Program & Semester: MBA (3rd semester)

Subject name: Manpower Planning and Resourcing

Subject Code: MU0010
Important Question and Answer

MU0010: Question- What are the steps involved in manpower planning? Briefly explain.

MU0010: Answer- According to K. F. Turkman manpower planning can be defined as an attempt to

match the supply of people with the jobs available in an organization. Statistical techniques have been
used to ascertain the supply of people with the jobs available.
Bruce Coleman has defi ed a power pla i g as the process of deter i i g a power
requirements and the means for meeting those requirements in order to carry out the integrated plan
of the orga izatio .
Manpower planning managers need to estimate the total number of manpower required for each
position or job role correctly. Manpower planning managers need to estimate the requirement as close
to reality as possible and also ensure hiring for the job role requirements in the shortest possible time so
that the business is not impacted negatively due to the shortage or absence of resources.
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 five steps in the manpower planning process are:

1. Evaluate present manpower inventory
2. Manpower forecasting
3. Develop a manpower sourcing plan or retrenchment plan
4. Manpower allocation
5. Building requisite competencies

1. Evaluate Present Manpower Inventory

It is very important to evaluate the present manpower status before making a forecast for future
manpower planning. To evaluate the present manpower status a department level analysis and a job-
role analysis is conducted to arrive at the required manpower versus the available manpower. This is
accumulated across the organization at different levels and departments. The final report is then
consolidated and the required manpower versus the available manpower is stated in terms of the
quantitative analysis. Another analysis on the qualitative side similarly shows the competencies required
versus competencies available for each of the job roles. This provides the present manpower inventory.
There may be excess or deficit or in extremely few cases just the right number quantitatively. The report
on the qualitative front may rarely have a 100% match between required competencies versus available
competencies.
2. Manpower Forecasting
Manpower planning is done based on the manpower forecasts. The common manpower forecasting
techniques are:
 Expert Forecasts: This includes formal expert surveys, informal decisions and the Delphi technique.
 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
 Work Load Evaluation: This depends on the nature of the work load in a branch, department, or a
division in a firm or organization.
 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.
 Other Methods: A few mathematical models with the help of computers are also used to forecast
manpower needs.
3. Develop a Manpower Sourcing Plan or Retrenchment Plan
Once the current inventory is compared with the future manpower forecasts then the manpower
sourcing or retrenchment plan is drawn.
The sourcing plan includes recruitment, selection, placement, hiring temporary staff and outsourcing.
The retrenchment plan involves sending show-cause notices to bottom performers called bottom
scraping, asking people to leave the organization by providing the requisite severance allowance,
allowing employees to go on a sabbatical and finally out-placing employees in other organizations to
reduce the manpower. It is harder to retrench manpower. The need for retrenchment could also be
minimized by very objectively approving any additional manpower.
4. Manpower Allocation & Retention
Manpower allocation helps in managing the impact of deficits and excess in manpower supply through
promotions, transfers and job-rotations. Enhancing manpower utilization requires managing the
dynamics of leadership and motivation.
Manpower retention would mean taking necessary steps to ensure that the organization provides a
conducive-atmosphere to the employees to perform and keep each employee engaged.
5. Building Requisite Competencies
Once the future manpower forecasts are compared to the current inventory, there may be some gaps in
competencies amongst the available internal resources for 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 that the 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.
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