Manpower Planning

Manpower Planning which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things for which they are suited for
the achievement of goals of the organization. Human Resource Planning has got an important place in
the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out
in a set procedure. The procedure is as follows:

1. Analysing the current manpower inventory

2. Making future manpower forecasts
3. Developing employment programmes
4. Design training programmes

Steps in Manpower Planning

1. Analysing the current manpower inventory-Before a manager makes forecast of future

manpower, the current manpower status has to be analysed. For this the following things have to
be noted-
 Type of organization
 Number of departments
 Number and quantity of such departments
 Employees in these work units

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

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

i. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past
trends), indexation (using base year as basis), and statistical analysis (central tendency
measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch
or in a division.
iv. Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
 v. Other methods: Several Mathematical models, with the aid of computers are used to forecast
manpower needs, like budget and planning analysis, regression, new venture analysis.

3.Developing employment programmes- Once the current inventory is compared with future
forecasts, the employment programmes can be framed and developed accordingly, which will include
recruitment, selection procedures and placement plans.

4.Design training programmes- These will be based upon extent of diversification, expansion plans,
development programmes,etc. Training programmes depend upon the extent of improvement in
technology and advancement to take place. It is also done to improve upon the skills, capabilities,
knowledge of the workers.

Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing
and controlling are based upon the manpower. Human resources help in the implementation of all
these managerial activities. Therefore, staffing becomes a key to all managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important function in the
industrialization world of today. Seting of large scale enterprises require management of large
scale manpower. It can be effectively done through staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises
of motivational programmes, i.e., incentive plans to be framed for further participation and
employment of employees in a concern. Therefore, all types of incentive plans becomes an
integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and are strong.
Human relations become strong trough effective control, clear communication, effective
supervision and leadership in a concern. Staffing function also looks after training and
development of the work force which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best possible
manner. higher productivity is a result of minimum wastage of time, money, efforts and energies.
This is possible through the staffing and it's related activities ( Performance appraisal, training
and development, remuneration)

Need of Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only analyses the current
human resources but also makes manpower forecasts and thereby draw employment programmes.
Manpower Planning is advantageous to firm in following manner:

1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing
can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training programmes
can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning, human resources
can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which ultimately
helps in the stability of a concern.

Functions of Management
Management has been described as a social process involving responsibility for economical and effective
planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic
process consisting of various elements and activities. These activities are different from operative
functions like marketing, finance, purchase etc. Rather these activities are common to each and every
manger irrespective of his level or status.

Different experts have classified functions of management. According to George & Jerry, “There are four
fundamental functions of management i.e. planning, organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”.
Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for
Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the
most widely accepted are functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but practically
these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the
other & each affects the performance of others.

1.Planning
It is the basic function of management. It deals with chalking out a future course of action & deciding in
advance the most appropriate course of actions for achievement of pre-determined goals. According to
KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from
where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem
solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus,
planning is a systematic thinking about ways & means for accomplishment of pre-determined goals.
Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it
is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

2.Organizing
It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals. According to
Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel’s”. To organize a business involves determining &
providing human and non-human resources to the organizational structure. Organizing as a
process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

3.Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behavior etc. The main purpose o staffing is to put right
man on right job i.e. square pegs in square holes and round pegs in round holes. According to
Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure
through proper and effective selection, appraisal & development of personnel to fill the roles
designed un the structure”. Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.

4.Directing

It is that part of managerial function which actuates the organizational methods to work efficiently for
achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in
motion the action of people because planning, organizing and staffing are the mere preparations for doing
the work. Direction is that inert-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has
following elements:

 Supervision
 Motivation
 Leadership
 Communication
  Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
 Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
 Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
 Communications- is the process of passing information, experience, opinion etc from one
person to another. It is a bridge of understanding.

5.Controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to
ensure achievement of organizational goals. The purpose of controlling is to ensure that everything
occurs in conformities with the standards. An efficient system of control helps to predict deviations before
they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if necessary, to correct any
deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance
activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain
them as being accomplished”. Therefore controlling has following steps:

a. Establishment of standard performance.

b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.

FACTORS AFFECTING HR DEMAND FORECASTING

Human Resource Demand Forecasting depends on several factors, some of which are
given below.

 Employment trends;
 Replacement needs;
 Productivity;
 Absenteeism; and
 Expansion and growth.

There are number of techniques of estimating/forecasting human resources

demand:

(a) Managerial Judgement

(b) Work Study Technique
(c) Ratio-trend Analysis (d) Econometric Models
(e) Delphi Model
(f) Other Techniques
(i) Planning:

Planning means determination of personnel programme in advance.

(ii) Organising:

Organising means establishing an organisation by designing the structure of relationships among job,
personnel and other physical factors to attain the company objectives.

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(iii) Directing:

Directing means guiding the people to do the work effectively.

(iv) Controlling:

Controlling means regulating the activities in accordance with the plan.

(v) Procurement:

Procurement of labour means obtaining the proper kind of personnel in required quantity to achieve
company goals.

(vi) Development:

Development of labour means increasing the skill of employees through training.

(vii) Maintenance:

Maintenance means improving the conditions (e.g., health, safety, welfare etc.,) and sustaining them.

Traditionally, personnel management system is concerned primarily with the five basic sub-systems,
namely recruiting, placement training, compensation (pay, fringe benefits etc.) and maintenance.

Human Resource Management, as against these traditional functions should be considered as total
system that interacts with the other major systems of the organisation purchasing, production, finance,
marketing etc. The primary object of the human resource management programme is to serve these
major systems.
Forecasting and planning the personnel needs of the organisation, maintaining an adequate and
satisfactory workforce and controlling the personnel policies and programmes of the organisation are
the major responsibilities of the human resource management.

ROLE OF HR MANAGER

With that background, first let’s shed some light on the conventional HR functions and the traditional
role of HR managers:

Recruitment

This is the one function which is hand in glove with HR. Recruitment has been one of the major
responsibilities of the HR team. It is the job of HR personnel to plan and devise strategic campaigns and
guidelines for recruiting suitable candidates for a required job description. They also have to serve as a
mediator between the employer and the candidate and communicate company policies and terms of
the contract to the candidate before he is hired. This is the first pillar of HR management that every HR
manager starts with. It’s probably one of the most important aspects of any HR professional’s career.
The recruitment function comprises 2 main objectives:

1) Attract Talent
Attracting talent starts with first planning the requirement of manpower in the organization. Gauging
needs of the organization’s human resource requirements, and accordingly putting a plan of action to
fulfill those needs with placement of “talented professionals”. That’s followed by creating an “employer
brand” which will be representative of the organization’s good image and portray an attractive
impression in the minds of potential candidates.

The employer branding aspects have become very important owing to the new-age media and
awareness of employee rights. Putting the best foot forward is no longer enough, it needs to be
followed through with honest actions in favor of the employees. And finally… the HR manager needs to
them create detailed recruitment strategies carry out the hiring process.

2) Hire Resources
This is where the recruitment strategies are put in action. In the current age, there’s ton of competition
vying for the attention of the best talent in the market. The HR manager needs to run all possible
engines to go out there in the market and find that one suitable gem.

This part of the role includes things like finding relevant locations to look in, reach out to maximum
potential candidates using mass communication mediums, aggregate all responses, filter out irrelevant
applications, judge suitable incumbents and coordinate internally to get them interviewed. Once the
finalists are decided, the HR manager turns into a ‘negotiator’ of sorts, working as a mediator between
the company and the candidate to find that win-win ground.

Training

Not all is done once you’ve recruited a suitable candidate for the job. Many organizations perform tasks
a tad differently. Training employee is important to help the new hires get acquainted with the
organization’s work pattern. It is imperative for the HR department to incorporate a training program
for every new employee based on the skill set required for their job. It will further also contribute
towards employee motivation and retention.

For the training to be effective, every new employee can be subjected to an on-the-job training for the
initial days to get him in sync with the work guidelines of the organization. This training will not only be
of assistance to the employee but also give the HR team an insight into the employee’s workmanship.
On completion of the training, HR plays a significant role in assessing the results of the training program
and grading employees on the same.

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Professional Development

Closely related to training, developing your employees professionally is an added bonus for the
employee as well as the organization. Enrolling the employee to attend conferences, trade shows,
seminars etc that may be in his personal interest will make the employee feel cared-for and a vital part
of the organization, thus increasing employee engagement. It will be beneficial to the organization by
way of the employee’s added skill set.

In short, it is a win-win. It is the HR head’s job to get to know the employee’s hobbies and areas of
interest and look out for opportunities that will help them build onto those hobbies. For example, if an
employee wants to master the technique of SEO, the HR could enroll him for seminars and conferences
that talk on the same. However, this should not turn out to be a selfish attempt that benefits the
organization only.

Appraisals

Since HRM is a body meant for the employees, carrying out timely performance appraisals is a given.
Performance appraisals help in employee motivation by encouraging them to work to their fullest
potential. It also enables to give them feedback on their work and suggest necessary measures for the
same. This helps employees to have a clear view of what is expected of them and what they are
delivering. They can thus, work better towards improving their performance and achieving targets.

The role of HR (especially the HR manager) in this would be to have a policy of generating timely
appraisal reports and a review of the same by the authorities. The HR team should communicate
individually with employees and give a clear feedback or suggestion on their performance. A system to
reward employees excelling at their work would help in employee motivation and thus garner a higher
degree of productivity and employee engagement.

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Maintaining Work Culture

It is the duty of the HR to maintain a healthy, safe, and fun work environment to ensure a level of
comfort amongst the employees and eliminate any stressful or awkward atmosphere that may hinder
the performance of the staff. It is vital to have an efficient work atmosphere, because an individual’s
performance a largely dependent on the surrounding he’s working in.

It would be great to have an open-door policy up to some extent wherein employees can freely
communicate and voice their opinions to be given consideration. The HR department’s role is to be a
friendly body with an open attitude. By communicating and treating every employee as equal, the HR
can build a rapport with the employees. This goes a long way in increasing employee engagement and
gives a higher job satisfaction.

Resolving Conflicts

Where different people have different views, conflicts are almost inevitable. Whether the dispute is
amongst two or more employees or between the employee and the management, an HR manager has
the right to intervene and help map out a solution.
The HR should be available at the disposal of the conflicting parties and hear out their issues without
being judgmental. Prior investigations are a must before passing any judgment. The HR head is not
expected to discriminate or play favorites in this matter and always deliver an unbiased and practical
decision. A reimbursement in case of any loss caused and strict actions against the defaulter should be
practiced for effective conflict resolution by the HRM.

Employee Relations

The Human Resources is called so because its major responsibility is dealing with the human part of the
organization and this involves having great interpersonal skills. An HR manager who sits in the office all
day will not turn out to be good at building connections with the employees and thus fail to serve the
purpose of being an HR head. As an HR person, employees should feel comfortable coming up to you
with their problems and for that, it is important that the HR team builds a good public image within the
organization.

The HR team has to be proactive and know their employees. An HR personnel’s job is not a desk job
altogether. The HR head’s role is to establish the trust and confidence of the employees and not have a
“don’t mess with me” demeanour. He should be looked upon as both an HR expert and an employee
advocate.

Rewards and Incentives

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Rewarding the employees for a work well done imparts motivation and at the same time induces a
desire to excel at tasks in hope of obtaining rewards. It serves as bait for inculcating a healthy
competitive environment amongst employees to achieve targets and meet deadlines. A reward need
not be materialistic always. It could just be a word of appreciation in front of all coworkers for a menial
task done with complete honesty.

However, with globalization and evolving trends, compensations like holiday packages, pay incentive,
bonuses, and promotion are taking a backseat. If as an HR manager you are wanting to reward your
employees efficiently, it’s time you adapt new ways of awarding benefits such as flexible work times,
paternity leave, extended holidays, telecommuting etc. These non-traditional rewards will prove fruitful
not only in engaging existing workforce but also as an added benefit to attract new talent to your
organization.
Legal Knowledge

This may seem the least glamorous of all, but is an important aspect of the HRM. An HR manager should
always be in compliance with the law. Whether it’s drafting new policies or writing terms of a contract, it
is the HR department’s job to build guidelines keeping the laws in mind. This ensures an organization’s
continued growth and existence. While drafting policies, the HR should always ensure to be at an upper
hand legally and keep the organization’s practices in tune with the labor laws, tax laws, permissible
working hours, minimum wages, and a no-discrimination policy.

Organization

An HR head is responsible for organizing all functions of the organization. To start with, it includes
employee on-boarding, i.e. welcoming new employees. It is a must for every HR head to carry out an
induction for every new hire, and give them an orientation regarding the company policies and rules.

The HR personnel should also introduce the new employees to their colleagues and assign them a
mentor. It also involves listing out job expectations and defining roles and responsibilities, thus getting
the new employees in tune with the working of the organization. The HR personnel are also responsible
for organizing and storing all employee data efficiently and keeping it secure.

Management

Management is the most important job of an HR manager. It is what defines a good HR manager.
Management extends right from managing employees to managing the employers and the whole HR
department as well.

The role of an HR manager is to manage, create, implement and supervise policies/regulations, which
are mandatory for every employee and also have knowledge of its appropriate functioning. Monitoring
attendance and tracking leaves forms a major chunk of the HR management function. There should be a
proper management of the clock-in/out time to avoid late arrivals and track overtimes and half-days. As
mentioned before, the HR as a department should also be well managed by the HR head. If the HR
department itself is in a state of chaos, it cannot serve as a peacemaker for the other departments.

Payroll Management

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Once all the attendance monitoring, leave tracking, clock in/outs etc is tracked and monitored, it’s time
for the most important aspect–calculating the payroll. Efficient calculation of salaries, wage-cuts,
reimbursements, and generation of pay slips amounts to the role of HR managers in payroll
management.

The HR manager should maintain transparency and provide the employees with information as and
when asked. The HR should ensure not only accurate calculations of salaries but also timely transfer of
the same. They also have an obligation towards exiting employees in settlement of dues and
compensations.

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Conclusion

According to research, the human part of your organization tallies up to 80 per cent of your
organization’s assets; reason enough for you to QC your human resource function. To build a team of
professionals, it is of utmost importance to have an equally professional and well-managed HR
department. A slipshod HR function will cost your organization’s future and compromise on its
achievements. To summarize, the role of an HR manager is to maintain law and order in the organization
and amongst the employees, which further extends to attracting, engaging and retaining top talent.
STAFFING PLAN

Staff planning is a systematic process to ensure that an organization has the right number of people with
the right skills to fulfill business needs. You must take into account internal and external changes and
must integrate HR planning with the company’s business plan. The following list describes the various
steps needed to develop a staff planning program:

1. Job description. Develop a job description with input from the manager.

2. Job requirements. Develop a detailed and useful set of job requirements with the manager. This
information can help you determine whether qualified candidates already exist or whether they
can be developed within the company before recruiting externally. Some of the questions to ask
are (a) what skills, knowledge, and abilities are required for the job; (b) what are some of the
characteristics of the people who succeed or fail in the job; (c) what qualifications are needed
for the job; and (d) how does the job relate to others.

3. Fair employment considerations. To avoid illegal screening of applicants with disabilities, list job
duties describing only what the necessary tasks are, not how the tasks are normally performed.

4. Assessment of current employees’ skills. Gather skills information from your employees to help
you find qualified internal candidates before recruiting from outside.

5. Turnover trends. Document turnover trends to help you predict how many people will leave an
organization. This information will prepare you for peak recruitment times.

6. Business trends. Consider two issues when analyzing business trends: the internal changes and
the external factors. Internal adjustments such as changes in work shifts, workforce
demographics, and downsizing, as well as external factors such as a merger or acquisition,
legislation, and so forth will affect staff planning.