manpower planning unit 3

8/8/2019 Manpower Planning Unit 3

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Human Resource Planning/Manpower Planning

³If you wish to plan for a year sow seeds

If you wish to plan for ten years plant treesIf you wish to plan for a life time develop men´

HRP is a process of ensuring the right number

and kinds of employees, at right places, at right time,capable of effectively and efficiently completing thosetasks that help the organization to achieve its goals



Human Resource Planning/

Manpower Planning

HRP is a systematic effort that comprises

three key elements-

Workforce forecast

Manpower assessment

Staffing programme



Human Resource Planning/Manpower Planning

According to Stainer HRP is a strategy for

acquisition , utilization, improvement andpreservation of an enterprise¶s human

resources. It is a way of dealing with people

in a dynamic situation.



Objectives of HRP

To link HRP with organizational planning

To ensure the optimum use of human resourcescurrently employed.

To access or forecast future skills requirements

To provide control measures to ensure that

necessary recourses are made available as andwhen required.



Objectives of HRP

To determine recruitment levels.

To anticipate redundancies and avoid unnecessarydismissals.

To determine optimum training levels.

To provide a basis for management development

programmes. To deploy the manpower in new projects.

To decide whether certain activities need to be

subcontracted.



Steps in HRP1. Preparation of long term plans of the organization

2. Breaking the long-term plans into annual plans

3. Deciding on the manpower requirements every year,keeping in view the long term plans

4. Conducting manpower audit to find out thepromotability of existing employees to higher levelswhenever vacancies exits.

5. Detailing out manpower requirements (positionwise) for the coming year on the basis of abovesteps

6. Initiating recruitment and promotions.



Benefits of HRP Reduce labor costs associated with attrition.

Reduce recruiting & replacement costs.

Focus training resources appropriately.

Increase the ability to take advantage of new

business opportunities.

Improve employee morale & satisfaction

Control rapid expansion or reduction in workforce.

Monitor staffing and retention policies.



(1) Forecasting Future Human Resources Needs:

Organizational goals and objectives serve as a starting

point for forecasting human resources needs.The demand for labour is derived from the demand for

an organization's goods and services.

HRP should be focused on long ±range plans of the

organization rather than short ±term replacement needs.



The Human Resource Planning Process

(2) Projecting Human Resources Supply:

Projections are estimates of the number and kinds of

employees that can be expected to constitute an

organization µs workforce at some future point in time.

Projections are based on a careful assessment of an

organization's current supply, plus consideration of

Employee movement into, through, and out of

organizations.




(3) Comparing Forecast Needs with Projection Supply:

The third step is to compare the forecast needs for

human resources with the projections of internal

supply. By subtracting the projected supply from the

forecast needs, planners can determine an

organization's net employee requirements for a future

point in time.




(4) Planning Policies and programmes:

After net employee requirements determined, planners

generate and evaluate alternative resources policies and

programmes designed to handle anticipated shortages

and surpluses.




(5)Evaluating HRP Effectiveness:

After net employee requirements determined, planners

generate and evaluate alternative resources policies and

programmes designed to handle anticipated shortages

and surpluses. Evaluating in terms of costs and benefits

is difficult. Though planning has definite costs, its

benefits are more intangible and difficult to measure.

An obvious measure of planning effectiveness is how well

human resource needs are anticipated and met.



Human Resource Forecasting Techniques

Demand Forecast :It is the process of estimating the future quantity andquality of people required. The basis of forecast isannual budget, long ±term corporate plans. Theseare translated into activity levels for each functionand department . Several factors which affect theforecasting are categories as -

External Factor- Economic climate, competition,

change in technology etc.Internal factor- Budget constraints, productivity

levels, new products and services etc.




Supply Forecast :HR demand analysis provides the management with

means of estimating the number and kind of employees

that will be required. The next logical step is to

determine whether it will be able to procure the requiredno. of personnel and the sources of such procurement.

This information is provided by supply forecasting.

Supply forecasting measures the number of people likely

to be available from within and outside an organizationafter making allowance for absenteeism, employee

turnover and changes in working hours, working

conditions etc.




Judgment & Experience :

This technique is used in smaller companies.

Managers of the various units of the business

,make estimates of future manpower needs by judgmentally converting information on short

term future business activity into numbers and

types of people needed.




Raito-trend Analysis :

This is quickest forecasting technique.

This technique involves studying past ratios,

between the number of workers and sales inorganization and forecasting future ratios,

making some allowance for changes in the

organization or its methods.




Work Standard Data :Comprehensive sets of data for man-hours or

units to perform various productivity tasks are

being set as work standard by organizations.

For each dept. the projected units of output are

converted into man-hours, man-days and

number of employees by applying the

established time standard.



A Successful HRP requires

a joint effort by the Human

Resource Department andthe operating mangers of

the organization.



Employee Recruitment

Recruitment is the development andmaintenance of adequate manpower sources. It involves the creation of a pool

of available human resources from whichthe organization can draw when it needsadditional employees. Recruiting is theprocess of attracting applicants with

certain skills , abilities and other personalcharacteristics to job vacancies in anorganization.




The function of recruitment is to locate the

sources of manpower to meet job

requirements and specifications.

Recruitment forms the first stage in the

process which continues with selection

and ceases with the placement of

candidates.




Most organizations use a mixture of

internal and external sources ±promoting

from within when qualified employees are

available and recruiting from external

sources when new skills are needed or

growth is rapid.



Recruitment Process

1. Define the job

2. Establishing the person profile

3. Making the vacancy known4. Receiving and Documenting Applications

5. Designing and using the Application form

6. Selection

7. Notification and final checks

8. Induction.



Recruitment Philosophy

The key issues in recruitment philosophy are:

Whether to promote employees from within

the organization or to hire from outside for various vacancies at all levels.

Whether the emphasis will be merely filling

of vacancies or hiring employees for long

term careers.



Sources of Manpower Supply

Internal Sources relate to the existing

working force of the enterprise.

External Sources relate to the employmentexchanges, colleges, institutes, and

universities.



Employee selection

Individual differ in their ability to perform the

different types of activities. They differ in

their physical characteristics, intelligence

and intellectual aptitudes etc. Because of

these large differences in human abilities,

proper selection is very important in an

organization.



Employee selection

Recruitment is selling the idea that a

particular organization is a better place to

work than a competitive organization.

Selection is basically staffing the people at

right places according to their

competence.



Employee selection Process

1. Initial Screening interview

2. Completion of the application form

3. Employment Tests4. Comprehensive Interview

5. Background Interview

6. Physical Examination7. Final Employment Decision

manpower planning unit 3

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