PGDM (2020-22) Term – III)

Human Resource Management

Class Exercise - Manpower Planning

Time: 30 minutes Session No. 5 Date: 10-2-2021

Manpower Supply and Transition Probability Matrix:

Transition Probability Matrix
Present No. of
employees Beginning Salesperson Management
of 2020 Operators Clerks s / Exit
Staff
700 Operators 0.80 0 0 0 0.20
150 Clerks 0.10 0.80 0 0 0.10
50 Salespersons 0 0 0.80 0.10 0.10
100 Management / 0 0 0 0.90 0.10
Staff

Solution:

Initial Time-2 Projected Transitions

JOBS Staffing
Levels Job-A Job-B Job-C Job-D Exit

Job- A 700 560 0 0 0 140

Job-B 150 15 120 0 0 15

Job-C 50 0 0 40 5 5

Job-D 100 0 0 0 90 10

Predicted staff by the

575 120 40 95 170
end of the year 2020

Salesperson Management
Operators Clerks / Staff
s
 A. January 2021 predicted Demand 800 111 40 115

B. January 2021 predicted Supply 575 120 40 95

Gap: A ─ B [Indicate Excess of

supply by (+) sign and short supply -225 9 0 -20
by(―) sign]

What manpower discrepancies will exist in 2021, and how will you deal with them for each group
(operators, clerks, sales, management / staff)? Be innovative and suggest several alternative
solutions.

Productivity of operatives = 100000/700 = 142.86

Productivity after 5% increase = 142.86*1.05 = 150
Demand for operative = 120000/150 = 800

Clerk demand = (150/135)*100 = 111.11 or 111

Sales demand = 40

Management/staff
Current ratio = 700/100 = 7
Demand = 800/7= 114.28 or 115

Suggestion

Operatives – Demand of operatives is higher than supply of operatives that means company is
spending less on operatives bue they have to spend more. Company has to either outsource
operatives or train people so they can meet the demand.

Clerks- Demand of clerks is lower than the supply of clerks that means company is bearing extra
cost of those 9 clerks or the clerks are less qualified for the job that’s why they are requiring more
no of clerks.

Salesperson – Salesperson are perfect in number there is no gap between demand and supply.
Hence optimum use by company.

Management/Staff – Demand for management is higher than its supply. Hence company has to
hire more management and spend on it. So that they can meet the demand optimally.