Commitment Manpower Planning

Commitment Manpower Planning (CMP)

A systematic approach to human resource planning designed to get managers and their
subordinates thinking about and involved in human resource planning.
Commitment manpower planning (CMP)is a relatively recent approach to human resource
planning designed to get managers and their employees thinking about and involved in HRP.In
addition to encouraging managers and employees to think about human resource planning, CMP
provides a systematic approach to human resource planning.CMP generates three reports that
supply the following information:
1. the supply of employees and the promotability and placement status of each;
2. the organizations demand, arising from new positions and turnover and projected vacancies
for each job title; and
3. the balance or status of supply versus demand, including the name, job, and location of all
those suitable for promotions.

Steps in Manpower Planning

1. Analyzing the current manpower inventory- Before a manager makes forecast of future
manpower, the current manpower status has to be analyzed. 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.
ii.

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

3.

4.

Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.
Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
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.
Developing employment programs- Once the current inventory is compared with future
forecasts, the employment programs can be framed and developed accordingly, which will
include recruitment, selection procedures and placement plans.
Design training programs- These will be based upon extent of diversification, expansion
plans, development programs, etc. Training programs 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 personnel becomes an important function
in the industrialization world of today. Setting 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 programs, 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
programs. 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 programs are based on manpower planning.
3. It also helps to reduce the labor 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
programs 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.

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 organization 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 organization 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.

Reasons for Manpower Planning

Forestalling shortage of workers

Ensuring sufficient skill pool
Employee career development
Succession planning
Boost human capacity utilization
Development of effective attraction and retention systems
Build up highly skilled and flexible workforce
Managing short and long term requirements
Avoidance of wrong-sizing
Purposeful competitiveness in human capital

Benefits of Manpower Planning

It provides scope for advancement and development of employees through training,

development etc.
It helps to satisfy the individual needs of the employees for the promotions transfers, salary
enhancement, better benefits etc.
It helps in anticipating the cost of salary, benefits and all the cost of human resources
facilitating the formulation of budgets in a society.
It helps to foresee the need for redundancy and plans to check of human resources and to
change the techniques of management.
It helps in planning for physical facilities, working conditions, the volume of fringe benefits
like canteen, schools, hospitals, conveyance, child care centers, quarters, company stores etc.
It causes the development of various sources of human resources to meet the organizational
needs.
It helps to take steps to improve human resource contributions in the form of increased
productivity, sales, turnover etc.
It facilitates the control of all functions, operations, contribution and cost of human
resources.

Newly Introduced Recruitment Process

15 Online Tools Making Recruitment Faster and Cheaper for Any Business
.Here are 15 online tools that can make recruitment cheaper, easier and faster for any business.
1. LinkedIn
LinkedIn is the obvious alternative to job boards, but many employers are still confused about
where to start. Long the domain of professional recruiters (who provide half of LinkedIns

revenue), companies are now wising up to the potential themselves. An example? Deloitte have
cut $6M from their annual recruitment bill through more active sourcing on LinkedIn.
2. Facebook
Facebook is approached with a mix of enthusiasm and cynicism when it comes to recruitment.
Whatever you think, you cant ignore it. Creative employers can now target job ads to specific
types of users like a laser.Looking for a marketing manager, with an interest in indie music,
based in Sydneys eastern suburbs? Facebook can help. Also checkout professional networking
plugins like Branchout and BeKnown.
3. Video
Video is a great way to attract candidates by building a profile, and sharing your personality. Get
creative.
4. Meetups (www.meetup.com)
Whats your ideal candidate passionate about? Whats their area of specialty? Meetups are taking
off globally, allowing people with similar interests to get together in person. Yep! TRW (the real
world).
Heres a secret no recruiter would share with you. Youre looking for a Ruby on Rails specialist?
Theres a meetup for that. Why not go along, introduce yourself, and meet potential candidates in
person?A few hours at a meetup could save you $20,000, which is what a specialist recruiter
would charge when they find you a candidate this way.
5. Forums
This is an online version of a meetup. Theres a forum for almost any industry or niche. Youll
see people displaying their knowledge, expertise, and even complaints or frustrations about their
current employer. Examples:
Whirlpool internet and technology
Mumbrella marketing and digital
Selection
Now youve got a shortlist of candidates. How do you select the best one?! Dont ignore the
traditional interview. But these other online tools can make your interviews more efficient and
targeted.
6. Video Interviews
Anyone who has interviewed more than a handful of candidates in person will have experienced
the dud. Within 5 minutes you know theyre clearly not right for the role, but you continue the
interview to avoid appearing rude. Video interviews can solve this problem, whether:
Live interview eg through Skype

Recorded interviews Automated video interviews, with candidates recording their blind
responses to questions via webcam. (This is a tool we offer at Recruit Loop).

7. Psychometric Testing
Learn about behavioral, leadership or decision-making traits before hiring anyone. Psychometric
testing used to be expensive, but affordable online options include:
Right people
Peoplogica
Omnia
8. Skills Testing
Got a role with technical requirements? Youd want to be sure your candidate is up to the task.
You might even want to test a candidate before deciding whether to interview. Examples:
CodeEval or Codility Technical roles
OneTest Admin/clerical
9. Reference / Background Checking
We recommend conducting two reference checks before making any hire. But its a thankless
task, sometimes suited to outsourcing. Examples:
Verify
The PRM Group candidates can apply for their police check on line
10. Social Media Checking
This is a controversial, but growing area (see: Should employers check Facebook before making
a hire).
At one extreme, some web-savvy employers ask candidates to only submit their online social
profiles when applying for a job. Used with caution, a candidates online presence can tell you a
lot about their personality and cultural fit.
11. Employee Attachment
Did you know that during the first 120 days of your new recruits employment, they will actively
assess whether they have made the right decision to join your organization?
The cost of poor attachment is beyond the cost of recruitment. The direct and indirect costs can
add up to over $100,000 over the first three months for a new employee.
12. Ongoing Engagement
Measuring ongoing employee engagement used to require expensive consultants and surveys.
Weve been watching an Australian startup with interest Culture Amp which makes
engagement surveys more accessible, affordable and actionable.

13. Performance Tracking

Performance management is a critical process but one that unfortunately most companies ignore.
Its also a process often run poorly, giving staff the impression that the organization doesnt care
about or invest in their performance and professional development. Two fantastic local startups
are making performance management easy and (dare I say) fun!
14. Recognition
Often a hard area to get right, both individual and team recognition can have a huge impact on
productivity and morale. Check out Sydney-based startup:

Wooboard

15. Internal Collaboration

Get your team talking! Break down the silos and bring social into the enterprise. A great tool in
this space includes:
Yammer
.

Websumes
Definition of Websumes:
Websume is an online resume that you can use when applying for jobs, showcasing your works
or even to let the world know who you really are. You can also link to it from social networks to
allow your friends a way to learn more about you. Companies open their own website and
advertise the post on their own site like a traditional advertisement. Aggressive job candidates set
up their own webpage to sell their job candidacy called websumes.
Aggressive job candidates are also using the internet. They set up their own web pages called
websumes to sell their job candidacy. When they learn of a possible job opening they encourage
potential employees to check them out in their websites. Their applicants have standard resume
information supporting documentation and sometimes a video where they introduce themselves
to potential employers. These same websumes are also frequently searched by recruiting firms
that scan the internet in search of viable job candidates

Advantages of Websumes:
Internet recruiting provides a low cost means for most businesses to gain unprecedented
access to potential employees worldwide
It is a way to increase diversity i.e. getting potential employees from across the globe
Due to a wide search, internet recruiting provides people with unique talents

 As computer prices fall, access costs to the internet decrease and therefore many potential
employees access internet hence organization can advertise higher level jobs as well as
low level jobs.
Disadvantages:
There is not any personal touch on contact between the potential employee and the
organization
Not all potential candidates can access the internet therefore the selection choice may not
be very wide

Selection
Selection, either internal or external, is a deliberate effort of organizations to select a
fixednumber of personnel from a large number of applicants. The primary aim of
employeeselection is to choose those persons who are most likely to perform their jobs with
maximumeffectiveness and to remain with the company. Thus, an attempt is made to find a
suitablecandidate for the job. In doing so naturally many applicants are rejected. This makes
selectiona negative function.

Definition of Selection
Having identified the potential applicants, the next steps are to evaluate their experience
andqualifications and make a selection. According to Yoder, the hiring process is of one
ormany go-no-go gauges. Candidates are screened by the employer and the shortlistedapplicants go on to the next hurdle, while the unqualified once are eliminated.

Steps in Selection Procedure

There is no shortcut to an accurate evaluation of a candidate. A variety of methods is usedto
select personnel. The selection pattern, however, is not common for all organizations. Itvaries
from one to another, depending on the situation and needs of the organization.Therefore, there is
no standard selection procedure followed by all.However, the steps commonly followed are as
under:
(a) Application Blank
In a sense the application blank is a highly structured interview in which the questions
arestandardized and determined in advance. An application blank, is a traditional, widely
accepteddevice for getting information from a prospective applicant. The application blank
providespreliminary information as well as aid in the interview by indicating areas of interest
anddiscussion.

(b) Initial Interview of the Candidate

Those who are selected for interviews on the basis of particulars furnished in the
applicationblank are called for initial interview by the organizations. This is meant to evaluate
theappearance of the candidate and to establish a friendly relationship between the candidateand
the company and for obtaining additional information or clarification on the informationalready
on the application bank. Preliminary interview becomes a necessity, when a largenumber of
candidates apply for a job.
(c) Employment Tests
For further assessment of a candidates nature and abilities, some tests are used in theselection
procedure. If tests are properly conducted, they can reduce the selection cost byreducing the
large number of applicants to manageable levels. The different types of testsare:
(i) Aptitude Test: Aptitude or potential ability tests are widely used to measure the talentand
ability of a candidate to learn new job or skill. Aptitude tests measure ability andskills. They
enable us to find out whether a candidate would be suitable for the job.
(ii) Interest Test: Interest test is finds out the type of work in which the candidate has aninterest.
An interest test only indicates the interest of a candidate for a particular job.
It does not reveal his ability to do it.
(iii) Intelligence Test: This test is used to find out the candidates intelligence. It reveals,the
candidates mental alertness, reasoning ability, power of understanding etc. Thescores on
intelligence tests are usually expressed as Intelligence Quotient (IQ), whichare calculated as
follows:
IQ = Mental Age 100,
(iv)Performance or Achievement Test: This test is used to measure the candidates levelof
knowledge and skill in a particular trade or occupation. Achievement test measuresthe skill of
knowledge which is acquired as a result of previous experience or trainingobtained by a
candidate.
(v) Personality Test: Personality test is used to measure the characteristics that
constitutepersonality.
(d) Interviews
After putting the candidates to various types of tests, all those passing out are finally thecalled
for interview. The interview consists of interaction between the interviewer and theapplicant. If
handled properly, it can be a powerful technique in achieving accurate informationand getting
access to material otherwise unavailable. If the interview is not handled carefully,it can be a
source of bias, restricting or distorting the flow of communication. An interviewis thus an

attempt to secure maximum amount of information from the candidate concerninghis suitability
for the job under consideration.
(e) Checking References
The reference provided by the applicant has to be checked. This is to find out from the
pastrecords of the candidate. Reference checking requires the same use of skills as required
bythe interviewer and some amount of diplomacy. The main difficulty is ascertaining
theaccuracy of information given. Besides inaccurate facts, the referees inability to assessand
describe the applicant and his limited knowledge about the candidate also pose problem.
In spite of its difficulties, it is necessary to verify the information. In many
organizations,reference checking is taken as a matter of routine and treated casually or omitted
entirely.
(f) Physical or Medical Examination
The next step is getting the candidates medically examined if there is a need. Quite often
thecandidates are told to get medically examined before reporting for duty. In Government
andother quasi government organizations getting medically examined is a must before
reportingfor duty or at the time of reporting for duty. Medical examination is a part of the
selectionprocess for all suitable candidates in many organizations.
(g) Final Interview and Induction
After the candidate is finally selected the management will have to explain the job to him.
Heshould be told as to what his duties are, what is required of him and what his future prospects
in the organization are. Normally this information is given to the candidate at the time of final
selection interview. This is the way how the candidate is inducted into the job. Heis formally
appointed by issuing him an appointment letter or by concluding with him aservice agreement.
The appointment letter contains the terms and conditions of theemployment, pay scale and other
benefits associated with the job.
The interviewer can describe the company and its policies, the duties and responsibilitiesof the
applicant as well as the opportunities available to him for future promotion. Theinterviewer
should, in fact highlight the favorable aspects of the job.

Placement
Placement is a process of assigning a specific job to each of the selected candidates. It involves
assigning a specific rank and responsibility to an individual. It implies matching the requirements
of a job with the qualifications of the candidate.
Pigors and Myers have defined placement as the determination of the job to which an accepted
candidate is to be assigned and his assignment to that job. It is a matching of what the supervisor
has reason to think he can do with the job demands; it is a matching of what he imposes in terms
of strain, working conditions, etc., and what he offers in the form of pay roll, companionship
with others, promotional possibilities etc.
After selecting a candidate, he should be placed on a suitable Job. It involves assigning aspecific
rank and responsibility to an employment. Most organizations put new recruits onprobation for a
given period of time (say 6 months or 1 year) after which their services areconfirmed after
successful completion of the probationary period. If the performance isnot satisfactory, the
organization may extend the probation or ask the candidate to quit thejob. However if the
employees performance during the probation period is satisfactory,his services will be
regularized and he will be placed permanently on the job.

Significance of Placement
The significances of placement are as follows:

It improves employee morale.

It helps in reducing employee turnover.
It helps in reducing absenteeism.
It helps in reducing accident rates.
It avoids misfit between the candidate and the job.
It helps the candidate to work as per the predetermined objectives of the organization.

Problems of Placement
Some problems might crop up while placing an employee on a job. These problems
couldinclude:
Employee expectations form the job.
Expectation form the employers are more than the employees ability or skills.
Technological changes might result in mismatch between the job and the employee.
Change in the organizational structure may result in changes in the job. These changesresult
in a misfit between the employee and the job.

Employee Placement Process

The employee placement process is shown in the figure shown below:

Employee Placement Process

Principles of Placement
A few basic principles should be followed at the time of placement of a workers on the job. This
is elaborated below:
1. Man should be placed on the job according to the requirements of the job. The job should not
be adjusted according to the qualifications or requirements of the man. Job first, man next,
should be the principle of the placement.
2. The job should be offered to the person according to his qualification. This should neither the
higher nor the lower than the qualification.

3. The employee should be made conversant with the working conditions prevailing in the
organization and all things relating to the job. He should also be made aware of the penalties if
he commits the wrong.
4. While introducing the job to the new employees, an effort should be made to develop a sense
of loyalty and cooperation in him so that he may realize his responsibility better towards the job
and the organization.
5. The placement should be ready before the joining date of the newly selected person.
6. The placement in the initial period may be temporary as changes are likely after the
completion of training. The employee may be later transferred to the job where he can do better.

Induction Program
Induction is the process of receiving and welcoming an employee when he first joins the
company and giving him basic information he needs to settle down quickly and happily and stars
work.
According to R.P Billimoria, induction or orientation is a technique by which a new
employeeis rehabilitated into the changed surroundings and introduced to the practices, policies
andpurposes of the organization.
A formal orientation tries to bridge the information gap ofthe new employee. When a person
joins an organization he is a stranger to it. He mayexperience a lot of difficulties which could
lead to tension and stress in him. This in turncan reduce his effectiveness.

The Objectives of Induction

Induction is designed to achieve following objectives:

To help the new comer to overcome his shyness and overcome his shyness nervousness in
meeting new people in a new environment.
To give new comer necessary information such as location of a caf, rest period etc.
To build new employee confidence in the organization.
It helps in reducing labor turnover and absenteeism.
It reduces confusion and develops healthy relations in the organization.
To ensure that the new comer do not form false impression and negative attitude towards the
organization.
To develop among the new comer a sense of belonging and loyalty to the organization.

The Advantages of Formal Induction

The advantages of formal induction are:

Induction helps to build up a two-way channel of communication between management and

workers.
Proper induction facilitates informal relation and team work among employee.
Effective induction helps to integrate the new employee into the organization and to develop
a sense of belonging.
Induction helps to develop good relation.
A formal induction program proves that the company is taking interest in getting him off to
good start.
Proper induction reduces employee grievances, absenteeism and labor turnover.
Induction is helpful in supplying information concerning the organization, the job and
employee welfare facilities.

Steps in the Induction Program

The HR department may initiate the following stepswhile organizing the induction program:
(1) Welcoming the new recruit to the organization.
(2) Providing knowledge about the company: what it is, what it does, how it functions,the
importance of its producers; knowledge of conditions of employment, andcompanys
welfare services.
(3) Giving the companys manual to the new recruit.
(4) Showing the location/ department where the new recruit will work. This step shouldinclude
specific job location and duties.
(5) Providing details about various groups and the extent of unionism within the company.In
this step the new employee is given a brief idea about the setup of the
department,production processes, different categories of employees, work rules, safety
precautionsand rules.
(6) Giving details about pay, benefits, holidays, leave etc.
(7) Defining the employees career prospects with reference to the training anddevelopment
activities that the company organizes with special reference to the newrecruits position.

Contents of the Induction Program

Keith Davis has listed the following topics coveredin an employees induction program:
1. Organizational Issues
History of the company
Names and titles of key executives
Employees title and department

 Layout of physical facilities

Probationary period
Products/ Services offered
Overview of production processes
Company policies and rules
Disciplinary procedures
Employees handbook
Safety steps
2. Employee Benefits
Pay scales, pay days
Vacations, holidays
Rest pauses
Training avenues
Counseling
Insurance, medical, recreation, retirement benefits
3. Introductions
To supervisors
To co-workers
To trainers
To employee counselors
4. Job Duties
Job location
Job tasks
Job safety needs
Overview of jobs
Job objectives
Relationship with other jobs

Types of Induction Program

(a) General Induction Program
Once an offer of employment has been extended and accepted, the final stage in
procurementfunction is concluded. The individual has then to be oriented towards the job and
theorganization. This is formally done through a process known as induction or orientation.
Induction is a welcoming processthe idea is to welcome the candidate, make him feel athome
in the changed surroundings and to introduce him to the practices, policies andpurposes of the
organization. The necessity of an induction program is that when aperson joins an organization,
he may feel strange, shy, insecure and/or nervous. Inductionleads to reduction of such anxieties.

(b) Specific Orientation Program

Specific orientation is conducted by the foreman. Induction is specific and requires skill onthe
part of the foreman. A new employee must be provided operational knowledge that isspecific to
the position and location. The immediate boss (foreman) is responsible for suchinduction and
training. Every new employee should know
a. The people he/she works with.
b. The work he is responsible for.
c. The result to be accomplished.
d. The current status of the work.
e. His relationships in the organization.
f. Reports and records he must understand and maintain.
g. Operating policies, procedures and rules
h. Service group available to help him.
The purpose of specific induction is to enable an employee to adjust himself to his
workenvironment.
(c) Follow-up Induction Program
The purpose of the follow-up induction program is to find out whether the employee
isreasonably satisfied with the job. It is usually conducted by the foreman or by a specialistfrom
the personnel department. Through guidance and counselling, efforts are made toremove the
difficulties experienced by the new comer. Usually, follow up induction takesplace after about
one or two months from the time of appointment.

1. Meaning of Forecasting
Human resources forecasting involves projecting labor needs and the effects they'll have on a
business. An HR department forecasts both short- and long-term staffing needs based on
projected sales, office growth, attrition and other factors that affect a company's need for labor.
Forecasting involves the generation of a number, set of numbers, or scenario that corresponds to
a future occurrence. It is absolutely essential to short-range and long-range planning. By
definition, a forecast is based on past data, as opposed to a prediction, which is more subjective
and based on instinct, gut feel, or guess.
HR forecasting continues the heart of the hr planning process and can be defined as ascertaining
the net requirement for personnel by determining the demand for and supply of human resources
now and in the future.
Forecasts refer to a prediction of the outcome when normal course of events are influenced and
altered by external forces. Forecasts usually take into account both the projections and the
estimates. For example, forecasts at the macro level could result in a statement of what would
happen if economic growth was deliberately manipulated by government policy Forecasting is
the process of making judgments about events whose actual outcomes have not been seen.

2. Types of Human Resource Forecasting

Having understood the objectives of manpower forecasts one needs to know that manpower
forecasts could be categorized differently, depending on the purpose for which forecasts are
made. Some of the major types of forecasts are briefly described here.
1) Short-Term Forecasts
Short-term forecasts are very useful at the micro-level or we can also say company level, e.g., a
chain hotel makes financial statement for its expenditures keeping in view both the ongoing
projects and the projects in the pipeline.
2) Medium-Term Forecasts
For most countries medium term is about two to five years - the horizon for planning. Medium
term forecasts are useful in those offices where manpower is concerned with advising ministers
or preparing contingency plans to meet the 'twists and turns of economic circumstances or
international events'.
3) Long-Term Forecasts
Forecasts for a period more than five years are considered as long-term forecasts. These forecasts
are useful in educational planning, particularly relating to the highly skilled professional

categories of manpower. They are also useful in the preparation of corporate plans incorporating
productivity changes, technological changes and major organizational developments.
4) Policy Conditional Forecasts
Policy conditional manpower forecasts are those which are determined by the policy towards the
factors which influence the demand for manpower.
5) Optimizing Forecasts
Optimizing human resource forecasts are those which are obtained as solutions to an optimizing
model in which numbers demanded of various categories of manpower are so determined that
either the end benefits are maximized, or cost of resources used in achieving a pre-determined
end objective is minimized.
6) Macro and Micro Forecasts
Macro forecasts are done usually at the national, industry sector and region state levels whereas
Micro forecasts are made at the enterprise or department level. Macro human resource forecasts
are used for planning, education and training facilities as well as to make decisions regarding
choice and location of industries for development whereas Micro human resource forecasts are
needed primarily for planning recruitment, promotion, training and counseling in accordance
with the plan for the development of enterprise or department concerned.

3. Elements of a Good Forecasting

The forecast should be timely: Usually, a certain amount of time is needed to respond to
the information contained in a forecast. Time necessary to implement necessary change.
The forecast should be accurate and the degree of accuracy should be stated. This will
enable users to plan for possible errors and will provide a basis for comparing alter native
forecast.
The forecast should be reliable: It should work consistently. A technique that sometimes
provides a good forecast and sometimes a poor but should be reliable.
The forecast should be expressed in meaningful units: Units depends on user needs. For
example: Production planners need to know how many units will be needed.
The forecast should be in writing: A written forecast will permit an objective basis for
evaluating the forecast.
The forecasting technique should be simple to understand and use: Fairly simple
forecasting techniques enjoy widespread popularity because of users are more comfortable
working with them.

4. Steps in the Forecasting Process

There six basic steps in the forecasting process:
1. Determine the purpose of the forecast: How will it be used and when will it be needed?
Detailed level of requirement needed and that can be justified and the level of accuracy
necessary.
2. Establish a time horizon: The forecast must indicate a time interval, keeping in mind that
accuracy decreases as the time horizon increases.
3. Select the forecasting: Which forecasting is essential for particular purpose should be
identified and select.
4. Gather and analyze relevant data: Before a forecast can be made, data must be gathered
and analyzed. Identify any assumptions that are made in conjunction with preparing and
unsung the forecast.
5. Make the forecast: After performing the above element make forecast.
6. Monitor the forecast: A forecast has to be monitored to determine whether it is performing
in a satisfactory manner. If it is not reexamine the method, assumption, validity of data and
so one; modify as needed; and prepare a revised forecast.

5.

Benefits of HR Forecasting
1.
2.
3.
4.

Reduces HR costs
Increases organizational flexibility
Ensures a close linkage to the macro business forecasting process
Ensures that organizational requirements take precedence over issues of resource
constraint
and scarcity (HR Supply and HR Demand)

6. Selected Factors Affecting HR Forecasting

Corporate mission,
Strategic goals
Operational goals,
Production budgets
HR policies
Organizational structure, restructuring, mergers
Worker competencies, expectations
HRMS level of development
Organizational culture, climate, job satisfaction,
Internal communications
Job analysis: Workforce coverage, current data

7.

Steps in Determining Net HR Requirements

a) Determine HR Demand
Variety of factors is to be considered each organizational subunit has to submit net personal
requirements to forecasting unit, based on future needs for labor required to meet agreed
objectives (e.g., market share/production level). HR demand figure must include individuals
needed to maintain/replace personnel who retire/die/fired/terminated/long term care,
replacements for those who are promoted/transferred. Subunit demands are then aggregated and
used as starting point for HR demand forecasts. Ascertain HR supply (includes internal supply
and external supply) and skills inventory- personal database record on each employee.
b) Ascertain HR Supply
Internal supply: current members of the organizational workforce, who can be retained,
promoted, transferred, to fill anticipated HR requirements
External supply: potential employees who are currently undergoing training, working for
competitors, members of unions of professional associations.
c) Determine Net HR Requirements
- external supply requirements = replacement + change supply components
- change supply = hiring to increase (or decrease) the overall staffing level
- replacement supply= hiring to replace all normal losses
- external supply = current workforce size x (replacement % per year + change % per year)
d) Institute HR Programs: HR Deficit and HR Surplus
- HR deficit --> occurs when demand for HR exceeds the current personnel resources
available in the organization's workforce (HR internal supply)
- HR surplus --> occurs when the internal workforce supply exceeds the organization's
requirement or demand for personnel.

8. Factors Considered in Determining Demand

a). External Challenges
Economic developments noticeable effect but are difficult to estimate (Inflation,
unemployment, & changing workforce patterns)

 Social, political & legal challenges easier to predict, but their implications are not very
clear (Implication of abolishing mandatory retirement age in US may not be known until a
generation has lived without 65 & out tradition)
Technology changes difficult to predict & assess but may radically alter strategic & HR
plans (PC would cause mass unemployment vis--vis IT field as a large one employing
millions of people directly / indirectly complicates HR, because it tends to reduce
employment in one dept. while increasing it in another)
b). Organizational Decisions

As organizations respond to changes in their environment, decisions are made to modify the
strategic plan, which commits firm to long-range objectives growth rates & new products,
markets / services & these objectives dictate number & types of employees needed in future

To achieve long-term objectives, HR specialists must develop long-range HR plans that

accommodate strategic plan

In short run, planners find strategic plans become operational in form of budgets

Sales & production forecasts are less exact than budgets but may provide even quicker
notice of short-run changes in demand for HR

New ventures means changing HR demands when a new venture is begun internally from
scratch, lead time may allow planners to develop short-run & long-run employment plans
merging HR group with Corporate Planning staff

c). Workforce Factors (Attrition)

Demand is modified by employee actions such as

retirements,
resignations,
terminations,
death, &
leaves of absence

9. Outcomes of Forecasts
Prediction: A single numerical estimate of HR requirements associated with a specific time
horizon and set of assumptions
Projection: Incorporates several HR estimates based on a variety of assumptions

 Envelope: An analogy in which one can easily visualize the corners of an envelope
containing the upper and lower limits, or bounds, of the various HR projections extending
into the future
Scenario: A proposed sequence of events with its own set of assumptions and associated
program details
Contingency plans: Implemented when severe, unanticipated changes to organizational or
environmental factors completely negate the usefulness of the existing HR forecasting
predictions or projections; like a backup plan

10. Forecasting Technique

Expert Forecasts
Expert forecasts rely on those who are knowledgeable to estimate future human resource needs.
At the first level of complexity, the manager may simply be convinced that the workload justifies
another employee. It is 4 types
a) Informal and instant forecast: Manager believes workload justifies another
employee.
b) Formal expert surveys: A better method is for planners to survey managers, who are the
experts, about their departments future employment needs. The centralization of this
information permits formal plans that identify the organizations future demand. May use
questionnaires or focused discussions e.g. nominal group techniques.
c) Nominal group technique: A focused group discussion where members meet face-to-face,
write down their ideas, and share them. All new thoughts on a topic are recorded and ranked
for importance.
d) Delphi technique: The soliciting of predictions about specified future events from a panel of
experts, using repeated surveys until convergence in opinions occurs. Although short-term

forecasting is generally handled by managers, the Delphi technique is useful for long-range
forecasting and other strategic planning issues. It typically involves outside experts as well as
company employees, based on the premise that outsiders may be able to assess changes in
economic, demographic, governmental, technological, and social conditions, and their
potential impact more objectively.
The Delphi technique involves the following steps:
1. The problem is identified (in this case, estimates of demand) and each group member is
requested to submit a potential solution by completing a carefully designed questionnaire. Direct
face-to-face contact is not permitted.
2. After each member independently and anonymously completes the initial questionnaire, the
results are compiled at a centralized location.
3. Each group member is then given a copy of the results.
4. If there are differences in opinion, each individual uses the feedback from other experts to
fine-tune his or her independent assessment.
5. The third and fourth steps are repeated as often as necessary until a consensus is reached
Trend Projection Forecasts

Perhaps the quickest forecasting technique is to project past trends. Trend analysis involves
studying the firms employment levels over the last three to five years to predict future needs.
The purpose is to identify employment trends that might continue into the future, assuming that
the past is a strong predictor of the future. Trend analysis is valuable as an initial estimate only,
since employment levels rarely depend solely on the passage of time. Other factors (like changes
in sales volume and productivity) will also affect future staffing needs.
a) Extrapolation: Extrapolation involves extending past rates of change into the future. For
example, if an average of 20 production workers were hired each month for the past two years,
extrapolation indicates that 240 production workers will probably be added during the upcoming
year.
b) Indexation: Indexation is a method of estimating future employment needs by matching
employment growth with a selected index. A common example is the ratio of production
employees to sales. For example, planners may discover that for each million-dollar increase in
sales, the production department requires 10 new assemblers.
c) Statistical Analysis

Various statistical procedures, including regression analyses, can be used to develop forecasts
based on scenarios or theorized relationships between variables.
Other Forecasting Methods
There are several other ways planners can estimate the future demand for human resources.
a) Budget and Planning Analysis: Organizations that need human resource planning generally
have detailed budgets and long-range plans. A study of department budgets reveals the
financial authorizations for more employees. These data plus extrapolations of workforce
changes (resignations, terminations, and the like) can provide short-run estimates of human
resource needs. Long-term estimates can be made from each department or divisions longrange plans.
b) New-Venture Analysis: When new ventures complicate employment planning, planners can
use new-venture analysis. New-venture analysis requires planners to estimate human
resource needs by comparison with firms that already perform similar operations. For
example, an integrated steel company that owns steel plants and iron ore mines decides to
explore iron ore at a new site. The management can estimate its employment needs in the
new mine by looking at employment levels of other iron ore mines and making necessary
adjustments for productivity improvements.
c) Computer-Based Simulation Models: The most sophisticated organizations used robust
technology to forecasting effectively. Computer models are a series of mathematical
formulas that simultaneously use extrapolation, indexation, survey results, and estimates of
workforce changes to compute future human resource needs. They simulate and forecast
changes in demand for human resources caused by various internal and external factors.

11. Others Human Resource Forecasting Methods

1. Managerial Judgment
2. Trend Analysis
3. Ratio Analysis
4. Scatter Plot
5. Computerized Forecast
6. Work Study Technique
7. Delphi technique
8. Regression Analysis
9. Econometric Models
10. Nominal Group Technique
11. H R Budget and Planning
Analysis

12. Scenario Forecasting

13. Workforce Analysis
14. Workload Analysis
15. Job Analysis

1. Managerial Judgment
This technique is very simple. In this, manager sits together, discuss and arrive at a figure which
would be the future demand for labor. The technique may involve a bottom -to -top or top-to bottom approach.

2. Trend Analysis
Method which forecast employments requirements on the basis of some organizational index and
is one of the most commonly used approaches for projecting HR demand.
Business Factor Annual Volume of Sales.
Total Number of Employees.
Compare the Productivity Ratio.
Calculate Human Resources demand.
Forecasted Human Resource Requirements
3. Ratio Analysis
Another approach, Ratio analysis, means making forecasts based on the ratio between.
1. Some causal factor (like sales volume)
2. The number of employees required
4. Scatter Plot
A graphical method used to help identify the relationship between two variables. A scatter plot is
another option. HR planner can use scatter plots to determine whether two factors measure of
business activity and staffing levels are related.
5. Computerized Forecast
The determination of future staff needs by projecting a firms sales, volume of production, and
personnel required to maintain this required volume of output, using computers and software
packages. Employers also used computerized system to personnel requirements.
6. Work Study Technique
Work study technique is based on the volume operation and work efficiency of personnel.
Volume of operation is derived from the organizational plan documents and increase/decrease in
operation can be measured.
7. Delphi Technique

This technique calls for a facilitator to solicit and collate written, expert opinion on labor
forecast. After answers are received, a summary of the information is developed and distributed
to the experts, who are than requested to submit revised forecast. Expert never meet face-to-face,
but rather communicate through the facilitator.
8. Regression Analysis
Regression analysis identifies the movement of two or more inter-related series. It is used to
measure the changes in a variable as a result of changes in other variables. Regression analysis
determines the relationship between Y variables such as the number of employees and X
variables such as service delivery by actually measuring the relationship that existed in the past.
Use of the method begins with a series of observation each costing of a value for the Y variable
plus a value for each X variable.
9. Econometric Models
Econometric models for estimation of manpower requirement differ from the statistical methods.
Past statistical data are analyzed in the hope that it will prove possible to describe precisely the
relationships between a number of variables in mathematical and statistical terms.
10. Nominal Group Technique
The nominal group technique is a decision making method for use among groups of many sizes,
who want to make their decision quickly, as by a vote, but want everyones opinions taken into
traditional voting.
a) Introduction and Explanation
b) Silent Generation of Ideas
c) Sharing Ideas
d) Group Discussion
e) Voting and Ranking
11. H R Budget and Planning Analysis
There are several other ways by which planners can estimate the future demand for human
resources. One approach is through budget and planning analysis. When new ventures
complicate employment planning planners can use new-venture analysis.
12. Scenario Forecasting
A scenario technique is used to explore the likelihood of possible future developments and
changes and to identify the interaction of uncertain future trends and events.
Preparation of Background
Selection of Critical Indicators
Establishing Past Behavior of Indicators
Verification of Potential Future Events
Forecasting the indicators

 Writing of scenarios
13. Workforce Analysis
It means, to determine the rate of influx and out flow of employee. It is through this analysis one
can calculate the labor turnover rate, absenteeism rate etc.
14. Workload Analysis
It is a method that uses information about the actual content of work based on a job analysis of
the work. Workload analysis involves use of ratios to determine HR requirement. Both the
number of employees and the kind of employees required to achieve organizational goals are
identified.
15. Job Analysis
Job analysis helps in finding out the abilities or skills required to do the jobs efficiently. A
detailed study of jobs is usually made to identify the qualification and experience required for
them.

12. Approaches to Forecasting

There are two general approaches to forecasting:
1.
Qualitative
2.
Quantitative
Qualitative: This method consist of subjective inputs which often precise numerical description.
It permits inclusion of soft information (human factors, personal opinions, hunches (guess or
feelings). These factors are often omitted because they are difficult or impossible to quantify.
Quantitative: This method involves either the projection of historical data or the development of
associative models that attempt to utilize casual (explanatory) variables to a forecast. This
technique consists mainly of analyzing objective or hard data. They usually avoid personal biases
that sometimes contaminate qualitative methods. In practice either or both approaches might be
used to develop a forecast.
Types of Manpower Planning
Manpower planning has four phases: gathering and analyzing data, establishing objectives,
designing and implementing programs, and monitoring and evaluating these programs. These
phases play an important role in every type of manpower planning, but often in different ways.
1. Short-Term Manpower Planning
Short-term manpower planning refers to staffing needs in the near future. It mainly involves a
keen awareness of demand and supply, that is, an awareness of what positions need to be filled
and who in the workforce is available to fill those positions. Usually, it is much easier to

establish objective at this point in manpower planning. These objectives usually involve how to
attract desirable employees and how to get rid of undesirable ones. Short-term manpower
planning programs include recruiting programs, selection programs and performance appraisal
systems. Assessing the level of success at this point is usually very easy.
2. Intermediate-Term Manpower Planning
Intermediate-term manpower planning involves a lot more uncertainty at every phase of
manpower planning. The main question that must be asked is, What will we need? The task
becomes less about evaluating what is available now and more about forecasting. Often, a lot of
these questions are answered based upon the judgment and discretion of midlevel management.
Establishing objectives in this type of manpower planning usually involves trying to adjust
employees' skills to match those that will be needed in the immediate future.
3. Long-Term Manpower Planning
Long-term manpower planning is becoming one of the most important tasks faced by companies
that want to survive. Succession planning is a large part of this type of manpower planning. It
involves judging what kinds of skills managers will need in the future and figuring out how to
provide people the chance to build these skills. Also, competitive strategy plays a big role in
long-term manpower planning; will the company want to focus on maintaining innovation or on
cutting costs? Career development programs are often a part of the third phase of this type of
planning. The success of long-term planning programs is still difficult to assess, but as time
passes, more and more information becomes available.
2. Selection Process
After interviews are conducted, hiring managers and human resources personnel meet and select
a candidate to offer the job to. The team carefully considers the candidates' qualifications,
assessments and interviews to determine whom to offer the job. If hiring managers are not
satisfied with any of the candidates, the recruiting process may start again. In most cases, the
hiring team has the ability to select a candidate and a job offer is made. If the candidate declines
the job offer, the recruiting process may start again.
The Employee selection Process takes place in following order

Preliminary Interviews- Preliminary interviews are less formalized and planned than the
final interviews. The candidates are given a brief up about the company and the job
profile; and it is also examined how much the candidate knows about the company.
Preliminary interviews are also called screening interviews.
Application blanks- The candidates who clear the preliminary interview are required to
fill application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.
Written Tests- Various written tests conducted during selection procedure are aptitude
test, intelligence test, reasoning test, personality test, etc. These tests are used to
objectively assess the potential candidate. They should not be biased.

Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required
job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at times.
Such interviews should be conducted properly. No distractions should be there in room.
There should be an honest communication between candidate and interviewer.
Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
Appointment Letter- A reference check is made about the candidate selected and then
finally he is appointed by giving a formal appointment letter.

Process of Commitment Manpower Planning:

The planning process is one of the most crucial, complexes and continuing managerial functions
embraces organization 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.
01. Appoint 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 organized to achieve these objectives.
For this purpose, a detailed organization 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.
02. 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 organizations who possess 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.
03. 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.
04. Valuation of the Future Organizational Structure and Manpower Requirements:
The management must estimate the structure of the organization 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.
05. Exhibiting 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 labor supply with a view to making an effective use of these
sources. The first thing, therefore, is to decide on the policy that 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 organizations is to fill up higher vacancies by
promotion and lower level positions by recruitment from the labor market. The market is a
geographical area from which employers recruit their work force and labor seeks employment.
Factors to be considered in commitment manpower planning:
(1) Goals or objectives of Businessevery business enterprise has some goals or objectives.
The manpower planning must be integrated with business policies as regards to profitability,
production, sales and development of resources. Any change in business objectives would
certainly affect the manpower planning. For example a company decides to introduce computer
system in the enterprise. This change will affect the manpower planning i.e., company will have
to recruit computer operators or it will train its existing employees in computer science. Thus,
determination of business objectives clearly in advance is a prerequisite for the effective
manpower planning.
(2) Support of Top-level managementManpower planning must have the initiative and
support of top level management. Personnel manager as a staff authority can only advise or guide
the top management; he cannot implement decisions. Action on decisions or suggestions of the
personnel manager is to be taken only at the initiative of top executives. Thus support of top
management is a must for the effective manpower planning.
(3) Well-organized personnel departmentManpower planning requires forecasting the
requirements and developments of the personnel for this purpose, there is a need of a well-

organized personnel department. Personnel department collects, records, analyses, interprets and
maintains the facts and figures relating to all the personnel in the organization.
(4) Determination of related policiesDetermination of personnel policies regarding
promotion, transfer, wages, fringe benefits, training, leaves etc. is a prerequisite for manpower
planning Without these policies manpower planning will be of little use.
(5) Responsibilitythe responsibility of manpower planning should be assigned to some
responsible senior personnel He should be provided all figures to the planning.
(6) Fixing Planning PeriodPlanning is concerned with problem of future. The planning
period is divided into short term and long term. Planning period depends on the nature of the
business and the social, economic and political environment. Long term planning is preferable
for basic and heavy industries. Consumer goods industries may not resort to long term plans. The
other important factors arc rate of population growth education and training facilities cost of
training etc.
(7) Manpower standardsIn order to avoid the problems of overstaffing and understaffing, the
optimum manpower standards should be determined on the basis of prevailing standards in
similar organizations, past experiences and work measurement.
These factors will reduce the cost of production and will increase the quality of production and
will help in preparation of manpower plans.

Selection
Selection is the process of picking up individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization. A formal definition of
Selection is as under. Selection is the process of differentiating between applicants in order to
identify and hire those with a greater likelihood of success in a job.

Process / Steps in Selection

1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate
unqualified applications based on information supplied in application forms. The basic objective
is to reject misfits. On the other hands preliminary interviews is often called a courtesy interview
and is a good public relations exercise.
2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There
are various types of tests conducted depending upon the jobs and the company. These tests can
be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge how well an
individual can perform tasks related to the job. Besides this there are some other tests also like
Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests,
Psychometric Tests etc.

3. Employment Interview: The next step in selection is employment interview. Here

interview is a formal and in-depth conversation between applicants acceptability. It is
considered to be an excellent selection device. Interviews can be One-to-One, Panel Interview, or
Sequential Interviews. Besides there can be Structured and Unstructured interviews, Behavioral
Interviews, Stress Interviews.
4. Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference checks can be through
formal letters, telephone conversations. However it is merely a formality and selections decisions
are seldom affected by it.
5. Selection Decision: After obtaining all the information, the most critical step is the selection
decision is to be made. The final decision has to be made out of applicants who have passed
preliminary interviews, tests, final interviews and reference checks. The views of line managers
are considered generally because it is the line manager who is responsible for the performance of
the new employee.
6. Physical Examination: After the selection decision is made, the candidate is required to
undergo a physical fitness test. A job offer is often contingent upon the candidate passing the
physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have
crossed all the previous hurdles. It is made by way of letter of appointment.
8. Final Selection
What Is Recruitment in Human Resources?
Recruitment is the process of finding and hiring the best-qualified candidate (from within or
outside of an organization) for a job opening in a timely and cost-effective manner. The
recruitment process includes analyzing the requirements of a job, attracting employees to that
job, screening and selecting applicants, hiring, and integrating the new employee into the
organization.
The Contents of Induction Programme
A formal induction programme should provide following information: * Brief history and operations of the company.
* The companys organization structure.
* Policies and procedure of the company.
* Products and services of the company.
* Location of department and employee facilities.
* Safety measures.
* Grievances procedures.
* Benefits and services of employee.

* Standing orders and disciplinary procedures.

* Opportunities for training, promotions, transfer etc.
* Suggestion schemes.
* Rules and regulations
Newly Introduced Recruitment Process
In order to increase efficiency in hiring and retention and to ensure consistency and
compliance in the recruitment and selection process, it is recommended the following
steps be followed (also refer to Staff Recruitment and Selection Hiring Checklist).
Details for each step include the minimum recommended best practice to attract a
talented and diverse applicant pool:
Step 1: Identify Vacancy and Evaluate Need
Step 2: Develop Position Description
Step 3: Develop Recruitment Plan
Step 4: Select Search Committee
Step 5: Post Position and Implement Recruitment Plan
Step 6: Review Applicants and Develop Short List
Step 7: Conduct Interviews
Step 8: Select Hire
Step 9: Finalize Recruitment

Objectives of Commitment Manpower Planning:

Proper utilization of your workforce can help you save money now, and as you plan for your
company's future. Manpower planning requires the interaction of departmental managers with
your human resources professionals to maintain current staff levels and plan for future workforce
needs. Use manpower planning to provide a framework by which your company can prepare for
and monitor future growth.
Main objects of manpower planning are enumerated as under:
1. Accurate Estimates of manpower requirements: The most important object of manpower
planning is to make as far as possible correct estimates of future manpower requirements. The
technique of forecasting is very helpful in selecting right type of man for the right type of job.
Additional jobs are created by retirement, retrenchment, discharge, demotion and separation etc.
Forecasting also helps in minimizing labor costs.
2. Inventorying of Personnel: Personnel inventorying is concerned with working details with
regard to present employees pertaining to their educational qualifications, professional skill,
proficiency in job and training received etc. The main object of preparing the inventory is to
know about the number of persons with varied qualifications and skill etc. available in the
organization. This is helpful for further expansion and modernization of the concern.
3. Helpful in Recruitment and Selection: Human resource or manpower management is
immensely helpful in the process of recruitment and selection also. It brings down the
recruitment and selection costs by pursuing sound procedures of recruitment and selection.

4. Achieving and maintaining Production Level: Manpower planning helps in achieving and
maintains production level in an organization. There is reduction in labor turnover, absenteeism
and accidents etc. These industrial hazards are properly estimated by manpower management.
These estimates in advance are helpful in maintaining desired production levels.
Besides the above mentioned objects there are certain other objects of manpower management
also. These are bringing about industrial peace and harmony, effective utilization of manpower
resources and undertaking programs for the development of employees.

What is a Replacement Chart?

Replacement charts are a forecasting technique used in succession planning to help companies visualise
key job roles, current employees and existing and future vacancies. Positions are mapped alongside
information such as potential replacements, gender and promotion potential.
A replacement chart lists the critical job roles in a company, the employees currently positioned in those
roles, their competencies, the current vacancies and facilitates in future succession planning.

Replacement charts classify employees

into four groups
i) Employees ready for promotion
ii) Employees who would be ready for
future promotions if given additional
training
iii) Employees performing satisfactorily
but needs motivation and further
improvements
iv) Employees who are not fit to be on
employment & need to be replaced.
The replacement charts answer the
following questions
i) what is the organizational history of
an employee and the competencies that
the employee possesses?
ii) Who are the most eligible
replacement options for a vacant position?
iii) What are the benefits of selecting a particular employee for the incumbent position relative to
another employee? Changes must be made to replacement charts regularly, at least once
annually, and with changes in market scenario and economic conditions.