concerned with filling future vacancies with right type of people rather than with matching existing personnel with existing jobs.

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Observations

It presents an inventory of existing manpower of the organisation.

It helps in determining the shortfall or surplus of manpower by comparing the total manpower needs with the present supply of manpower.

Personal records are not updated and it becomes difficult for getting the information.

Requirement for managerial level presents a complex problem because the require talents are not available at a short notice.

Uncertainties are quite prominent in human resource practices in the industry due to absenteeism, labour turnover it makes manpower planning less reliable.

Auditing the human resource and studying manpower utilisation is not done. Manpower utilisation can be measured by relating net man hours actually utilized in work to Standard Man-hours plan to be utilized in work.

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Conclusion Manpower Planning is a vital sub-activity of employment function. In fact

employment process begins with manpower planning but never ends with this function. It

pervades through a number of activities after this process of manpower planning. Those

activities include searching for prospective human resource, attracting them to work,

finding out their suitability to the job and Organisational requirements and finally taking

steps to adsorb those human resources as organs of the company.

It is a big endeavour, with planning for all kinds of things, like quality, staff

retention, layoffs, training & development, compensation etc. that its hard to provide

hints and tips any thing less than a book size manual. However, if we take a view from

the top perspective there are something’s that apply to most manpower planning function

and are important in making the process effective or even to make it part of creating a

competitive advantage in the market place.

Manpower Planning needs to be linked to the larger business planning. It is not

an end in itself. The function is meant to support and enable the company to attain its

business goals so as that it needs to be linked to and driven by those business goals. Its

important that when manpower planning is lead by personnel department, it must be

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remembered that whole process is to serve the stake holders and customers of the

personnel department. This means that the planning process must actively involve those

stakeholders and customers, managers, executives even line employees.

It can’t be effective without an understanding of the company or organisation,

its managers and employees, its mission and issues etc and the environment in which it

works. The outcomes of the implementation of a manpower plan should be measurable

and assessable. With many personnel functions there are good, available metrics, but it is

good to try to assess the effects of the implementation of a manpower plan on the

achievement of our divisional business goals.

Bibliography

1. Human Resource & Personnel Management - Ashwathappa

2. Human Resource Management & Industrial Relations - Chabbhra.

3. Personnel Management - C.B.Mammoria.

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