Manpower Planning
Introduction
Manpower Planning, also known as Human Resource Planning, refers to the process of ensuring the right
number of people, with the right skills, are placed in the right jobs, at the right time, to perform the
right tasks for achieving organizational goals. It occupies a vital role in modern industrialization and
follows a systematic, structured approach.
Procedure of Manpower Planning
The manpower planning process generally involves the following steps:
1. Analysing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment programmes
4. Designing training programmes
Steps in Manpower Planning
1. Analysing the Current Manpower Inventory
Before forecasting future manpower needs, management must analyse the existing manpower situation.
The following factors are considered: - Type of organization - Number of departments - Nature and size of
departments - Employees in each work unit
Once these factors are identified, management can proceed to future forecasting.
2. Making Future Manpower Forecasts
After identifying factors that affect manpower demand, organizations plan future manpower requirements
across different work units.
Common Manpower Forecasting Techniques
• Expert Forecasts: Includes informal decisions, formal expert surveys, and the Delphi technique.
• Trend Analysis: Projects manpower needs through extrapolation, indexation, and statistical analysis.
• Workload Analysis: Based on the volume and nature of work in departments, branches, or
divisions.
• Workforce Analysis: Accounts for production targets and time periods, including allowances for
leave and absenteeism.
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• Other Methods: Mathematical and computer-based models such as budget and planning analysis,
regression analysis, and new venture analysis.
3. Developing Employment Programmes
After comparing current manpower with future requirements, employment programmes are developed.
These include: - Recruitment plans - Selection procedures - Placement strategies
4. Designing Training Programmes
Training programmes are designed based on: - Expansion and diversification plans - Technological
advancements - Skill and knowledge gaps
The objective is to enhance employees’ skills, capabilities, and overall productivity.
Importance of Manpower Planning
Key to Managerial Functions
All managerial functions—planning, organizing, directing, and controlling—depend on effective manpower
planning. Staffing is therefore central to management success.
Efficient Utilization of Resources
Proper manpower planning ensures optimal use of human resources, particularly in large-scale enterprises.
Motivation
Manpower planning includes incentive and motivational programmes, encouraging employee participation
and job satisfaction.
Better Human Relations
Effective staffing promotes strong human relations through training, supervision, communication, and
leadership development.
Higher Productivity
Productivity increases when manpower is efficiently utilized, reducing waste of time, money, and effort
through effective staffing-related activities such as training, performance appraisal, and remuneration.
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Need for Manpower Planning
Manpower planning is a two-phase process involving analysis of current manpower and forecasting future
needs. Its benefits include: - Identification of manpower shortages and surpluses - Strong foundation for
recruitment and selection programmes - Reduction in labour costs by avoiding overstaffing - Identification
and development of employee talents through training - Support for business growth and diversification Enhanced awareness of manpower management for organizational stability
Obstacles in Manpower Planning
Organizations commonly face the following challenges:
Underutilization of Manpower
Many organizations fail to use manpower optimally, making effective planning difficult.
Absenteeism
High and rising absenteeism affects productivity and manpower planning accuracy.
Lack of Education and Skilled Labour
Illiteracy and slow development of skilled labour result in low productivity, complicating manpower
planning.
Manpower Control and Review
• Any increase in manpower is approved at top management level.
• Personnel budgets based on manpower plans act as control mechanisms.
Productivity Measurement
• Productivity = Output / Input
• Employee Productivity = Total Production / Total Number of Employees
Control Measures
• Exit interviews, labour turnover rates, and absenteeism rates provide insights into employee
satisfaction.
• Overtime analysis helps identify manpower shortages, inefficiencies, or mismanagement.
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Limitations in Information Systems
Many organizations lack adequate manpower records or effective retrieval systems. Even where
computerized personnel systems exist, they are often underutilized, resulting in a strategic disadvantage.
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