HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE PLANNING

At the &hest level,.-"=y-dya--

a committee of top executives will review all the
-~-%-uII-.K
1.Objectives of Manpower Planning
planEGGGitted by the aivis~onalcomm~tteesa ~ 1 " I P ~ Z v ~ p ~ s ~ s
.A-m.~~Lcn*um3U~%~Ii c . ~ X ~ - ~ ~ . ~ ~ ~ C a ~ ~ I I I ~ d - ~ ~

for the headquarte?s4aff.*rtwin make projections of manpower r e q G t s

-..?--- --.-r*-w -
-
w >

of various kinas during the next --.-,,,

five years. At this level, adequate emphasis
will be given to the executive manpower planning because it takes a long time
-.-*.__-- I h

before a ijerson is deGeloped into a better executive. TheYdmmittee will have

at its disposal all the records and statistics regarding employees turnover
during the previous years, employees going to retire in future and so on. Past
records
L--*----
rzarding employees
,.-,. turnover due to death, retiremez,
-"*"-'- -~-2-'-'-nerv-+"-"-~'W*- r*Y+a,w+.-+l ,,ex 3-8 ai ",'".++ilSv-
"

resignations, Lrminations, etc.,-., and absenteeism

,- can, ..?
be aaL gooXFZE7?or
.",*-,,.,.>,K--=y ,a-,M-+7qG4.+--A..- +4%.L*
++ \"\I+*. .
-a-

mZrip-Zi'WGi?ae$:*- .
--us. Afer the manpower planning has been done at the top
= &, ' .-3s

level, it will be integrated with the other organisational plans.

-
THE PROCESS OF HUMAN RESOURCE PLANNING
The process of manpower planning involves the following steps :
1. Determination o f i 7 ~.-- ~ ~manpower
v ~ ~ fplanning. i:
2. Preparation of current manpower inventory. f'
3. Demand forecasting.
4. Supply forcasting.

' 3 i 8. Employment plan. c--

9. Training and development program.d/ certain skills in the future.
&anpower planning is a g ~ t i n u o ~ r o c e as
s sshown in Fig. 1. The
Systematicsteps must be taken in order to ensure that a reservoir of talent
is available when vacancies occur. The search for talented emJloyees
,
m>~~~~iin"M-*+*'-*QLlin%*;,)nCxz
in the
.r~*.,~rt;~&uPOuPOh,~?-.r.

To be sure that available talent has been

ie*t16gdka~~6 ,ifi+ghTgi
organisation must be
skills in the enterprise should be indexed.

- . Resource
3. Demand Forecasting
A proper forecast of manpower required in the future (say, after one year,

Fig. 1. The ManpowerIHumanResource Planning Process.

contracting.
 HUMAN RESOURCE MANAGEMEFJT HUMAN RESOURCE PLANNING

There are certain employees who are more prone to absenteeism in any
organisation. 10 to 20 per cent of such employees may account for 70 to 80 per
cent of absences. It should be noted that excessive absenteeism (more than the
irreducible minimum, say 3% to 5%)involves a considerable cost to the firm
even when the absent employees receive no pay. Work schedules are upset*
leading to overtime work which in turn leads to increased cost of production.
The management should go into the causes of absenteeism and attempt to
reduce the absenteeism as far as possible. The manpower planning experts
will have to consider the known rate of absenteeism in their decision
regarding estimation of manpower requirements.
6. Action Plan for Redeployment or Redundancy
(vi) Work Study. Work study technique can be used when it is possible

of human resource

7. Determining Job Requirements of Positions to be Filled

strengths and weaknesses, so as to gauge their suitabilityfor different jobs.@

order to estimate internal supply of personnel, it is necessary to condua

8. Employment Plan

The preparation of human resource inventory helps in identifying the

d human resource audits and replacement summaries.

 HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE PLANNING

The internal supply of personnel is influenced by the following factors :

(a) expsting manpower resources ;
(b) pdtential losses to existing resources through labour wastage ;

improvement of 8%).
Y.i: conversion g ~ o ~ e it^
rd to.&~omel Based on the above information, the following techniques may be used
required (total lewl of today's business activity by the current number of
~t reflects the level of business activity per person). to anticipate the supply of human resources :

The application of this forecasting model depends heavily on obtaining

accurate estimates of total growth (G), average productivity improvement (X)
and conversion rates (Y). In order to obtain these parameters, separate
statistical techniques may be used.
The accuracy of prediction of results by various statistical models
discussed above are dependent upon h e strength of relationships, how
accurately these relationships are captured by the model and the degree to
which the relationships remain true in the future. Predictions based on poor
or loose relationships, inaccurate representation of relationships, or of (ii) Simulation. Based on Markov analysis, the simulation technique
relationships that will not remain true in future will be inaccurate. The considers alternativk flows which are examined for effects on future
application of any model in highly complex situations becomes even difficult manpower supplies. Alternative flows reflect the antidpa ted results of
because of the large number of factors (variables) which mlist be or 'programme changes concerning 'voluntary and involuntary turnover,
retirement,.promotion, etc.

turnover, promotions, etc.

Supply Forecast-
Supply forecasting is concerned with the estimate of supply of
manpower given the analysis of current resources and future availability.
Here the personnel planner must 'consider both the external supply
(employ&esavailable for higher position in the organisation's geographic
work force) and the internal supply. (organisation's current employees).
Exte&al supply of personnel is important for two reasons. First, the normal
separation of employees through voluntary turnover, retirement, illness,
death and discharge may require that the organisation look to employment
agencies, colleges and universities' and other sources to replenish lost
personnel. Second, organisational growth and diversification require the use
of external sources to obtain additional numbers and types of employees.
(iv) (hal Propmming. It is an operational research technique under
which ~e p l m e r tends to optimise goal. In this Case, the goal to optimise is
the desired desired staff% pat& subject to a set of constraints coqcerning
s~~~factors as the upper limits on -flows, the percentage of new recruits
permitted and total salary budget.
filJMAN RESOURCE ANALYSIS
in preparing manpower inventories.
Some detailed analysis may be essential. For example, the review of
.current resources may need to cut across organisational and occupational
boundaries to provide inventories of skills and potential. It may be important -
 HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE'PLANNING

after a brief investigation. It is particularly necessary to identify at an early

where there are three levels of management : stage the job category where there might be difficulties in recruiting the
3rd line management : 2 promotions = 6 moves. numbers required-This would help to prepare a recruitment campaign to tap
alternative sources, or to develop training or retraining programmes to
2nd line management : 5 promotions = 10 moves.
convert available manpower'to meet the company's needs. The local factors
1st line management : a promotions = 25 moves.
Totalpromotions/moves : 2 P1 which can have an important bearing on the supply of manpower are listed
'
below. :
However, this is a very crude estimate and so succession planning has to
be worked out specifically by reference to known retirements, resignations, ( i ) Population densities within reach of the company.
and transfers. Further, it is also important to determine the impact of factors
(ii) Current and future competition for labour from other employers.
such as changes in normal weekly hours of work ;overtime policies ;the
length and timing of holidays, retirement policy ;the policy for employing
part- timers; and shift system.
(v) The output from the local educational system and government or
Succession Planning. other training institutes.
Succession planning is the process that is used by manpower plannes to The pattern of immigration and emigration within the area.
(ui)
convert information about current employees into decisions about future The attractiveness of the area as a place to live.
(vii)
The attractiveness of the company as a place to work in.
(viii)
The availability of part-time labour such as married women.
(ix)
Local housing, shopping and transport facilities.
(x)
The macro level factors affectkg the supply of.human resources are as
I
( i ) s e n d s in the growth of the working population.
(ii) National demands for special categories of manpower-graduates,
professional staff, technologists, technicians, craftsmen, secretaries.
(iii) The output of the universities, polytechnics and professional
Succession planning encourages hiring from within and creating an institutions.
in which employees have careers, not merely jobs. Moreover, it (iv) The effect of changing educationalpatterns-childrenstaying longer
identifies manpower shortages and skill deficiencies before vacancies occur- ,at schools, or different emphasis in university or school curricula.
(v) The impact of government training schemes.

corporate culture.
Sources of Manpower
Internal sources of manpower supply will include the output' from
established training schemes or management development programmes and
theinventory of skills and potential that exist within the organisation.But the
availability of manpower from outside the enterprise is also a vital factor
when preparing growth plans. Too often, corporate or functional plans may
be based on assumptions about the availability of human resources of
required calibre, locally or nationally, which could easily be roved wrong