17 Man Power Planning

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Objectives :

 

This module will enable the learner to

 

· Compile the concepts and processes of man power planning in an organisation

·Understand the demand and supply forecasts of the man power in the hotels

 

1.      Introduction

 

Man power planning or Human resource planning are synonymous. Human resource planning determines the human resource needs of the whole enterprise and its every department for a given future period for the various operations envisaged in connection with the accomplishment of the organizational objectives and departmental goals. Human resource planning is the predetermination of the future course of action for procuring, developing and separating the human elements of the enterprise. It incorporates all human beings at all stages in the organisation. It is essentially concerned with the process of estimating and projecting the supply and demand for different categories of personnel in the organisation for the years to come.

 

In the early days of industrialization, managers rarely had to think ahead about the number ad kind of people required to get the work done. The origin of man power planning, the predecessor of modern HR planning predates to the beginnings of the twentieth century management theory. The issue was raised by French man Henry Fayol. His famous fourteen points for management are still considered valid today. One point namely the stability of tenure of personnel points out the need of the administrators to bear responsibility to plan for human resources ensuring that human and material organisation is consistent with the objectives, resources and requirements of enterprises.

 

A deep recession in late 1950’s sparkled the need for a new way of thinking about management and people were increasingly viewed as assets – human resources that could be either developed or wasted.

 

2. Definition

 

Eric Vetter has defined manpower planning as the “process by which management determines how the organisation should move from its current manpower position to its desired manpower position. Through planning, the management strives to have the right number and the right kind of people at the right places, and at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefit.

 

Personnel planning involves an accurate determination of the present and future manpower needs of the enterprise and exploration of the sources to meet the same.

 

3.   Objectives of Manpower Planning

 

The following are the objectives of manpower planning:

1.    Determination of future recruitment and selection needs.

2.    Assessment of future skill requirements.

3.    Determination of future training and management development needs.

4.    Anticipation of surplus staff and avoidance of unnecessary dismissals.

5.    Control of wage and salary costs.

6.    Ensuring optimum utilization of human resources.

 

4.   Elements of Personnel planning

 

Personnel planning comprises

 

(1) Assessment of the present manpower position or human resources audit;

(2) Assessment of the future prospects, ie., its immediate and long-range objectives and plans;

(3) Consideration of the effects of these objectives and plans on the future demand and supply of personnel; and

(4) Balancing of the demand and supply of personnel to avoid any excess or shortage of personnel.

 

4.1 Present manpower position or human resource audit

 

An assessment of the present manpower position will call for

(a)  an analysis of the employees currently working in the enterprise; and

(b)  an evaluation of the jobs being done by them.

 

Collection of particulars such as name, age, educational qualification, training, experience, and specialized skills of the employees presently available to the enterprise. These particulars would also show whether there is over-staffing or under-staffing in the enterprise, as also the number and time of replacement to be arranged upon retirement or death of the existing employees.

 

Analysis or evaluation of the jobs being performed by the present employees, will highlight–

 

(a) the nature of work done by each worker;

(b) the method employed by him to do it;

(c) the rationale of doing it as such;

(d) the skills, education and training required to perform the work;

(e) how this particular job is related to other jobs; and

(f) what physical and environmental conditions need to be created for proper performance of the job.

 

4.2. Future prospects

 

Assessment of the direction of the enterprise will call for a careful analysis of the objectives and plans of the enterprise for the immediate and distant future. Such analysis will naturally be based on

(a)    the extent and type of anticipated production; and (b) any likely changes in methods which may affect the content of the work-force.

 

4.3. Future personnel demand and supply

 

Analysis of the future personnel demand will take into account the extent of anticipated demand; nature of production methods ; and the extent of decrease in work force due to deaths, retirements, dismissals, resignations, etc. Future demand is sought to be met by means of internal and external sources.

 

4.4 Balancing the demand and supply of personnel

 

While an enterprise may not be in a position to do anything about any increase or decrease in external personnel supply, it can certainly benefit by anticipating it and relating it to its own future requirements of personnel.

 

Whether the forecast indicates shortage or surplus of personnel, the basic purpose of personnel planning is to ensure that there is always a proper balance between the numbers, skills, kinds, and quality of personnel employed by the enterprise.

 

5.  Process in Manpower planning

 

With the expansion of the enterprise, adoption of complex technology and professional management techniques, the process of human resource planning has assumed great significance. It consists of the following stages

 

1. Analysing organizational plans and deciding objectives

2.Analysing factors for manpower requirements

a. Demand forecasting : Forecasting the overall human resource requirements in accordance with organizational plans

b. Supply forecasting :Obtaining the data and information about the present inventory of human resources and forecasting the future changes in present human resource inventory

 

3.      Developing employment plans

4.      Developing human resource plans

 

5.1 Analysing organizational plans and deciding objectives

 

The process of human resource planning of an organisation should start with analyzing the organizational plan. Analysis of organizational plans and programmes help in forecasting the demand for human resource as it provides the quantum of future work activity. The ultimate mission or purpose is to relate future human resources to future enterprise needs so as to maximize the future returns on investment in human resources. The business plan would be a blue print of desired objectives.

 

This objective stated in economic terms would incorporate the growth rate of the enterprise, diversification plans, market opportunities and government policies. Therefore man power planning should meet two requirements.

 

a. It should be directly related to essential nature of the organisation

b. The changes in the selected factors should be proportional to change in the human resources required in the organisation

 

5.2  Analysing factors for manpower requirements

 

The existing job design and analysis may thoroughly be reviewed keeping in view the future capabilities, knowledge and skills of present employees. The job generally should be designed and analysed reflecting the human resources and based on future organizational plans. The factor for manpower requirements can be analysed by two ways comprising demand forecasting and supply forecasting.

 

5.2.1 Demand forecasting

 

Demand forecasting is the process of estimating the future requirements of manpower by function and level of skills. It has been observed that demand assessment for operative personnel is not a problem but projections are difficult. Two kinds of forecasting techniques commonly used are

 

1.   Judgemental forecasts

2.   Statistical projections

 

5.2.1 Judgemental forecasts : judgemental forecasts are conventional methods that involve judgement of those managers and executives who have intensive and extensive knowledge of human resource requirements. It is of two types

 

5.2.1.1 Managerial Estimate : The manages or supervisors who are well experienced with workload, efficiency and ability of employees and decide on the number and type of human resources.

 

5.2.1.2 Delphi method:A survey approach can be adopted with the Delphi technique. The Delphi process requires a large number of experts who take turns to present their forecast statement with possible assumptions.

 

5.2.3  Statistical projections

 

Some forecasting techniques are based on statistical methods such as ratio trend analysis, Econometric model and work study techniques.

 

Ratio trend Analysis : This is carried out by studying past ratios and forecasting ratios for the future. The components of the internal and environmental changes are considered while forecasting future ratios.

Econometric Model : The previous data is analysed and the relationship between different variables in a mathematical formula is developed. The mathematical formula developed is applied to forecast of movements in the identified variables to produce manpower requirements.

Work Study Technique : These are generally used to study work measurement. Under the workload analysis, the future workload is analysed and is suitable when the work load is measurable. The work study technique takes into account the productivity pattern for the present and the future, internal mobility of the workers like promotion, transfer, external mobility of the employees like retirement, deaths and voluntary retirements.

 

5.2.2 Supply Forecasting : Supply forecasting is concerned with human requirements from within and outside the organisation. The first step is to forecast the future supply of human resource and obtain the present human resource inventory. The supply forecasting includes human resource audit , employee wastage, changes due to internal promotion and working conditions. The steps are discussed in the following

 

1.Human Resource Audit : The first step includes analysis of each employee’s skills and abilities. This analysis facilitates the human resource planners with the understanding of the available skills and abilities of the employees. These job inventories must be updated periodically in order to avoid employees being ignored for job openings within the organisation.

 

2.Employee Wastage : The second Step is estimation of future losses of human resources of each department and the entire organisation. This is done to identify the employees who leave the organisation and to forecast future losses likely to occur such as retirements, layoff, dismissal, disablement, ill health and death. Reasons for high labour turn over, absenteeism should be analysed and remedial measures need to be taken.

 

3.Internal promotions and working conditions: Analysis is undertaken regarding the vacancies likely due to retirements and transfers and the employees of particular groups and categories which are likely to be promoted.

 

5.3 Developing employment plans

 

After determining the number of personnel for each job in the organisation, the human resource department has to determine the nature of the job, job description and job specification. A job description will generally describe the work performed, the responsibilities involved, the skill or training required conditions under which the job is done, relationship with other jobs and personal requirements on the job. The job specification is an output of job description. It states the minimum acceptable qualifications that the newcomer must possess to perform the job satisfactorily and successfully.

 

5.4  Developing a Human resource Plan

 

Net human resource requirements in terms of number and components are to be determined in relation to overall human resource requirement. After determining supply and demand of the employees, the management starts adjustment. When the internal supply of the employees is more than the demand, human resource surplus exists. And he external recruitment is stopped. Besides this, the existing employees are encouraged to take voluntary retirement. . It gradually reduces surplus. If human resource deficit exists then the planners have to rely on the external source of recruitment.

 

6. Guidelines for making manpower planning effective :

 

Some of the steps that may be taken to improve the effectiveness of manpower planning are

 

1. Objectives : The human resource plan must sit with the overall objectives of the organisation. Important aspects such as working conditions and human relationships must be kept in mind while developing the plans

2. Top management support : The plan must meet the changing needs of the organisation and should enjoy consistent support from top management. The support and commitment from the top management and limits of the budget should be considered.

 

3. Appropriate time horizon : The period of a human resource plan should be appropriate to the need and circumstances of the specific enterprise. The size and structure of the enterprise as well as changing aspirations of the employees should be taken in to consideration.

 

4. Man power inventory : The quantity and quality of human resources should be stressed in a balanced manner. The emphasis should be on filling future vacancies with the right people rather than merely matching existing people with existing jobs. The organisation should maintain job inventory and have an updated employee skill inventory. The upward mobility of the existing staff needs to be considered carefully.

 

5.Human Resource Information Systems ( HRIS) : An adequate database should be developed for human resource planning. It has now become part of large organisation and is a computerized system that aids in the processing of information relating to man power planning. It contains data on individuals, demographics, career progression appraisals, skills, interests, training, target positions, geographic preferences and ratings

 

6.Adequate Organisation and Co ordination : Man power planning function should be properly organized. A separate planning division must be created to coordinate man power planning exercise at various levels. The various plans such as procurement, promotion and retention of human resources in an optimal manner should be envisaged by filling future vacancies with right people

 

7.Benefits of Manpower planning

 

Manpower planning has gained wide recognition as a reliable tool for effective human resource management. In recent times, even the medium and small organisations have realized the critical role of human resource planning in goal accomplishment and cost reduction.

  • Human resource planning helps the organisations in utilizing human resources better through effective planning and timely execution
  • It assists the organisations in anticipating the future trends in the demand and supply of labour
  • It replaces the haphazard and thumb rule approaches towards human resource management with a well planned, systematic and scientific approach.
  • It forms the basis for al Human resource activities including recruitment, training, performance appraisal, compensation fixation and employee retention.
  • Human resource plans are capable of serving both long term and short term HR requirements of the organisation.
  • It facilitates industrial relations by information sharing between the management and labour unions.
  • It helps the organisation in determining the career growth of each employee in a systematic manner.
  • It helps the organisation in creating and maintaining a satisfied , well trained and skillful work force.
  1. Limitations of Manpower planning
  • The projection of manpower requirements against demand and supply may be risky and inaccurate
  • Technological changes and market fluctuations are uncertain
  • Lack of support from management
  • Human resource planning mainly considers the quantitative aspect and ignores the qualitative aspects such as motivation, career prospects, training and so on
  • Employees resistance exists and they feel that it increases work load
  • Employers also do feel human resource planning increases the cost of manpower.
  • Man power planning is a time consuming and expensive exercise
  • Inefficient information systems with absence of reliable data will fail to develop effective human resource plans
  1. Barriers to manpower planning process

Although many organisations have shown keen interest in the implementation of manpower planning, there are certain problems and these are listed below :

  • Insufficient realization of the importance to HR plans
  • Surplus conditions in the labour market
  • Labour union resistence
  • Cost – benefit misconceptions
  • Absence of coordination
  • Future uncertainty

 

Conclusion

 

Manpower planning is hence considered as the process of identifying and then matching the human resource requirements and availability in order to determine the future demand on the basis of organizational activities.

 

you can view video on Man Power Planning

 

Web references

 

 

Book References

 

  1. William J. Rothwell and H.C. Kazanas, 2006, Planning and Managing Human Resources, 2nd edition, Jaico Publishing house, Delhi
  2. Aquinas P G, 2009, Human Resource Management Pricniples and Practice, Vikas Publishing House Pvt ltd, New Delhi
  3. Pravin Durai, 2010, Human Resource Management, Pearson Publications, New Delhi
  4. Jill Dyche, 2003, The CRM handbook, Pearson Publications, New Delhi