Manpower Planning

Manpower Planning which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things for which they are suited for
the achievement of goals of the organization. Human Resource Planning has got an important place in
the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out
in a set procedure. The procedure is as follows:
1. Analysing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment programmes
4. Design training programmes
Steps in Manpower Planning
1. Analysing the current manpower inventory- Before a manager makes forecast of future
manpower, the current manpower status has to be analysed. For this the following things have
to be noted

Type of organization

Number of departments

Number and quantity of such departments

Employees in these work units

Once these factors are registered by a manager, he goes for the future forecasting.

2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts
are known, planning can be done for the future manpower requirements in several work units.
The Manpower forecasting techniques commonly employed by the organizations are as follows:
i.

Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.

ii.

Trend Analysis: Manpower needs can be projected through extrapolation (projecting

past trends), indexation (using base year as basis), and statistical analysis (central
tendency measure).

iii.

Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.

iv.

Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.

v.

Other methods: Several Mathematical models, with the aid of computers are used to
forecast manpower needs, like budget and planning analysis, regression, new venture
analysis.

3. Developing employment programmes- Once the current inventory is compared with future
forecasts, the employment programmes can be framed and developed accordingly, which will
include recruitment, selection procedures and placement plans.
4. Design training programmes- These will be based upon extent of diversification, expansion
plans, development programmes,etc. Training programmes depend upon the extent of
improvement in technology and advancement to take place. It is also done to improve upon the
skills, capabilities, knowledge of the workers.
Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing
and controlling are based upon the manpower. Human resources help in the implementation of all
these managerial activities. Therefore, staffing becomes a key to all managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important function in the
industrialization world of today. Seting of large scale enterprises require management of large
scale manpower. It can be effectively done through staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises
of motivational programmes, i.e., incentive plans to be framed for further participation and
employment of employees in a concern. Therefore, all types of incentive plans becomes an
integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and are strong.
Human relations become strong trough effective control, clear communication, effective
supervision and leadership in a concern. Staffing function also looks after training and
development of the work force which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best possible
manner. higher productivity is a result of minimum wastage of time, money, efforts and energies.
This is possible through the staffing and it's related activities ( Performance appraisal, training
and development, remuneration)
Need of Manpower Planning
Manpower Planning is a two-phased process because manpower planning not only analyses the current
human resources but also makes manpower forecasts and thereby draw employment programmes.
Manpower Planning is advantageous to firm in following manner:
1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing
can be avoided.

4. It also helps to identify the available talents in a concern and accordingly training programmes
can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning, human resources
can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which ultimately
helps in the stability of a concern.

Manpower Planning: its Definition, Process and Affected Factors | HRM

by Smriti Chand Employee Management
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Manpower Planning: its Definition, Process and Affected Factors!

According to Gorden MacBeath, manpower planning involves two stages.The first stage is concerned with
the detailed planning of manpower requirements for all types and levels of employees throughout the
period of the plan, and the second stage is concerned with planning of manpower supplies to provide
the organisation with the right types of people from all sources to meet the planned requirements.
According to Vetter, the process by which management determines how the organisation should move
from its current manpower position to its desired manpower position. Through planning, management
strives to have the right number and the right kinds of people, at the right places, at the right time, doing
things which result in both the organisation and the individual receiving maximum long-run benefit.
Coleman has defined human resource or manpower planning as the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated plan of
the organisation.
Stainer defines manpower planning as Strategy for the acquisition, utilisation, improvement, and
preservation of an enterprises human resources. It relates to establishing job specifications or the
quantitative requirements of jobs determining the number of personnel required and developing sources
of manpower.
According to Wickstrom, human resource planning consists of a series of activities, viz:
(a) Forecasting future manpower requirements, either in terms of mathematical projections of trends in
the economic environment and development in industry, or in terms of judgmental estimates based upon
the specific future plans of a company;
(b) Making an inventory of present manpower resources and assessing the extent to which these
resources are employed optimally;

(c) Anticipating manpower problems by projecting present resources into the future and comparing them
with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and
(d) Planning the necessary programmes of requirement, selection, training, development, utilization,
transfer, promotion, motivation and compensation to ensure that future manpower requirements are
properly met.
According to Geisler, manpower planning is the processincluding forecasting, developing and
controllingby which a firm ensures that it has the right number of people and the right kind of people at
the right places at the right time doing work for which they are economically most useful.
Process of Manpower Planning:
The planning process is one of the most crucial, complex and continuing managerial functions which,
according to the Tata Electrical Locomotive Company, embraces organisation development, managerial
development, career planning and succession planning. The process has gained importance in India with
the increase in the size of business enterprises, complex production technology, and the adoption of
professional management technique.
It may be rightly regarded as a multi-step process, including various issues, such as:
(A) Deciding goals or objectives
(B) Auditing of the internal resources
(C) Formulation of the recruitment plan
(D) Estimating future organisational structure and manpower requirements
(E) Developing a human resource plan
A. Deciding Goals or Objectives:
The business objectives have been determined; planning of manpower resources has to be fully
integrated into the financial planning. It becomes necessary to determine how the human resources can
be organised to achieve these objectives.
For this purpose, a detailed organisation chart is drawn and the management of the company tries to
determine how many people, at what level, at what positions and with what kind of experience and
training would be required to meet the business objectives during the planning period. The management
of this company considers a time 5 pan of five years as an optimum period for this purpose.
It stresses the specific and standard occupational nomenclature must be used without which it would not
be possible to build a firm-cum-industry-wise manpower resources planning. It suggests the adoption for
this purpose of the international coding of occupations. For a sound manpower planning it considers as a
prerequisite the preparation of a manual of job classification and job description with specific reference to
individual jobs to be performed.

B. Audit of the Internal Resources:

The next step consists of an audit of the internal resources. A systematic review of the internal resources
would indicate persons within the organisations who possesses different or higher levels of
responsibilities. Thus it becomes necessary to integrate into the manpower planning process a sound
system of performance appraisal as well as appraisal of potential of existing employees.
C. Formulation of the Recruitment Plan:
A detailed survey of the internal manpower resources can ultimately lead to as assessment of the deficit
or surplus of personnel for the different levels during the planned period. Whilst arriving at the final
figures, it is necessary to take into account the actual retirements and estimated loss due to death, ill
health and turnover, based on past experience and future outlook in relation to companys expansion and
future growth patterns.
D. Estimating Future Organisational Structure and Manpower Requirements:
The management must estimate the structure of the organisation at a given point of time. For this
estimate, the number and type of employees needed have to be determined. Many environmental factors
affect this determination. They include business forecast, expansion and growth, design and structural
changes, management philosophy, government policy, product and human skills mix, and competition.
E. Developing of Human Resource Plan:
This step refers to the development and implementation of the human resource plan, which consists in
finding out the sources of labour supply with a view to making an effective use of these sources. The first
thing, therefore, is to decide on the policy should the personnel be hired from within through
promotional channels or should it be obtained from an outside source.
The best policy which is followed by most organisations is to fill up higher vacancies by promotion and
lower level positions by recruitment from the labour market. The market is a geographical area from which
employers recruit their work force and labour seeks employment.
Factors Affecting Manpower Planning:
Manpower planning exercise is not an easy tube because it is imposed by various factors such
as:
1. It suffers from inaccuracy because it is very difficult to forecast long-range requirements of personnel.
2. Manpower planning depends basically on organisation planning. Overall planning is itself is a difficult
task because of changes in economic conditions, which make long term manpower planning difficult.
3. It is difficult to forecast about the personnel with the organisation at a future date. While vacancies
caused by retirements can be predicted accurately other factors like resignation, deaths are difficult to
forecast.
4. Lack of top management support also frustrates those in charge of manpower planning because in the
absence of top management support, the system does not work properly.

5. The problem of forecast becomes more occur in the context of key personnel because their
replacement cannot be arranged in short period of time.
Moreover any system requires the support of top management and manpower planning is no exception to
this.

https://www3.nd.edu/~jeff/Teaching/ESTM60203/Lectures/Lecture_02.pdf

Refinery operation planning is a complex task since refinery processes and inventories are tightly
interconnected. We study refinery planning when ships are loaded with a blend of components and where
arrival times of ships are uncertain. Any delay in ship arrival may result in overfull component tanks which
results in less efficient blending alternatives, reduced process operations or even shut downs. We
propose a planning approach where we use robust optimization as a decision tool. By using robust
optimization uncertainty in arrival times is explicitly dealt with and the resulting plan and schedule will
always be feasible. The approach includes a flexible way to describe and model uncertainties. To
compare the robust approach with a traditional deterministic approach, we use a simulation process.
Computational results from a case study and simulations show that the proposed methodology is
substantially better than a deterministic approach.

PROCUREMENT PLANNING IN OIL REFINING INDUSTRIES CONSIDERING BLENDING

OPERATIONS The crude oil procurement process is an important step in an oil supply chain,
since it has significant impact on the profitability of a refinery as well as finished product
quality and quantity. However, procurement decisions are difficult because numerous
constraints arising from the complex refinery operations must be taken into account. At

most oil refineries, procurement decisions are nonetheless made without any software
support. The procurement planner, who is responsible for purchasing, uses years of
experience to choose from different alternatives. Due to the manual nature of the approach,
this is a time consuming process making it hard to quickly respond to sudden market
changes. The main contribution of this paper is to address the problem of procurement
planning, which has until now only had limited attention in the literature. We introduce a
mixed integer nonlinear programming (MINLP) model and develop a novel two-stage solution
approach, which aims at computational efficiency while addressing the problems due to
discrepancies between a nonlinear and a linearized formulation. The proposed model aims to
cover realistic settings by allowing the blending of crude oil in storage tanks, by modeling
storage tanks and relevant processing units individually, and by handling more crude oil
types and quality parameters than in previous literature. The developed approach is tested
using historical data from Statoil A/S for which the practical applicability is illustrated. The
approach generates a feasible 90-day procurement plan from scratch within a few minutes
of CPU time, is able to quickly adjust an existing plan to take advantage of individual
procurement opportunities, and can be used within a rolling time horizon scheme. The
developed solution approach is tested through a comprehensive numerical analysis, in which
its ability to solve industrial-sized problems within acceptable computation time is
demonstrated

Publishedas:Oddsdottir,T.A.;Grunow,M.;Akkerman,R.(2013)Procurement
planninginoilrefiningindustriesconsideringblendingoperations.
Computers&ChemicalEngineering
,Vol.58,pp.1-13.37
The approach can be extended. Currently the costs of inventory are not considered,
which potentially leads to higher inventory levels. On the other hand, minimizing inventory levels mightresult in an
increased vulnerability to supply disruptions, as was discussed in Zhang et al. (2012).Other potential modifications
to the approach include allowing variable shipment sizes. Also, thefeasibility of the solution approach could be
further studied. A way to guarantee feasibility would be to add a loop to the solution algorithm. A
potential algorithm design could for instance be similar to the backtracking algorithm Li al. (2007) developed for
the crude scheduling model. However,there was no necessity for this in the numerical tests we conducted.The model
presented in this paper is designed for decision support for procurement planners. For the model to be fully
functional, it has to be implemented in a decision support tool that isaccessible and useable for planners and refinery
managers. This often also includes organizationalchanges, and is future work that the authors have already started.
Acknowledgements
We gratefully acknowledge our collaboration partners at Statoil A/S for providing usefulinformation and support
regarding this work. We would also like to thank Kasper B. Kallestrup andLasse H. Lynge for contributing to this
work.
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Publishedas:Oddsdottir,T.A.;Grunow,M.;Akkerman,R.(2013)Procurement
planninginoilrefiningindustriesconsideringblendingoperations.
Computers&ChemicalEngineering
,Vol.58,pp.1-13.38
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