You are on page 1of 7



It relates to establishing job specifications or the quantitative
requirements of jobs determining the number of personnel required and
developing sources of manpower. Manpower planning is a process
determining requirements of right number and right kind of human force
at right place and right time.
Manpower planning requires that an estimate of the present and future
needs of the organization should be compared with the available
manpower and future predicted manpower. Appropriate steps are then
taken to bring demand and supply into balance. The outcome of this
planning is a well 'thought out' and logical manpower demand plan for
varying dates in the future which can then be compared with the crude
manpower supply schedules. The comparisons will then indicate what
steps should be taken to achieve a balance.
Evaluate Present Manpower Inventory
It is very important to evaluate the present manpower status before
making a forecast for future manpower planning. To evaluate the present
manpower status a department level analysis and a job-role analysis is
conducted to arrive at the required manpower versus the available
manpower. This is accumulated across the organization at different levels
and departments. There may be excess or deficit or in extremely few
cases just the right number quantitatively. The report on the qualitative
front may rarely have a 100% match between required competencies
versus available competencies.
Manpower Forecasting
Manpower planning is done based on the manpower forecasts. The
common manpower forecasting techniques are:
(i) Expert Forecasts: This includes formal expert surveys, informal
decisions and the Delphi technique.
(ii) Trend Analysis: Manpower needs can be seen through the past
practice of the firm or organization keeping the principle year as a basis
and a central tendency of measure
(iii) Work Load Evaluation: This depends on the nature of the work load
in a branch, department, or a division in a firm or organization.
Develop a Manpower Sourcing Plan or Retrenchment Plan
Once the current inventory is compared with the future manpower
forecasts then the manpower sourcing or retrenchment plan is drawn. The
sourcing plan includes recruitment, selection, placement, hiring
temporary staff and outsourcing
Manpower Allocation & Retention
Manpower allocation helps in managing the impact of deficits and excess
in manpower supply through promotions, transfers and job-rotations.

Enhancing manpower utilization requires managing the dynamics of

leadership and motivation.
Building Requisite Competencies
Once the future manpower forecasts are compared to the current
inventory, there may be some gaps in competencies amongst the available
internal resources for them to qualify for the future manpower forecasts.
In such cases organizations may choose to develop resources through
training programs. A training calendar is designed to ensure that the
competencies of existing staff are enhanced to meet the future manpower
Obstacles in Manpower Planning
The major obstacles in manpower planning are as follows:
Non Optimal Utilization of Manpower
The biggest obstacle for manpower planning is the fact that organizations
cannot optimally use their manpower once manpower planning begins.
During manpower planning, the number of resources required for a job is
decided based on the total work load, the processes to be followed and the
criticality of the job. Once the analysis is done, it is decided that one
person can only handle a certain portion of the workload and hence for
any additional workload, additional resources need to be hired
Every organization has witnessed an increase in absenteeism. This has
lead to errors creeping in the manpower planning exercise. If the plan
stated that 4 employees are required to manage the total workload,
increased degree of absenteeism leads to the partial failure of the
manpower planning exercise.
Lack of Employable Labor
People are not employable. The slow pace of acquiring business required
competencies by people at large also result in low employee productivity.
Keeping a certain productivity level as the benchmark does all manpower
planning. And low productivity has negative implications for manpower
the process of identifying and measuring data about human resources
and communicating this information to interested parties. So apart from
calculating the costs and investments in processes like recruitment,
hiring, placement and training, HRA also quantifies the value of
employees in an organization.
The objectives of Human Resource Accounting are:

To provide cost/value information of Human Resource and associated

processes to the management and assist decision making
Enable effective management and monitoring of resources
To report progress or retardation of human assets
Form the base for developing management principles by reporting
Financial outcomes of decisions taken
The adoption of the system of HRA discloses the value of human
resources. This helps in proper interpretation of Return on Capital
Employed. Such information would give a long-term perspective of the
business performance which would be more reliable than the Return on
Capital Employed under the conventional system of accounting.
The maintenance of detailed record relating to internal human
resources(i.e. employees) improves managerial decision-making specially
institutions like direct recruitment versus promotions; transfer versus
retention retrenchment or relieving versus retention; utility of cost
reduction programs in view of its possible impact on human relations and
impact of budgetary control on human relations and organizational
behavior. Thus, the use of HRA will definitely improve the quality of
The adoption of the system of HRA serves social purposes by
identification of human resources as a valuable asset which will help
prevention of misuse and under use due to thoughtless or rather reckless
transfers, demotions, layoffs and day-to-day maltreatment by supervisors
and other superiors in the administrative hierarchy; efficient allocation of
resources in the economy efficiency in the use of human resources and
proper understanding of the evil effects of avoidable labor unrest
/disputes on the quality of internal human resources.
The system of HRA would no doubt, pave the way for increasing
productivity of human resources, because, the fact that a monetary value
is attached to human resources and that human talents devotion and skill
considered as valuable assets and allotted a place in the financial
statements of the organization, would boost the morale, loyalty and
initiative of the employees, creating in their mind a sense of belonging
towards the organization and would act as a great incentive, giving rise to
increased productivity.
Recruitment Process
3. .The first step in selection process is analyzing the job. Job analysis
consists of two parts :
(a) Job Description, and
(b) Job Specification.

Proper job analysis helps to advertise the job properly. Accordingly, the
right candidates may apply for the job, thus saving a lot of time and effort
of the selectors.
Advertising the Job: The next step is to advertise the job. The job can be
advertised through various media. The right details about the job and the
candidate must be given in the advertisement.
Initial Screening: The initial screening can be done of the applications
and of the applicant. Usually, a junior executive does the screening work.
At this stage, the executive may check on the general personality, age,
qualifications, family background of the candidate. The candidate may
also be informed of salary, working conditions, etc.
Application Blank : It is a prescribed form of the company which helps
to obtain information about candidate in respect of social, biographic,
academic, work experience, references, etc.
The application blank helps to
It provides input for the interview.
It provides basis to reject candidates if they do not meet eligibility
criteria, such as experience, qualifications, etc.
Tests : Various tests are conducted to judge the ability and efficiency of
the candidates. The type of tests depends upon the nature of job. An
important advantage of testing is that it can be administered to a large
group of candidates at a time and saves time and cost.
The various tests are :
(a) Personality test,
(b) Intelligence test,
(c) Performance test,
(d) Stress test, etc.
Interview : It is face to face exchange of views, ideas and opinions
between the candidate and interviewer(s). There are various types of
interviews1 such as :
(a) Panel Interview
(b) Individual Interview
(c) Group Interview
(d) Stress Interview
(e) Exit Interview.

Reference Check : A candidate may be asked to provide references from

those who are willing to supply or confirm about the applicants past life,
character and experience.
Medical Check : Medical examination of the candidates is undertaken
before they join the firm in order to
Find out whether the candidate is physically fit to carry out duties
and responsibilities effectively,
Ensure the health and safety of other employees,
Find out whether the candidate is sensitive to certain work place
such as in a chemical factory.
Final Interview : Before making a job offer, the candidates may be
subjected to one more oral interview to find out their interest in the job
and their expectations. At this stage, salary and other perks may be
Job Offer : This is the most crucial and final step in selection process. A
wrong selection of a candidate may make the company to suffer for a
good number of years and the loss is incalculable. Company should make
a very important decision to offer right job to the right person.
4.Employee Exit process
Having a clear process to follow during Employee Exits will ensure you
protect your business and its assets, and help the Employee leave with
dignity. It is also a great time to get feedback from them about their time
at your place.
Have a clear exit policy:
The purpose of an employee exit policy is to have a process in place
when an employee is leaving your employment (resignation, retirement,
end of contract etc) When an employee resigns from their position, they
should submit a written letter of resignation to their immediate supervisor
based on what their notice period is. This could be stated in the
employees letter of engagement or (if no letter exists) be linked to the
National Employment Standards notice table.... During the employee's
notice period; they must continue to assume their normal responsibilities
and should assist with a handover to the existing team or their
replacement if in place.
Conduct and Exit Interview
An exit interview is often overlooked but is an extremely valuable
organizational effectiveness tool. The purpose of exit interviews is to

understand the employees perceptions and experiences and get feedback

about the job the employee held, their work environment, and your place.
A good exit interview system can help reduce turnover and increase
employee satisfaction and commitment by addressing some of the things
that people are leaving because of.
Follow an Exit Checklist
It is important to have a process in place and a set of steps to follow and
ensure the list is completed when each employee finishes. This is
extremely handy to ensure you dont forget anything when the employee
leaves. The best person to complete the checklist is usually the
employees supervisor and should be done on the day they leave. The
checklist can include the following (but is not limited to these items
Arrange for the employee to do a formal handover to someone
within the business or at least document the procedures of their role
explaining any complicated/important elements
Conduct an exit interview
Notify other employees that they are leaving
Collect any company property including their company laptop,
Smartphone, company credit card, keys, security passes, parking
pass, name badges and business identification, a uniform if the
business owns it, any tools, electronic devices or other business
property they have
Ask them to clean out their desk
Process all outstanding payroll, leave accrued and expenses. If they
had a mobile phone account ensure this account is reconciled
Delete their computer access, have their files in network folders
copied to the network, cancel their accounts. Remove them from
the company intranet
Disable their building or property access
Remind them of confidentiality clauses in their letter of
Ensure you have their current address and phone number is on file
in case the they need to be contacted after they leave
Make sure they and their supervisor sign off on the checklist when
it is done.
In the end, it is always nice to part on good terms, and you never
know the person leaving your employment may become a client or
refer business to you in the future.

5.Talent development:
The process involving the systematic identification, attraction,
development, engagement and deployment of employees who are of
significant value to an organization is defined as talent development.
Talent development is an important part of HR. The process involves
changing an organization, its employees and its stakeholders. This
process is accomplished using planned and unplanned learning, in order
to achieve and maintain a competitive advantage for the organization.
Necessity of Talent Development
Talent development is necessary in any organization because of the
This is the only way of improving employees productivity through
automated and integrated learning management, performance
management, and compensation management systems to drive
business results.
Effective talent development in an organization reduces turnover at
critical positions, manages succession plans, minimizes business
disruptions, and also takes care to reduce the risk of noncompliance and litigation.
Talent development is necessary to achieve extra ordinary goals.
Extraordinary goals require extraordinary talent.
With the growing economy in the 21st century, employee retention
and recruitment will be the key issue for different organizations. So
finding the proper talent and creating opportunities for its
development would be reasons enough for a talent to stay in the
Identifying and developing talent are the critical steps in retaining
the top talents in an organization. The cost of replacing a valued
employee is enormous. Organizations need to promote diversity
and design strategies to retain people, reward high performance
and provide opportunities for development.
High Performing organizations anticipate the leadership and talent
requirement to succeed in the future.