Manpower Planning

An analysis of manpower requirements is important for determining whether or not planned

labor hours, in conjunction with planned schedules, are realistic and will result in a successful
project.

http://www.sparusa.com/Training%20Tutorials/WORK-PAC%20Labor%20Planning%20&
%20Control/PERCEPTION%20WORK-PAC%20Manpower%20Planning%20&%20Forecasting.pdf – A tool
by PERCEPTION

PERCEPTION provides a powerful set of reporting tools for analyzing manpower requirements.
These reports can focus on a single project, or across any combination of projects.

Computing Manpower

Requirements - To compute manpower requirements, the system converts the labor man-hours
(estimated, baseline scheduled, current planned, actual or remaining) into equivalent persons
per day over the duration of a work order schedule (start to finish). The system assumes that
the equivalent persons work normal 8 labor hours per workday.

The analysis honors the workdays in the user-defined calendar schedule

Manpower Planning - Need and Importance

There is no denying the fact that the continual positive development of a business is owing
to its effective planning. Making preparations and arrangements on the basis of what is
expected to happen and performing tasks in an organized and capable way is one of the
important roles of management in that it involves effective planning process. It is through
the process of planning as well as designing the organizational structure by assigning an
assortment of responsibilities to the employees that business organizations may accomplish
their set objectives. The concept that the right person should be employed at the right place
and at the right time is vitally important to a business as it includes a wide and
comprehensive range of activities in relation to “the management of man” while it entails
man power planning, at the same time, being focused on the effective utilization of existing
human element as well as fulfilling future needs of manpower in the organizations whenever
the situations necessitate. Man power planning is “the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the
integrated plan of the organization.” Man power planning is indispensable for an
organization to perform the activities efficiently as well as in a way that produces desired
results.

It should be apparent that the organizational development as well as the success of the
business is on account of highly competent people that a business organization keeps. Man
power planning is one of the key functions of human resource management that manages to
maintain the good will of a business while giving duly importance to the ‘M’ (for Men or
human element) than that no other ‘M’ (Machine, Material or Money) is more valuable. It
endeavors to the organizational development in totality as well as the success of the
business respecting the skills of the employees, their knowledge, experience and talents. It
is concerned with effective recruitment and selection process in order that the skilled
workers may be made available each and every time that a business requires. Manpower
planning is of great significance for various reasons necessitating the process, at the same
time, contributing significantly to the achievement of organizational objectives.

Many factors will continue to drive man power planning need in the organizations. It is
essential when turnover of labor is to be determined and the situations become inevitable.
There are times when the situations give rise to replace the employees who have grown old,
who are forced to remain in bed because of illness, weakness, injury, mental disorders or a
medical condition involving disturbance to usual functioning of the mind or body. While
executing effectively, man power planning process entails analyzing the requirement of
present and future vacancies. These situations take place when some employees get
retirements, when they are transferred or they are promoted to higher positions. Similarly,
it deals with the situations that arise at the time that employees avail their leaves or in case
of their absences. In order that the tasks being assigned may be carried out in a way as has
been planned or intended, business organizations need personnel possessing necessary
qualifications and experience and that is, to all intents and purposes, accomplished through
man power planning. In its positive form, it is of great importance to identify the surplus as
well as the shortage of the employees so as to move the man power from one area or
activity to another in case of the former, whereas latter indicates providing required
personnel.

Some of the important tasks concerning the process of manpower planning are man power
demand, supply and manpower audit. It involves analyzing total man power requirement
and planning accordingly. Subsequently, there is a need of man power supply which is done
in both ways, internally and externally. It is needed internally when the employees are
transferred or promoted, while the need of external supply arises from the requirement of
new workers when a business goes for expansion or changing technology or adopts new
methods of production. In addition, the process entails man power audit which is carried out
through “Skills inventory”. It encompasses detailed information about each employee. It is
through this activity that the overall value of an employee to the organization is determined
while it involves analyzing the factors such as, which type of workers need to be hired;
whether the remuneration is as good as or slightly better or lesser than others. Adding
emphasis on sustaining the skilled workers, man power audit also analyses the factors that
interest the employees to leave the current jobs and move elsewhere in order that the
necessary measures may be taken leading to the maximum utilization of human resources.

Manpower planning is vital to be in employees’ best interests as well as organizations’. In

addition to undertake proper recruitment methods while implementing appropriate selection
procedures for the right candidates and preserving the talents of the employees, it focuses
on the requirement and the arrangement of training and development programs for the
employees who need so as to equip them with their jobs’ requisites and activities. It is
focused on the promotion procedures for those who are skilled and can take challenge of
doing more advanced tasks than that are being performed currently. It is by means of
manpower planning process that the inefficiencies of the employees are observed that
necessary training may be provided, while it maintains morale of the employees. The
process of manpower planning produces such results that improve productivity; the
employees may become more efficient and their performance may be more effective. In this
way, they can contribute greatly to the total organizational development and the success of
a business that depends upon quantity and quality of human resources.
http://www.scribd.com/doc/11164590/Manpower-Planning - ppt. . .
Manpower Planning or Human resource planning is the process of systematically forecasting the
future demand and supply for employees and the deployment of their skills within the strategic
objectives of the organization.

It is the process by which Management determines how the management should move from its
current manpower to its desired manpower utilization.

Manpower Planning emphasizes:

• Establishment and recognition of future job requirements

• Scanning the organization thru systematic manpower audit

• Assured supplies of qualified participants

• Development of available manpower

• Effective utilization of current and prospective workforce members

Manpower Planning Process

Manpower forecasts

On the basis of corporate goals and manpower analysis forecasting of manpower is done where
kind of people needed for conduct the business is decided.

Manpower Inventory

Before any manpower planning making an Inventory of present manpower resources and finding
out the extent to which these manpower's are employed optimally is important.

Manpower Management

System planning is required for selection, training, development, utilization, motivation,

compensation, etc to ensure that future manpower needs and development manpower plans for
implementation

Perquisites of Manpower Planning

Step1
Job Analysis / job design - Management must define what work to be performed, how tasks to be
carried out and allocated into manageable work units (jobs)

Step 2

Job description & job specification: It refers to incumbent where a job specification with regard
to qualification and experience needed to perform a job

Step 3

Forecasting procedures: Corporate planner has to forecast the number of people needed for a
particular job. It can be done by forecasting the internal supply and external supply of the people
who can perform the job

Step 4

Internal Supply of Manpower: Identifying the manpower internally.

Different Procedures in Manpower Planning

Planning for the status quo

Planning involves steps to replace any employees who are either promoted or who leave the firm.
An example is Management succession planning which seeks to ensure that there is at least one
qualified manager to replace any higher level manager in the organization.

Thumb Rule

This is on the basis of firm’s beliefs with regard to forecasting Human resource needs. For
example one firm believes that a ratio of one production supervisor for every 12 producers
(Workmen) in optimal. This firm maintains this 1:12 ratio because it has proved successful in the
past. Another thumb rule is based on past experience that one person can produce 2000 units of
output per day and accordingly 5 employees needed for 10,000 units as a matter of forecast

Unit Forecasting

This refers to the estimate of supervisors and managers with regard to forecasting Human
resource needs for the next year unit wise – this approach called as “Bottom up approach” to
forecasting as the judgment are made by lower level management and added together at a higher
level of the organization.

Delphi Method
This method relies on Expert opinion in making long range forecasts – this involves obtaining
independent judgments from a panel of experts usually thru a questionnaire or interview
schedule on certain issue affecting the nature and magnitude of demand for an organization’s
products and services

Computer Simulation

This is one of the most sophisticated methods of forecasting human resource needs – A computer
is a mathematical representation of major organizational processes, policies and human resource
movement thru organization – computer simulations are useful in forecasting for human
resources by pinpointing any combination of organizational and environmental variables.

In technical field where direct production activities are involved, typically different methods
following different method are used.

Time and motion study

Here the Industrial Engineer observes records and movement of workman and productivity vis a
vis time required to conduct specific activities.

MOST (Maynard Operating Sequence Technique)

This method is well accepted in automobile industries where lots of manual activities are
involved. It is based on the walking and moving of the workmen to conduct the specific activity.