Manpower Planning

What is Manpower?
Human Resources Personnel People at Work Manpower

Some Definitions of HRM:

French: Personnel Management is a major

component of the broader managerial function and has roots and branches extending through out and beyond each organization. It is a major sub-system of all organization.

Some Definitions of HRM:

Edwin Flippo: HRM is the planning,

organizing, directing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished.

Some Definitions of HRM:

David De Cenzo and Stephen Robbins: Human

resource management is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives.

Some Definitions of HRM:

T. V. Rao: HRD is a continuous planned process by which

employees are helped to: (a) Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles; (b) develop their general capabilities as individuals and discover and exploit their own inner potentials for their own and organizational purposes; and (c ) develop an organizational culture in which superior-subordinate relationships, team work and collaboration among sub-units are strong and contribute to the professional well-being, motivation and pride of employees.

Approaches towards Human Beings:

Mechanical approach commodity approach or factor of production concept up to 1920. Paternalistic Approach from 1920 till great depressions died during the Great Depressions of 1930s.

Approaches towards Human Beings:

Social System or Humanistic Approach: 1930-40

Psychologists Mayo, Mc Gregor, Leavitt etc. Sociologists Blake, Dubin etc.

Human Resource Approach 1940 onwards

(distinct needs, aspirations and personality) MBO, two way communication, leadership quality circles etc.

Personnel vs. Human Resource Management

Personnel Human Resource

Management
Personnel means persons

Management
HRM is the management of

employed. PM is the management of people employed.

employees skills, knowledge, abilities, talents, aptitudes, creative abilities etc.

Personnel vs. Human Resource Management

Personnel Human Resource

Management
Employee is treated as

Management
Employee is treated not

an economic man as his services are exchanged for wage/salary

only as economic man but also as social and psychological man. Thus the complete man is viewed.

Personnel vs. Human Resource Management

Personnel

Management
commodity or tool or equipment, which can be purchased or used.

Human Resource

Management
resource.

Employee is viewed as a

Employee is treated as a

Employees are treated as

Employees are treated as a

cost centre and therefore management controls the cost of labour.

profit centre and therefore, invests capital for human resource development and future utility.

Personnel vs. Human Resource Management

Personnel Human Resource

Management
Employees are used mostly

Management
Employees are used for the

for organizational benefits.

multiple mutual benefit of the organization, employees and their family members.
HRM is a strategic management

Personnel function is treated

as only an auxiliary.

function.

Three Basic responsibilities of HR Manager and his Department :

To exert a line managers authority on his unit and employees in HR department. He coordinates to ensure HR objectives and policies of the organization. He provides various staff services to the line managers like recruiting, training, rewarding, disciplining of employees at all levels.

Environmental Scanning
Internal Environment (Micro)
Organizational Objectives Production Organizational Structure Finance Organizational politics Marketing

Environmental Scanning
External Environment (Macro)

Technological Customers Human Resources in the country Social including religious Economic Political Governmental Legal Trade unions in other organizations

Functions of HRM

Managerial Functions

Operative Functions

Managerial Functions
Planning Organizing Directing Controlling

Operative Functions
Employment Human Resource Development Compensation Management Human Relations

Employment
Human Resource Planning Recruitment Selection Induction Placement

Human Resource Development

Performance Appraisal Training Management Development Organization Change & Development

Compensation Management
Job Evaluation Wage and Salary Administration Fringe benefits

Human Relations
Motivation Morale Job satisfaction Communication Grievance & Discipline Procedure Quality of work life & quality Circles

Objectives of HRM

To create and utilize an able and motivated workforce. To accomplish the basic organizational goals. To establish and maintain sound organizational structure. To establish and maintain working relationships among all the members of the organization.

Objectives of HRM

To attain an effective utilization of human resources in the achievement of organizational goals. To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security measures for challenging work, prestige, recognition, security, status etc.

Objectives of HRM

To maintain high employee morale and sound human relations by sustaining and improving the various conditions and facilities. To strengthen and appreciate the human assets continuously by providing training and development programs.

Objectives of HRM

To consider and contribute to the minimization of socio-economic evils such as unemployment, underemployment, inequalities in the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women and disadvantaged sections of the society etc. To provide an opportunity for expression and voice in management.

Objectives of HRM

To provide fair, acceptable and efficient leadership. To provide facilities and conditions of work and creation of favorable atmosphere for maintaining stability of employment.

Role of Human Resource Manager

Personnel Role Welfare & Counselor's Role Administrative Role Fire-fighting and Legal Role

Personnel Role
Advisory effective use Manpower planning, recruitment, selection

etc.
Training & development Measurement & Assessment of individual and

group behavior

Welfare & Counselor's Role

Managing services canteen, transport,

crches etc.
Group Dynamics, counseling, motivation,

leadership, communication
Research in personnel and org. problems

Administrative Role
Salary & wage administration incentives Maintenance of records Human-engineering, Man-machine relations Effective utilization of human resources

Fire-fighting and Legal Role

Grievance handling Settlement of disputes Handling of disciplinary & legal matters Collective bargaining Joint consultation and participation

Integration of Interest of Employees and Management

Employees Interest Managements Interest

Employees Interest
Recognition as an individual Opportunity for expression and development Economic security and growth of employees Interest in work Safety, healthy working conditions Acceptable hours of work and adequate wages Fair and efficient leadership

Managements Interest
Lowest unit personnel cost Maximum productivity of employees Availability and stability of employees Loyalty of employees Co-operation and commitment of employees High organizational morale Intelligent initiative of employees

Qualities of Human Resource Manager

Sense of vocation Capacity of leadership Personal Integrity Sense of Social Responsibility Dynamic personality

Spontaneity of speech Facial expressions Courtesy and social awareness Personal dignity

Rising Prominence of the Human Resource Management:

Emphasis on quality Impact of technology Liberalization of Indian economy Privatization of Indian economy Globalization

Rising Prominence of the Human Resource Management:

Changes in political philosophy Trade unions Cut throat competition International problems

Human Resource Planning

Human resources are regarded as the only dynamic

factor of production. Other factors like materials, methods, machines, money etc. are useless without their effective use by the human resources. Thus, it is logical that there should be proper manpower or human resource planning in the organization to use the other resources effectively.

Human Resource Planning

Planning is one of the basic functions of management

of any organization. Manpower planning has now been recognized as an important part of the overall planning of any organization. Manpower planning is essential to put the plans of the organization into action for the achievement of its goals or objectives.

Definitions:
E. W. Vetter: Human resource planning is the process by which the management determines how an organization should move from its current manpower position to its desired manpower position. Through planning the management strives to have the right number and the right kinds of people at the right places, at the right time, to do things which result in both the organization and the individual receiving the maximum long-range benefit.

Definitions:
E. Geisler: Manpower planning is the process including forecasting, developing and controlling by which a firm ensures that it has the right number of people and the right kind of people at the right places, at the right time doing work for which they are economically most useful.

Definitions:
Coleman: Human resource planning is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.

Nature/Features/Characteristics of Manpower Planning

Ascertaining manpower needs in number and kind. It presents an inventory of existing manpower of the organization. Helps in determining the shortfall or surplus of manpower. Initiation of various organizational programmes. Acquisition, utilization, improvement and prevention of human resources.

Need/Importance/Advantages/Role of Human Resource Planning:

It checks the corporate plan of the organization. It helps to face the shortage of certain categories of employees and/or variety of skills despite the problem of unemployment. The rapid changes in technology, marketing, management etc. and the consequent need for new skills and new categories of employees. The changes in organization design and structure affecting manpower demand.

Need/Importance/Advantages/Role of Human Resource Planning

The demographic changes like the changing profile of workforce in terms of age, sex, education etc. The government policies in respect to reservation, child labour, working conditions etc. The labour laws affecting the demand for and supply of labour. Pressure from trade unions, politicians, sons of soil etc.

Need/Importance/Advantages/Role of Human Resource Planning

Introduction of computers, robots etc. It offsets uncertainty and change and helps to have right men at right time and in right place. it provides scope for advancement and development of employees through training, development etc. It helps to anticipate the cost of salary enhancement, better benefits etc.

Need/Importance/Advantages/Role of Human Resource Planning

To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal, management etc. To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organizations and government through remodeling organizational, industrial and economic plans.

Need/Importance/Advantages/Role of Human Resource Planning

To plan for physical facilities, working conditions and volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centers, quarters, company stores etc. It gives an idea of type of tests to be used and interview techniques in selection based on the level of skills, qualifications, intelligence, values etc. of future human resources.

Need/Importance/Advantages/Role of Human Resource Planning

It causes the development of various sources of human resources to meet the organizational needs. It helps to take steps to improve human resource contributions in the form of increased productivity, sales, turnover etc. It facilitates the control of all the functions, operations, contribution and cost of human resources.

Factors Affecting Human Resource Planning

External Factors Internal Factors

External Factors
Governments policies Level of economic development including future supply

of HR Business environment Level of Technology Natural Factors International Factors

Internal Factors
Policies and strategies of the company Human resource policy of the company Formal and Informal groups Job Analysis Time Horizons (long term or short term) Type and quality of information Companys production operations policy Trade Unions

Problems in Human Resource Planning

Resistance by employer Resistance by employees Resistance by trade unions Uncertainties Inadequacies of Information system Identify crisis Slow and gradual process Co-ordination with other management functions Integration with organizational plans

Process/Procedure/Steps/Stages in Human Resource Planning:

1. Analyzing organizational plans.

Process/Procedure/Steps/Stages in Human Resource Planning:

2. Demand forecasting

Managerial Judgement Statistical Techniques ratio analysis and econometric models Work study techniques Employment trends Replacement needs Growth and expansion Productivity

Process/Procedure/Steps/Stages in Human Resource Planning:

3. Supply Forecasting

Existing inventory Potential losses temporary/permanent Potential additions

Process/Procedure/Steps/Stages in Human Resource Planning:

4. Estimating the net human resource requirement

Process/Procedure/Steps/Stages in Human Resource Planning:

5. In case of future surplus plan for redeployment, retrenchment and lay-off

Process/Procedure/Steps/Stages in Human Resource Planning:

6. In case of future deficit forecast the future supply of human resources from all sources with reference to plans of other companies

Process/Procedure/Steps/Stages in Human Resource Planning:

7. Plan for recruitment, development and internal mobility if future supply is more than or equal to net human resource requirements

Process/Procedure/Steps/Stages in Human Resource Planning:

8. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements.