Management Consulting/Personnel Management


Case Study : 1
Manpower planning is important aspect. Macro Issues concerning factors like national population trends, educational plans, economic growth rate, overall supply and demand for various categories of manpower will certainly have an impact on the manpower plans of the enterprise.

These factors impinge on the enterprises plans the manpower planner needs to be aware of their impact. One of the assumptions made in a less developed country like India, with surplus labour, is that there are large numbers of trained manpower available for any specific skill requirement. It is generally not so.

Q1) Define the Term "Manpower Planning"?
Q2) Discuss "Manpower planning makes for different purpose at different level?
Q3) Explain some other pay-offs from Manpower Planning to the enterprise?
Q4) Objectives of Manpower Planing. Explain in Detail?

•   Q1) Define the term “Manpower Planning”?

Estimating or projecting the number of personnel with different skills required over time or for a project, and detailing how and when they will be acquired.

Manpower  planning  is   an  element  of   HR PLANNING.

which  is  the  process of  identifying   the  gap  between  






*numbers  of  additional  workers/staff / managers etc
*skills  of  different  levels
*flexibility  in  job  handling
*achieving  equal  employment  opportunities  
*experience- lifting  the  experience  levels
*capabilities-- improving  capabilities  for  performance
* increase  potential  of people
etc etc


-is  the  management  process of  determining  the  right number/
type of/  quantitatively /  qualitatively    of   human resources
by  each  department  in an organization.

The  penalities for not being correctly  staffed are  costly.

Understaffing loses  the businesses economies of  scale and
specialization, sales, customers  and  profits.

Overstaffing  is wasteful  and expensive, if sustained,  and it
is costly  to  eliminate  because   of  modern legislation  in  respect of
redundancy  payments, consultation, minimum  periods of  notice, etc.
It  also  reduces  the  competitive  efficiency  of  the  business.

Manpower  Planning  includes

1.Assessment / Audit  of  the  current  manpower  profile

and  also

-normal turnover,
-staff  movements  planned
-succession planning

2. Corporate  Mission

3. Corporate  Objective

4. Corporate  Strategy

5.Corporate  Organization  Policy/ Budget  Guidelines.

6. Corporate  HR  objective/ strategy

7. Corporate  Industrial  Relations   Policy

8. Corporate  Sales  forecasts  [  3 or 5 or 10  years ]

9. Corporate  Product  Plans [ 3 or 5 or 10 years  ]
10. Corporate  Production forecasts. [ 3 or 5 or 10 years ]


Now  review the  following

1.The  impact  of  technological  change on task needs.
2. Variations in the  efficiency, productivity, flexibility  of  labor  as  a
result  of  training, work study  organizational change, new motivations, etc.

3. Changes  in  employment practices [ e.g. subcontractors  or  
    outsourcing  etc ]
4.Other  variations due to  new legislations like new health requirements,
   safety  requirements etc.

5.Changes  in  government policies   like  tax/ tariff etc

6. Labor  demand  and  supply .

7. Skills   levels   availability

What should  emerge from  this  analysis / reviews  is a   "thought out"   
and  logical  staffing  demand  schedule for  varying dates  in the future
which  can then  be  compared  with  the  crude  supply   schedule.
The  comparison will then  indicate  what steps must be taken to
achieve a balance.

This  will  involve  now

-recruitment  /  selection  plan.
-training  plan
-retraining  plan
-early retirement  plan
-redundancy  plan
-changes in  workforce utilization  plan
-succession  plan.
-personnel  and  career  plans

These   plans  will  help  to  bring  supply  and  demand  into  equilibrium,
not  just  as  a  one-off   but  as a  continual workforce  planning
exercise  the  inputs  to  which  will need  constant  varying  to reflect
the  actual  as  against  predicted  experience  on the  supply  side
and  changes in  production actually  achieved as  against  forecast
on the  demand  side.

Q2) Discuss “Manpower Planning makes for different purposes at different level”?
HR  PLANNING   in  HR  MANAGEMENT   IS  A  process
by which an organisation ensures that it has the right number &
kind of people at the right place and at the right time,
capable of effectively and efficiently completing those tasks
that help the organisation achieve its overall objectives..

Manpower  planning  is   an  element  of   HR PLANNING.

which  is  the  process of  identifying   the  gap  between  






*numbers  of  additional  workers/staff / managers etc
*skills  of  different  levels
*flexibility  in  job  handling
*achieving  equal  employment  opportunities  
*experience- lifting  the  experience  levels
*capabilities-- improving  capabilities  for  performance
* increase  potential  of people
etc etc

Importance  of  HR/ manpower PLANNING

•    1)   Each Organisation needs personnel with necessary qualifications, skills, knowledge, experience & aptitude .
•    2)   Need for Replacement of Personnel -  Replacing old, retired or disabled personnel.
•    3)   Meet manpower shortages due to labour turnover
•    4)   Meet needs of expansion / downsizing programmes
•    5)   Cater to Future Personnel Needs
•    6)   Nature of present workforce in relation with Changing Environment - helps to cope with changes in competitive forces, markets, technology, products and government regulations.
     Shift in demand from ERP to internet programming has increased internet programmers .


i)  quantify job for producing product / service    
ii) quantify people & positions required
ii) determine future staff-mix
iii) assess staffing levels to avoid unnecessary costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff
vi) comply with legal requirements


Forecasting future manpower requirements, where we
use mathematical projections  to project trends in the
economic environment and development of the industry.

Making an inventory of present manpower resources
and assessing the extent to which these resources are
employed optimally.

** Procuring competent personnel
requires positive recruitment efforts and the development
of a variety of recruitment sources. These sources must
consider not only the nature and conditions of the external
labor market, but also the presence of qualified personnel
who are available to fill vacancies through internal
promotions or transfers.
Keep in mind the recruitment activities is integrated with
diversity and equal employment opportunity initiatives.
Staffing needs must be anticipated sufficiently in advance to
permit the recruitment and development of fully qualified

Anticipating manpower problems by projecting
present resources into the future and comparing them
with the forecast of requirements to determine their
adequacy, both quantitatively and qualitatively;

Planning the necessary programmes of requirement,
selection, training, development, utilization, transfer,
promotion, motivation and compensation to ensure that
future manpower requirements are properly met.

**It’s a systematic approach. because it ensures a
continuous and proper staffing. It avoids or checks on
occupational imbalances (shortage or surplus) occurring in
any of the department of the organization.

**There is a visible continuity in the process.

**There is a certain degree of flexibility. That is, it is subject
to modifications according to needs of the organization or
the changing circumstances. Manpower plans can be done
at micro or the macro levels depending upon various
environmental factors.

IT  is a kind of risk management. It involves realistically
appraising the present and anticipating the future (as far as
possible) in order to get the right people into right jobs at the
right time”.

**Ensures optimum use of man (woman, too nowadays?)
power and capitalize on the strength of HR. The
organization can have a reservoir of talent at any point of
time. People skills are readily available to carry out the
assigned tasks, if the information is collected and arranged

Forecast future requirements (this is done by keeping track
of the employee turnover.) and provides control measures
about availability of HR labor time. If, for example the
organization wants to expand its scale of operations, it can
go ahead easily. Advance planning ensures a continuous
supply of people with requisite skills who can handle
challenging jobs easily.

Help determine recruitment/induction levels.

To anticipate redundancies/surpluses/obsolescence.

To determine training levels and works as a foundation for
management development programmes

**Planning facilitates preparation of an appropriate manpower
budget for each department or division. This, in turn, helps in
controlling manpower costs by avoiding shortages/excesses in
manpower supply.


1.The  impact  of  technological  change on task needs.
2. Variations in the  efficiency, productivity, flexibility  of  labor  as  a
result  of  training, work study  organizational change, new motivations, etc.

3. Changes  in  employment practices [ e.g. subcontractors  or  
    outsourcing  etc ]
4.Other  variations due to  new legislations like new health requirements,
   safety  requirements etc.

5.Changes  in  government policies   like  tax/ tariff etc
6. Labor  demand  and  supply .

7. Skills   levels   availability

What should  emerge from  this  analysis / reviews  is a   "thought out"   
and  logical  staffing  demand  schedule for  varying dates  in the future
which  can then  be  compared  with  the  crude  supply   schedule.
The  comparison will then  indicate  what steps must be taken to
achieve a balance.


MANPOWER  planning increased in importance IN  HR  MANAGEMENT


-strong/ speedy  economic  growth

-demand  for  skilled  workers

-mobility  of  workers

-need  for  productivity  improvements

-need  for   efficient  growth

-diversity  in  workforce

-forward  planning  of  resorces

-provides   a  planned  hr resources

-controls   wastage.

etc etc

MANPOWER    PLANNING  is a  strategic  process in any  organization ,
in any  country.

All  MANPOWER   planning , in good times and  in not  so good  times, are  
strategic  processes.

BUSINESS  ORGANIZATIONS  do  not  exist  in vacuum  but  function
in a dynamic  environment, both internally  / externally. Many factors
impact  the   organization's  business.
-environmental  regulations
-consumer  protection
-safety  regulations

-tax policies
-trade  regulations
-trade restrictions
-contract enforcement laws
-employment laws
-government  attitudes
-political  stability
-competitive regulations

-economic  growth
-demand  situation
-supply  situation

-Demographic  changes
-lifestyle  changes
-educational  impact

-changes  in  technology
-innovations technology

-sales coverage
-supply  chain


-product  mix
-geographical coverage
etc etc

-local competition
etc etc

The above factors  affect  the  organization   business  in  many
ways, depending  on  the  situation.
As  the  organization  gears  itself  to  meet  its  objectives,
it  needs   a  strategy  or  strategies.
The  adopted   corporate  strategy  sets  the  guidelines  for  
the  needs/ availability  of  resources.

HENCE,  HR  one  of  the  major resources,
Q3) Explain some other pay-offs from Manpower Planning to the enterprise?

The Manpower Planning Process
Although organizations differ in the degree of sophistication they
exhibit in their manpower planning process,
corporate manpower planning is made of five major series of
interrelated activities.  The five – stage manpower
planning process are:
(i) Identification of the goal and plan of the organization;
(ii) Determine current manpower situation;
(iii) Forecast manpower demand and supply;
(iv) Design programmes to implement the plan;
(v) Evaluate plan effectiveness through audit and adjustments.
Linking Manpower plan to corporate goals
Manpower plan is part of the overall corporate strategic plan and should
base its forecast of personnel demand and supply on the strategic plan of
the organization. If the corporate strategic plan for the next five years is
designed toward diversification of business activities involving
corporate expansions, new product, new plants, new market and so on,
the manpower plan should show adequate preparation for provision of
requisite workforce to implement the corporate strategic plan.

Account for current manpower situation
The second activity of manpower planning process is the preparation of
skills inventory which usually contain up-to-date information about the
qualification of selected category of personnel that currently serve in the
organization. The skills inventory serves the following purpose:
(i) It provides the baseline to compare the current manpower status
of the organization (manpower supply) with the required skills
specified in the manpower demand forecast. This comparism
will reveal the degree of gap or significant difference between
manpower need of the organization and the supply side (i.e. the
available workforce). It will also provide information about what
skills in the organization need to be developed through training or
obtain from external manpower sources;
(ii) It identifies the available talent within to fill specific job
opportunities or vacancies;
(iii) It is useful for the preparation of roster of qualified technical and
managerial personnel;
(iv) Existence of skills inventory enhances the opportunities for
employees to satisfy their career aspiration through development
and promotion .

Manpower Forecasting
Manpower forecast involve estimating skills need of the organization in
the future time (the plan period) as well as provide statistic about
manpower supply which consist of the available personnel in the
organization pay roll and the number to be recruited externally.

The Plan Implementation
Forecasting manpower demand and supply and comparing the demand
with the supply to determine the differences is the last major activity of
manpower planning. The next stage is the implementation of the plan
through personnel administration programmes such as recruitment,
selection, placement, performance appraisal, promotions; lay off,
training and development and compensation.
However, before management decides to resort to such elaborate
implementation strategies mentioned above, some preliminary interim
measures are there to solve the problems of disparity between personnel
demand and supply. When demand surpasses supply, management
would plan for anticipated shortages through better utilization of the
available manpower; hiring additional hands from outside, transferring
employees to jobs in which there is shortages of workforce; training
employees to occupy or fill job positions that will enable them move up
to higher skilled position; compelling employees to work overtime and
ensure that employee increase their productivity. In case these policy
instruments are not sufficient to solve the problem of shortages,
additional hands from outside the organization may be employed either
on part-time, temporary, full-tell or permanent full-time basis.
On the other hands, if management anticipates surplus manpower supply
in an organization, the situation can be avoided or remedied through:
(i) Training employees to move out of job where surplus manpower
exist into other jobs where shortage exist;
(ii) Reducing work hours and work sharing;
(iii) Curtailing employment, promotions and transfer into jobs for
which surplus is anticipated;
(iv) Reducing pays and freezing pay increases

Audit and Adjustments
The last stage of manpower planning process is the evaluation of the
plan to assess and ascertain if the plan goals are met, if not, determine
the reasons for failure. Evaluation may entail modification of the goals
and strategies so as to achieve success. This is necessary because the
effectiveness of manpower planning depend on how well human
resources needs are anticipated and met.
Manpower Planning Process
Strategic planning, public policy, social tends economic conditions,
technology, market conditions, strengths and weakness of organization
projected outputs for planning periods.
Skills inventory, numbers of people grouped by job, department,
organizational level, location age, education, in-service training, complete
Present workforce: project requirements, layoffs, promotions and quits for
planning periods.
Demand for people: translate plans and forecast for organisation into
demand for employees for planning periods.
Comparism of demand with supply: net additions or abstractions found by
comparing (a) and (b)
Recruitment, selection and placement, performance Appraisal, career
planning, transfers, promotion, layoff, training and development,
motivation ad compensation.
Measure implementation progress, compare with plan, take corrective
action. Change human resource plans if enterprise plan are altered.
Periodically update skills inventory, forecast and implementation

Q4) Objectives of Manpower Planning. Explain in detail?

Manpower planning is aimed at making an accurate estimate of number of personnel
required with certain skills. It provides significant information to the decision makers
to decide the number, time schedule and manner of recruitment and selection of
personnel. Other wise the Organization would face problems of inadequate supply of
human resources at the right time. The objectives of manpower planning can be
presented below.
•   Manpower planning determines the future needs of manpower to meet the objectives of the Organizations.
•   It enables the organization to meet the needs of programmed expansions,
diversification and growth of the Organization.
•   It aims at assessing the surplus or shortage of manpower and develops
strategies to deal with them effectively.
•   Manpower planning enables to foresee the employee turnover and guides in the
development of retention strategies.
•   It minimizes the dangerous caused by the non-availability of required manpower.
•   Manpower planning makes it possible to use the existing human resources more
effectively and productively.
•   A sound manpower planning economizes wage and salary cost and other human
resource cost in the end.
•   It provides a framework to cope with the changes. A good plan enables the
Organization to make available the quality manpower even in the time of
changing market conditions and human resource changes.
•   It provides a basis for planning the human resource training and development
programmes in the future.
•   Manpower planning provides a guidance to design and execute an appropriate
promotion policy in the Organization.

Proper utilization of your workforce can help you save money now, and as you plan for your company's future. Manpower planning requires the interaction of departmental managers with your human resources professionals to maintain current staff levels and plan for future workforce needs. Use manpower planning to provide a framework by which your company can prepare for and monitor future growth.
Staffing Levels
Staffing levels can change based on company growth, losses due to layoff or temporary and seasonal employment needs. The objective of manpower planning is to forecast staffing level needs and work with company managers to make sure each department is properly staffed. The human resources group plans for seasonal rises in employment needs to insure that production levels and customer service quality are not affected. This includes working with temporary agencies to supply seasonal staff and running employment advertisements that bring in part-time candidates.
Future Needs
One of the functions of manpower planning is to anticipate the future skill set needs of the company and begin the process of finding qualified candidates. The human resources department needs to be involved in all aspects of business planning to prepare for recruiting in job duties that the company has not dealt with in the past. For example, a toy manufacturer decides to get into the radio-controlled toy market and needs to hire technicians and engineers to design and make the toys that the company has never made in the past.
Skill Matching
It is less expensive to utilize existing personnel than to hire new employees to fulfill job needs within the organization. Hiring new employees requires recruiting costs, training expenses and the cost of low productivity as the new employee settles into his job. Manpower planning involves tracking each employee's skill set, which allows the company to move employees around within the company to prevent having to look outside the company. For example, an accounts payable employee who has payroll skills can be moved into the payroll department with a high level of competence.
A company needs to efficiently utilize its workforce to maintain productivity and also keep employee morale high. Developing part-time positions, creating different work shifts, offering overtime to compensate for increased production needs and maintaining a pertinent training program are ways that manpower planning maximizes workforce efficiency. Shift options and offering employees the tools they need to do their job, such as training, help to maintain employee morale.

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Leo Lingham


management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc


18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc


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