13/08/2024

MANPOWER
PLANNING
Session - 2

Learning • Understand the nature and

importance of Manpower
Objectives Planning
• Identify and describe factors
affecting Manpower Planning
• Describe the stages in
Manpower Planning process
• List pre-requisites for effective
Manpower Planning

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Manpower Planning : What it is?

• ‘A strategy for the acquisition, utilization,

improvement, and preservation of an enterprise’s
human resources.

• To ensure that the firm has enough of right kind of

people at right time and adjusting the
requirements to the available supply.

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Key Reasons for the Interest in

Manpower Planning

• Employment-Unemployment Situation
• Technological Changes
• Organizational Change
• Demographic Changes
• Skill Shortages
• Legislative Controls
• Impact of Pressure Groups
• System Concept
• Lead Time

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Organisational
Growth Cycle and
Planning

Type and Strategy Environmental

of Organisation Uncertainties

Manpower
Planning
Time Horizons Outsourcing

Type and Quality of

Forecasting Nature of Jobs
Information being Filled

Manpower Planning at Micro &

Macro Level

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• To ensure that organization:

• Obtains and retains the

Manpower quantity and quality of
human resources it needs
Planning @ at the right time and right
Micro Level place; and

• Makes optimum utilization

of these resources

• Population planning

Manpower • Employment planning

Planning @ • Educational planning
Macro Level
• Other aspects of social &
human development

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• Capitalize on strengths of their human

resources
• Determine recruitment levels
Manpower • Anticipate redundancies
Planning and • Determine optimum training levels
Corporate Strategy • Serve as a basis for MDP
influences each • Cost manpower for new projects
other, and helps • Assist productivity bargaining
organizations to: • Assess future requirements
• Study the cost of overheads & value of
service functions
• Decide whether certain activities
need to be contracted

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• Short-range or immediate future – may

relate to current situation and
experiences and may even concern
issues such as overtime and
replacements.
Manpower • Mid-range future – has different time
Planning from span in various companies and can be
as short as a few months or as long as
Futuristic several years; most would agree upon
Perspective 2-3 years period as mid-range.
• Long-range future – could be of 5 years,
while 10-15 years span could be used
for a perspective plan; it is made based
on various trends in the economy and in
the labor market. It is general than
specific, flexible than rigid.

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Major Manpower Planning

Activities

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• Demand forecasting

• Supply forecasting

• Determining human resource

requirements

• Action planning

• Monitoring and control

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DEMAND FORECASTING

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• Estimating future need of human

resources in the context of corporate &
functional plans & forecasts of future
activity levels of organization.
• Demand for human resources in an
organization should be based on annual
budget and corporate plan, translated
into activity levels for each function and
department.
• For example, in a manufacturing firm
the starting point is the sales forecast
and targets.

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• Job analysis
• Work study
• Managerial judgment
Tools of Demand • Simple statistical model – time series analysis
Forecasting • Mathematical model – Probability theory and
Regression analysis
• Probabilistic Models – Markov analysis,
Minnesota Manpower Management
Simulation, etc.

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SUPPLY FORECASTING

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Supply of human resources may be:

• Internal

• External

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Promotions out

• Transfers Out
• Retirement
Transfer in • Voluntary Retirement
• Discharge/ Dismissal
/ Termination
• Resignations
Recruits in
• Redundancy
/Retrenchment

Promotions in

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DETERMINING
HUMAN RESOURCE
REQUIREMENTS

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• Relating supply to demand

forecast and identifying deficits or
surpluses of human resources that
will exist in the future;

• The reconciliation of demand and

supply forecasts gives us the
numbers of people to be recruited
or made redundant and it forms
the basis for Action Planning;

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SN Year
1 2 3 4 5
D 1 Numbers required at the beginning of year
D 2 Changes to requirements forecast during the
year
D 3 Total requirements at the end of year
S 4 Numbers available at the beginning of year
S 5 Accession from transfers and promotions in
S 6 Separations through – retirements, wastage,
separations & promotions out, and total losses
S 7 Total available at the end of year
R 8 Deficit or surplus (3-7)
R 9 Losses of those during the year
R 10 Additional no. required during the year

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ACTION PLANNING

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• Organizations operate in changing

environment, so, manpower structures also
do not remain static;
• Strategic options include – changes in
production methods, union agreements on
productivity, off-loading maintenance, sub-
contracting, etc. which to significantly alter
human resource needs without affecting
the volume of businesses;
• These strategic options may lead to
following action plans – Recruitment Plan,
Redeployment Plan, Redundancy Plan,
Training Plan, Productivity Plan, and
Retention Plan.

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Retention
Recruitment Redundancy Training plan Productivity plan- for
plan plan Øno. of trainees plan – which to example,
no. and type Øwho is or apprentices set out programs reason for
of people redundant, required and for improving employee
required and Redeployment where and program for employee's turnover and for
when they plan when; recruiting or productivity or that information
are needed; which to set out training them; reducing can be obtained
programs for Øplans for employee costs through exit
any special transferring or retraining Øno. of existing through – interviews
problems in retraining where this is staffs who need followed by
recruiting the existing possible; training or • work necessary
right people employees for retraining and simplification changes which
and how they new jobs; Øalternative the training through O&M to include
are to be programs for programs; studies;
dealt with, voluntary • mechanization • reviewing
and separation Ønew courses to & automation; compensation
recruitment (golden hand- be developed or • productivity policies &
programs; shake), changes to bargaining; programs;
retrenchment, be made in • incentives & • induction &
lay-off etc.; existing courses; profit-sharing training;
schemes; • changes in
• job redesign; work
and requirements;
• training & re- and
fresher training; • improvements
in working
conditions

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MONITORING & CONTROL

?????

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MANPOWER PLANNING
PROCESS

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Environment

Organisational Activities
and Policies

HR Needs Forecast HR Supply Forecast

HR Programming

Manpower Planning
Implementation

Control and Evaluation of

Programme

Surplus
Shortage
Restricted Hiring
Recruitment
Reduced Hours
Selection, etc
VRS, Layoff, etc

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USES OF A HUMAN
RESOURCE INFORMATION
SYSTEMS (HRIS)

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HR Planning and Analysis

• Organisation Charts
• Staffing Projections
• Skills Inventories
Employee and Labour Relations • Turnover Analysis
• Union Negotiation Costing • Absenteeism Analysis Equal Employment
• Auditing Records • Restructuring Costing • Affirmative Action Plan
• Attitude Survey Results • Internal Job Matching • Applicant Tracking
• Exit Interview Analysis • Job Description Tracking
• Workforce Utilisation
• Employee Work History
• Availability Analysis

Health, Safety & Security

• Safety Training
• Accident Records
HRIS Staffing
• Recruitment Sources
• Material Data Records
• Applicant Tracking
• Job Offer Refusal Analysis

Compensation and Benefits HR Development

• Pay Structures • Employee Training Profiles
• Wage/Salary Costing • Training Needs Assessments
• Flexible Benefit Administration • Succession Planning
• Vacation Usage • Career Interests and Experience
• Benefits Usage Analysis

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STRATEGIC HR INITIATIVES

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Strategy HR Initiative

Strategies for Managing Strategies for Managing

Shortages Surplus

• Recruit new permanent employees • Hiring freeze

• Offer incentives to postpone retirement • Do not replace those who leave
• Re-hire retirees part-time • Offer VRS schemes
• Attempt to reduce turn-over • Reduce work hours
• Work current staff overtime • Leave of absence
• Subcontract work to another company • Across the board pay-cuts
• Hire temporary employees • Layoffs
• Redesign job process so that fewer • Reduce outsourced work
employees are needed
• Employee training
• Switch to variable pay plan

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REALITY CHECK

• Can you make a

comprehensive list of
skills a successful
manager should
possess? Can you break
them down on
occupation/job-wise?

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THANKS…

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