CHAPTER 1 MANPOWER PLANNING.pptx1. To study and explain Process and Importance of Manpower Planning.

To understand the Techniques of
Manpower Forecasting.

1. Manpower Planning and Forecasting  chapter 1  SYBBA  HR SPECIALIZATION 406 C

2. 1.1.1  Introduction   Human resource is the most important asset of an organisation    Manpower planning is essential   Manpower planning is an important managerial function   Considered as a strategy for the acquisition, utilization, improvement and retention of an enterprise human resources.    Manpower planning has an adverse and long term effect on the organization    Improper planning leads to a degree in productivity, increase in employees turn over, low morale of employees.   Affects the organization functioning 

3. 1.1.2   Meaning and Definition  Manpower planning is deciding the number and type of human resources required for job unit and company to carry out organizational activities   Planning involves identifying staffing needs   Planning involves meeting the future as well as current human resource needs of a firm   The organization determines its manpower needs and then select the right mix of employees   Manpower planning is having the right people in the right play, at the right time doing the right kind of task.   Planning provides maximum long term benefits to both the organization and the individual.  

4.  Definition  Coleman has defined human resource as" The process of determining manpower requirements and the means for meeting those requirements to carry out the integrated plan of the organization".       According to Ashwathapa ,” Human resource planning is the process of forecasting a firm's future demand for, and supply of the right type of people in the right number.” 

5.   W.S.Wistrom   has prepared a series of activities  in human resource 1)  F orecasting   future human requirements 2)  Making an Inventory of present manpower resources and analyzing and assessing the extent to which these resources are employed optimal. 3)  Anticipating manpower problems  4) Planning the  necessary programmes of recruitment, selection, training, development, transfer, promotion, motivation and compensation.

6. 1.1.3  The need for manpower planning   1) Assessing needs  Human resource planning is required to determine whether there is any shortage Or surplus of persons in the organization.   2 ) For replacement of persons   Large number of employees retire, die, leave organizations and  or become inefficient because of physical mental disorders needs to be replaced  3)  Manpower planning ensure a smooth supply of workers by preparing persons for taking up new positions in such contingencies .  4)  To deal with unavoidable workforce turnover   Planning is essential to deal with labour turnover due to voluntary quits, discharges, marriages, promotions and seasonal function fluctuations in the business. 

7. The need for manpower planning ( cont ) 5)  Technological changes   Technological changes and globalization brought a change in the method of production of goods, distribution of products and services and management techniques  6)  To meet the needs of expansion and diversification   No person will be required to take up the new positions.  7)  Identify the surplus or shortage of workforce in organization.   Identify the areas of surplus personal.   The surplus personal is the other areas   8)  Developing different skills among the employees of the organization.    

8. 1.1.4  Objective of Manpower Planning  Following are the important objectives of manpower planning   Assessing manpower needs for the future  Determine training and development needs of the organization  Ensure required human resources  Address higher labour costs by identifying situations like overstaffing and understaffing.  Relate future human resource to future enterprise needs to maximize the future return on investment in human resources.  To increase productivity by optimum utilization of current and prospective workforce  To provide control measures to ensure that necessary manpower resources are available  Development of available manpower  Anticipating surplus or shortage of staff  Right number, right kind of people at the right places at the right time doing the right kind of task.

9. 1.1.5 Levels of Manpower Planning  Plant level  Manpower planning as a plant level can be conducted by incorporating committee based on past data and future projections   Departmental or divisional level  The divisional level integrate all the main power plants of its plant as well as divisional staff  sections  Top level Department or divisional plants are reviewed an integrated with man power plants for head office staff  National level Sector  level Industry level  

10. 1.1.6  Importance of Manpower Planning   Effective method of learning provides adequate Lead time for the procurement and training of employees. Manpower planning helps in the effective utilization of human resources to achieve organizational goals. Manpower planning is a very important tool for human resource management.   Increases productivity  proper manpower planning helps to increase the skills, efficiency of the employee and help in decreasing employee turnover absenteeism.  Reduced labour cost manpower planning helps the management to find the weakness of the existing personal through employee performance appraisal. By arranging training program management can correct the weakness of the personal which may help to reduce manpower cost.

11. 1.1.6  Importance of Manpower Planning ( cont ) Increases efficiency in recruitment process the map of planning the manager of the firm can know the future needs of the employees in the number both in quantity and quality.  Improves motivation that the personnel of the future manpower needs provides an opportunity for training and developing existing personal to future opening through internal promotion.  Avoids disruption in production  this helps in preparing skilled and qualified workers on time and ensuring uninterrupted production  Growth of the  organization  manpower planning facilitates expansion and diversification of an  organization

12. 1.2 Process, Technique of Manpower Forecasting  1.2.1  Introduction   Every organization needs a work force suitable for its task to achieve its business goals. To be successful every organization should assess short-term and long-term staffing needs based on market expansion, new product launches, projected sales and so on.   Human resource focus should include the number of workers needed, the type of skills required to fill any gaps for administrative tasks that will be required to increase /downsize the workforce. 

13. 1.2.2  Process of Manpower  forecast ting   1 Deciding goals or objectives  this helps in deciding the required quality and quantity of human resources to achieve the objectives. Sound manpower planning helps in the preparation of manual of job classification and job description with specific reference to individual jobs.   Estimating the future manpower requirements. Estimating the future manpower requirement is a crucial part of manpower planning. Forecasting manpower requirement depends on various factors like level of production, workload analysis, estimated absenteeism and turnover, demand and supply conditions, Technological changes and so on.   Forecasting supply Manpower is essential to meet future demands 

14. Supply forecasting measures the number of personnel available  within an organization and  outside the  organization. It includes both internal and external supply of workforce.   Internal supply  this is called an audit of internal human resources. It includes the appraisal of person within the organization. current position they are skills the potential to handle higher levels of responsibilities their age and so on. Based on appraisal different training and development programs are developed.  External supply sources like Consultants, advertisements, casual applications, candidates referred by current employees etc.

15. 4 )  Demand and Supply Comparison   It refers to the reconciliation of demand and supply forecast which enables to fill the vacancies at the right time, with the right employee and therefore this is a very significant step in manpower planning.  5)  Implementation of Human Resource plan  T he organization has to decide the policy finding the personal. The various implementation program and strategy include recruitment plan, the redeployment plan, training plan, productivity plan, retention plan and so on.  6)  Control and evaluation of program C ontrolling the activities of human resources needs to be verified through surplus and shortage of employees. 

16. 1 .2.3 Techniques of Manpower forecasting   Human resource  is an important part of any organization. The techniques of Manpower forecasting are as follows demand forecasting and supply forecasting.  According to Ashwathapa, Human resource demand forecasting is the process of estimating the quantity and quality of people required to meet the future needs of the organization. D emand forecasting is affected by several external and internal factors .

17.  The various demand forecasting techniques are explained below. 1)  Managerial Judgement  This technique involves two types of approaches bottom up approach and  top down approach.  In the bottom up approach to the proposal is brought up by the line  managers  to the top managers for the requirement. In a top-down approach the requirement is first decided by the top managers and then brought it to the department head for the concert.  A combination of both approaches it's called as  participative approach. 2) Ratio trend analysis  This technique involves studying past ratios, the ratio between the number of workers and sales and accordingly decide the manpower requirement.

18. 3)  Regression analysis  Statistical technique is used to identify the extent of the relationship between two variables. The forecast is based on the relationship between the sales volume and the employee size 4)  Work study method  This technique is also known as workload analysis and is used when it is possible to measure the estimated workload. 5)  Delphi Technique is used for estimating the demand for human resources. This technique takes into consideration personal needs from a group of experts to collect the money for needs and prepare a report.  

19.   Other resources of Human Resource demand forecasting  Estimation based on techniques of production   Organization cum succession charts  Estimates based on historical records  Floor and mathematical models.  Forecasting supply  Internal supply of labour  Internal supply of human labour resources available by way of transfer, promotion, retired employee and recall of laid off employees , etc .

20.  External supply of labour  The external supply of human resources depend on some factors like supply and demand jobs, literacy rate of the nation, rate of population, industry and expected growth rate and levels, technological development and so on.  The most important technique for forecasting the internal supply of human resources is a succession analysis and Marcov analysis. Succession analysis   Determining the internal labour supply needs a detailed analysis which includes a review of skills ability education experience and other qualifications of existing employees working and different job categories. the planner that modifies this analysis to reflect changes expected shortly as a result of retirement, promotions, transfers, voluntary turnovers and termination .

21.  Markov analysis Marco Matrix helps to protect internal employee movement from one year to another by identifying percentage of employees who remain in jobs get promoted or demoted, transfer and exit out of the organization.   1.2.4 Factors that should be considered while choosing forecasting techniques.  Available data  Stability and certainty Time Horizon  Resources available .

22. 1.3) Factors influencing estimation of Manpower   Organizational type and strategy  Growth cycle and organizational planning  Environmental uncertainties  Time Horizon  Information quality   Labour market

23. 1.4  Barriers to Manpower Planning  Planning is very crucial activity for any organization. However there are certain barriers to manpower planning   Forecasting  Lack of support from top management  Expensive and time consuming  Uncertainties  Insufficient information  Lack of a balanced approach  Resistance from employees  Lack   of integration plan

24.   Requisites for successful human resource planning.  It must be recognized as an internal part of Corporate planning  Human resource planning responsibility should be centralized for better coordination and consultation between different management levels  Support from top management  Plan should be prepared by skill level rather than aggregates  Data collection ,analysis  of planning and plans must be continuously revised and improved  The records of personal must be complete  The technique of planning should be best suited to the available data.