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Mu0010-Manpower Planning and Resourcing
Mu0010-Manpower Planning and Resourcing
Ans. Manpower planning requires that an estimate of the present and future
needs of the organization should be compared with the available manpower and
future predicted manpower. Appropriate steps are then taken to bring demand and
supply into balance. The outcome of this planning is a well ‘thought out’ and logical
manpower demand plan for varying dates in the future which can then be
compared with the crude manpower supply schedules. The comparisons will then
indicate what steps should be taken to achieve a balance. The 5 steps in the
manpower planning process are:
· Manpower forecasting
· Manpower allocation
(i) Expert Forecasts: This includes formal expert surveys, informal decisions and
the Delphi technique.
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(ii) Trend Analysis: Manpower needs can be seen through the past practice of the
firm or organization keeping the principle year as a basis and a central tendency of
measure
(iii) Work Load Evaluation: This depends on the nature of the work load in a
branch, department, or a division in a firm or organization.
(iv) Work Force Evaluation: As production and the time duration are to be kept in
mind, allotments have to be made for getting the total manpower requirements.
(v) Other Methods: A few mathematical models with the help of computers are also
used to forecast manpower needs.
Once the current inventory is compared with the future manpower forecasts then
the manpower sourcing or retrenchment plan is drawn.
Manpower retention would mean taking necessary steps to ensure that the
organization provides a conducive-atmosphere to the employees to perform and
keeps each employee engaged.
Once the future manpower forecasts are compared to the current inventory, there
may be some gaps in competencies amongst the available internal resources for
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them to qualify for the future manpower forecasts. In such cases organizations
may choose to develop resources through training programs. A training calendar is
designed to ensure competencies of existing staff are enhanced to meet the future
manpower forecasts. Additional training programs may be designed when
organizations are diversifying or expanding. Training programs may be designed to
train existing resources on the latest improvements and advancements in
technology or the related business subject. Training is provided to improve the
knowledge, skill and capability of the employee.
Demand analysis provides the manager the means of evaluating the number and
kind of employees that will be required by the firm or organization. The only logical
next step for the management to do is to determine if it will be able to provide the
number of required employees and the sources. This information is supplied by
supply forecasting.
· It helps to decide the number of employees and positions that are available for
further need.
· It helps to evaluate the present staffing levels in different parts of the firm or
organization.
· It helps to prevent a shortage of employees when and where they are needed the
most.
Hence demand and supply forecasting are very essential to firms and
organizations as it then helps them to decide between the various forecasting
methods to be chosen.
Based on the demand forecast the sourcing team of HR identifies the sources of
supply of manpower. Broadly speaking two key sources of supply of manpower
exist. They are:
· Internal Supply
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· External Supply
Internal supply options are employees moving up the ladder by way of promotions.
Promotions occur usually in an organization at a certain periodicity. Once in six
months based on the half yearly performance appraisals process. The other
method is that the organization posts internal job posting. The eligibility criteria, for
employees to apply for such a job posting is defined such that it only promotes
meritocracy and length of service.
The other internal supply option is when employees are transferred from other
departments or locations where there may be excess staff, to a department which
has a dearth of quality resources. This process is also called transfer. Transfers
are also usually announced at a certain periodicity. It could be quarterly. If it is
annually done, it may also align with the starting of schools for a new academic
year. However, business pressures today are so severe, that such practices seem
to be fading away at least in private enterprises. Only organizations with highly
stable operations can plan and execute as per plan.
· From metros
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External supply sources may also required companies to reconsider their location
strategy. If there is a large pool of resources based in a location, where the
organization can relocate to or add a branch, then it would save the company huge
costs in terms of relocation expenses and paying higher salaries. Candidates
joining in home location may be able to accept jobs at comparatively lower salaries
than existing in a city/metro.
Cost is the expense to acquire a resource to obtain service and benefits thereof.
This expense has two portions – current expense and asset portions. Current
expense is the amount incurred to derive benefits in the current financial year.
Asset portion is the amount incurred on expected benefits in future. Differentiating
clearly between both is not easy.
Certain other ways to classify cost are – Historical Cost, Opportunity Cost, and
Replacement Cost. These costs can be further divided into direct and indirect cost.
Direct cost is the expense made on hiring, training and placement of new
employees while indirect cost is the time spent by the supervisors and trainers on
these activities.
Historical cost is defined as the expense made on hiring, training, placement, etc.
in the past. It also considers the salaries and other payouts.
Opportunity cost method looks at what would have been the returns if the cost
incurred on HR was invested somewhere else. This method has a limited
application as it is very subjective.
In this section, you will learn about the qualitative side of manpower planning.
Faced with the ever increasing changes, organizations need to develop a more
focused and logical approach to manpower planning. In developing the manpower
plan a very important question must be answered, “What kind of employees’ does
your organization need to manage and run the business to meet your strategic
goals and objectives?” Answer to the above question has been provided in three
parts below:
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I) Culture
II) Organization
III) People
When you hire staff or contract staff who is working or was working with your
organization earlier, then it is called as internal sourcing. An internal source is
considered for:
Promotions
Transfers
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Temporary Staff
Many organizations appoint temporary staff for short projects. At the end of such
projects organization often try to retain efficient resources by deploying them to
available positions in other roles.
Retired Employees
· Motivates employees and provides experienced competent people for the job
role.
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