Human Resources

UNIT 3
Structure
3.0 3.1 3.2 Objectives

MANPOWER PLANNING

Introduction Manpower Planning

3.2.1 3.2.2 Objectives Significance

3.3 3.4 3.5 3.6 3.7 3.8 3.9

MPP Model Career Planning in Retailing Making MPP Effective Let Us Sum Up Key Words Answers to Check Your Progress Terminal Questions

3.0

OBJECTIVES
explain the meaning and concept of man power planning (MPP) describe the significance of man power planning explain the model of man power planning discuss the ways of making MPP effective

After studying this unit, you should be able to:

3.1

INTRODUCTION

Manpower planning is not limited to hiring and retaining talent, but anticipating future manpower needs of an organization. In a dynamic business scenario, manpower planning is critical to Organizational growth and stability. It is integral to recruiting, retaining, retraining and redeployment of talent. Linked to business needs of the Organization, the process is much more complicated than it seems, primarily because it also involves developing skills and competencies of existing employees to meet market demands which can change with time. Hence manpower planning is often described as the threshold to the human resource management. In this unit, you will learn about the concept, objectives and significance, model of manpower planning. You will further learn how to make manpower planning more effective.

3.2

MANPOWR PLANNING

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Manpower Planning is the process by which management determines how the Organization should move from its current manpower position to its desired manpower position to carry out integrated plan of the Organization. Future manpower planning is directly linked to the strategic business plans of an Organization. The estimation on manpower and budgets are governed by customers demands. Business

needs are achieved from effective management of materials, machines, money and manpower. Manpower needs, if planned properly, in terms of profile required, numbers, time and place, will give the Company mileage over competitors in terms of consistency in output. Effective manpower planning gives optimal productivity in terms of timelines and quality of deliverables. It will not only improve the competency of the people, but will also ensure that people grow with the Company. This helps arrest the attrition rate. An Organization set on the growth path needs competent people to achieve its objectives. Manpower planning is essentially forecasting the right number of people required. It can be described as the process of establishing the objectives of man power utilisation, assessing the requirement of manpower, analyzing the existing manpower availability and finally determining the gap to lead to human resource plans. Thus, manpower planning is essentially acquiring the right kind of people into the right jobs and at the right time. It is a process of matching demand for the manpower with the supply of available manpower. Thus, the following salient features can be identified with manpower planning.

Manpower Planning

Manpower planning is a forward-looking function. It is a process not a single activity. It begins with the establishment of overall objectives and human resource objectives in particular. It is an integrated function. It is a managerial function. It leads to identification of gap in the human resources. It is qualitative and quantitative in nature. Manpower planning is launched to other functions of human resource management.

Thus manpower planning is forecasting the human resources and arranging the supply of the required resources. In a broader sense, human resource includes skill, knowledge, values, ability, commitment and motivation of all the employees.

3.2.1 Objectives
Manpower planning is aimed at making an accurate estimate of number of personnel required with certain skills. It provides significant information to the decision makers to decide the number, time schedule and manner of recruitment and selection of personnel. Other wise the Organization would face problems of inadequate supply of human resources at the right time. The objectives of manpower planning can be presented below. 1. 2. 3. 4. 5. 6. Manpower planning determines the future needs of manpower to meet the objectives of the Organizations. It enables the organization to meet the needs of programmed expansions, diversification and growth of the Organization. It aims at assessing the surplus or shortage of manpower and develops strategies to deal with them effectively. Manpower planning enables to foresee the employee turnover and guides in the development of retention strategies. It minimizes the dangerous caused by the non-availability of required manpower. Manpower planning makes it possible to use the existing human resources more effectively and productively.
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Human Resources

7. 8.

A sound manpower planning economizes wage and salary cost and other human resource cost in the end. It provides a framework to cope with the changes. A good plan enables the Organization to make available the quality manpower even in the time of changing market conditions and human resource changes. It provides a basis for planning the human resource training and development programmes in the future.

9.

10. Manpower planning provides a guidance to design and execute an appropriate promotion policy in the Organization.

3.2.2 Significance
Manpower planning works against all contingencies and provides a cushion to managers for the effective utilization of human resources. It provides a framework for many important decisions relating to human resources. The significance of the manpower planning can be stated as follows. Growth: An appropriate manpower planning provides information to the management to undertake decisions relating to expansion of the existing operations or contraction. For example in Retail Organization, if manpower planning shows surplus people Organizations can make a planned expansion of its scale of operation to use the existing manpower. Talent management: Manpower-planning facilitates an Organization to develop a reservoir of talent in the Organization. Organization may take appropriate decisions to develop a list of available talents within the Organization. Having manpower, a plan ensures planning programmes of training and development of employees in a proper way. Cost control: Manpower planning facilitates preparation of manpower objectives and budgets. This ensures exercising control over various manpower costs. Facilitates planning: Possessing an appropriate manpower plan provides a background to plan various facilities required to promote welfare and well-being of employees. Facilities such as canteen, housing, education, medical etc. can be planned based on the labour plans. Succession planning: Manpower planning prepares people for meeting all future challenges. Organization can have a provisional list of employees who are ready with qualifications and knowledge required for undertaking any future assignment. Based on the requirement organizations can readily replace superiors in the case of emergencies and eventualities. Check Your Progress A 1. What is meant by manpower planning? ................................................................................................................... ................................................................................................................... ................................................................................................................... 2. Enumerate the objectives of manpower planning. ................................................................................................................... ...................................................................................................................
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...................................................................................................................

3.

List out the significance of manpower planning. ................................................................................................................... ................................................................................................................... ...................................................................................................................

Manpower Planning

4.

Mention three feature of manpower planning. ................................................................................................................... ................................................................................................................... ...................................................................................................................

3.2

MANPOWER PLANNING MODEL

Manpower planning is a process of assessing the need for manpower keeping in view the overall Organizational objectives and policies, forecasting the supply of manpower and matching the demand and supply with the help of various manpower programmes. It also consists of overseeing implementation and evaluation of the plan and final integration with the other human resource plans. Look at Figure 3.1 which shows the steps required in manpower planning. 1. 2. 3. 4. 5. 6. 7. Examining organizational objectives and policies Assessing manpower demand Forecasting supply of manpower Gap analysis Designing manpower programmes Manpower plan implementation Evaluation and feedback Environment

Examining organizational objectives and policies

Assessing manpower demand

Forecasting supply of manpower

Manpower plan implementa tion

Designing Manpower Programs

Gap Analysis

Figure 3.1: Steps in manpower planning

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Human Resources

Let us learn each step in detail 1. Examining organizational objectives and policies: Manpower planning starts with examining the overall objectives of the organization. In fact, manpower plan should be integrated into the overall objectives. The number of employees required to perform various operations will be derived from the objectives of the Organization. Overall objectives of the Organization have to be understood in order to draw a good manpower plan. 2. Assessing manpower demand: Manpower demand is the number of people required to handle the present jobs. Forecasting the demand for manpower is the process of estimating the future quantity and quality of employees required. For instance in a Retail Organization the manpower demand is forecasted based on the work to be performed in every Retail Stores. Obviously the long term corporate plans, budgets and annual plans would become basis for forecasting the demand for labor. This is a common activity in most Organizations. The existing job design and job analysis provide useful information in this regard. The demand forecasting should consider several internal and external factors. External factors are political, economical, technological, legal, ecological, governmental, social, and ethical factors. These factors influence the number and quality of manpower required. 3. Forecasting supply of manpower: Supply forecast is also known as manpower inventory. The objective of preparing manpower inventory is to find out the number and quality of manpower available within the Organization to employee in various jobs identified in the Organisation. Development of supply of manpower data relating to present human resources in terms of components, number, designations, and department wise should be developed. Here potential losses in the existing manpower should be considered. The loss of manpower arises out of voluntary retirements, deaths, retirements, dismissals, layoffs, disablement due to ill health, accidents and other losses occurring due to poor attitude and low commitment to the Organisation. Transfers, promotions and demotions, transfers and conditions of work also effect supply of manpower. 4. Gap analysis: Gap analysis is the process of identifying the difference in the estimated number of employees and actual number of employees available in the Organization. This enables to determine the quantity and quality of manpower needed. This gap reveals the number of personnel to be recruited to fill the gaps. 5. Designing manpower programems: The next step in manpower planning is designing various programmes relating to manpower. In this regard, changes in the product or services in the Organization, competition and internal union pressures should be taken into consideration. Manpower plan details the number of employees required. Based on this, the organization should make a program of recruitment. Selection program should be designed based on the source of recruitment and requirement to the job. In a retail stores the shelf sorters have been given training on billing mechanism and technology of billing, they can be now redeployed by promoting them as billing assistants. This enables motivation and satisfaction that they are promoted to next higher-level jobs. Training and development of existing personnel is needed in order to ensure their productivity and satisfaction. Manpower plan enables to decide number of trainees, type of training, methods of training, quality of trainers, frequency of training programs and the needed budget required. Manpower plan should enable to plan a program of retention. In the globalization scenario, retention has become a major challenge to all Organizations. Retail sector is no exception to this phenomenon. In Retail Sector employees leave Organization due to poor compensation, attractive pay packages offered by the competitors, frequent conflicts

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with boss, colleagues and customers, and unstable manpower policies like promotion, recognitions, rewards, financial help etc. Thus, manpower plan should help to design a comprehensive plan of retention of employees. 6. Manpower plan implementation: Implementation is the process of converting plan into action. Implementation of manpower plan is done with the help of various programmes designed. In the process of implementation, it should be noted that a close coordination is required with the other section of the human resource management department. 7. Evaluation and feedback: After implementation of various plans and programmes, it is necessary to evaluate the effectiveness of these programmes. In the process, evaluation takes into account the objectives of manpower plan. The extent of attainment of objectives within the given time is evaluated with the help of certain parameters. Some times manpower plans may be drawn on too conservative manner or otherwise. So a critical feedback is required to see that any lapses identified do not reoccur in the subsequent plans. This ensured improvement in the manpower planning during the course of time.

Manpower Planning

3.4

CAREER PLANNING IN RETAILING

In the direction of retention of people for fairly a long tenure though not forever Career planning is to be a part of manpower planning. In the current scenario of employment opportunities we see people change the job too frequent. If a person joins an Organization today, he/she will immediately start applying for a different job, in other words he/she will be always on the verge of leaving the Organization. The real reason for this is he/she is not sure of future career in the Organization. For this the Organization, through Career planning, can make one know ones status in the Organization in future. Say, after 5 or 10 years what he/she will be, at which level of higharchy, financial status, provision for future etc., on a normal time scale and on exceptional performance in a short time. Once one knows this, at least he/she will not think of searching for a different job for some time. This to a large extent reduces attrition. We can see lot of examples wherein a person starts his career as salesman and rise to the rank of General Manager or to similar level. Look at figure 3.1 which shows Retail career progression model. Organized retailing in India offers great employment opportunities. As the above retail career progression model suggests a prospect can enter the industry in frontline job functions even after completion of higher secondary education. Organized retailing sector in India includes Organizations like Pantaloons, Shoppers Stop, Westside, Globus, Crossroads, Pyramid, Planet Sports, Royal Sporting House, Marks and Spencer, Big Bazaar, Vijay Sales Viveks, Spencers, Food world, Foodland, Vishal Mega Mart, Raymonds, Titan, Bata, Zodiac, Crossword, Planet-M, Haiko, D-Mart, Hypercity, Shoprite Hyper, Natures Basket, Monday 2 Sunday, etc.etc. to name a few and working in these Organizations will not provide career opportunities, but will give the employee a good deal of satisfaction too.

3.5

MAKING MANPOWER PLANNING EFFECTIVE

Manpower planning is threshold of human resource management. Failure to plan properly leads to failure in critical functions of human resource management. However, most of the research stated that very little attention is shown towards manpower planning in Indian corporate. One of the vital reasons for lack of attention is lack of sound information system in Indian Organizations.

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Human Resources
CEO/ President / MD

Retail Career Progression Model

Concurrent Orientation: Retail Management Development Programs
VP Retail Operations etc. GM Merchandising GM Retail sales

Board Level

Senior Management

Store Manager Operations Manager Retail Sales Manager Supply Chain Head Head of CRM

Managerial Positions
Floor Manager Dept. Manager Asst.Store Manager Customer Care Incharge

Concurrent Education: Management Graduation

Supervisory Level Jobs

Retail Selling Customer Service Retail Cashiering Fashion Associates

Concurrent Education: Graduation

Entry Level Front-line

Added to these uncertainties in the employment market, technological challenges, economic uncertainties, unique socio cultural value systems are adding fuel to the fire. In the case of such volatility in the environment, it is difficult to have a sound manpower forecast. The following are the some of the guidelines to be followed for making manpower planning effective. Corporate Objectives: An important element in the Manpower planning is integration of overall corporate objective with the Manpower planning objectives. In most of the Organizations, there is conflict in the economic and welfare objectives. Coordination: The important objective of Manpower planning is to make optimum use of available human resources. Thus, a separate division is created to make a comprehensive manpower planning in large Organizations. However, in some Originations manpower plans are made within the human resource devision. Thus, coordination of personnel in human resource department with other departments is critical in the success of manpower plan. Today Organizations prefer to have outsourcing of human resource functions. Thus, coordination with external agencies that takes up outsourcing also become critical in manpower planning.

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Top Management support: Top management needs unstinted support to the activity of Manpower planning. However, in most of the Organizations top management fails to realize the importance of manpower planning. It should be remembered that top management support make a lot of difference in the effective designing of manpower planning. Information system: As noted earlier, information on various aspects of human resources is vital in effective Manpower planning process. In the absence of accurate and timely information, manpower planning becomes institutional and redundant. In this case, decisions taken based on the manpower planning becomes a futile exercise. Thus, effectiveness of Manpower planning presupposes existence of sound human resource information systems. Check Your Progress B 1. List out the steps in manpower planning. ................................................................................................................... ................................................................................................................... ................................................................................................................... 2. What is gap analysis? ................................................................................................................... ................................................................................................................... ................................................................................................................... 3. State three guidelines for making manpower planning effective. ................................................................................................................... ................................................................................................................... ................................................................................................................... 4. What is meant by information system? ................................................................................................................... ................................................................................................................... ................................................................................................................... 5. Which of the following statements are True or False? i) ii) iii) Manpower planning starts with examining the overall objective of the organisation. Manpower demand is the number of people required to handle the present job. Supply forecast is also known as manpower inventory.

Manpower Planning

iv) Gap analysis does not enable to determine the quantity and quality of manpower needed. v) In the presence of accurate and timely information, manpower planning becomes institutional and redundant.

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Human Resources

3.6

LET US SUM UP

Manpower planning is the process of securing the right number of qualified people into the organization. It is the threshold of human resource management. The effectiveness of the organization depends on the effectiveness of the manpower planning. The basic objective of manpower planning is to determine the future manpower needs by forecasting both demand and supply. It enables organization to meet future expansions and use manpower effectively. Manpower planning is significant in taking certain important decisions relating to human resource management such as growth, talent management, cost control and facilities planning and succession planning. Manpower planning process involves several steps viz., examining organizational objectives and policies assessing manpower demand, forecasting supply of manpower, gap analysis, designing manpower programs, manpower plan implementation and evaluation and feedback. Manpower planning does not exist in vacuum. In order to make manpower planning effective, aspects needed to be taken care are: Corporate objectives, coordination, top management support, information system.

3.7

KEY WORDS

Manpower Planning: It is the process of estimating the manpower needs of an Organization. Gap Analysis: It is the process of identifying differences in the estimated number of employees and actual number of employees available in the Organization at any given point of time. Talent Management: A conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future Organizational needs. Cost Control: Refers to managements effort to influence the actions of individuals who are responsible for performing tasks, incurring costs, and generating revenues. Facilities planning: It can be defined as the process by which a facility management Organization envisions its future by linking its purpose to the strategy of the overall Organization and then developing goals, objectives and action plans to achieve in future. Succession planning: It involves recognizing potential successors within the company, training those people and preparing them for career advancement

3.7

ANSWERS TO CHECK YOUR PROGRESS

(B) 5) i) False ii) True iii) True iv) False v) False

3.9
1. 2. 3. 4.
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TERMINAL QUESTIONS
What is Manpower planning? Examine the nature and significance of manpower planning. Discuss objectives of manpower planning. Manpower planning is a process of estimating the future needs of manpower discuss the process of manpower planning. Discuss in detail the model of manpower planning. How can manpower planning be made effective?

5.