Learning objectives

The features and importance of HR

Planning
The factors affecting Manpower
planning
The Manpower Planning Process
Barriers of Man power Planning Process
MANPOWER PLANNING
HRP
 DEFINITION “Human Resource planning is concerned with
the flow of people into, through, and out of an
organization”. “Human Resource Planning is a both a
process and set of plans. It is how organization accesses
the future supply of and demand for human resources. In
addition, an effective Human Resource plan also provides
mechanisms to eliminate any gaps that may exist
between supply and demand. Thus Human Resource
planning determines the numbers and types of
employees to be recruited in to the organization or
phased out of it”. “Human Resource Planning is the
process of forecasting a firm’s future demand for, and
supply of, the right type of people in the right number.”
Manpower Planning
Manpower planning or HRP is the
forecasting of the organization’s future
demand for, and supply of, the right type of
people in the right number.

It translates the organization’s

objectives and plans into the
number of workers needed to
meet those objectives
Features of Manpower Planning
 Forward Looking
 In sync with organizational needs
 In tune with corporate plan
 Proactive
 Get qualified people at the right time
 Forecast Personnel Requirements
 Cope with changes
 Use existing manpower productively
 Promote employees in a systematic manner.
Integrating business and
resourcing strategies
 Numbers required in relation to projected activity levels;

 Skills required on the basis of technological and product/market

developments and strategies to enhance quality or reduce costs;

 The impact of organizational restructuring as a result of rationalization,

decentralization.

 Delayering, mergers, product or market development, or the

introduction of new technology – for example, cellular manufacturing;

 Plans for changing the culture of the organization in such areas as ability
to deliver, performance standards, quality, customer service, team
working and

 Flexibility which indicate the need for people with different attitudes,
beliefs and personal characteristics.
Importance of Manpower Planning
 Helps decide future personnel needs
 It is a part of strategic planning – prepare people for
future.
 Reservoir of talent. Helps in creating a pool of highly
talented personnel
 Helps in identification of areas with surplus & shortage
of personnel
 It sets the foundation for personnel functions
 Helps in succession planning
 Increasing investments in human resources
 Cut costs
 Expand or contract
Levels of HRP
 NATIONAL LEVEL
◦ at govt level & covers factors like population projection, programme
of economic development educational facilities, occupational
distribution and growth industrial & mobility of personnel.
 SECTOR LEVEL
◦ central or state govt and may cover manpower needs of agricultural,
industrial and service sector.
 INDUSTRY LEVEL
– manpower forecast for specific industries eg. Engineering,
heavy industries consumer goods, public utility services etc
 UNIT LEVEL
- estimation of human resources needs of an organization
or a company based upon corporate plan.
 DEPARTMENT LEVEL – at each dept level.
 JOB LEVEL – particular job family within a department.
Factors Affecting Manpower Strategy

Organisatio
nal Growth
Cycle &
Planning
Environmen
Type & tal
Strategy of
organisation Uncertaintie
s

Manpowe
r
Planning
Time
Outsourcing
Horizons

Type &
Quality of Labor
forecasting Market
information
Factors (contd)
 Type and strategy of organization: Manpower planning can
be proactive or reactive

 Organizational Growth cycles & Planning:

◦ Embryonic Stage: No personnel planning
◦ Maturity Stage: More formal, less flexible and innovative
◦ Declining Stage: Planning done for layoff, retrenchment & retirement.

 Environmental Uncertainties: Political, social & legal

environment

 Time Horizons: Short-term & Long-term plans

Factors (contd)
 Type and quality of forecasting Information

 Labour Market: It includes people with skills &

abilities that can be tapped as and when the need
arises.

 Outsourcing: HRP is rarely required when

outsourcing is present.
HRP Process –Personnel needs,assessing personnel
supply and matching demand supply factors

Organisational Objectives

HR Needs Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control & Evaluation

Surplus - Restricted Hiring, Shortage - Recruitment &

Lay Off, VRS, Reduced Hours Selection
Barriers to HRP
 Mindset of people towards HRP
 Lack of expertise in managing business-experts in
personnel matters.
 HR information often is incompatible with the
information used in strategy formulation.
 Conflicts between short-term & long-term HR needs
 No balance between quantitative & qualitative
approaches to HRP.
 Non-involvement of operating managers renders
HRP ineffective.