Methods of Manpower Planning

Contents
• Introduction to Manpower Planning
• Steps in Manpower Planning
• Methods of Demand Forecasting
• Methods of supply Forecasting
 Introduction
• Manpower Planning is a process by which an
organization ensures that
• The right no of people
• The right kind of people
• At the right place
• At the right Time
• Doing the right things for which they are suited
for the achievement of goals of the organisation
 Steps in Manpower Planning
Manpower planning involves two steps
– Demand Forecasting
– Supply Forecasting
 Methods of Demand Forecasting
• Bottom Up Technique
• Delphi Technique
• Nominal Group Technique
• Ratio – Analysis
• Regression Analysis
 Expert Opinion
• In this method managers estimate future
human resource requirements, Their
experience and judgment to good effect.
• Opinions(Judgments) of supervisors
department, managers, experts, or others
knowledgeable about the organisation’s future
human resource requirement.
 Bottom Up Technique
• This method of forecasting starts at the lowest
level and progresses upwards, through
various levels of organisation, till an aggregate
projection for the organisation as a whole is
ready.
• While comparing present and future needs
• Market demands
• Mobility of staff in the department
 Delphi Technique
• Objective of Delphi Technique is to predict
future requirements in a particular area by
integrating judgments and opinions provided
independently by main experts.
Disadvantages
• Time Consuming
• Integration Problem
 Nominal Group Technique
• Nominal Technique is somewhat related to,
Delphi technique, except for that in this case
the experts sit together in face to face
situation to make forecast.
Advantages
• Each expert is making a independent forecast
• All forecasts are presented in one place
• Take less time.
 Ratio Analysis
• This method involves comparing the number
of employees to a work load index.
• The level of activity may very from
department to department in the same
organisation.
Eg To produce 100 units of a product, if 10
workers are required, the department would
require 15 workers to produce 150 units.
 Regression Analysis
• Projection of future demand is based on the
past relationship between the workforce level
and the basic factor on whom the demand is
assumed to depend.
Eg Demand of doctors in government health
program regression equation
D = 5 + 0.1 E
 Markov Analysis
• Mathematical Technique
• Forecasts the availability of internal job
candidates
• In this analysis, various job classifications can
be predicted from past movements.
• Its use is restricted to very large organisations.
 Methods of Supply Forecasting
• Once the demand forecasting is made, the
planners have to go out and find the kind of
work force needed.
• The sources of manpower supply maybe
• Internal Supply
• External Supply
 Internal Supply
• Transfer
• Promotion
 External Supply
• Educational Institutes
• Advertisement
• Placement agencies
• Telecasting