MANPOWER PLANNING - PowerPoint PPT Presentation


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  • Manpower planning is a very important part of the
    overall planning of a business organization. It
    is obvious that a business cannot prosper unless
    the right number of employees, having required
    skills, talents qualifications is available at
    right time.
  • Manpower planning is done to fulfill the two main
    objectives, namely
  • To utilize the present employees fully.
  • To fill up future manpower requirements.

  • The scientific process of allocating the right
    quantity of right men to be required in future at
    right time on the right job.
  • According to James J. Lynch Manpower planning is
    the integration of manpower policies, practices
    procedures so as to achieve the right people in
    the right jobs at the right time.
  • According to Vetter, manpower planning is The
    process by which management determines how the
    organization should move from its current
    manpower position to its desired manpower
    position. Through manpower planning management
    strives to have right number of the right kind
    of people at the right place at right time, doing
    things which result in both the organization
    the individual receiving maximum long term

Types of Manpower planning
  • Types of manpower planning can be distinguished
  • On the basis of the level at which it is done.
  • On the basis of the period for which it is done.
  • Manpower Planning

On the basis of level
On period basis
Short period
Medium period
Long period
(national level)
Unit level)
Manpower Planning
  • In developing country like India, manpower
    planning is absolutely essential. Manpower
    planning is done on the national level as a part
    of the planning for overall economical
    development of the country. The objective is to
    provide more more opportunities of employment,
    while utilizing the human resource of the nation
    most efficient. In India manpower planning is a
    part of overall planning so its
    responsibilities lie with planning commission.
  • Manpower planning at the organizational level is
    also important, because it decides the various
    measures to be taken such as recruitment,
    selection, promotion, transfer etc. by an
    industrial unit. Depending upon the size of the
    industry manpower planning may be done at three
  • At the departmental level.
  • If there are number of branches of the industry
    planning can be done at the level of each
    individual branch of the factory.
  • At the top level, i.e. by the board of directors
    of the company.

Manpower Planning
  • Short term plans are prepared for the period of
    one year. Short term plans are made as a part of
    five year plans at national level. These plans
    are very much useful at company level.
  • Medium term plans are those which are made for 2
    to 5 years. At national level, medium terms plan
    are essentially prepared as a financial planning.
    These plan gives special attention towards
    employment opportunities training development
    of employees.
  • Long term manpower planning is prepared for a
    longer period such as 10 to 15 years. This is
    done at national level. It is important to
    estimate man power needs of a nation and
    accordingly to raise educational and training
    facilities keeping in view long term interest of
    the nation.

Factors affecting Manpower Planning
  • Working Hours
  • Number of shifts
  • Nature of Production
  • Product mix
  • Performance rate
  • Hours lost

Factors affecting Manpower Planning
  • Working Hours - Manpower requirement is directly
    related to the working hours per day by the
    employees. If number of working hours is more,
    then less man power is required and vice versa,
    for e.g. due to complexity in process working
    condition in a chemical plant, instead of eight
    hours per shift worker may be required to work
    for six hours in a shift, so man power planning
    basis will be different in a chemical industry to
    any other industry.
  • Number of shifts - If the factory is running in
    shifts, it should be remembered that production
    falls in night shift.
  • Nature of Production- Ideal time, setting time,
    cycle time etc all varies greatly with the nature
    of production and hence the manpower requirement
    also. In mass production continuous production
    automatic machines are used because of automation
    less manpower will be required as compared to job
    order and batch production system industries.

Factors affecting Manpower Planning
  • Product mix - It means a production program
    based optimum productive capacity and sales
    forecast, this is based optimum utilization of
    human and material resources and also for
    balancing the production line.
  • Performance rate - Performance rate depends upon
    the working conditions, bonus schemes, suitable
    incentive plan, training program, motivation etc.
    If the employees are motivated to do their best,
    their performance rate will be quite more less
    number of workers will be needed.
  • Hours lost- If productive man hours lost are
    less, there available productive hours will be
    more and less manpower will be needed.

Advantage of Manpower Planning
  • Basis of recruitment selection of employees
    Manpower planning provides a basis for recruiting
    new employees considering the future manpower
    needs. As a result, the production any other
    related work does not stop for lack of employees
    of desired skills abilities .
  • To plan the development of employees - The
    present employees can be trained for some higher
    position this gives encouragement to the exiting
    employees intern creates psychological climate
    for motivation
  • Through performance appraisal - Manpower
    planning enables through performance appraisals,
    identification of gaps of existing manpower so
    that corrective training could be imparted. Thus
    the training program becomes more effective.
  • Reduction in personnel costs - It reduces
    personnels cost because the managements ability
    to anticipate shortage or surpluses of manpower
    and correct these imbalances before they become
    unmanageable and expensive.

Advantage of Manpower Planning
  • Manpower Inventory - Personnel or manpower
    inventory can provide information to management
    for the internal succession of managerial
    personnel if there is a turnover which is not
    anticipated.( expected)
  • Greater awareness among employee - It is the
    importance of sound manpower management
    throughout at all levels of organization.
  • Better industrial relations - Information on
    surpluses manpower would facilitate the
    introduction of an exit plan or scheme for
    surplus labour. A systematic approach to deal
    with surplus manpower would check the problem of
    industrial relation.
  • Improvement in business planning process - It
    leads to improvement of business planning
  • Employment opportunities - It provides better
    employment opportunities and identifies the
    specific development training program needed
    today to make specific skills available tomorrow.