Chapter 2 Manpower Planning Process

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MANPOWER PLANNING

Chapter 2 – Part 1
Human Resource Planning
Meaning:
Human resource planning (HRP) refers to the process of evaluation and identification of HR
requirements for meeting organizational goals to ensure competitive advantage in the marketplace.
HRP = Manpower planning = Personnel planning = Employment planning
“Organization should determine how it will move from current manpower position to desire manpower
position”
Objectives of HRP:
 Skills Gap – Gap Analysis
 Recruitment – For eg: E-recruitment
 Structure of HR – R&S, C&B, T&D
 Customer Services – Employee - Good Customer Service
NEED OF HRP

• To meet up requirements of the organization

• To counterbalance insecurity and change

• To check labor imbalance

• To meet expansion and diversification needs of the organization


HRP – Process

Environment

Organizational
Objectives and Policies
HR Need HR Supply
Forecasting Forecasting
HR Programming

HR Implementation

Control and
Surplus Shortage
Evaluation
◦ Environmental: Economic, Political, Legal, Social Demographical and Technological changes

◦ Organizational Objectives and Policies: HR Plans, Process, Organizational Vision, Mission and Goals

◦ HR need and demand: Estimate the future quantity and quality of people required – Internal and External

◦ HR supply forecasting: Measure no. of employees inside and outside the company

◦ HR programming: Right person for the right job

◦ HR plan implementation: Recruitment, Training and Development

◦ Control and evaluation:

◦ Surplus: VRS, Layoff

◦ Shortage: Recruitment and Selection


HRP PREPARATION – SUPPLY FORECASTING

• Manpower Inventory – Data Collection Process

• Manpower Audit – Utilization of present employees

• Source of manpower supply


• Internal – Present Employees

• External – Resignation, Expansion, New Projects and Diversification

• Process of preparing manpower inventory


Factors Affecting HRP

◦ Organizational Cycle, Growth and Planning – Start up, growth, maturity and decline

◦ Environmental Uncertainty – Political, Social, legal and economical

◦ Outsourcing – transfer of employees to another division / Organization

◦ Nature of Job – Job vacancies, promotions and expansion strategy

◦ Type and Quality of Forecasting Information – Organizational Structure, budget and production

◦ Time Horizon – Long term plan and short term plan


Manpower Planning Analysis
◦ Markovian Analysis
◦ Markovian Analysis – Succession Analysis

◦ To forecast the internal labor supply there are different techniques and Markov analysis is one of the important technique. 

◦ Demand Analysis
◦ Forecasting human resource demand is the process of estimating the future human resource requirement of right quality
and right number.

◦ Ratio Analysis
◦ Ratio analysis is one means of ensuring that you have the right amount of employees for the amount of work by
determining the number of employees needed based on some element of production or sales

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