Man Power Planning

Manpower Budgeting

Manpower Budgeting means to have an estimate for the

head counts (employees) of the organization, Grade or
Position wise, required for the upcoming year
Need For Manpower Budgeting

Adequate flow of resources.

Enable the departments

to function adequately.

Helps in identifying and

achieving the goals.

Monitoring plans against

actual plan.
Advantages of Manpower Budget

Helps in formulating detailed plan showing.

An instrument to -
●
● Check departmental performance.
●
● Measure results.
●
● Attain short and long term objectives..

Forced to look into all aspects of department’s

activities.
 LINK BETWEEN M.BUDGET
& ORGANIZATIONAL GOALS

The Budget as The Budget as

a The Budget as The Budget as a Financial
Management a Motivator a Plan Control
Tool Mechanism
 First step

• Budget forecast.
Example- manager must recognize trends in supply prices
including discounts for ordering large quantities.
 Second step

• Brain storming with other departments head.

Example- new system has been introduced in a organization.

All departments have analyze the impact of such system on
your cost ,processing resources, staffing requirements and
etc.
 Third step

• Review and evaluate previous - trend and

budget.

• Past errors will only enhance current

budgeting efforts.
 Fourth step
• Budget should be kept flexible to changing
condition.

• Check the ability of department to perform

within its budget.
example-compare the actual expense with budgeted items
during the year.
 Finally
• Sufficient time for the preparation of budget.

• Manager should seek help from finance

department, for guidance.
COMPONENTS OF MANPOWER BUDGETING

HERE is a broad set of guidelines.

●
recruitment/ selection [ internal/ outsourcing ]

●
contractors [external ]

●
salary/ wages

●
training/ development [ includes induction/ orientation]

staff benefits
●

●
staff amenities

●
workplace facilities

●
workplace safety

●
salary contingency

●
*workers compensation
 SIX COST ELEMENTS

DEVLOPMENT COST
SEPRATION COST
HIRING COST
CHANGING COST
CONSTANT COST
COMPENSATION COST
 IMPORTANCE OF CASH FLOW
FORECASTING IN M.BUDGETING
• Cash is a business's most precious asset. Managing Cash Flow is one of the
most important tasks every top manager and business owner must be able
to understand. Believe it or not, many businesses have had to shut their
doors not because they weren't making a profit, but because they weren't
managing and controlling their cash.

• A Cash Forecast is simply a tool that a businesses uses to plan:

· How Much and When is Money Coming In?
· How Much and When is it Going Out?
 BUDGET ITEMS
There are many different items that can be shown in manpower budgets :
 INVENTORY MANAGEMENT IN MANPOWER
BUDGETING

• The cost associated with inventory are important and should be

considered while making a manpower budget .

• There cost can be classified in three categories:

Time , effort &

personnel needed
Space cost : space to manage.
on per person
basis , figuring all
Real cost : Average costs
amount of manpower
in hand at one time
 CONCLUSION
HR Budgets force mangers
to think ahead by requiring
them to formalize their
planning efforts .

HR Budgets provide a blueprint

for accomplishing a set of stated
objectives and fitting your
department into overall plan.

They set up warning systems

for conditions requiring
some kind of remedial
actions.

The HR budget process

coordinates the activities of
entire institution by integrating
the plans and objectives .
 Presented by:
Nitin Singh
Gaurav Bhardwaj
Priyanka Kumar
Neha Goel
Vidit Jandu
Hitesh Gupta
Revant Kapoor
Eshwar Chandra Singh