You are on page 1of 5



Submitted to
Mrs. Urmila Barua Guest Faculty, Department of Business

Submitted by
Darshan Nunisa Roll No. 19 Department of Business Administration Gauhati University

Administration Gauhati University

XYZ Cement is a market leader in the Northeast having its manufacturing plant in Meghalaya. There are currently around 300 people employed in the factory in various capacities as below: Level 1 Managerial Technical Executive Supervisory Workmen Total Level 2 18 12 22 236 236 52 Level 3 4 6 10 Level 4 1 1


With the cement space becoming very active another 4 plants of competitors are coming up in the radius of around 20 Kms. In order to maintain its competitive edge and retain its position as the market leaders, XYZ Cement installing a second factory of similar capacity around 300 Kms. away from its existing plant. As the plant goes on stream by early 2012, help the HR professionals of XYZ Cement Ltd. Do the manpower forecasting and identify sources for recruitment. By past experience, average retention levels are as follows Level1-90% Level2&3-70% Level4-60%

XYZ Cement Ltd Plant B requirement in 2012 Level1 Managerial Technical Executive Supervisory Workmen Total Level2 15 10 18 180 180 43 Level3 3 4 7 Level4 1 1 Total 4 20 17 18 180 239


The HR professionals before doing MANPOWER FORECASTING, goes through both approaches BOTTOM UP and TOP BOTTOM. This practically helps the HR to prepare estimates for requirement of employees and is presented in the case. A new factory is to be set up. People are required at all lower and higher job levels. So, both aggregate and succession planning are needed here.

The following factors are going to be important while forecasting the manpower requirement Accurate information about the skills required Information about labour market, demand and supply position Past manpower retention trend Competitors Development potential of employees Organisations goals There are four competitors plants coming up nearby. So, there is a pretty good risk of employees switching to other organizations. Therefore, manpower forecasting of the company has to be made taking into account all these factors as well as the past retention levels.

Manpower Forecasting for the new plant:

1. WORKMEN AT LEVEL 1: Nowadays most manufacturing activities are automated, so the need

for skilled labor is very less. Transferring workers is also not advisable. So, around 180 unskilled contract laborers can be taken since retention level is only 60%.
2. SUPERVISORS AT LEVEL 2: Supervisors are very important for the fact that they are the ones

who supervise the workers. These people need to have basic idea and knowledge about the business and the environment. 8 local people may be recruited and other 10 are lateral transfers from Plant A who have well experiences. 3. EXECUTIVES AT LEVEL 2: Around 6 executives can be recruited with at least half of them being experienced. Others can be recruited from the local institutes.

4. EXECUTIVES AT LEVEL 3: 4 Lateral transfers can be made from Plant A and 3 level 2 executives

of Plant A can be promoted. These experienced people could be of vital importance to the organization for their experience with the company.
5. TECHNICAL AT LEVEL 2: 10 people may be hired on contract basis. The other 5 may be

transferred from Plant A.

6. TECHNICAL AT LEVEL 3: 4 new people may be recruited having previous work experience. 7. TECHNICAL AT LEVEL 4: 1 promotion is to be made from technical employee at level 3 from

Plant A, to work here.

8. MANAGERIAL AT LEVEL 3: 2 retired executives of Plant A are taken and 1 outsider having long

work experience in the same field is to be recruited.

9. MANAGERIAL AT LEVEL 4: 1 Managerial employee at level 3 of Plant A needs to be identified,

well groomed, developed, and prepared to be promoted to this position of Plant B as the job demands good command over the organization.


Since promotions or lateral transfers, made from Plant A to Plant B ought to create vacancies, new recruitments are to be made either from a management institute or by walk-in interviews to fill up those vacancies.

Thus, the manpower forecasting of the XYZ CEMENT LTD is prepared by following and considering all scopes and constraints. It is done in such a way that the older plant, Plant As working is not compromised. Adequate forecasting is done to prevent over or under staffing in the company, ensuring that XYZ CEMENT LTD. has the right number of employees who have got the right set of skills required by the company to help in the manufacturing process.