THE STUDY

Definition
A process in which an organizations

predict the exact demand for labour and to

evaluate the size, nature and sources of
supply that will be required to meet that
demand

Demand should match

Supply

Need For Manpower

Planning
Planning for substantive reasons,
that is, to have a practical effect
Planning because of the process

benefits
Planning because of Organizational

Strategies

Steps in Manpower
Planning
Predict manpower plans
Design job description and the job requirements
Find adequate sources of recruitment.
Give boost to youngsters by appointment to

higher posts.
Best motivation for internal promotion.
Look after the expected losses due to retirement,
transfer and other issues.
See for replacement due to accident, death,
dismissals and promotion.

Process of Manpower
Planning
Satellite picture' of the existing workforce
profile (numbers, skills, ages, flexibility,
gender, experience, forecast capabilities,
character, potential, etc. of existing
employees) and then to adjust this for 1, 3
and 10 years ahead by amendments for
normal turnover, planned staff movements,
retirements, etc, in line with the business plan
for the corresponding time frames.

Forecasting Techniques
Managerial Judgment
Ratio-trend analysis
Regression analysis
Work study techniques
Delphi technique
Business Process Reengineering

Markov Analysis
The heart of Markov analysis is the transition

probability matrix which describes the

probability of an incumbents staying in his or
her present job for the forecast time period
(usually one year), moving to another job in
the organisation or leaving the organisation.
When this matrix is multiplied by the number
of people beginning the year in each job, the
results show how many people are expected
to be in each job by the end of the year.

Choosing forecasting
method
Stability and certainty
Availability of data
Number of employees
Resources (HR) available for forecasting
Time horizon (judgemental methods may be more

suitable for long term whereas statistical methods

may be good for short term)
Credibility to management (many-a-times
judgemental methods have a higher credibility if it
includes substantial management input over
statistical methods)

Employment Scenario in
Manufacturing
Sector
I

Intense Competition
Short Product Lifecycle
Highly Volatile Market

Employment Scenario in
Manufacturing
Sector
II

Factories Act
Permanent & Contingent Labour
Trade Unions
Demand Volatility of labour

Type of Planning
Short Term Planning
Long Term Planning
Shift Based Planning
Strategic Planning

Benefits of Manpower
Planning
Future Personnel needs
Part of strategic planning
Creating highly talented personnel
International strategies
Foundation of Personnel functions
Increasing investments in HR
Resistance to change and move
Other benefits.