Introduction

Planning for manpower is more important than planning for any other resource as
demand for the latter depends upon the size and structure of the former whether it is in a
country or in an industry. Further, management of human resource hardly begins from
human resource planning. In fact it is the basis for most of the other functions.
Through planning management strives to have the right number and right kind of
people at the right places at the right time, doing things, which result in both the
organisation and the individual receiving maximum long-run benefit. It is an integrated
approach to performing the planning aspects of the personnel function in order to have a
sufficient supply of adequately developed and motivated people to perform the duties and
tasks required to meet Organisational objectives and satisfy the individual needs and
goals of Organisational members.
Manpower planning may be viewed as foreseeing the human resource
requirements of an organisation and the future supply of human resources and (i) making
necessary adjustments between these two and Organisational plans; and (ii) foreseeing to
possibility of developing the supply of human resources in order to match it with
requirements by introducing necessary changes in the functions of human resource
management. In this definition, human resource means skill, knowledge, values, ability,
commitment, motivation etc., in addition to the number of employees.
Manpower planning like production planning, financial planning and marketing
planning, should be an unified, comprehensive and integrated part of the total
corporation. Manpower manager provides inputs like key HR areas, HR environmental
constraints and internal HR capabilities and HR capability constraints to the corporate
strategists. The corporate strategists in turn communicate their needs and constraints to
the HR manager.

Objectives of the study

1)

Understand the nature and importance of manpower planning

2)

Identify and describe the factors affecting manpower planning

3)

Identify the employee process and delineate different steps

4)

Identify prerequisites for successful planning and various barriers, which

render planning ineffective.

Need of the study

In todays in cutthroat competition, every resource has cost attached to it and
human resource is no exception. Each and every organisation is cutting down the cost and
posing a stiff competition. This being the situation, the optimum utilization of resources
is necessitate including human resources. For the optimum utilization of human resources
manpower planning plays an important role. Therefore the researcher chose the topic to
understand manpower planning in a broader sense through the study, which would help
him in his future endeavours.

Limitations of the Study

Every thing and every body has their own limitation this study is not an
exception. The study was conducted in a single division by which the researcher could
not compare the system with that of other division / organisation. As the time was limited
the researcher could not so in depth of the subject.
The researcher has taken the study as an IPW and has carried out the study,
however his individual ideas & perceptions would have taken the lead than the real
observations.

Research Methodology
Research Design
The design of the study is descriptive in nature, which is also called as system
study, through the study the researcher enriched his knowledge about manpower planning
and various factors influencing manpower planning. The study also helped in
understanding the problem while making an effective manpower plan.
Data Collection Tool
The researcher used observation as a tool for collecting primary data and
unstructured interviews were also carried out with the MSD and Shop floor officers.
During the interview the researcher had a detailed description with regard to procedures
adopted and problems of the manpower planning.

CHAPTER -II

Review of literature
Manpower planning, also known as human resources planning (HRP), is the
starting point in staffing function. HR planning basically deals with forecasting of the
additional human resources required in an organisation in future, though there is not
complete agreement among writers and practitioners on the exact scope of HR planning
function. Although manpower planning means different things to different people,
general agreement exists on its ultimate objectives---the most effective use of scarce
talent in the interests of the labour and the organisation.
The employment function of the Personnel or Human Resource Manager is
concerned with the task of hiring people to fill current or future job vacancies in the
organization. For making the hiring practices most effective, answers must be sought to
the following questions:
1.What are the requirements of the jobs to be filled?
2.What kinds of and how much manpower must be hired?
3.What sources of recruitment may be utilized for procurement?
4.What procedures should be adopted to screen the candidates for employment?
5.What is the utility of employment test and interviews in the selection process?
6.What is the place of transfers and promotions in employment and placement?
Manpower may be regarded as the quantitative and qualitative measurement of
work force required in an organization and planning in relation to manpower may be
regarded as establishing objectives to develop human resources in line with broad
objectives of the organization. Manpower Planning may thus be expressed as a process
by which the management ensures the right number of people and right kind of people ,
at the right place, at the right time doing right things for which they are suited for the
achievement of goals of the organization.

Meaning of Manpower Planning

Manpower Planning aims at ascertaining the manpower needs of the organization
both in right number and of right kind. It further aims at the continuous supply of right
kind of personnel to fill various positions in the organization.
According to Decenzo and Robbins, Manpower Planning is the process by which
an organization ensures that it has the right number and kind of people at the right place,
at the right time, capable of effectively and efficiently completing those tasks that will
help the organization achieve its overall objectives.
To quote Dale S. Beach, Manpower Planning is the process of determining and
ensuring that the organization will have an adequate number of qualified persons,
available at the proper times, performing jobs which meet the needs of the enterprise and
which provide satisfaction for the individual involved.
Manpower Planning is a continuous process. It cannot be rigid or static, it is
amenable to modifications, review and adjustments in accordance with the needs of the
organization or the changing circumstances. In simple terms it is the process of
determining manpower requirements and the means for meeting those requirements in
order to carry out the integrated plan for the organization. It is a two-way process by
which management can project the future manpower requirements and develop suitable
action plans to accommodate the implications of projections. Thus, manpower planning is
the process of developing and determining objectives, policies and programmes that will
procure, develop and utilize human resources so as to achieve the goals of the
organization.

Nature of Manpower Planning.

1. Manpower Planning aims at ascertaining the manpower needs of the organization
both in number and kind.
2. It presents an inventory of existing manpower of the organization. An analysis of
the inventory of manpower helps in ascertaining the status of available personnel
and to discover untapped talent presently available with the organization.
3. It helps in determining the shortfall (or surplus) of manpower by comparing the
total manpower needs with the present supply of manpower. It also helps in
projecting future manpower needs.
4. It is concerned with initiation of various organization programmes depending
upon the demand and supply of human resources. If the future needs exceed
presently available talent, this gap becomes the basis for a programme of
employment and training .If the presently available talent exceeds the future
needs, this difference may become the basis for a programme of retirements,
discharge, etc.
5. Effective

manpower

planning

encompasses

the

acquisition,

utilization,

improvement and preservation of the organizations human resources.

Objectives Of Manpower Planning.

1. To ensure optimum use of Human Resources currently employed.
2. To avoid imbalances in the distribution and allocation of Human Resources.
3. To assess or forecast future skill requirements for the accomplishment of the
organisations overall objectives.
4. To provide control measure to ensure availability of necessary resources when
required.
5. To control the cost aspect of human Resources.
6. To formulate transfer and promotion policies.

Elements of Manpower Planning.

1. Listing of current manpower with the organization.
2. Assessing the extent to which the current manpower is utilized to the advantage
of the organization.
3. Phasing out the surplus manpower, if any.
4. Analysing the requirements of manpower in future in the light of expansion
plans, retirement of personnel, etc.
5. Making manpower procurement plans.
6. Designing training programmes for different categories of manpower.
Importance of Manpower Planning
Manpower Planning is a two-phased process by which management can
project future requirements and develop manpower plans. It helps in proper recruitment
and selection so that right type of people are available to occupy various positions in the
organization. It also facilitates designing of training programmes for the employees to
develop the required skills in them. Thus, manpower planning plays an important role in
the effective management of personnel.
Systematic manpower planning provides lead-time for the acquisition and training
of employees to meet future requirements. It is all the more crucial because the lead time
for procuring personnel is a time consuming process and in certain cases, one may not
always get the requisite type of personnel needed for the jobs. Non-availability of suitable
manpower may result in postponement or delays in executing new projects and expansion
programmes, which ultimately lead to lower efficiency and productivity. To overcome
this, an organization must plan out its manpower requirements well in advance so that it
could compete effectively with its competitors in the market.

Benefits of Manpower Planning.

1. It results in reduced labour costs as it helps the management to anticipate
shortages and/or surpluses of manpower and correct these imbalances before they
become unmanageable and expensive.
2. It is a better basis for planning employee development that is designed to make
optimum use of workers skills with in the organization.
3. It enables identification of the gaps of the existing manpower so that corrective
training could be imparted. Thus, the training programme becomes more
effective.
4. It leads to improvement in the overall business planning process.
5. It helps in formulating managerial succession plan as apart of the replacement
planning process, which is necessitated when job-change plans for managers are
formulated. Besides, this exercise would provide enough lead-time for identifying
and developing managers to move up the corporate ladder.
6. It leads to a greater awareness of the importance of sound manpower management
throughout the organization.
7. It serves as a tool to evaluate the effect of alternative manpower actions and
policies.
Manpower Planning at Different Levels.
There are various levels of manpower planning in an industrial enterprise, but
each has it own objectives and techniques. It may broadly be carried out at corporate,
divisional and plant levels. The purpose of carrying out manpower planning at various
levels is a systematic projection of manpower requirements for the future. It is done to
determine the effects of anticipated changes in technology, markets and products on
manpower requirements and training requirements.
It is better for manpower planning to start at the lowest organizational level and
the move upward. There is no doubt that a corporate plan is developed by the body of top
executives with the help of corporate staff planners. However, if personnel lower down in
the organization start the planning process, the organization shall reap the benefits of

thinking of persons who are more familiar with the day to day problems and will be more
interested in fulfilling the plans if they have had a hand in formulating them. Therefore,
manpower planning should begin at the lowest organization level and be reviewed at
successively higher organizational echelons.
Manpower Planning at the plant level (or other decentralized units such as
warehouse, sales office, branch and the like) can be conducted by an operating committee
on the basis of past data and future projections. The committee would formulate a
manpower plan for the next year, including the number of employees required and the
sources, which could be utilized to meet these requirements. It would also determine the
number of promotable employees for the annual manpower plan. Finally, the committee
will evaluate these plans in the light of expected changes of all kinds within the next five
years with the help of manpower experts. In line with the principles of functional and
administrative supervision, this plan would in turn be submitted to the next organization
level, which would be the departmental level. Each division or department of the
organization will have the divisional committee, which would review the manpower
plans submitted by all the plants in the division. The divisional committee would
integrate all the manpower plans of its plants as well as those of its divisional staff
sections into a comprehensive divisional manpower planning report, which in turn would
be submitted to the top management.
At the highest level, a committee of top executives will review all the plans
submitted by divisional committees and will develop similar plans for the headquarter
staff. It will make projections of manpower requirements of various kinds during the next
five years. At this level, adequate emphasis will be given to executive manpower
planning because it takes a long time before a person is developed into a better executive.
The committee will have at its disposal all the records and statistics regarding employees
turnover during the previous years, employees going to retire in future and so on. Past
records regarding employees turnover due to death, retirements, resignations,
terminations, etc., and absenteeism can be a good guide for manpower planning. After the

manpower planning has been done at the top level, it will be integrated with the other
organizational plans.
Process Of Manpower Planning.
The process of manpower planning involves the following steps;
1.

Determination of objectives of manpower planning.

2.

Preparation of current manpower inventory.

3.

Demand forecasting.

4.

Supply forecasting.

5.

Estimating the net manpower requirements.

6.

Action plan for redeployment and redundancy.

7.

Determination of job requirements of jobs to be filled.

8.

Employment plan.

9.

Training and development program.

Manpower planning is a continuous process as shown in Fig.1. The manager

responsible for manpower planning has to be concerned with all the steps at all time. He
may have to revise employment plan and training and development programme from time
to time depending upon the changes in circumstances such as sudden changes in volume
of production, unexpected high rate of labour turnover, obsolescence of existing skills
and so on. A brief explanation of the steps in the manpower planning process is given
below:
Objectives of
Human Resource
Planning

Inventory of
Human Resource
Skills (Finding
gaps)

Demand and
Supply
forecasting

Determine Net
manpower
Requirements

Appraisal of
Human resource
Planning

Training and
Development
Program

Employment
Program

Redeployment
and Redundancy
Plan

Fig.1. The Manpower/Human Resource Planning Process.

10

1. Objectives of manpower Planning

The ultimate purpose of manpower planning is to relate future
human resources to future enterprise needs so as to maximize the future return on
investment in human resources. Manpower planning must be integrated with the
overall organizational plans. Manpower planning should be done carefully as it has
got long-term repercussions. Once the wrong forecast of future requirement of human
resources and the wrong analysis of the available manpower inventory are made, it
may not be possible to rectify the errors in the short-run. Therefore, manpower
planning should be more concerned with filling future vacancies with right type of
people rather than with matching existing personnel with existing jobs.
1.

Current Manpower Inventory

Analysis of current manpower supply may be undertaken by

department, by function, by occupation, or by level of skill or qualifications.

Appropriate adjustments in these would need to be made in the light of any
foreseeable changes in weekly hours of work, holidays, leave entitlements, etc. It may
be noted that assessment of demand for the operative personnel presents less
problems of uncertainty and current manpower supply can be adjusted accordingly.
But projections of manpower requirements for supervisory and managerial levels
presents a complex problem because the required talents are not available at a short
notice. This explains the need to ascertain the present manpower inventory in the
enterprise. This will also help in drawing recruitment and development plans to meet
the needs of certain skills in the future.
Systematic steps must be taken in order to ensure that a reservoir of talent
is available when vacancies occur. The search for talented employees in the
organization must be continuous. To be sure that available talent has been included,
the inventory of various skills in the enterprise should be indexed.
Detailed bio-data of each individual included in the manpower inventory
must be obtained separately for the purpose of manpower planning. This record will

11

provide the foundation for a programme of individual development. It will also reveal
the scarcity or non-availability of certain talents for which outside sources of
manpower may be tapped.
2.

Demand Forecasting
A proper forecast of manpower required in the future (say, after one year,

two years, three years and so on) must be attempted. The factors relevant for
manpower forecasting are as follows:
(i)

Employment

Trends.

The

manpower

planning

committee at the corporate level should make an examination of number of the

employees on the payroll during the past five years to know the trend within each
group. With the help of this, it would be possible to determine whether a particular
group has been stable or unstable and whether it has been expanding or contracting.
(ii)

Replacement Needs. The need for replacement arises

due to death, retirement, resignation and termination of employees. The

examination of replacement needs may relate to specific manpower groups:
supervisory, skilled, clerical, unskilled, etc. For some groups like managerial or
supervisory, it is very difficult to predict the needs. One of the major difficulties
involved in predicting the need for managerial skill is that the management
development cycle takes a long time. So the needs for managerial manpower should
be anticipated sufficiently in advance.
(iii)

Productivity. An important area to which the manpower

planning is related is the improvement in productivity. Gains in productivity add to

the growth potential of the organization and can make possible healthy wage
increase. Gains in productivity will also influence the requirements of manpower.
Planning for productivity gains has several aspects. The first and the
important one relates to affecting gains by improvements in existing manpower
utilization. Current levels of utilization and indications about the needed

12

improvement can be obtained by the application of various analytical techniques of

industrial engineering or work study such as activity charts, flow charts, multiple
activity charts, activity sampling studies and so on. Methods improvement
techniques help reduce work content. Conceptually, similar approaches aimed at
upgrading management performance help secure productivity gains at the
managerial level.
The second aspect relates to installation of more productive tools
equipments or processes. Any anticipated change due to the introduction of
automation will affect manpower needs in the plants as well as in the divisional
offices. The manpower planning experts should attempt to learn about such changes
with sufficient time to appraise their possible impact on the number and kinds of
employees required in the future.
The last aspect relates to the matching of skills with the requirements of
the jobs. Job analysis techniques facilitate a clear specification of the skills and
experience requirements of jobs. The immediate products of this analysis are job
description and job specification, which have been discussed, in a subsequent
chapter.
(iv)

Growth and Expansion. Another aspect relevant for manpower planning

is personnel requirements for growth and expansion of the organization. The

expansion plans of various plants and divisions should be carefully reviewed to
assess their probable effects on the number of employees required in each group.
The accuracy with which such manpower requirements can be forecast will depend,
among other things,. On the degree of accuracy, which can be achieved in relation
to the time perspective is larger, uncertainties will also be greater.
A going concern is a living and growing organism. It is not contended with
the existing level of production or profits. It also wants to grow and increase its
share in the total activities of industry. One of the basic aspirations of most business

13

managers is to perpetuate the enterprise in which they are engaged. In this world of
competition, perpetuation would mean that every organization has its plans ahead of
its activities and aims at a better growth rate and at diversification of its activities
and at a better image of itself. All these aims and aspirations result in expansion and
growth creating numerous positions for work force at various levels. These aims
and aspirations can be fulfilled if there is a sufficient number of capable persons to
handle various positions in the organization.
(v)

Absenteeism. It means a situation when a person fails to come for work

when he is scheduled to work. The rate of absenteeism can be calculated by the

following formula:
Absenteeism =

Man-days lost
Man-days worked + Man-days lost

There are certain employees who are more prone to absenteeism in any
organization. 10 to 20 percent of such employees may account for 70 to 80
percent of absences. It should be noted that excessive absenteeism (more than the
irreducible minimum, say 3% to 5%) involves a considerable cost to the firm even
when the absent employees receive no pay. Work schedules are upset leading to
overtime work, which in turn leads to increased cost of production. The
management should go into the causes of absenteeism and attempt to reduce the
absenteeism as far as possible. The manpower planning experts will have to
consider the known rate of absenteeism in their decision regarding estimation of
manpower requirements.
(vi)

Work Study. Work Study technique can be used when it is possible to

apply work measurement to know how long operations should take and the
amount of labour required. This is also known as Workload analysis. On the
basis of the workload of each plant during the forthcoming years, workforce
analysis is done considering the rates of absenteeism and labour turnover.

14

3.

Supply Forecasting.
Along with demand forecasting, it is equally important to forecast the
supply of different types of personnel with the organization at the cut off date of
manpower planning. There are two sources of supply of manpower- internal and
external. But internal supply is more important for manpower planning. It
comprises of the employees working in organization who can be promoted or
transferred to fill up various jobs as and when they fall vacant. This would
require evaluation of the present personnel abilities, their strengths and
weaknesses, so as to gauge their suitability for different jobs. In order to
estimate internal supply of personnel, it is necessary to conduct human resource
audit and prepare replacement charts in advance.
(i) Human Resource Audit: Systematic audit of executive personnel or managers would lead to
creation management inventories while that of non-managerial employees
would lead to preparation of skill inventories. Human Resource audit gives a
thorough idea of potential and capabilities of persons working in the
organization. Personal records of all the personnel should be updated
periodically so as to record the new accomplishments or qualifications and skills
obtained by different types of personnel over the time.
(ii) Replacement Charts: These are meant for listing each key position and indicating time when it

is likely to be vacated. They also list the most likely candidates working in the
organization suitable to fill vacancies and also the time when they would be ready
for promotion. In short, a replacement chart presents clearly who will replace
whom in case of vacancy. Often, large enterprises use computers to record job
analysis information and human resource audits and replacement summaries.
4.

Estimating the Net Manpower Requirements.

15

The Manpower planner must compare the demand forecast for human
resources with the projected internal supply of human resources before coming
to any conclusion. This exercise should be carried out department and skill wise
to know the deficiencies or surplus of various types of personnel in future. The
possibilities of transfer personnel from one department to another and
promotion of personnel to higher jobs must also be considered to determine net
manpower requirements in the organization as a whole.
5.

Action Plan Redeployment or Redundancy

The management has to plan for redeployment and redundancy in case of
surplus staff position. If surplus is estimated in some jobs/departments,
employees can be redeployed in other jobs/departments, where the deficit of
employee is estimated. The management should also plan for training or reorientation before redeployment of employees. Redundancy plan has to be made
if the surplus employees cant be redeployed. It would include the type and
number of employees to be retrenched or offered golden handshake under
voluntary retirement scheme (VRS), type of help to be extended to retrenched
employees in the form of compensation, type of help in getting new jobs outside
the organization, priority to the retrenched personnel in filling future vacancies
and so on.

6.

Determining job Requirements of Positions to be Filled

Job analysis is the qualitative aspect of manpower planning since it
determines the demands of a job in terms of responsibilities and duties and then
translates these demands in terms of skills, qualities and other attributes. It helps
in determining the requirements of jobs and qualifications needed to fill these
jobs. Thus, job analysis is an essential element of effective manpower Planning.
Accurate job descriptions help in finding suitable candidates for vacant jobs and
developing training programs for them.

7.

Employment Plan

16

This phase deals with planning how the organization can obtain the
required number and right type of personnel. In other words, there is a need to
prepare programmes of recruitment, selection, transfer and promotion so that
personnel needs of various departments of the organization are met timely.
8.

Training and Development Program

The preparation of human resource inventory helps in identifying the
training and development needs of the organization. Training is necessary not
only for the new employees, but also for the existing employees. Executive
development programmes have to be devised for the development of managerial
personnel. No enterprise has a choice of whether to provide training or not, the
only choice is that of methods or techniques. All types of jobs usually require
some sort of training for their efficient performance. Even when the persons
appointed have job experience, they must be given some training to renew their
knowledge and skills and to tell them what they are expected to do. The talents of
the employees are not fully productive without a systematic programme of
training and development.

Evaluation of Effectiveness of Manpower Planning

After the employment and training programme have been implemented, an
appraisal must be made of the effectiveness of manpower planning. Deficiencies
in the programme should be pointed out and the catalogue of manpower inventory
should be updated periodically. Corrective actions should take wherever it is
necessary to remove the deficiencies in manpower planning. An appraisal of the
existing manpower plans will also serve as a guide in the future manpower
planning. Manpower power planning is closely linked to the goals of manpower
management and those of the organization. Shortage or surplus of manpower
planning in any department or at any level should be minimized. Human resource
planning will be said to be effective if it can anticipate the deficiencies of various
skills well in time so that steps initiated for procurement for required manpower.
Similarly, if some types of personnel are surplus, they should be adjusted after

17

giving them appropriate training. If it is not possible, they may be phased out
through voluntary retirement scheme.
QUANTITATIVE ASPECTS OF HUMAN RESOURCE PLANNING
The quantitative aspects of manpower planning involve demand
forecasting and supply forecasting as discussed below.
Demand Forecasting
It is the process of estimating the requirement of different kinds of
personnel in future. The basis of manpower forecasts should be the annual budget
and long-term corporate plan, translated into activity levels for each function and
department. In a manufacturing company, the sales budget would be translated
into a manufacturing plan giving the number and types of products to be made in
each period. From this information, the number of man-hours by skill categories
to make the quota for each period would be computed. In an insurance company,
forecasts of new business would be computed. In an insurance company, forecasts
of new business would be translated into the number of proposals that would have
to be processed by the underwriting department. In a mail order company,
forecasts would be made of the number of orders that might have to be processed,
assembled and dispatched.
There are three basic techniques of demand forecasting:
1.

Managerial judgment;

3.

Statistical techniques.

2.

Work-study techniques;

In many cases, a combination of methods, say managerial judgment and statistical

techniques might be more useful. A brief description of these methods is given
below.
1.

Managerial judgment
The most typical method of forecasting used in smaller companies, or those who

do not have access to work study data, is managerial judgment. This simply requires
managers to sit down, think about their future workloads and decide how many people

18

they need. It might be done on a bottom-up basis with line managers submitting
proposals for approval by the top management.
Alternatively, a top-down approach can be used in which company and
departmental forecasts are prepared by the top management, possible acting on advice
from the personnel and organization and methods (O&M) departments. These forecasts
are reviewed and agreed with the departmental managers.
Perhaps the best way of using managerial judgment is to adopt both the bottomup and top-down approach. Guidelines for departmental managers should be prepared
which indicate broad company assumptions about future activity levels which will affect
their departments. Targets are also set, whenever necessary armed with these guidelines,
departmental managers prepare their forecasts to a laid-down format. They are
encouraged to seek help at this stage from personnel, O&M, or work-study departments.
Meanwhile, the personnel department, in conjunction, as necessary, with planning, O&M
or work study departments, prepares a company manpower committee consisting of
functional heads. This committee reconciles with departmental managers any
discrepancies between the two forecasts and submits the final amended forecast to top
management for approval. This is sometimes called the right-angle method.
2.

Work Study Technique or Workload Forecasting

Work-study technique can be used when it is possible to apply work

measurement to know how long operations should take and the amount of labour
required. This is also known as workload analysis. On the basis of the workload of each
plant during the forthcoming years, workforce analysis is done considering the rates of
absenteeism and labour turnover.
Work-load Analysis. In work-load analysis, the manpower planning expert needs
to find out sales forecasts, work schedules and thus determine the manpower required per
unit of product. The sales forecasts are translated into work performance for the various

19

departments of the enterprise. In a manufacturing enterprise, one shall first find out the
master schedule and then departmental schedules. The departmental work-loads are
converted into man-hours in terms of different skills required. Work loads analysis is used
to determine how many employees of various types are required to achieve total
production targets. Similarly, plans are made concerning the amount of work that all other
departments (marketing department, purchase department, etc.) of the organization are
expected to accomplish during the coming year. It is essential to determine the workload
in some tangible units so that they may be translated into man-hours required per unit.
Past experience can, of course, be utilized for translating workloads into man hours
required.
Work-force Analysis. In the above illustration, we came to a conclusion that 360
Workers are required to make 3,60,000 units in a year. Assuming that all other factors are
favorable, this conclusion is illusory because it is almost certain that all the 360 workers
will not be available on all working days because of the two major problems: (i)
Absenteeism, and (ii) Labour Turnover. Both these factors operate to reduce the number
of workers available. Therefore, it is essential to do work-force analysis in the light of
these major problems which have been discussed later in the book. In other words, it is
necessary to keep a sufficient margin for absenteeism, labour turnover and idle time on
the basis of past experience. If it is essential to keep a margin of 20% of the manpower
required as per workload analysis, the company must ensure that it has at least 432
workers on its payroll to meet the annual production target.
3.

Statistical Techniques
The earlier techniques provide only a rough approximation of the number of

employees required and are suitable only for short range demand forecasting. Long range
personnel forecasting is more amenable to statistical and mathematical techniques. This
has been particularly true in recent years as new mathematical techniques have been
developed and high-speed computers are used to rapidly analyse large amount of
personnel planning data. Some of the important statistical tools for forecasting are
discussed as under:

20

(a)

Ratios and Trend Analysis. Under this method, the main emphasis

is on the ratios which are calculated for the past data relating to number of employees of
each category, of production level, sales level, activity lever/ workload level, and direct
employees and indirect employees. Future production level, sales level, activity
level/work load are estimated with an allowance for changes in organization, method and
jobs. Future ratios are also estimated when changes are expected in the organization of
human resources. Then future manpower requirement is calculated on the basis of
established ratios.
These techniques, although crude, are easy to understand and use. Their value
depends upon accurate records and realistic estimates of future activity levels and the
effect of improved performance or changed methods.
(b)

Econometric models. To build an econometric model for manpower

planning purposes, it is necessary to analyse past statistical data and to formula. The
variables affecting manpower requirement may be identified under heading such as
investment, sales or the complexity of the product line. The formula could then be
applied to forecasts of movements in these variables to produce a manpower forecast.
This is a complex process which is suitable for large organizations.
(c)

Regression Analysis. This technique is used to estimate the

manpower requirements of an organizations at a future point of time, based upon such

factors as sales, output, services rendered, etc. Regression analysis is used when
dependent and independent variables are functionally related to each other. Electronic
computers are used to solve the regression equations and forecast the demand for
personnel.

Supply Forecasting
Supply forecasting is concerned with the estimate of supply of manpower
given the analysis of current resources and future availability. Here the personnel planner

21

must consider both the external supply (employees available for higher position in the
organizations geographic work force) and the internal supply. (Organizations current
employees). External supply of personnel is important for two reasons. Firs, the normal
separation of employees through voluntary turnover, retirement, illness, death and
discharge may require that the organization look to employment agencies, colleges and
universities and other sources to replenish lost personnel. Second, organizational growth
and diversification require the use of external sources to obtain additional numbers and
types of employees.
The internal supply of personnel is influenced by the following factors:
(a) Existing manpower resources;
(b) Potential losses to existing resources through labour wastage;
(c) Potential changes to existing resources through internal promotions;
(d) Effect of changing conditions of work and absenteeism;
(e) Sources of supply from within the firm.
Based on the above information, the following techniques may be used to anticipate the
supply of human resources:
(i)

Markov Analysis. This method uses historical information on the

movement of personnel that takes place during a typical plan period. Data are collected
and reviewed for a number of years in order to estimate the likelihood that persons in a
particular job will remain in that job or be transferred, promoted, demoted, terminated or
retired. These historical flows of personnel (transitions) through the organization are
represented by probabilities. The probabilities are arranged in a transition matrix and
future personnel flows are estimated on the basis of the matrix.
(ii)

Simulation. Based on Markov analysis, the simulation technique considers

alternative flows, which are examined for effects on future manpower supplies.
Alternative flows reflect the anticipated results of policy or programme changes
concerning voluntary turnover, retirement, promotion, etc.
(iii)

Renewal Analysis. This technique estimates future flows and supplies of

manpower by calculating (i) vacancies created by the organization, and (ii) the results of

22

decision rules governing the filling of vacancies. Alternative models may assess the effect
of changes in growth estimates, turnover, promotions, etc.
(iv)

Goal Programming. It is operational research technique under which the planner

tends to optimize goal. In this case, the goal to optimize is the desired staffing pattern
subject to a set of constraints concerning such factors as the upper limits on flows, the
percentage of new recruits permitted and total salary budget.
MANPOWER ANALYSIS
The manpower planners should classify employees by function or department,
occupation, level skill and status. The aim should be to identify resource centers
consisting of broadly homogeneous groups for which forecasts of supply need to be
made. There is endless scope for cross analysis in preparing manpower inventories.
Some detailed analysis may be essential. For example, the review of current
resources may need to cut across Organisational and occupational boundaries to provide
inventories of skills and potential. It may be important to know how many people the
organisation has with special skills or abilities, for example, chemists, physicists,
mathematicians, economists or linguists. From the point of view of management
succession planning and preparation of management development programme, it may be
equally important to know how many people with potential for promotion exist and
where they can be found.
An analysis of manpower by age helps to identify problems arising from a sudden
rush of retirements, a block in promotion prospects, or a preponderance of older
employees. Length of service analysis may be even more important because it will
provide evidence of survival rates, which are a necessary tool for use by planners in
predicting future resources.
The analysis of current resources should look at the existing ratios between
different categories of staff. Recent movements in these ratios should be studied to
provide guidance on trends and to highlight areas where rapid changes may result in
manpower supply problems.

23

Labour Wastage
Labour wastage should be analyzed in order to forecast future losses and to
identify the reasons for people leaving the organisation. Plans can then be attached to the
problems causing unnecessary wastage and to replace uncontrollable losses. The
manpower planner therefore has to know how to measure wastage and I analyse its
causes.
Labour Turnover Index. The traditional formula for measuring wastage is the labour
turnover index:
Number of leavers in a specified period (usually 1 year) X 100
Average number of employees during the same period
This method is in common use because it is easy to calculate and to understand.
This formula can be misleading also. The main objection to the measurement of labour
turnover in terms of the figure may be inflated by the high turnover of a relatively small
proportion of the labour force. Thus, a company employing 1,000 people might have had
an annual wastage rate of 20% meaning that 200 jobs had become vacant during the year.
But this could have been spread throughout the company, covering all occupations and
long as well as short service employees. Alternatively, it could have been restricted to a
small sector of the labour force-- only twenty jobs might have been affected although
each of these had to be filled ten times during the year. These are totally different
situations, and unless they are appreciated, inaccurate forecasts would be taken to deal
with the problem.
The labour wastage percentage is a suspect if the average number of employees
upon which the percentage is based is unrepresentative of recent trends because of
considerable increases or decreases during the period in the number employed.
Labour Stability Index. One measure which is considered by many to be an
improvement is the labour stability index:

24

Number of employees with one years service or more X 100

Number of employees one year ago
This index provides an indication of the tendency for longer service employees to
remain with the company, and therefore, shows the degree to which there is a continuity
of employment. But this too can be misleading because the index will not reveal the
vastly different situations that exist in a company or department with one where the
majority of employees are short service.
Length of Service Analysis. The disadvantage of the labour stability index may be partly
overcome if an analysis is also made of the average length of service of people who
leave. This analysis also gives the index of labour turnover. It is still fairly crude because
it only deals with those who leave. A more refined analysis would compare for each
service category the numbers leaving with the numbers employed. If, for example, the
total with more than five years was 80, the proportion of leavers in each category would
be, respectively; 50% and 10% --much more revealing figures, especially if previous
periods could be analyzed to reveal adverse trends.
Survival Rate. Another method of analyzing labour turnover which is particularly useful
for manpower planners is the survival rate, i.e. the proportion of employees who are
engaged within a certain period and who remain with the firm after so many months or
years of service. Thus, an analysis of apprentices who have finished their time might
show that after two years, ten of the apprentices out of twenty ex-apprentices were still
with the company, a survival rate of 50%.
This would tell the manpower planner that he has to allow for half the number of
recruits in any one year to be lost over the next five years, unless something can be done
about the factors causing wastage. Thus, to achieve a requirement of 50 trained staff in
five years time, 100 people would have to be engaged during this period.
Effect of internal Promotions and Transfers

25

The supply forecast should indicate the number of vacancies that will have to be
filled up to meet the demand forecast. Vacancies arise because people leave but the exit
of a senior manager any produce a chain reaction of replacements. Transfer between
departments and divisions may also have to be allowed for. In a large organisation,
persistent patterns of promotion or transfer may develop and it may be possible to predict
the proportions of employees in particular categories who are likely to be promoted or
moved in the future by starting with a forecast of the chain reaction factor. To give a
broad indication of the number of displacements that may occur.
However, this is a very crude estimate and so succession planning has to be
worked out specifically by reference to known retirements, resignations, and transfers.
Further, it is also important to determine the impact of factors such as changes in normal
weekly hours of work; overtime policies; the length and timing of holidays, retirement
policy; the policy for employing part-timers; and shift system.
Succession Planning
Succession planning is the process that is used by manpower planners to convert
information about current employees into decisions about future internal job placements
that might be caused by promotions, transfers, resignations, retirements, etc. Since
promotions and other placement decisions are usually the responsibility of operating
(line) managers, the personnel department serves in a advisory role. Owing to the
complexities and time-consuming nature of succession plans, succession planning is
usually limited to key employees in middle management and top executive positions, and
to those employees identified as having long-term potential. By identifying successors to
key jobs and high-potential employees, an organisation may ensure a steady flow of
internal talent to fill important vacancies, whenever they arise.
Succession planning encourages hiring from within and creating an environment
in which employees have careers, not merely jobs. Moreover, it identifies manpower
shortages and skill deficiencies before vacancies occur. Through special assignments, job
rotation and other forms of development techniques, internal candidates may be prepared
to accept greater responsibilities of nature job openings. All this results in greater

26

continuity of organisations operations, better-qualified incumbents, and more unified

corporate culture.
Sources of Manpower
Internal sources of manpower supply will include the output from established
training schemes or management development programmes and the inventory of skills
and potential that exist within the organisation. But the availability of manpower from
outside the enterprise is also a vital factor when preparing growth plans. Too often,
corporate or functional plans may be based on assumptions about the availability of
human resources of required caliber, locally or nationally, which could easily be proved
wrong after a brief investigation. It is particularly necessary to identify at an early stage
the job category where there might be difficulties in recruiting the numbers required. This
would help to prepare a recruitment campaign to tap alternative sources, or to develop
training or retraining programmes to convert available manpower to meet the companys
needs. The local factors which can have an important bearing on the supply of manpower
are listed below.:
(i)

Population densities within reach of the company.

(ii)

Current and future competition for labour from other employers.

(iii)

Local unemployment levels.

(iv)

The traditional pattern of employment, locally, and the availability

of people with the required qualifications and skills.

(v)

The output from the local educational system and government or

other training institutes.

(vi)

The pattern of immigration and emigration within the area.

(vii)

The attractiveness of the area as a place to live.

(viii)

The attractiveness of the company as a place to work in.

(ix)

The availability of part-time labour such as married women.

(x)

Local housing, shopping and transport facilities.

The macro level factors affecting the supply of manpower are as under:
(i)

Trends in the growth of the working population.

27

(ii)

National demands for special categories of manpower-graduates,

professional staff, technologists, technicians, craftsmen, and
secretaries.

(iii)

The out put of the universities, polytechnics and professional

institutions.

(iv)

The effect of changing educational patterns-children staying longer

at school, or different emphasis in university or school curricula.

(v)

The impact of government training schemes.

(vi)

The impact of government employment regulations.

QUALITATIVE ASPECT OF HUMAN RESOURCE PLANNING

After determining the number of personnel for each department in the
organization, it is necessary to determine the precise nature of different jobs in terms of
functions, duties and responsibilities. This would help determine the minimum acceptable
qualities on the part of personnel required for adequate performance of the job in
question. This aspect is referred to as the qualitative aspect of manpower planning. The
phenomenon of determing the nature of the job together with the minimum acceptable
qualities on the part of personnel required for adequate performance of the job is termed
as job analysis. to quote Edvin B. Flippo, Job analysis is the process of studying and
collecting information relating to the operation and responsibilities of a specific job.
With the help for the facts and information obtained through job analysis, two
statements are prepared: (i) Job descriptionit contained details about the contents of a
job; and (ii) job specificationit reveals physical, educational, and other qualifications as
well as the experience required in an individual to perform the job satisfactorily.
A job description is an organized, factual statement of the duties and
responsibilities of a specific job. In brief, it should tell what is to be done, how it is done,

28

and why. A job description is a summary of the tasks, duties, and responsibilities of a job.
Basically the job description indicates what is done, why it is done, where it is done, and
briefly, how it is done,. Performance standards flow directly from a job description,
telling what the job accomplishes and the satisfactory performance accepted in each area
of the job description. The logic here is very clear, if employees know what is expected
and what is good or poor performance, then they have a much better chance of
performing better. Unfortunately performance standards, while beneficial, are often
omitted from most of the job descriptions.
A Job specification is a statement of the minimum acceptable human qualities
necessary to perform a job properly. In contrast to the job description, it is a standard of
personnel and designates the qualities required for acceptable performance. Thus, a job
specification lists the various qualifications, skills, and experience an individual needs to
do the job satisfactorily. The job description describes the job; the job specification
describes the person needed for the job. The major use of job specifications is to guide in
the recruiting and selecting of people to fill jobs.
DIFFICULTIES IN MANPOWER PLANNING
Human resource planning is not always effective. Some of the major problems are
described below:
(i)

Lack of Understanding of Rationale of Planning. There is generally identity

crisis and many managers as well as manpower specialists do not fully understand
the rationale or purpose manpower planning. There can be little doubt that unless
the manpower planning specialists develop a strong sense of purpose; they are
more likely to fail.

(ii)

Insufficient Top managements Support. In the long-run, manpower planning

must have the full support of top management, otherwise it is going to be
ineffective. The support of top management, otherwise it is going to be
ineffective. The support from top management is essential to ensure the necessary
resources, cooperation and support for the success of human resource planning.

29

(iii)

Insufficient initial effort. Manpower planning might fail because of lack of

sufficient initial effort. To be successful, human resource planning should start
slowly and expand gradually. Development of accurate skills inventory, and
preparation of replacement chart are integral parts of manpower planning.

(iv)

Lack of Coordination with other Functions. To be effective, manpower planning

must be coordinated with other management functions. Unfortunately, there is a
tendency on the part of manpower planners to become totally absorbed in their
own world keeping aloof from the other functional managers.

(v)

Lack of integration with Organisational Plans. Manpower planning must be

based on organizational objectives and plans. This requires development of good
communication channels between organization planners and the human resource
planners. In many organizations, such a communication is lacking and the human
resource plans are prepared in isolation of organizational plans.

(vi)

Non-cooperation of Operating Managers. Manpower planning may fail because

of non-cooperation between the personnel and other functional managers.
Successful manpower planning requires a coordinated effort on the part of
manpower planners and the operating managers.
In order to ensure effective human resource planning, it is essential to take

necessary action to bridge the gap between the present resources and the estimated future
needs, otherwise, the mass of information collected by manpower planners will have no
use. Future action should be planned for both short-term and long-term to include:
(i)

Better job descriptions and human profiles.

(ii)

A hard look at the recruitment and selection policy.

(iii)

A better scheme for assessing performance and potential of individuals.

This need not be a complicated one but should be consistent.

30

(iv)

An examination of the current training and retraining schemes for all

employees.

(v)

An examination of the conditions of employment, which would include

pay structure, shift work, working hours, etc.

MANPOWER UTILISATION
Manpower utilization is concerned with the efficient use of the organisations
existing human resources. Effective utilization of human resources requires two things.
Firstly, people must be placed on jobs in such a way that the organizations total
manpower resources are most effectively allocated. Secondly, manpower utilization
involves achieving optimum productivity from the work force after work has been
allocated. This involves the complex of motivational factors affecting individual, group
and Organisational performance and is concerned with such areas as leadership and
morale.
There are two methods for assessing human resource utilization. The first one is the
manning ratio, which is based on the relationship between the number of people
employed in the organisatiion and a specified measure of productivity. This manning ratio
will help in identifying the extent of the manpower problem but will not help to identify
the causes of misutilisation or under utilization. The second method is by use of workstudy. By careful observation and recording, it will be possible to ascertain how the
worker spends his time during the work period. This will give answers to certain
important questions, such as:
(a)

What is the total number of employees?

(b)

What is the quality of employees?

(c)

What is the breakdown of males and females?

(d)

What is the age span of employees?

(e)

What skills and abilities do they have?

(f)

How long will it take to bring them up to the required

standard and speed?

(g)

Who are suitable for future promotions?

31

As shown in Fig. 2, the study of manpower utilization will help to identify three
crucial factors namely, organization structure, job requirements and manpower required.
Each of these will have an effect on the individual or groups in the work unit.

Job
Requirements

Organization
Structure

Manpower
Required

Work Unit

Feedback

Manpower
Job
Competence

Job
Satisfaction
Effective
Utilization
Fig.2.Manpower Utilisation.

The organisation structure can be conditioned by the system of production. The

job requirements will be influenced by the type of technology used. In order to make full
use of existing manpower, we have two factors to consider, namely:

32

(a)

The competency of existing staff and their suitability for the new positions must be
analyzed.

(b)

Work satisfaction must be identified, otherwise there will be mis-utilisation caused

by people in the wrong jobs, absenteeism and labour turnover. If all the factors can
be brought together, we have a good chance of achieving full utilization of human
resources.

An Overview of Manpower Planning in the Division

Manpower resources more important as compared to capital and physical resources.
Therefore, it has given very high importance to manpower management and undertakes
various activities for the purpose. Long-term manpower planning is one of these
activities.
Manpower Planning Process
The company adopts a systematic manpower planning which goes through the
following steps :

1.

ANALYSING THE ORGANISATION PLANS:

The

process

of

manpower

planning

starts

with

analyzing

the

organization/divisions plan into production plan plans for expansion, diversification etc.
each plan is further analysed into sub-units and detailed programmes are being

33

formulated on the basis of unit wise plans. Analysis of organizational / divisional plans
and programmes helps in forecasting the demand for human resources as it provides the
quantum of future work activity.
2.

BASIS FOR REQUIREMENT: In order to forecast the future requirement of hr is necessary to obtain the data and

information about the present human resource inventory.

The data relating to present hr inventory in terms of number, dept-wise,
designation wise is taken into consideration. Usually the analysis of existing manpower is
undertaken by MSD by function, by occupation, by level of skill/ qualification.
Appropriate adjustments is made in the light of any foreseeable changes in weekly hours
of work, holidays, leave entitlements etc.
It is noticed that requirement of operative personnel presents less problem of
uncertainty and current manpower supply can be adjusted accordingly. Further, work load
for the current year, superannuation & other known wastages are also taken into
consideration for projecting future requirements of hours.
Usually, the dept/gives a breakup of people with different trades who are going to
superannuate in the current year as well as in the next 5 years so that we can get clear
picture about the number of people existing in a particular trade and in particular shop.
Basing on this we can project the requirements.
All the shops/departments project their requirement to the respective division and
in turn they compile and forward it to complex office.
3.

FORECASTING THE MANPOWER REQUIREMENT:It is one of the essential ingredient of manpower planning in any industry i.e.

forecasting the needs for human resources in an organization over a period of time.
In our division, it can be said that it depends on the scale of operations of the
organizations over a period of time. However, total human resource needs do not have
complete relationship with volume of operation. This happens because there are factors
which affect this relationship such as change in machine man ratio, change in
productivity.

34

Therefore in making forecast for human resource requirements, all those factors
which have impact on the relationship between volume of operation and number of
employees must be taken into consideration. This provides clear answer to the critical
question how many persons will be required in future? while the volume of operation of
the division is available from its plan documents and respective shops / departments
makes a forecast for the requirement of human resources based on the targets.
Important forecasting methods which are commonly used are
(1) Managerial Judgment
(2) Statistical Technique
(a) Ratios and Trend Analysis
(b) Econometric models
(c) Regression Analysis
(3) Work study Technique
In our division, work study Technique is used for forecasting for the requirement of
HR.
Calculation of Standard Man Hours.
1 mans 1 days work

= 7.5 hrs.

No. of working days in a month

= 25 days

1 mans SMH in a month

= 25 X 7.5

1 mans SMH per year

= 187.5 X 12

= 187.5hrs.

= 2250 hrs.
Calculation of No. of employees required
a)

Annual production

=360000 units

b)

SMH required per unit

=2hrs.

c)

Planned man-hours for the year

=720000 (a x b)

d)

Annual SMH of a worker

=2250 hrs

e)

No. of workers required

=720000
2250

35

=320 employees will be required.

4.

Analysis by Complex Office.

Manpower proposals received from divisions are analysed at the complex level

with respect to the workload projection for the next two years. As mentioned earlier
analysis is done based on the following factors.
1. Workload for each division.
3. Trade wise / shop wise requirement for the division.
4.

Wastages during the year.

5.

Superannuation during the year

6.

Induction during the year from the previous year sanctions.

Based on the above factors actual projections in respect of various divisions are

made to corporate office for approval. Projection is always made in a conservative

manner, where actual divisional requirement are reduced to some extent. This is done in
order to ensure that sufficient workload is available to the personnel who are inducted
during the year.
5.

Approval by Corporate Office.

After getting projections from the divisions all the data is consolidated and

analysed properly so that sufficient manpower can be sanctioned. Corporate office takes
into consideration all the materialistic and relevant facts i.e. existing strength, workload,
retirements, resignations, transfers etc before sanctioning the posts for which the
divisions have asked for. A detailed study is carried out taking into account the
justification and projections sent by the division regarding the manpower requirement.
Net manpower requirements in terms in terms of number and components are to be
determined in relation to overall requirements.
6.

Deployment by the Division.

After getting the sanctions from the corporate office i.e. the total number of posts

to be filled in different categories such as direct labour, indirect labour and officers, the

36

division based on the number of superannuations, transfers etc. identifies the actual
number to be recruited for the year. After identifying the actual number to be recruited,
MSD (Management Services Department) plays a role in breaking the number of posts
into trade / discipline in consultation with the respective divisions. Once the number to be
recruited is the trade wise / discipline wise break up list is passed on to Personnel
department. Based on the number of posts to be filled, Personnel Department works out
the percentage of reservation and in turn notifies the posts.
Responsibility for Manpower
Since the company attaches very high importance to manpower management,
it believes that the overall responsibility for manpower planning must lie on the Board of
Directors. This is because Board members are in a position to direct the future course of
business, set appropriate goals for management concerned in the formulation of personnel
policy. Besides, senior managers of various functions and divisions are also involved in
the process. The role of personnel department in this context is coordinative. Its function
is to recommend relevant personnel policies in respect of manpower planning. Devise
methods and procedures for determination of quantitative aspects of manpower planning.

37

Suggestions

Manpower Planning must be recognized as an integral part of corporate

planning. The planners must be aware of organisations objectives.

Personnel records must be complete, up-to-date and readily available.

The time horizons should be long enough to permit any remedial action.

The techniques of planning should be best suited to the data available and the
degree of accuracy required.

Plans should be prepared by skills levels rather than aggregates.

Data collection, analysis, techniques of planning and the plans themselves

need to be constantly revised and improved in light of experiences.

Employment plan and Training & Development programmes from time to

time depending upon the changes in the volume of production, unexpected
labour turnover.

Manpower Planning should be more concerned with filling future vacancies

with right type of people rather than with matching existing personnel with
existing jobs.

38

Observations

It presents an inventory of existing manpower of the organisation.

It helps in determining the shortfall or surplus of manpower by comparing

the total manpower needs with the present supply of manpower.

Personal records are not updated and it becomes difficult for getting the
information.

Requirement for managerial level presents a complex problem because the

require talents are not available at a short notice.

Uncertainties are quite prominent in human resource practices in the industry

due to absenteeism, labour turnover it makes manpower planning less
reliable.

Auditing the human resource and studying manpower utilisation is not done.
Manpower utilisation can be measured by relating net man hours actually
utilized in work to Standard Man-hours plan to be utilized in work.

39

Conclusion
Manpower Planning is a vital sub-activity of employment function. In fact
employment process begins with manpower planning but never ends with this function. It
pervades through a number of activities after this process of manpower planning. Those
activities include searching for prospective human resource, attracting them to work,
finding out their suitability to the job and Organisational requirements and finally taking
steps to adsorb those human resources as organs of the company.
It is a big endeavour, with planning for all kinds of things, like quality, staff
retention, layoffs, training & development, compensation etc. that its hard to provide
hints and tips any thing less than a book size manual. However, if we take a view from
the top perspective there are somethings that apply to most manpower planning function
and are important in making the process effective or even to make it part of creating a
competitive advantage in the market place.
Manpower Planning needs to be linked to the larger business planning. It is not
an end in itself. The function is meant to support and enable the company to attain its
business goals so as that it needs to be linked to and driven by those business goals. Its
important that when manpower planning is lead by personnel department, it must be

40

remembered that whole process is to serve the stake holders and customers of the
personnel department. This means that the planning process must actively involve those
stakeholders and customers, managers, executives even line employees.
It cant be effective without an understanding of the company or organisation,
its managers and employees, its mission and issues etc and the environment in which it
works. The outcomes of the implementation of a manpower plan should be measurable
and assessable. With many personnel functions there are good, available metrics, but it is
good to try to assess the effects of the implementation of a manpower plan on the
achievement of our divisional business goals.

Bibliography
1. Human Resource & Personnel Management - Ashwathappa
2. Human Resource Management & Industrial Relations - Chabbhra.
3. Personnel Management - C.B.Mammoria.

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42