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Human Resources Planning is understood as a process of forecasting an organisation’s future demand for, and supply of, the right type of people in the right number. It is only after this that the human resource department can initiate a recruitment and selection process. Human resource planning is a sub-system in the total organisational planning. It facilitates the realisation of the company’s objectives by providing the right type and right number of personnel. Human resource planning therefore is just like materials planning that estimate the type and quantity of the materials and supplies needed, to facilitate the manufacturing activities of the organisation. Human Resource Planning is variously called “Manpower Planning’, Personnel Planning’ or ‘Employment planning’.
Man Power Planning means to see whether the persons to whom some work is assigned are capable to do it or not. The ability and the capability of employees changes with the change of time and circumstances. Therefore, the management should study the abilities of its employees and plan the capability of its man power accordingly. Human Resource Management prepares the man power planning in an enterprise.
The essence of manpower planning is the right man on the right job and the right job for the right man. As per Sayles & George Strauss, “Man Power Planning means forecasting prediction of the number of the people whom the organisation will have to hire, train or promote in a given period. Man Power Planning represents a systematic approach to personnel in which the emphasis is on the inter-relationship among the various personnel policies and programmes.”
Thus, it may be concluded that Man Power Planning involves the estimation of size and quality of the work force required by the enterprise to accomplish its desired objectives. Man Power Planning has two aspects quantitative and qualitative.
Need and importance of human resource planning can be explained as follows:
1. Increase in the size of the business: A large number of workers are required to be recruited in expansion of the plant. A stock of the existing manpower should be taken and future needs of the personnel should be assessed at the time of taking the decision. It is essential to know whether new responsibilities should be assigned to the existing employees or some fresh employees are to be recruited to meet the challenges of the new responsibilities. It should be decided whether persons are to be trained within the organisation to take charge of the new responsibilities or fresh well-qualified personnel should be recruited. All these things need Human Resources Planning (human resource planning).
2. Effective utilisation of human resources: human resource planning improves the utilisation of human resources. It also helps in proper and timely utilisation of technological progress by providing for retraining of the existing employees and recruiting new capable employees.
3. Determination and fulfilment of personnel needs: HRD is vital because it helps in determining the current and future personnel needs. It efficiently matches personnel activities and future organisational objectives. HRD is helpful in selecting employees with adequate knowledge, experience, and attitude, and in training them well in advance to fill up vacancies, thus, human resource planning creates highly talented personnel to fill the gaps in existing quantity and talent of the manpower through proper training.
4. Coping with changing scenario: HRD enables the business enterprise to cope with changes in various forces such as markets, products, technology and government regulations. Such changes often generate alterations or modifications in job content, skill demands, and number and type of personnel.
5. Contributing to management succession and development : Human Resources Planning provides sufficient time, lead time for internal succession of employees to higher position through promotions. It paves the ways for proper development of employees.
6. Creation of awareness about effective utilisation of technological progress: human resource planning makes the employees known about the different utilisation of human resources. Ultimately, it facilitates to reduce or even control wastage of human resource and also to judge the effectiveness of human resources policies and programme of management.
7. Facilitating estimation of costs of human resource: Human Resource Planning is useful in facilitating the estimation of costs of human resources which helps in the budgeting process. By focussing on effective use of human resources, human resource planning helps in controlling human resources costs. With the aid of proper manpower planning, management can avoid both the shortage and surplus of manpower and thereby can control labour costs.
8. Protection of weaker section: Governments provide reservation to SC/ST, OBC, physically handicapped, freedom fighter, women etc. In this connection, a well-conceived human resource planning protects the interests of such groups or classes.
9. International strategies: International expansion strategies depend upon human resource planning. The department’s ability to fill key posts with foreign citizens and re-assignment of employees from within or across national border is a major challenge facing international business. Due to growing trend in foreign trade, the need for human resource planning is to grow. human resource planning will grow increasingly important as the process of meeting staffing needs from foreign countries and the attendant cultural language, and developmental consideration grow complex. Without effective human resource planning and subsequent attention to employee recruitment, selection, placement, development and career planning, the growing competition for foreign executives may lead to expensive and strategically-disruptive turnover among key decision.
10. Resistance to change: Employees make resistance to change but human resource planning is very helpful in preparing employees mentally to accept change because accepting change is the need of the day.
11. Reduction in labour cost: In order to maintain supremacy over the other competitive firms, it is necessary for an organisation to control the cost of labour by effective use of manpower and thus reducing the wastage. This is well done by human resource planning.
12. Avoiding disruption in production: Human Resource Planning may help the organisation in producing the skilled and qualified workers, through human resource planning future needs of personnel may be estimated and they are recruited and trained on the basis of a well developed recruitment and training policy thus lowering the amount of expenditure on training. Thus, the production is carried on uninterrupted.
13. Effective employee development programme: No effective employee development programme can be worked out without linking it with the manpower requirements of the organisation. While executing the employee development, the talents, abilities and motives of the individuals as well as the organisational objectives in relation to the manpower should be taken into consideration thus making employee development programmes effective.
14. Maintaining good industrial relations: An effective human resource planning helps the management in developing the good employer-employee relationship. For example, redundancies of workers caused by automation or any other technical change in methods and mechanics may be estimated well in advance with an effective human resource planning. It will help management in considering the ways and means to avoid the anticipated untoward situation. Management may plan to absorb the redundant workers to some new job after proper training. Thus, good industrial relations may be maintained by an effective manpower planning.
The main characteristics of human resource planning are as follows:
1. It is a continuous process: Human Resource Policy is a continuous or ongoing process to keep the demand and supply of people in the organisation in accordance with the changes in the internal and external environments. Such changes cause changes in the human resource needs of the organisation and therefore, constant review and revision of human resource is necessary.
2. It is forward looking: As in case of all types of planning, human resource planning is also future-oriented. This planning prepares an enterprise for future needs and demands. It forecasts the manpower needs in future settings so that adequate and timely provision may be made to meet them.
3. The management is primarily responsible: Human Resource Planning is one of the fundamental responsibilities of the management so as to ensure adequate and capable supply of the significance of human resource and its proper utilisation for the purpose of attainment of organisational goals.
4. It is integral part of corporate planning: Human Resource Planning is not an isolated and independent activity. In fact, it constitutes an indispensable part of the corporate of overall planning of a company. In the absence of a corporate plan, there can be no human resources or manpower planning. Human resource planning is a supportive plan for the successful implementation of the corporate plan. The human resource planning helps in achieving overall goals of an organisation.
5. Optimum utilisation of human resources: The primary or basic purpose of Human Resource Planning is to make optimum utilisation of the existing and expected personnel of the organisation. The aim is to maximise the return on investment in human resources. To achieve this, the current strength of people is scientifically and optimally related to various jobs and activities, and future human resources are related to future requirements of the company.
6. Right persons for right jobs: Human resource planning ensures that the organisation possesses the right number of people required as well as that qualified and capable people necessary to carry out the desired activities efficiently and effectively, are available at the right places at the right current or future time.
7. Human Resource Planning not just forecasts employees’ number: Human resources Resource Planning is not merely forecasting of demand and supply of human resources. It also includes developing, implementing, and controlling processes by which a firm ensures procurement, development and maintenance of capable and qualified personnel.
8. Human Resource Planning is a multi-dimensional activity: Human Resource Planning may be long-range, medium or intermediate-range and short range human resource plans: Long-term range plans cover goals, strategies, economic trends, labour market situations and production trends. The horizon of medium-range plans varies from two and five years. They may be more detailed in comparison to long-range human resources plans and may deal more with certainty and environmental conditions that are more easily predicted. The short-term plans relates with less then two years. These are mainly concerned with assessing and filling the existing jobs. It should be noted that human resource plans of various ranges are complementary with one another.
9. It involves scanning of manpower environment: Human Resource Planning aims at studying the manpower environment that influences the demand for and supply of people in relation to the organisation. Besides, it also includes the study of optimum utilisation of such people.
10. System approach to manpower: Human resources is a system approach to manpower in the sense that it considers all relevant aspects of manpower in relation to the organisation. The demand and supply feature of human resources constitute the impact of the system the compensation scheme, the environment and the identification of gap between demand and supply constitute the transformation process. And the strategy and programme formulated to bridge the gap are the output of the system.
Main objectives of Man Power Planning may be described as under:
1. To forecast the need of man power planning: The very first and most important object of Man Power Planning is to forecast the need of man power of the enterprise for certain time. It also helps in the determination of abilities of the work force.
2. To Prepare recruitment policy: Man Power Planning helps in preparing a sound policy of recruitment. It forms a base for the selection of best possible workers and employees.
3. Management of man power: Man Power Planning helps for the selection of required workers and employees according to the requirements of enterprise. Now a days, it is very difficult to retrench the employees after their selection. Therefore, it becomes more important that the selection of employees must be made only after careful thought and sound planning. Man Power Planning helps in achieving this object.
4. To maintain the level of production: Man Power Planning reduces the absenteeism of workers, minimises the rate of labour turnover which helps in maintaining the level of production.
5. Promotion of personnel policy: Man Power Planning forms a base for the promotion of personnel policy regarding promotion, transfer, remuneration and termination of employees.
6. Other Objects: Man Power Planning helps in achieving the following other objects also:
a. The schemes of labour welfare may be made more effective.
b. The cost of labour may be reduced.
c. Human relations may be friendly and harmonious.
1. Organisational aims and policies: Human Resources Plans are based on organisation objectives or goals. Specific requirements in terms number and characteristics of employees should be derived from the organisational objectives or goals. Organisational goal or objective is fixed by the top management. Once the goals are specified, communicated and understood by all concerned personnel, the human resource department must specify its objective with regard to Human Resource utilisation in the organisation. In developing the objectives, the specific type policies need to be prepared to explain the questions given below:
(a) Whether the vacancies are to be filled by promotions from within or appointing some other persons from outside?
(b) How do the training and development objectives interface with the human resource planning objectives?
(c) What union constraints are encountered in human resource planning and what policies are needed handle these constraints?
(d) How to enrich the jobs of employees? Should the routine and boring jobs continue or be eliminated?
(e) How to ensure continuous availability of adaptive and flexible work force?
(f) How to downsize the organisation to make more competitive?
2. Human resources demand forecast: Demand forecasting is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and long-terms corporate plan, translated into activity levels for each function and department. Demand forecasting must consider several factors-both external as well as internal. Internal factors include budget constraints, production levels, new products and services, organisational structure, and employee etc. External factors are-domestic and foreign competition, economic climate, laws and regulatory bodies, changes in technology, and social factors. Forecasting techniques vary from simple to sophisticated ones. These techniques are Managerial judgement, Ratio-trend analysis, Work study technique, Delphi technique, Flow model.
3. Human resource supply forecast: Human Resource Demand analysis provides the management with the means of estimating the number and kind of employees that will be required. Supply forecasting measures the number of people likely to be available from within and outside an organisation, after making allowance for absenteeism, internal movements and promotions, wastage, changes in hours and other conditions of work. Supply forecast is important since it,
a. helps to quantify the number of people and positions expected to be available in future for helping the organisation realise its plans and meet its objectives,
b. helps clarify likely staff mixes that will exist in the future,
c. assesses existing staffing levels in different parts of the organisation,
d. prevents shortage of people where and when they are most needed and
e. monitors expected future compliance with legal requirements of job reservations.
f. The supply analysis covers :
(i) Existing human resources,
(ii) Internal sources of supply and
(iii) External sources of supply.
4. Human resource programming: Once an organisation’s personnel and supply are forecasted, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time. Human Resource programming. the third step in planning process, therefore, assumes greater importance.
5. Human resource plan implementation: Implementation requires converting an HR plan into action. A series of action programmes are initiated as a part of Human Resource Plan implementation. Some of those programmes are-recruitment, selection and placement, training and development, retirement and redevelopment, the retention plan and the redundance plan.
6. Control and evaluation : Control and evaluation is the last step in human resource planning process. The HR plan should include budgets, targets and standards, it should also clarify responsibilities for implementation and control and establish reporting procedures which will enable achievements to be monitored against the plan. These may simply report on the numbers employed against establishment (identifying both those who are in post and those who are in pipe line) and on the numbers recruited against the recruitment targets. But they should also report employment costs against budget, and trends in wastage and employment ratios.
There may be two forms of Man Power Planning:
1. Short-term Man Power Planning, and
2. Long-term Man Power Planning.
1. Short-term Man Power Planning –
Short-term Man Power Planning means to prepare the plans for a period of less than two years. Short-term man Power Planning can again be divided into two parts for convenience:
a. Matching the present employees with their objects and
b. Filling the vacancy with the present staff.
a. Matching the present employees with the job. The question of matching the present employees with their job arises in the following two conditions
(i) When the abilities of present employees are less than the required abilities for their post.
(ii) When the abilities of present employees are more than the abilities required for their posts. The Man Power Planning in both these conditions is prepared and implemented in the following manner:
I. When the abilities of present employees are less than the abilities required for their posts: If the abilities of present, employees are less than the abilities required for their posts, any of the following steps may be taken by the management :
a. Change in employees. The easiest way out in this condition is to change the employees from the post for which they are not capable and other employees. having required ability may be transferred to that post.
b. Change in job. The second way out in this condition is to change the job of the employee and to allot him a job for which he is capable.
c. Change in both the employees and job. Under this step, the employee of less ability may be sent for training and the work of that employee may be associated with the work of any other employee.
d. Termination of service of employees. If the employee does not meet the requirement of the the post even after getting the training, the only way out is to terminate his services.
e. To Appoint an assistant. One way out to solve the problems may be to appoint the assistant for the employees so that both of them may perform the duties of the post jointly and with the co-operation of each other.
II. When the abilities of present employees are more than the required abilities for their posts: If the abilities of present employees are more than the abilities required for their posts, any of the following steps may be taken by the management:
a. Change in job. The very first step is to change the job of such employee and to allot him a job involving higher responsibility so that the proper utilisation of his ability may be made possible.
b. To assign additional work. Another way out of this condition is to assign additional work to such employee so that his ability may be fully exploited.
c. To assign a new plan. Such employee may be assigned a new plan also.
b. Filling the vacancies with the present staff. If any vacancy arises in the enterprise due to any reason, the efforts must be made to fill such vacancy with the present staff of the enterprise. It develops abilities and responsibilities of the employees and increases their morale. Following precautions must be observed while doing so:
i. Only the capable person must be promoted to the vacant post.
ii. If there are more than one employee suitable for the vacant post, the employee possessing the maximum qualification and experience must be promoted.
iii. Arrangements must be made for proper training of the promoted employee if there is any need of it.
iv. The appointment on vacant post must be made well in advance by estimating the vacancy before it arise.
2. Long-term Man Power Planning –
The Long-term Man Power Planning may be for two years or more. There are two more objectives of Long-term Man Power Planning:
a. To bring uniformity in the different employees and officers and their jobs in future,
b. To arrange for the capable employees for the posts to be vacated in the future. Following are the functions performed in Long-term Man Power Planning:
i. To estmate the man power requiremens. An estimation is made regarding the employees and officers required in the enterprises in the future. The abilities, the experience of such employees are also determined.
ii. Estimation of suitability of present employees for the Posts to be vacated in Future. A very important function of Long-term Man Power Planning is to estimate the suitability of present employees of the enterprise for the posts to be vacated in future. The abilities, capabilities and experience of present employees of the enterprise a are evaluated keeping in view the requirements of these posts because it is better to fill up the future posts with the present staff. It is also decided whether any training will be required for enabling the present staff for the future posts.
iii. Planning for the individual development of employees. Man Power Planning includes for the posts to be vacated in the future and arrange for the proper training to them so that they may be promoted to the posts to be vacated in the future and they may discharge their duties properly.
iv. Both the Short-term and Long-term Man Power Planning are very important for an enterprise. Short-term Man Power Planning meets the immediate needs of an enterprise while the Long-ferm Man Power Planning estimates the needs of enterprise for future and to arrange for the best workers and employees for the future.
The following are the requisites for successful human resource planning:
1. Human Resource Planning must be recognised as an important part of corporate planning. The planner of human resources must, therefore, be aware of the corporate objectives.
2. Support of top-level management is also very essential.
3. Human Resource Planning responsibilities should be centralised in order to co-ordinate the views of different management levels.
4. Human resource records must be up to-date, complete and readily available.
5. The time range of the plan must be long enough to permit any remedial action.
6. The techniques of planning should be able to provide accurate decisions on HR.
7. Plans should be made by experienced and skilled persons.
8. Data collecting and analysis techniques of planning and ‘the plans’ themselves need to be constantly revised and improved in the light of experience.
The major barriers or limitations to human resource planning are as follows:
1. Uncertainties: Seasonal employment, labour turnover, absenteeism, technological changes, and market up-downs are the uncertainties, which are always there while making human resource planning.
2. Inaccurate forecasting methods: Human resource planning involves forecasting the human resource demand and supply. Various forecasting methods are not very much accurate. Hence, such forecasts are also not fully accurate. If the time horizon is very longer, there are more chances of inaccuracies. Apart from that, inaccuracy also increases when the forecasts made for various departments or divisions are merely aggregated without critical review and are taken to be the forecast for the whole organisation.
3. Lack of support from top management: In the absence of support and commitment from the top level management human resource department finds it difficult to obtain information on various vital inputs in human resource planning such as future growth plan, introduction of new technology, etc., are generally not available. Hence, it is not always possible to develop effective human resource plans.
4. Inadequate information system: In most of the industries in our country “Human Resources Information System’ has not been fully developed, especially due to low status given to personnel department and less importance attached to human resource planning. Moreover, reliable data relating labour market, trends in human resource, place etc. are generally not available. Hence, it is not always possible to develop effective human resource plans.
5. Employees resistance: Employees and trade unions also resist human resource planning as they think that it increases their workload and regulates them through productivity bargaining. They also believe that human resource planning prepares programmes for securing manpower mostly from outside, generally by ignoring internal manpower supply.
6. Employers’ resistance: Many employers resist human resource planning because they think that it increases the cost of manpower as trade unions demand for employees based on the plan, for more facilities, and for benefits including training and development. Moreover, employers feel that human resource planning is redundant or useless because candidates will be available as and when required especially due to severe unemployment situation in India.
7. Time consuming and high cost: Human Resources Planning is a time consuming, complex, and high cost-oriented exercise. Hence it is feared to fail at cost benefit analysis.
8. Lack of participation and co-ordination among operating managers: In many cases, operating managers look at the whole exercise of human resourcen planning with doubt and mistrust. They do not willingly participate in it, and do not properly co-ordinate with top management and human resource department.
9. Imbalance between quantitative and qualitative focus: Some firms view human resource planning as a game of numbers designed to ensure the flow of people in and out of the firms, exclusively focus on quantitative aspect such as career planning and development, increase in skill levels through training and retraining, enhancement of morale, and motivation, etc.
Every organization attempts to know the inventory of existing human resources by collecting all necessary information and data of its existing employees. This inventory is prepared to determine the skills and talents existing in the organization through information about their age, education, experience, employment records, skill levels, health, psychology and retirement etc. This data also helps in ascertaining the suitability and adequacy of employees, in accordance with future requirement of the organization.
After preparing the above inventory, analysis of current manpower supply may need to be done by department, by function, by occupation or by level of skill or qualifications. Of the existing available manpower, it is easy to assess the demand for the operative personnel but projections of requirements for supervisory and managerial levels present problem because such talent is not available at short notice and has to be developed within the organization, out of the existing manpower because of scarcity of talent, difficulty of discovering it and the time required to develop it fully. The future manpower, demand depends upon following factors:
1. Employment trends: The human resource department of the establishment should examine the number of employees on organisation’s payroll during he last five years to know the trend within each employees group. This will help in ascertaining whether a particular group has been stable or unstable and whether it has been expanding or contracting.
2. Replacement needs: Replacement for existing employees on their death, retirement, resignation and termination etc. is immediately required. Such replacements may be required for specific manpower group i.e. supervisory, managerial, skilled, unskilled and clerical etc. Whereas replacements are easily available for unskilled and clerical groups, it is very difficult to get suitable replacements for supervisory and managerial positions. Further, major problem in respect of managerial requirements is that management development cycle takes a long time to develop. It is therefore necessary to avoid time gap, and managerial manpower requirement should be anticipated sufficiently in advance.
3. Growth and expansion: The expansion plans and capacity utilization of various plants and divisions should be carefully reviewed from time to time to assess requirements of manpower to meet the expansion. An accurate expansion plan will result in appropriate manpower planning. Where expansion programme is ambiguous and the time perspective is large, the uncertainties will be greater. Every organization has to adapt to changes in the methods and techniques of production on account of fast paced scientific innovations and therefore managing manpower planning assumes greater significance. The changes necessitate adequate education and training of existing manpower to meet the new situations. Therefore human resource department should take all these factors into consideration while studying the impact of expansion plans on manpower requirements.
4. Productivity: Productivity directly influences manpower requirements. Improvement in productivity adds to the growth potential of the organization and results in healthy wage increase. Improved productivity will decrease the requirement of manpower.
1. Demand forecasting techniques: Demand forecasting is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and long-term corporate plans, translated into activity levels for each function and department. Demand forecasting must consider several factors-both internal and external. Internal factors are budget constraints, production levels, new products and services, organization structure and employees etc. External factors are domestic and foreign competition, economic climate, laws and regulatory bodies, changes in technology and social factors. Demand forecast techniques are:
a. Managerial judgement: This is the most common method of forecasting future demand of manpower. First is the bottom-up’ basis, wherein the line managers sit down and estimate their future workloads and decide upon the quantum of people required. Second method is ‘top-down’, wherein top management, in consultation with human resource department, estimates and decides the quantum of people required for future needs of the organization.
Most often, both the methods viz., bottom-up as well as top-down are used. For this, guidelines for departmental managers are prepared in the light of broad assumptions about future activity levels of the company. Sometimes targets of production, sales and profit etc. are also fixed, on the basis of which departmental managers prepare their forecasts on a laid-down format. The manpower planning committee organization consisting of departmental heads reconciles the formats and discrepancies between the two forecasts and submits its final forecast to the top management.
2. Statistical technique: This technique has two aspects,
a. The ratio-trend analysis in which analysis is carried out by studying the past ratios between different parameters like direct and indirect workers in the manufacturing plant and forecasting future ratios, having made some allowance for changes in organization, methods and jobs. The projections are mathematical extensions of past data into a future time period. Moving averages and exponential smoothing can be used for projections. On the basis of established ratios, demand for manpower is assessed.
b. Mathematical or econometric models: Under these methods past statistical data is analysed and relationship between a number of variables (e.g. investment, production, sales and number of required employees etc.) are described in a mathematical formula.
Future manpower demand depends on several factors like employment trends of last five years, replacement needs on account of death, retirement, resignation and termination of employees and productivity of employees, absenteeism and expansion and growth etc. This formula could then be applied to forecast of movements in these variables to produce manpower forecasts. This being a complex process, it is suitable only for large organizations.
3. Work-study method: This method is appropriate for repetitive and manual jobs where it is possible to measure work and set standards. In this method, time and motion study are used to analyse and measure the work being done. With the help of such studies standard time required per unit of work is decided.
For estimation of the quantity of manpower, workload analysis and work force analysis are conducted. Under workload analysis, the total workload of each department is estimated on the basis of sales forecasts, work schedules, growth rates and expansion plans etc. On the basis of past experience and work measurement, the total workload is converted into manpower required. However, in this method, several factors like availability of raw materials and power, breakdown of plant and machinery, gaps in the existing work force and actions like strike and lockouts, which directly influence factory operations, are not considered. For this reason this method is not very reliable and foolproof.
In work force analysis, allowance is made for absenteeism, labour turnover and idle time to know the actual work force required. In order to estimate accurately the loss of current manpower, analysis of the present workforce is made. Such analysis involves detailed study of past behaviour, performance and retirement date of each employee.
Under this, availability of manpower from internal and external resources of the is estimated, after making provision for absenteeism, internal movements and promotions, wastage and changes in hours and other conditions of work.
The supply analysis covers the following aspects :
1. Existing human resources: Internally manpower is obtained for certain posts through promotion. transfers. In order to judge the internal supply of manpower, human resource inventory, which contains data about the existing manpower, is very helpful. This inventory provides head counts,
(a) department, skill, designation, pay roll and sex wise,
(b) number of employees designation wise L.e. management, supervisors, clerks, typists and cashier etc.,
(c) age-wise classification to know date of retirement etc. and
(d) skill inventory viz., education, skills, experience, past performance and potential/fitness for promotions. This inventory helps in assessing and evaluating the quantity and quality of available manpower, shortfall or surplus with reference to existing/future requirements and detailed biodata of employees help in programme for individual development.
2. Labour wastage: Potential losses of manpower arise due to death, resignation, transfers, discharge/dismissal, termination, retrenchment/lay off promotions/demotions, ill health, absenteeism, deputation/consultancy out etc. In the same way, additions to manpower occur in the form of new recruitment promotion/demotion, transfer, deputation/ consultancy in, etc. Thus the net effect of potential loss and additions can be calculated on the basis of experience of the HR department and management.
Future manpower needs of the organization depend upon the number of employees leaving and number of employees joining, as replacement of leavers as well as due to anticipated expansion of the organization. Once future internal supply of manpower is assessed, the external source of supply is analysed.
3. Estimating manpower gap: The net manpower gap can be determined by reconciling the demand and supply forecasts. After such reconciliation and comparison there will be deficit or surplus of manpower and in case of deficit, fresh recruitment is required and in case of surplus the existing manpower is to be terminated or redeployed in expansion plans. Gaps detected in terms of knowledge, skills and aptitudes can be covered by imparti training etc.
4. Action taking: After manpower gap is estimated, plans are drawn to bridge these gaps. In case of surplus manpower, plans are prepared for deployment of employees in other departments/units, retrenchment in consultation with unions and voluntary retirement schemes etc. On the other hand, in case of deficit manpower, it can be met through recruitment, redeployment, promotion and transfers, training and employee development and increase in productivity etc.
5. Monitoring : Once action plans are implemented, the HR structure and system should be reviewed and regulated.
There are two main aspects of manpower planning viz., quantitative and qualitative aspects. The quantitative aspect relates to the assessment of right number of personnel required for each job and qualitative aspect, on the other hand, relates to specifying the quality of personnel in terms of their educational and professional qualifications, work experience and psychological traits etc.
1. Demand forecasting, which refers to assessment of manpower needs requirement for future expansion plans and future activity levels.
2. Supply forecasting: Prospects of availability of required manpower in the context of analysis of current resources and future availability.
3. Assessment of manpower requirement, with reference to demand and supply forecasts to identify future deficits or surpluses. Preparing of plans to deal with forecast deficits or surpluses to improve utilization and productivity to reduce manpower costs.
4. Productivity: Analysing manpower productivity, capacity utilization and costs to identify the need for improvement in productivity or reduction of cost.
5. Manpower budgeting: Setting manpower budgets and standards is an important activity related to quantitative aspect of manpower planning. Along with setting of manpower budgets, implementation of manpower plans is also equally important. Demand forecasts of manpower are estimates of future requirements, which depend upon accurate assessment of employees’ productivity. Supply forecasts will also consider productivity trends and of manpower planning.
Once the manpower requirement is assessed for each job in the organization, the precise nature of the job in terms of functions, duties and responsibilities are determined. The quality of manpower required varies from job to job. Therefore, the quality of employees required for a job can be determined only after determining the job requirements, for which a job analysis is conducted. Edwin B. Flippo has described the job analysis as, “job analysis is the process of studying and collecting information relating to the operation and responsibilities of a specific job. The immediate products of this analysis are ‘job description’ and “job specification.” Thus, in simple words, in job analysis, all pertinent facts about the job in terms of duties and responsibilities involved in it and the qualifications needed for successful execution of the job, are collected.
The job description contains details about the contents of a job like tasks, duties and responsibilities. It indicates the what, why, where and how of a particular job, i.e. what is to be done, why it is done, where it is done and how it is to be done. The logic behind this is that if the employee knows the minute details of the job, as to what is expected and what is good or poor performance, he will accomplish his job smoothly and perfectly.
On the other hand, a job specification reveals the physical, educational and other qualifications and experience required in the employee, to perform the job satisfactorily. Thus the job description describes the job and job specification describes the person needed for performing the job.
According to Edwin B. Flippo, “a career is a sequence of separate but related work activities that provide continuity, order and meaning to a person’s life.” It is a sequence of positions or jobs held by a person during the course of his working life. For an individual, career planning is a systematic process by which one selects career goal and the path to these goals. In the matter of career planning, organization comes into the picture to render help its employees to plan their career in terms of their capacities and capabilities within the context of organisation’s needs.
The main characteristics of career planning are:
1. Career planning of employees is a continuous process on account of ever changing circumstances.
2. It is a means of managing people to obtain on num results from them and retain them in the organization.
3. It is a process of developing human resources rather than an event.
4. Career planning is basically the concern of individual employee but organization provides guidance and counseling in planning their career and in developing and utilizing their knowledge, skills and aptitude.
Career planning covers all levels of employees but succession planning is essentially meant for higher-level executives. Immediate replacement of retiring executive is very necessary so that there is no time gap between retirement and replacement. The main purpose of succession planning is to identify and develop people to replace current incumbents on their resignation, retirement, promotions, deputation and creation of new positions. Replacements from within the organization provides opportunities to employees for progress in their careers and in some larger organization there is system of asking the senior executives to select, train and develop three-four best juniors who could succeed him as when a need arise. A succession plan also covers identification of vacancies that are likely to occur in the higher levels and locating the probable successors. On the one hand succession planning motivates employees and on the other, it facilitates continuity in the organization. Career planning and succession planning are complementary to each other and the two are essential for effective utilization of organisation’s human resources, optimum productivity and the development and growth of the establishment.
Once employees develop expectations and aspirations of their career plan,they need counseling and guidance to reach their goals. Career planning involves counseling individuals on their possible career paths and what they must do to achieve promotions. Such advising and guiding is called career counseling. The need for such counseling arises when employees want to plan their own careers and develop themselves for career progression in the organization. When an individual raises his expectations about his career plan but he is unable to fulfill the same, he gets frustrated and complacent. Through counseling, a scenario of opportunities that are available in the organization is shown to the employee. The main aim is to help the individual concerned to develop himself by giving him some idea of the direction in which he ought to be heading. The main objectives of career counseling are:
1. Enabling individuals to study and understand world in which they live.
2. To provide guidelines that helps an individual to understand himself more clearly and develop his own thinking and outlook.
3. To help individuals achieve and enjoy greater personal satisfaction and pleasure.
4. To help individuals understand the forces and dynamics operating in a system.
Many employees experience stress at work, which manifests itself in the form of apathy, withdrawal, dissatisfaction, frustration, absenteeism, hypertension and increased accident proneness. Such type of tension is caused by a number of reasons like blockage of career or lack of control when one feels that he is on the way out on account of retirement or out-placement by younger employees. The management of the organization can take this stress out of the employees by offering career stress management programmes and by increasing his participation in decision making that affect his job or by making him aware of alternative jobs and how he can gainfully keep himself occupied after his retirement.
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