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Conceptual Approach to Manpower Planning in Organizations

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Journal of Management and Corporate Governance © 2014 Cenresin Publications Volume 6, Number 1, 2014
www.cenresinpub.org
ISSN: 2277-0089

Conceptual Approach to Manpower Planning in Organizations

ADEKUNLE, S.A.1 AND LUCENT-IWHIWHU, H.E.O.2


1Department of Business Administration, University of Benin, Benin City, Edo State, Nigeria.
2Department of Business Administration and Management, Delta State Polytechnic, Ozoro, Delta State, Nigeria.
E-mail: simon.adekunle@uniben.edu, heliner2001@yahoo.com

ABSTRACT
Critical examination of fundamental issues that relate to manpower
planning, a process through which an organization ensures that it has the
right number of people, at the right place, at the right time doing things for
which they are economically most useful (Ibojo, 2012) has been the major
focus of this study. The study explores the concept of manpower planning
and the rationale for its advocacy in organizations to include: reduction of
labour cost as excess staff can be identified and thereby overstaffing can be
avoided; recognition of the available talents in the organization and
designing training programmes to enhance those talents; organizations are
better able to attract and retain the number of people required with the
appropriate skills, expertise and competences; among others. Furthermore,
some challenges such as lack of sensitivity to problems, complexity of the
organization, rapid changes, and ineffective communication, among others
were identified to inhibiting effective manpower planning in organizations.
It is believed that the advent and unprecedented growth of social media, if
properly explored, it will enhance communication and make vital
information available for effective manpower planning in organizations. The
study reviews some empirical studies on the subject matter and concludes
that organization should ensure that it has the right number of people, at
the right place, at the right time doing things rightly by adopting the
appropriate models for carrying out its manpower planning.

Keywords: Effective Communication, Manpower Planning, Organizations.

INTRODUCTION
Humans are considered as the most crucial, volatile and potentially unpredictable
resource which an organization utilizes (Dharamvirsinh, Sarita & Prashant, 2013). One
of the major problems confronting management in any organization is identifying and
adopting the most effective way of matching these humans (people) with jobs. In
addressing this challenge, Nwachukwu (1992) observes that one of the managerial
functions is to ascertain organization’s manpower needs. The determination of
organization’s manpower needs is carried out through effective manpower planning
which is the process of determining the policies and programmes that will develop,
distribute, and utilize human resources with a view to attaining a nation’s broader goals
of socio-economic and political development (Anyanwu, Oyefusi, Oaikhenan & Dimowo,
1997).

Organization which is a systematic arrangement of people brought together to


accomplish some specific purpose requires effective planning especially for manpower
to actualize the corporate goals and objectives. Planning involves selecting missions and

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Conceptual Approach to Manpower Planning in Organizations Adekunle, S.A. and Lucent-Iwhiwhu, H.E.O.

objectives and deciding on the actions to achieve them; it requires decision making,
which is, choosing a course of action amongst all alternatives (Weihrich, Cannice &
Koontz, 2008). It is a managerial function that encompasses defining an organization’s
goals, establishing an overall strategy for achieving those goals, and developing a
comprehensive hierarchy of plans to integrate and coordinate activities.

It would be difficult to know the number of personnel required for recruitment, to be


reassigned, due for retirement, or that need to be retrained for better utilization
without effective manpower planning. Effective manpower planning reduces excessive
recruitment, transfer and thereby saves management cost and time (Nwachukwu,
1992). Identifying and forecasting future skill requirements at sectorial level and
implement those requirements in the training system have long been the subject of
intensive research efforts and academic discussions (Wong, Chan & Chiang, 2004). It
helps to facilitate the development of industry designed to maintain relative balance for
the various occupations in the labour markets. With effective human resource planning,
organization can be assured of the availability of the right kind of people, in the right
number, in the right place, and at the right time (Igbinomwanhia, 2010). If organization
fails to place capable and competent human resources in the right areas of the business,
at right time and right cost, serious inefficiencies are likely to occur creating avoidable
operational difficulties or even business failure. To prevent business failure, co-
ordination of the demand and supply is required, together with the monitoring and
assessment of productivity and technological changes (Dharamvirsinh & Prashaat,
2012). In line with the above discussions, the focus of this paper is to critically examine
fundamental issues that relate to manpower planning in organizations.

CONCEPT OF MANPOWER PLANNING


Manpower often used interchangeably with “human resources” according to Anyanwu
et al (1997:286) refers to the “totality of the energies, skills, knowledge and experience
available in a country. It is the managerial, scientific, engineering, technical, craftsmen
and other skills which are employed in creating, designing, developing, managing and
operating productive and service enterprises and economic institutions (Yesufu, 1962).
Agabi and Ogah (2010) posit that manpower is the bulk of labour available for any
particular kind of work. In a more specific term, “it is the bulk of human beings with the
relevant skills, energies, talents, knowledge and attitudes that can be committed
towards the production of goods and services (Gbosi, 2003, p.3). In Gbosi’s view, human
beings are not described as manpower or human resources except in that they can be
put to some economic use as a resource that in turn can be used for wealth generation
or for the facilitation of increases in wealth. Flowing from the above discuss, it can be
asserted that manpower (human resources) are a nation’s most valuable resources
without which other resources will not give rise to rapid economic growth.

According to Unugbro (2012, p.98), planning can be defined “as the process of deciding
what objectives will be pursued within a future time frame and what will be done in
order to achieve those objectives”. It involves deciding in advance what to do, how to do
it, when to do it and who is to do it (Weihrich, Cannice & Koontz, 2008). Agabi and Ogah
(2010) define planning as a managerial process directed at the optimal utilization of
time and resources in the attainment of clearly identified goals. From the above

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Journal of Management and Corporate Governance Volume 6, Number 1, 2014

analysis, planning can be described as a profitable activity directed at the management


of human and other essential resources with the aim of achieving an identified set of
goals and objectives.

Manpower planning has been defined variously by different authors. According to Agabi
and Ogah (2010), Manpower (human resource) planning “involves forecasting the
human resource needs of an economy, setting objectives that will lead to the realization
of such needs, designing strategies for the achievement of the set objectives, identifying
resource needs, and defining modalities for plan implementation; manpower planning is
the process of determining the policies and programmes that will develop, distribute,
and utilize human resources with a view to attaining a nation’s broader goals of socio-
economic and political development (Anyanwu, et al., 1997); it is referred to as “the
process by which an organization ensures that it has the right number of people, at the
right place, at the right time, doing things for which they are economically most useful”
(Ibojo, 2012). Chandan (2005) posits that human resource planning involves objective
and systematic assessment of present staffing needs of an organization, identifying the
available personnel to satisfy the current needs, forecasting the future demand and
supply of employees, formulating staffing strategies with a view to both short range as
well as long range strategic plans and continuously monitoring, evaluating and updating
these needs and resources of supply; “it is a rational approach to the effective
recruitment, retention and deployment of people within an organization, including,
when necessary, arrangement for dismissing staff” (Cole, 2004, p.169).

It can be adduced from the above discussion that the essence of manpower planning is
to ensure regular and adequate supply and maintenance of relevant human resources in
all sectors of the economy, at all times by ensuring that organization guarantees the
availability of the right kind of people, in the right number, in the right place, and at the
right time. Summarily, employers should have laudable career programmes, establish
improved work climates, and above all their personal needs and aspirations should be
factor into management decision (Adewale, Abolaji & Kolade, 2011; Helton & Soubik,
2004).

NEED FOR MANPOWER PLANNING IN ORGANIZATION


Organization as defined by Hitt (1988) is the framework of responsibility, authority and
duties through which the resources of an enterprise are brought together and
coordinated for the achievement of set goals needs effective planning for its human
resources. The need for manpower planning is succinctly expressed in the following
excerpt from Psacharopoulos (1991, p.72): Skilled manpower is one of the most crucial
inputs of modern economic growth and to avoid critical shortages or surpluses of
manpower. Planners or decision makers have sought to identify future requirements for
skilled manpower and to design the education system so as to produce a labour force
with the necessary skill and technical or professional knowledge. Planning is needful
because it leads to a more effective and efficient use of human resources. It results in
more satisfied and better developed employees because such employees have a better
chance to participate in planning their own careers and to share in training and
development experiences which often leads to greater employee satisfaction
(Igbinomwanhia, 2010).

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Conceptual Approach to Manpower Planning in Organizations Adekunle, S.A. and Lucent-Iwhiwhu, H.E.O.

Dharamvirsinh and Prashant (2012) and Igbinomwanhia (2010) identified the


following benefits that organizations stand to gain by engaging in manpower planning:
shortage and surpluses can be identified so that quick action can be taken wherever
required; all the requirement and selection programmes are based on manpower
planning; it also helps to reduce the labour cost as excess staff can be identified and
thereby overstaffing can be avoided; it recognizes the available talents in concern and
training programmes can be done to enhance those talents; and with the help of
manpower planning, organization can optimally utilize the available human resources
to increase the growth and diversification of business. Furthermore, the organization is
better able to attract and retain the number of people required with the appropriate
skills, expertise and competences; top management has a better view of the human
resources dimensions of business decisions; and better planning of assignments to
develop managers can be done.

MANPOWER PLANNING CYCLE


Manpower planning makes sense in relation to clearly-defined business objectives. For
profit-oriented organizations, the primary objective is to make profit while survival,
growth, innovation, productivity, employees’ satisfaction, diversification, globalization
and public image are seen to be their secondary pursuits (Ekeria, Ogedengbe, Ewanlen
& Pogoson, 2013). In a case of university, the core objective would be to produce
graduates that are worthy in learning and character.

In pursuing this objective, Figure 1 below shows that the demand for personnel
whether at short-term, medium-term or long-term requirements is imperative. At short-
term periods of up to 6-9 months, there will be clearly-defined requirements for specific
skills or positions which need to be filled in the context of existing plans. It also has
medium-term (9-18 months) and long-term (18 months – 5 years) aspects, in line with
the market and financial targets of the corporate plan (Cole, 2004). The needed
personnel can be sourced by assessing the existing staff in terms of their skill categories,
numbers, readiness for promotion and trainability and/or taking a comprehensive look
at their future prospects by examining issues that bother on: leavers, recruitment, state
of labour market and trends in education. Proper assessment of personnel supply will
serve as a basis for developing operational plans for meeting such gaps by planning for
some vital manpower planning activities such as: recruitment, training and
development, promotion and career planning, pay and productivity, and retirements
and redundancy as displayed in Figure 1 below.

Finally, there is need for effective review activities. Review activities are important for
generating feedback information. This information tells the organization not only how
well it is achieving its manpower plans, but also points the way to necessary changes
that must be made at one or more points in a cycle.

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Journal of Management and Corporate Governance Volume 6, Number 1, 2014

Feedback Corporate Objective

 Short-term needs
Demand for Personnel  Medium-term needs
 Long-term requirements
Feedback Assess Personnel Supply

Existing Staff Future Prospects


 Skill categories  Leavers
 Numbers  Recruitment
 Readiness for promotion  State of labour market
 Trainability  Trends in education

Operational Plans for


Feedback Meeting Manpower
Requirements

Recruitment Training & Promotion & Pay & Retirements &


Development Career Planning Productivity Redundancy

Review
Feedback
Outcomes

Figure 1: Manpower Planning Cycle

Source: Cole, G. (2004). Management Theory and Practice (6th Edition). London: TJ
5.0 Challenges of Manpower
International, Planning
Padstow, Cornwall in Organization and Possible Solutions
p.170
Obasan and Yomi (2011) outline the problems of effective manpower planning to

CHALLENGES OF MANPOWER PLANNING IN ORGANIZATION AND POSSIBLE SOLUTIONS


Obasan and Yomi (2011) outline the problems of effective manpower planning to
include: politicization of manpower planning effort, dearth of professional trained
manpower planners, lip service paid to manpower planning/lack of commitment by
stakeholders particularly Federal and State Governments, and inconsistency in
government policies in Nigeria.

Manpower planning which can be seen as a conscious and rational decision making
process geared towards defining the various courses of action that need to be carried
out within an organization especially educational institution sometimes fail completely
or do not reach their full potential mainly because the programme is not implemented
in the way for which it was designed (Adiele, 2006; ABAHE, n.d). According to them,
some of the reasons for these failures are discussed below:

i. Lack of Communication: This problem is the oldest and most common in


personnel administration. Manpower planning is now becoming a sophisticated
53
Conceptual Approach to Manpower Planning in Organizations Adekunle, S.A. and Lucent-Iwhiwhu, H.E.O.

process, only involving the use of experts, and these experts must have rapid
access to accurate information. Moreso, communication channels as
recommended by Okhakhu and Adekunle (2013) should be appropriate and
provide for feedback. This will help a great deal in having all-encompassing and
workable manpower plans for the organizations. With the advent and
unprecedented growth of social media, different platforms such as facebook,
blog, google, LinkedIn, my space, podcast, twitter, YouTube and yahoo, among
others can be explored for effective communication among various stakeholders
in organizations.

ii. The Lack of Sensitivity to Problems and Solutions: The major obstacle to the
implementation of effective manpower planning is caused by the general apathy
of line managers. Management still seems to be particularly concerned about
financial and material resources and has a tendency to neglect the critical factor
of human resources. Over the past few decades, productivity has increased as a
result of improved technology, but any further improvement will depend, to a
very great extent, upon improved manpower utilization (Adiele, 2006). In this
respect, management is required to show a greater respect to the role of
manpower in pursuing and achieving organizational goals and objectives.

iii. Short Term Profit Goals: In the short‐term, there is a tendency to view
manpower planning as unprofitable and too costly. This represents the
traditional view that costs of personnel are overhead costs and not direct costs. It
is essential that management review this problem and weigh the benefits against
the costs. It is possible that this lack of concern over manpower planning could
be attributed to lack of information. If information is not forthcoming, then
manpower planning is a futile exercise. It is therefore imperative that
organizations acquire requisite information that will keep them relevant and up-
to-date in their various activities.

iv. Lack of Criteria: The lack of information can lead directly to the absence of
criteria against which to measure performance. It is not an easy task to measure
human performance without the use of adequate quantitative data. It is easy to
measure the depreciation of material goods, out human beings tend to
appreciate with the passing of time, and this appreciation quality has never been
measured. The tendency of management is to measure human beings, only in
terms of their cost to the organization. Management should become aware of the
fact that the evaluation of performance is long, complex, uncertain and abstract,
and it is necessary that they continue their planning with the use of objective
criteria.

v. Complexity of the Organization: Many organizations have increased


tremendously in recent years and some appear to have difficulty in determining
the exact size of the workforce. They appear to be incapable of updating the
retrievable information which is essential to manpower planning. Because of the
increasing complexity of organizations, it is becoming more essential to keep a
track on the movements of employees, as well as all the personal details which

54
Journal of Management and Corporate Governance Volume 6, Number 1, 2014

may be of use in planning. This is where the personnel manager and his staff
must exercise a keen supervision.
vi. Rapid Changes: The rate of technological change causes difficulties in
manpower planning. This is because, at times, it is difficult to keep up with the
technical development. There is always resistance to change within an
organization, but somehow this resistance must be overcome if manpower is to
be utilized effectively. One possible method of overcoming this resistance to
change on part of the existing staff is to introduce new employees, with new
ideas from outside of the organization.

EMPIRICAL REVIEW
This section focuses on review of some empirical studies that have been conducted in
the area of manpower planning. Omodia (2009) in examining manpower development
in Nigeria observes that manpower development as a concept and method should be
able to take its rightful place as a tool for development in Nigeria through the
recognition of the fact that it is the most active and indispensable in the process of
production even in the global age of the 21st century. In studying education and human
resource planning in Nigeria using National Manpower Board (NMB) as a case study,
Agabi and Ogah (2010) discovered that human resource planning activities of the NMB
consisted of human resource development (HRD) at different levels in the Nigerian
education system, formulation of education policies in liaison with the Federal Ministry
of Education, co-ordinating the activities of HRD agencies such as NDE, ITD, ASCON,
NUC and NBTE, among others. In human resource forecasting, the Board made use of
the employers’ opinion method and normative density ratios in its yearly forecasts. The
study finally reveals that staff shortages, dearth of statistical data, inconsistent
government policies on HRP activities, as well as inadequate funding were the major
problems that challenged effective HRP in Nigeria.

Obasan and Yomi (2011) in their study on manpower planning and education in Nigeria
found out that in Nigeria, brilliant and capable hands are lost to other nations in their
quest for greener pastures and that there is poor database for manpower planning both
in rural and urban centers of the country which to them is a cause of imbalance
(surpluses/shortages) in particular kinds of manpower skills. The study also reveals
that the poor reward system for workers in the country serves as disincentive to work
and development. Also, Ibojo (2012) observed that in planning the manpower for an
organization, the financial strength of the organization must be considered;
implementation of policy on manpower planning must be free and fair; and government
policy and organizational objectives must be considered before, during and after
planning.

Igboanugo and Onifade (2011) examined Markov chain analysis of manpower data of a
Nigerian University and observed that for various reasons, ranging from discovery of
greener pastures, disciplinary cases and attrition, 47% of newly recruited staff left the
organization under study prior to retirement. The study observed that 49% of those
who had been confirmed and 56% of those on various categories of leave do not reach
retirement stage before leaving the system due to payment system not being attractive,
staff not meeting opportunities for self-actualization, low economic fortune among

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Conceptual Approach to Manpower Planning in Organizations Adekunle, S.A. and Lucent-Iwhiwhu, H.E.O.

others. Also, it was noticed that there appears to be high rate of attrition through
suspension cases in the sense that 36%, 43% and 45% of recruits, confirmed staff and
those on leave respectively leave by suspension. However, few of them were recalled,
sometimes on compassionate ground.

Ekhosuehi (2013) in his paper on career patterns of academic staff in the Faculty of
Physical Sciences in the University of Benin using Markov chain to examine the expected
time spent at each grade of the academic structure concluded that if the current [as at
the time the study was done] trend is allowed to continue, career patterns would favour
fresh graduates with a minimum of second class honours (upper division) who are
employed into the Department of Mathematics or Physics. Applicants with Ph.D without
teaching experience may opt for the Department of Chemistry, Computer Science,
Mathematics or Physics. The study further asserted that career patterns are favourable
to applicants to Department of Geology who already have Ph.D with cognate teaching
and research experience. The major accomplishment of the study according to the
author is the estimation of expected waiting time for each grade in every department in
the faculty and the use of the results as a yardstick to inform prospective applicants.
Conclusively, the study of Trong and Davis (2013) on employee absenteeism and group
performance confirms that the Markov chain model gives a reasonable approximation
in modeling the relationship between staffing level and organizational performance in
the case where workers may be on leave from the workplace. The proposed model
provides a useful tool for managers in measuring the relationship between staffing level
and performance of workers in a group, the probability of a group in carrying out work,
the availability of workers, and the group utilization. The model can be used in setting
up the workforce size of a newly formed group when the arrival rate of work, the
processing rate of workers, and the average time of being on leave by workers are
estimated.

CONCLUSION
This paper contains a review of crucial issues that relate to manpower planning in
organizations. The main purpose of manpower planning is to ensure that organization
has the right number of people, at the right place, at the right time doing things for
which they are economically most useful. Also, this is in line with Dharamvirsinh, et al.,
(2013) opinion that manpower planning is to get a better matching between manpower
requirement and manpower availability. It is imperative to know that without effective
manpower planning, it would be difficult to know the number of personnel required for
recruitment, transfer or retraining for better performance. The need for effective
manpower planning cannot be over-emphasized as it helps to identify shortage and
surpluses of personnel and thereby help to take quick action wherever required as well
as optimally utilized the available human resources to increase the growth of the
organization. Finally, this paper identifies and proffers workable solutions to some
challenges inhibiting effective manpower planning in organizations.

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Journal of Management and Corporate Governance Volume 6, Number 1, 2014

Reference to this paper should be made as follows: Adekunle, S.A. and Lucent-Iwhiwhu,
H.E.O. (2014), Conceptual Approach to Manpower Planning in Organizations. J. of
Management and Corporate Governance, Vol. 6, No. 1, Pp. 49 – 59.

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