LESSON 6
MANPOWER PLANNING
CONTENTS
6.0 Aims and Objectives
6.1 Introduction
6.1.1 Definition
6.1.2 Features of HRP
6.2 HRP Concepts
6.2.1 Defining Future Personnel Need
6.2.2 Coping with Changes
6.2.3 Providing Base for Developing Talents
6.2.4 High Cost of Investment in HR
6.2.5 Creating Involvement of Top Management in HRM
6.2.6 HRP and Responsibilities Involved
6.3 HRP Process
6.4 Organisational Objectives
6.4.1 Human Resource Planning
6.4.2 Identification of HR Group
6.4.3 Action Plans
6.5 HRP Techniques
6.5.1 Managerial Judgement Method
6.5.2 Delphi Technique
6.5.3 Work Study Technique
6.5.4 Ratio – Trend Analysis
6.5.5 Statistical and Mathematical Models
6.5.6 Forecasting of HR Supply
6.5.7 Identification of Human Resource Gap
6.6 Short Term and Long Term Planning
6.6.1 Short Term Human Resource Planning
6.6.2 Long Term Human Resource planning
6.7 Factors of HR Planning
6.7.1 Government Influence
6.7.2 Social Factors
6.7.3 Economic Factors
6.7.4 Technological Change
6.8 Principles of Effective HR Planning
6.9 Let us Sum Up
6.10 Lesson End Activity
6.11 Key Words
6.12 Questions for Discussion
6.13 References
6.0 AIMS AND OBJECTIVES
After reading this lesson you should be able to:
Understand human resource planning (HRP) or
manpower planning,
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Management
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Know to define features, concept, process and
techniques of HRP,
Detail short-term and long term HR planning and
Describe the factors and principles of effective HR
planning.
6.1 INTRODUCTION
Human resource planning (HRP) or manpower planning is of
great important in the general development and growth of
organizations. Thus personnel and HR experts, managers and
practitioners have now made it known to management that adequate
attention be given to it with a view to ensuring better use of other
resources especially capital. Organisations have also realized that
with increasing competition and complexity in business, more time
should be devoted to effective human resources planning to achieve
desired goals. Furthermore organisations have known that not only
is the overall cost of human resources high, that human element is
complex, unpredictable and sometimes difficult to develop or change
unlike capital that is relatively easier to acquire, manager or control.
6.1.1 Definition
According to Geisler, “Manpower planning (or human resource
planning) is the process – including forecasting, developing,
implementing and controlling, by which a firm ensures that it has the
right number of people and right kind of people, at the right place, at the
right time, doing things for which they are economically most suitable”.
Decenzo and Robbins have defined HRP as “specifically,
human resource planning is the process by which an organisation
ensures that it has the right number and kind of people, at the right
place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organisation achieve its
overall objectives”.
Leap and Crino have defined HRP as “Human Resource
Planning that includes the estimation of how many qualified people
are necessary to carry out the assigned activities, how many people
will be available, and what, if anything, must be done to ensure that
personnel supply equals personnel demand at the appropriate point
in the future.”
6.1.2 Features of HRP
From the above definitions the following features of HRP can
be identified.
i. HRP is a process which includes various aspects through
which an organization tries to ensure that right people, at
right place and at right time are available.
ii. It involves determination of future needs of manpower in
the light of organizational planning and structure.
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Determination of manpower needs in advance, facilitates
managements to take up necessary actions.
iii. It does take into account the manpower availability at a
future point in the organization. Therefore, it indicates
what actions can be taken to make existing manpower
suitable for future managerial positions and how gap
between needed and available manpower can be fulfilled.
6.2 HRP CONCEPT
HRP is of primary nature and it precedes all other HRM
functions. Without HRP no other function can be undertaken in any
meaningful way. HRP contributes in the following ways in managing
resources in an organization:
6.2.1 Defining Future Personnel Need
Planning defines future personnel need and this becomes the
basis of recruiting and developing personnel. In its absence, there is
likelihood of mismatch between personnel needed and personnel
available.
6.2.2 Coping with Changes
In the Indian and international business arena, fast changes
are taking place.
Liberalization of economy has brought vast changes in India.
At the international level, there is growing global competition. Every
organization is trying to compete on the basis of technology and
managerial talents. In this war, only those companies will survive
which adopt a formal, meticulous HRP. Change in technology has
attached more premium to knowledge and skills resulting into
surplus manpower in some areas and shortage in other areas. HRP
helps in creating a balance in such a situation because manpower
needs and availability could be identified much in advance.
6.2.3 Providing Base for Developing Talents
Jobs are becoming more and more knowledge oriented. This
has resulted into changed profile of manpower. Therefore, an
organization must be ready to face such as eventuality by taking
proper HRP.
6.2.4 High Cost of Investment in HR
The cost of acquiring, developing and retaining personnel is
increasing much faster than the average rate of inflation. This
increasing cost may be taken care of by proper HRP which provides
the way for effective utilization of such talents. In fact, such a high
cost has forced many companies to have a relook at their HRM
Human Resource
Management
functions and particularly HRP and to align these with new
situations.
6.2.5 Creating Involvement of Top Management in HRM
Systematic HRP forces top management of an organization
to participate actively in total HRM functions, an area that has been
neglected by most of the companies until recently.
6.2.6 HRP and Responsibilities Involved
Formulation of human resource plans in a shared task
between top management, line managers and HR department. Top
management is involved in HRP process because ultimately, it
approves various plans to the organisation as a whole.
According to Udai Pareek, “it is the top management
responsibility to project shared vision and strategic plans of the
organization into long-term vision and short-term goals. The
projected vision and plans are then translated into human resource
requirements for their respective departments by the managers.
Detailed analysis of required competencies in terms of levels and
numbers are developed by personnel department.
6.3 HRP PROCESS
