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 by the respective department Managers and the HR. For this the following things have to be noted-
• Type of organization
• Number of departments
• Employees in these work units
Once these factors are registered by a manager and the HR team, they forecast the future Manpower need.
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:
a. Expert Forecasts: This includes informal decisions and formal expert surveys.
b. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure).
c. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division.
d. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements.
e. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, and new venture analysis.
3. Developing employment programmes- Once the current inventory is compared with future forecasts by the Department Manager, the employment programmes can be framed and developed accordingly by HR, which will include recruitment, selection procedures and placement plans.
4. Design training programmes- Based upon extent of diversification, expansion plans, development programmes, etc. HR will then forecast for the training needs. 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.
5. Approval – The Department Manager / Manager should get the aforesaid manpower plan approved by the SVP / VP. SVP / VP should then forward the same to HR in the attached format, so as to plan the annual recruitment.
Points to be remembered
1. Manpower Planning shortages and surpluses should be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes should be based on Manpower Planning.
3. Reduction in the labour cost as excess staff should be identified and thereby overstaffing should be avoided.
4. Identification of the available talents should be to the maximum and accordingly training programmes should be chalked out to develop those talents.
Ref: http://www.managementstudyguide.com/manpower-planning.htm
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