MANPOWER PLANNING IN INDIAN RAILWAYS Introduction Manpower planning is a process which aims to have the right number of staff at right places with right type of skills at right times to enable the organisation to achieve its short term and long term goals. In other words, manpower planning is the system, which ensures the manpower availability at a given point of time. Manpower recruitment is related to matching the personal qualities of employees with the job requirements. Objectives of mpp 1) To ensure the human resources currently employed 2) To plan future man power needs ) To anticipate reduncies and avoid unnecessary situation 4) To determine proper training levels.
Benefits of mpp 1) Reducing man power costs 2) Getting best contribution from the employees 3) Motivating the existing employees 4) Developing the existing manpower. Assessment of Manpower in Railways • In open line, factors like normal wastage, death, deputation, dismissal, creation of assets and posts, leave reserve, rest givers, yardsticks etc. , influences the assessment of manpower. In construction projects, performance evaluation and review technique, phasing of work etc.
, are used to assess the manpower. There have been dynamic change in the technology and modernisation, electrification, computerisation, mechanisation of track maintenance etc. are taking place at fast rate to meet the challenges of traffic requirements in Indian Railways. To meet the challenges of the changing environment, systematic manpower planning is essential. Therefore a category-wise analysis of staff should be carried out, to identify surplus and to arrange manpower in the areas of need.
This adjusts the surplus in one category to other categories, where there is demand. Manpower planning ensures that the existing manpower is utilised to the maximum possible extent. Manpower planning emphasise on training to different categories of staff to improve the skill and to increase productivity. This step reduces the availability of unskilled staff, increase productivity and maximize manpower utilization. Regular conversion training programmes reduce the wastage of manpower due to changeover.
The staff are also deputed for refresher course, conversion course, promotional course etc. with the aim to develop organisationally effective personnel with pride in their work and faith in management. The primary objective of the manpower planning is to ensure the availability of the required skill and to reduce wastage. When the manpower availability is clearly known arrangements can be easily made to cater to the additional needs of manpower as indicated in the forecasts. Normally, the field officers responsible for executing the job are responsible for the manpower planning.
Benchmarking Definition: Benchmarking is “the continuous process of measuring our products, services, processes and practices against the most successful competitors or companies which are established industry leaders, then learning how their excellence was achieved , and then setting out to match or even surpass them”. Benchmarking consists of being humble enough to accept that somebody else is better, then being wise enough to learn from them and then match or even surpass them. Manpower Planning in Indian Railways
Man Power is the biggest component of any industry and the expenditure on staff salary and related items is a perennial in nature. Right sizing of manpower to reduce unit costs in an effective way to increase efficiency. Benchmarking is a method which will enable to scientifically and rationally right size any industry. Indian Railways, the biggest transporting industry in India, has introduced the concept of bench marking as a tool of manpower planning. In simple words, Bench marking is the search for and implementation of best practices. Since Indian Railway has a large number of ctivity centres performing the same type of work, it was decided to do internal benchmarking of activity centre of Indian Railways. Substantial variations were observed and the activity centers with least manpower ratio (MPR) which means highest productivity were termed as Benchmark centers. steps in benchmarking process The 10 Step Benchmarking process outlined in Robert C. Camp’s “Business Process Benchmarking – Finding and Implementing Best Practices” may be used to systematically conduct the Benchmarking Study. The 10 Steps are: • Decide What to Benchmark • Identify whom to Benchmark Plan and conduct the Investigation • Determine the current performance gap • Project future performance levels • Communicate Benchmark findings and gain acceptance • Revise performance goals • Develop Action Plans • Implement specific actions and monitor progress • Recalibrate the Benchmarks. In Indian Railways, the above steps can be followed in the following ways 1. Break the total activity into smaller activities and then compare the manpower availability ratios for each such smaller activity so as to arrive at Benchmarks for such smaller activities that will help in identifying the excess manpower. . An analysis should be carried out in respect of the best and the worst Manpower availability ratios for different activities so as to identify the reasons for being the best or the worst. This detailed analysis should then be circulated to all the activity centres to locate their faults and to innovate ideas to rectify the same. Single line with substantial MG 3. The activity centres which have been analysed as worst should, as the first step, stop inducting any more staff in that particular activity. 4.
Then the surplus identified should be redistributed rationally to make optimum use of this vital and costly resource in areas where there are well established staff requirement has been assessed. Based on the staff profile, their age, qualification, etc. , a need based training to be imparted before they are fit in that particular job, if they were not in the same cadre or category. Thus benchmarking offers a solution to scientifically right size the Indian Railways. Once the benchmarking of staff deployment is completed, by similar method of benchmarking of energy costs and materials costs can also be taken. Conclusion
In our railway system, though the system of recruiting, training, placing or posting and promotion are inherited from the system of British Railways, yet manpower planning is given importance only in late 70’s, which envisages making of quality human resource towards attaining the goals of the organization duly giving importance as a service organization for transporting of goods and passenger services to all sorts of the people across the country. Manpower planning is the first step in the recruiting and selection process. 1. Decide what positions you’ll have to fill through Manpower planning and forecasting. 2.
Build a pool of candidates for these jobs by recruiting internal or external candidates. 3. Have candidates complete application forms and perhaps undergo an initial screening interview. 4. Use selection techniques like tests, background investigations and physical exams to identify viable candidates. 5. Decide who to make an offer to, by having the supervisor and perhaps others on the team to interview the candidates. Planning and forecasting: Employment or Manpower planning is the process of deciding what positions the firm will have to fill, and how to fill them. Manpower planning covers all future positions from maintenance clerk to CEO.
However, most firms call the process of deciding how to fill company’s most important executive jobs succession planning. Employment planning should be an integral part of a firm’s strategic and HR planning processes. Plans to enter new businesses, build new plants, or reduce costs all influence the types of positions the firm will need to fill. Thus, when JDS Uniphase, which designs, develops, and manufactures market products for the fiber optics market, decided to expand its Melbourne Florida, operations, its managers knew they’d have to expand its employment there from 140 people to almost 750.
That meant they needed plans for who to hire, how to screen applicants, and when to put the plans into place. One big question is whether to fill projected openings from within or from outside the firm. In other words, should you plan to fill positions with current employees or by recruiting from outside? Each option produces its own set of HR plans. Current employees may require training, development, and coaching before they’re ready to fill new jobs. Going outside requires a decisions about what recruiting sources to use, among other things. Like all good plans, management builds employment plans on basic assumptions about the future.
Forecasting generates these assumptions. If you’re planning for employment requirements, you’ll usually need to forecast three things: Manpower needs, the supply of inside candidates, and the supply of outside candidates. We’ll start with Manpower needs. Forecasting Manpower Needs: The most common Manpower planning approaches involve the use of simple techniques like ratio analysis or trend analysis to estimate staffing needs based on sales projections and historical sales to Manpower relationships. The usual process is to forecast revenues first and then estimate the size of the staff required to achieve this sales volume.
Here, HR managers use several techniques. Trend Analysis: Trend analysis means studying variation in your firm’s employment levels over the last few years. You might compute the number of employees in your firm at the end of each of the last five years, or perhaps the number in each subgroup (like sales, production, secretarial, and administrative) at the end of each of those years. The purpose is to identify trends that might continue into the future. Trend analysis can provide an initial estimate, but employment levels rarely depend just on the passage of time.
Other factors like changes in sales volume and productivity also affect staffing needs. Ratio analysis: Another approach, ratio analysis, means making forecasts based on the ratio between (1) some causal factor like sales volume and (2) the number of employees required (for instance number of sales people). For example, suppose as salesperson traditionally generates $500,000 in sales. If the sales revenue to salespeople ration remains the same, you would require six new salespeople next year (each of whom produces an extra $500,000) to produce an expected extra $3 million in sales.
Like trend analysis ratio analysis assumes that productivity remains about the same – for instance, that each salesperson can’t be motivated to produce much more than $500,000 in sales. If sales productivity were to increase or decrease, the ratio of sales to salespeople would change. A forecast based on historical ratios would then no longer be accurate. more at http://www. citeman. com/3255-manpower-planning-and-forecasting/#ixzz0leLraPG7 Manpower planning or HR planning are synonymous. HR planning is more broad-based. Hereinafter, we will call it Human Resource Planning or HRP in short.
Human resource planning is the process of anticipating and carrying out the movement of people into, within, and out of the organization. Human resources planning is done to achieve the optimum use of human resources and to have the correct number and types of employees needed to meet organizational goals. We also can say that, Human resource planning is the process of systematically reviewing human resource requirements to ensure that the required numbers of employees with the required skills are available when and where they are needed.
Human resource planning includes four factors: Quantity : How many employees do we need? Quality: Which skills, knowledge and abilities do we need? Space : Where do we need the employees? Time : When do we need the employees? How long do we need them? Definition of Human Resources Planning (HRP) HRP can be defined as the task of assessing and anticipating the skill, knowledge and labor time requirements of the organization, and initiating action to fulfill or ’source” those requirements.
Thus, if the organization as a whole or one of its subsystem is not performing to the benchmark, in other words, it is declining, it may need to plan a reduction or redeploys its existing labor force. On the other hand, if it is growing or diversifying, it might need to find and tap into a source of suitably skilled labor. Let’s look into some definitions of HRP as given by different experts. Coleman has defined HR/MP planning as “The Process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. manpower planning as “Strategy for acquisition, utilization, improvement and preservation of an enterprise’s human resources. ” that it is the process by which management determines how the organization should move from its manpower position to its desired manpower position to carry out integrated plan of the organization. , “Manpower planning is the process – including forecasting, developing and controlling by which a firm ensures that it has- • The right number of people, • The right kind of people, At the right places, • At the right time, doing work for which they are economically most useful”. 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. 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; and Planning the necessary programs of requirement, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.
We may figure out the leading features of HRP from mentioned definitions. • It’s a systematic approach. Cause 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. (Based on Wickstrom’s definition) • 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. Thus, we can summarize that: “HRP 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”. Need / Importance of Human Resources Planning (HRP) HRP is a double-edged weapon. If used properly, it leads not only to proper utilization, but also reduces excessive labor turnover & high absenteeism, improves productivity and helps to achieve organizations goal.
On the other hand, faulty use leads to Disruption in flow of work, lower productivity, less job satisfaction, lower production & high cost of production. Human Resource Planning (HRP) is a needed for following reasons: • To ensure optimum use of manpower 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 beforehand with the help of effective HR Planning. To 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. • To face the challenges the business is facing due to turbulent and hostile environmental forces (e. g. technology, social, economic and political upheaval) impinging on single one of them.
Although planning has always been an essential process of management, increased emphasis on HRP becomes especially critical when organizations consider mergers, relocation of plants, downsizing, or the closing of operating facilities. • To face Rapid Technological Changes. The myriad changes in production technologies, marketing methods and management techniques have been extensive and rapid. Their effect has been profound on job contents and job contexts. These changes cause problems relating to redundancies, retraining and redeployment. All these suggest the need to plan manpower needs intensively and systematically. To face Organizational Changes. In the turbulent environment marked by cyclical fluctuations and discontinuities, the nature and pace of changes in organizational environment, activities and structures affect manpower requirements and require strategic considerations means perfect HR Planning. • To determine recruitment/induction levels. We may explain this with an example: manager wants to determine what kind of induction the organization will require at such and such date. If we have a ready HR plan, we will have fairly good idea what kind of people are being recruited and at what position.
Thus we can successfully plan our induction level. • To determine training levels and works as a foundation for management development programmes • To know the cost of manpower if there is a new project is being taken up, example: in cases of expansions or a new factory, one would naturally requires more human resources, hence a budgetary allocation can be made in advance for this upcoming corporate strategic move. • To assist in productivity bargaining. For example, if a firm is going fully automated, it can negotiate for lesser workers as required for the same amount of the job by using the manpower predictions regarding the same.
It can offer higher incentives to smoothen the process of voluntary layoffs. • To assess accommodation requirements. We may have a question, how that can be related to HRP? A good HRP can assist in solving many problems of the firm, from day to day ones to very strategic ones, too. For example: an organization decides to establish its production center in a remote area, an accurate HR plan can help it to decide how many people will be required there, and thus start the process of establishing a township for them in advance. The physical facilities such as canteen, school, medical help, etc. can also be planned in advance. An organization may incur several intangible costs as a result of inadequate HRP or, for that matter, the lack of HRP. For example, inadequate HRP can cause vacancies to remain unfilled. The resulting loss in efficiency can be costly, particularly when the lead-time is required to train replacements. Situations also may occur in which employees are laid off in one department while applicants are hired for similar jobs in another department. This may cause over hiring and result in the need to lay off those employees to make effective plans for career or personal development.
As a result, some of the more competent and ambitious ones may seek other employment where they feel they will have better career opportunities. From the above discussion we get to the following conclusion. Manpower planning has maintained its imperatives for several reasons: (i) a growing awareness of the need to look into the future, (ii) a desire to exercise control over as many variables as possible which influence business success or failure, (iii) the development of techniques which make such planning possible. Hence, success depends much on proper use of Human Resource Planning.
Objectives of Human Resources Planning (HRP) Objectives of Human Resource Planning are, • Deciding Goals: Human Resource Planning fulfils individual, Organizational & National goals. • Estimating future organizational structure and MP requirements: It’s related with No of Personnel’s required, job-family, age distribution of employees (Ex. 20-29), qualification & experience desired, salary range etc. • Auditing Human Resources: Once the future needs of HR are estimated, the next step is to determine the present supply of MP resources. This is done through skill inventory. This prevents overstaffing and understaffing. Job Analysis: Job analysis is the process of studying and collecting department information relating to operations and responsibilities of a specific job. The immediate products of this analysis are job description and job specification. Job description is an organized factual statement of duties and responsibilities of a specific job, whereas, job specification is a statement of the minimum acceptable qualities necessary to perform a job properly. Some other objectives we may mentioned as follows. • To achieve more effective and efficient use of employees / human resources. To better recruit employees who possess the necessary skills and competences. • To achieve a higher rate of satisfied and better developed employee. • To facilitate training and development programmer. • To facilitate the roll-out of strategic plans / missions. • To achieve more effective equal opportunity planning. • To relieve the organisation of unnecessary / unneeded labour. • Ensure organization is responsive to changes in environment. Based on above discussion we may conclude that objective of HR planning is to guarantee availability of the HR needs of the organisation at specified times in the future.
Or, Right people in right place at right time. It is a systematic HR process to help the organisation meet its business objectives. |Dear Jagadish, | | | |Personnel management is productive exploitation of manpower resources. This is also termed as ‘Manpower Management’. Manpower | |Management is choosing the proper type of people as and when required.
It also takes into account the upgrading in existing people. | |Manpower Management starts with manpower planning. Every manager in an organization is a personnel man, dealing with people. | | | |Definition and importance of manpower Planning: | |Planning is nothing but using the available assets for the effective implementation of the production plans.
After the preparing the | |plans, people are grouped together to achieve organizational objectives. | |Planning is concerned with coordinating, motivating and controlling of the various activities within the organization. Time required | |for acquiring the material, capital and machinery should be taken into account. Manager has to reasonably predict future events and | |plan out the production. The basic purpose of the management is to increase the production, so that the profit margin can be | |increased.
Manager has to guess the future business and to take timely and correct decisions in respect of company objectives, | |policies and cost performances. The plans need to be supported by all the members of the organization. Planning is making a decision | |in advance what is to be done. It is the willpower of course of action to achieve the desired results. It is a kind of future picture| |where events are sketched. It can be defined as a mental process requiring the use of intellectual faculty, imagination, foresight | |and sound judgment. |It involves problem solving and decision making. Management has to prepare for short term strategy and measure the achievements, | |while the long term plans are prepared to develop the better and new products, services, expansion to keep the interest of the | |owners. | | | |Advantages of manpower planning: | |Manpower planning ensures optimum use of available human resources. | |1.
It is useful both for organization and nation. | |2. It generates facilities to educate people in the organization. | |3. It brings about fast economic developments. | |4. It boosts the geographical mobility of labor. | |5. It provides smooth working even after expansion of the organization. | |6. It opens possibility for workers for future promotions, thus providing incentive. | |7. It creates healthy atmosphere of encouragement and motivation in the organization. | |8. Training becomes effective. | |9. It provides help for career development of the employees. | | |Steps in Manpower planning | |1. Predict manpower plans | |2. Design job description and the job requirements | |3. Find adequate sources of recruitment. | |4. Give boost to youngsters by appointment to higher posts. | |5. Best motivation for internal promotion. |6. Look after the expected losses due to retirement, transfer and other issues. | |7. See for replacement due to accident, death, dismissals and promotion. | | | |Factors which affect the efficiency of labor: | |1. Inheritance: Persons from good collection are bound to work professionally. The quality and rate of physical as well as mental | |development, which is dissimilar in case of different individuals is the result of genetic differences. | |2. Climate: Climatic location has a definite effect on the efficiency of the workers. |3. Health of worker: worker’s physical condition plays a very important part in performing the work. Good health means the sound | |mind, in the sound body. | |4. General and technical education: education provides a definite impact n the working ability and efficiency of the worker. | |5. Personal qualities: persons with dissimilar personal qualities bound to have definite differences in their behaviour and methods | |of working. The personal qualities influence the quality of work. | |6. Wages: proper wages guarantees certain reasons in standard of living, such as cheerfulness, discipline etc. nd keep workers | |satisfy. This provides incentive to work. | |7. Hours of work: long and tiring hours of work exercise have bad effect on the competence of the workers. | | | | | |Downsizing of manpower: | |Downsizing of manpower gives the correct picture about the number of people to be employed to complete given task in the | |predetermined period.
It is used for achieving fundamental growth in the concern. It can work out the correct price by the resource | |building or capacity building. It aims at correct place, correct man on a correct job. | |Thus manpower planning is must to make the optimum utilization of the greatest resource available i. e. manpower for the success of | |any organization. | | | | | | | | | | | | | | | | |Manpower Planning should always be organization based. | | |First have have the whole work structure defined: | | | |- Job Description | |- Job Specification | |- The roles performed in each job | | | |Accordingly, have an idea of the existing manpower in your organization. Create an inventory – profile wise, age wise, skill wise – | |technical, non technical and experience wise too and any other parameters organiztion specific. | | |Then forecast a future demand and supply of manpower. And also calculate the number of existing employees, persons leaving the | |organization during the year, the attrition rate, the no. of people who will retire etc and the types of movements of the employees | |in the orgn in and out. | |And accordingly ur business forecast wise you have to calculate the future manpower requirements and plan out the manpower. You have | |to calculate the manpower requirements the job wise. | | | |Above is the very basic way of manpower planning. There are more to it. I just wrote whatever came to my mind. | | | | | | | | | | | | | | | | |I have taken the liberty of answering your question, with a broad approach , in order to give a complete picture . | | | |At this stage, I am not sure whether your organization is IT or Non – IT, -START UP co or CO. with expansion plans or status quo. | | |MANPOWER planning is a simple process, and consists of | | | |five essential elements: | | | |* Analysing the current manpower resource | | | |* Reviewing employee utilization | | | |* Forecasting the demand for employees | | | |* Forecasting supply | | | |* Developing a manpower plan | | | |BUT IN REAL LIFE, you need a lot of base information to work with . If you are doing it for the first time yourself and the company, | |you need to collect / collate the database, | |before you could a meaning exercise. | | | |The manpower planning is interlinked with Organization planning and the HR planning , and one cannot be planned without the support | |of the other two. | | |Whether it is a | |-organization with no expansion plan or | |-organization with major expansion plan or | |-organization start up, | |the conceptual approach is the same. You may not consider all the elements in all cases. | | |Other important factors that need to be considered are | |-investment dimension | |-time frame | |-product plan / range | |-nature of operation [ mfg. marketing or mfg only or trading only etc] | |-geographical coverage | |-distribution / channel plan etc etc. | | |These factors plus the corporate planning objectives / strategies plus the consequences of the inbalances from the ANALYSIS & | |INVESTIGATIONS would dictate the creation of MANPOWER/ HR planning strategies/ tactics [ policies/ procedures/practices etc] | | | |The inbalances could come from | |-organization circumstances | |-opportunities and expectations |-requirements and availability | |-behavioural consequences | |-policy on organization structure | |-policy on individuals | | | |OBJECTIVES AND NATURE OF MANPOWER MANAGEMENT | | | |Manpower and HR plannings involves applying the basic planning process to the human resource needs of the organization. To be | |effective any MP/ HR plan must be derived from the CORPORATE strategic plan of the organization. The success of the MR/HR depends | |largely on how closely the HRdepartment can integrate effective people planning with the organization’s business planning process. | | | |Corporate business planning seeks to identify various factors critical to the success of the organization. It also focuses on how the | |organization can become better positioned and equipped to compete in the market.
This provides | |-a clear statement of the organization’s mission. | |-a commitment from senior management to the mission. | |-an explicit statement of assumptions. | |-a statement of objectives / strategies. | |-a plan of action in light of available or acquirable resources , including human resources. | | | |MP/HR planning contributes significantly to the corporate business process by providing the means to accomplish the outcomes desired | |from the planning process. In essence | |the HR demands and needs are derived from the corporate strategic business plan and then compared with HR availability. | | | | | | | | | | |MANPOWER SYSTEM | | | |Once the corporate objectives , strategies and plans are outlined, the directions are filtered down to the business units and | |departments, involving all levels of management in the organizational planning process. | | | |The business units management and departments management work closely with the HR management to determine the people requirements to | |achieve their objectives. | | |Manpower planning has five essential elements: | | | |* Analysing the current manpower resource | | | |* Reviewing employee utilization | | | |* Forecasting the demand for employees | | | |* Forecasting supply | | | |* Developing a manpower plan | | | |While these can be seen as sequential steps, in practice thinking about manpower can begin with almost any of these. This is what | |makes manpower planning a dynamic process. For instance, a manufacturing function might want to introduce new machinery that will do | |a job to a better standard and more quickly. To justify the expenditure, the manufacturing manager will be expected to show a saving | |on labour, which may translate into fewer people.
In another case, a downturn in business may provoke an urgent drive to reduce | |overheads and cuts in office staff. The point is that manpower decisions have been triggered outside the HRM function, and most | |certainly outside the hands of anyone who carries the title of manpower planner. | | | |The other point that the two examples highlight is that planning can have a short, medium-, and long-term aspect. The long term is | |necessary to provide a framework for managing broad trends. Long-term planning should be done regularly and systematically, and plans| |kept under review. The short to medium term, however, is what matters to most managers. | | |KEY INFLUENCE ON MANPOWER PLANNING–INDICATORS | | | |Analysing the current manpower resource | | | |Analysis and investigation Internal labour Market Turnover Cohort analysis Profiles | |Skills audit Succession Manpower system External labour Market Quality Availability Sources Price [rewards ] Organization Assessment | |Performance Productivity Structure Skill changeRewards | |Corporate Strategy Growth/decay New markets opportunities Objectives Manpower system | |Work methods | | | |KEY INFLUENCES OF MANPOWER PLANNING-CURRENT STATUS | | | |The starting point for planning is to have proper records of existing employees.
Basic records cover: | | | |* Personal data – including date of birth (age), qualifications, special skills, and training record | | | |* Position data – including current job and work history in the organization | | | |* Financial data – including current pay, how this is made up (for example, overtime and shift premia), incremental scale, and | |pension rights. | | | |Many of these details will traditionally be kept for payroll purposes. | | | |*Headcount analysis, by age, service, skills, grades, and department.
The overall profile of the workforce generated in this way is | |basic to any manpower planning system, and a vital aid to management decision making on things like redundancy. It can highlight | |impending problems, such as the retirement of a whole cohort of employees, and the need for fresh recruitment and training. | | | | | |KEY INFLUENCES OF MANPOWER PLANNING–WASTAGES | | | |*Employee turnover, using data on joiners and leavers over a year. Along with headcount analysis, this is basic to forecasting | |supply.
It may also identify problems – for example, particular jobs where there is high turnover – and stimulate corrective action | | | |*Absenteeism and sickness. This will be especially geared to alerting management to problems and the need for corrective action. It | |will interact with other indices concerned with productivity (such as the amounts of overtime that are incurred simply to provide | |cover for absenteeism and sickness). Like turnover data, this information clearly needs to be generated on an on-going basis, as | |distinct from basic records (the ‘inventory’). It is likely to be a natural product of payroll data and the subject of regular | |reports from line functional management. | | |*Overall structure of the paybill, including how salary costs will rise with increments and reduce with new entrants at lower points | |in a scale | | | |*Actual paybill against budget, with areas of variance. | | | |Analysis in these various ways can identify significant issues of performance and productivity, and imbalances that may need to be | |corrected. It underpins the shift in manpower planning from macro-forecasting towards the more problerncentred approach. | | |KEY INFLUENCES OF MANPOWER PLANNING – labour utilization | | | |The audit activity described above may be supplemented from time to time by data from other sources concerned with how efficiently | |people are being used. Whether this is part of a normal auditing process will depend from company to company. Data on analysis of | |manning ratios (‘directs’ to ‘indirects’) is a case in point. This may come under review only when cost pressures or the example of a| |competitor cutting indirect staff focuses attention on labour costs.
Many large organizations have permanent staffs using work study | |and O&M (organization and methods) techniques to undertake periodic reviews of working methods and the efficiency of staff levels. | | | |Forecasting the demand for labour | | | |At first, forecasting the demand for labour might seem straightforward. Unfortunately, it is not. The problem is how to convert | |volumes of work into numbers of people. Two of the favoured means for doing this are ratio-trend analysis and the use of work study | |standards. | | |Ratio-trend analysis | | | |The basic principle here is to say if it takes six people, for example, to perform an existing amount of work, it will take twelve | |people to do twice as much. Organizations measure activity levels in a variety of different ways. The ratio between ‘directs’ and | |’indirects’ in manufacturing is a classic one. | | | |Individual departments in an organization also will have their own rule-of-thumb measures. A sales department, for instance, may have| |an idea of the number of customer calls a salesperson should make in a week, and, indeed, use this as one criterion for monitoring | |sales efficiency.
If the business plan projects an increase in the number of new customers, this can be translated into a | |proportionate increase in the sales force. | | | |The problem with measures like these is that they are crude. They take no account of economies (or diseconomies) of scale which | |affect efficiencies; nor of local conditions; nor of the potential of new methods and technology to increase efficiencies. | | | |What ratio-trend analysis can do is to provide ballpark figures, which then focus attention on ways of improving efficiencies and a | |closer look at the underlying implications. | | |Work study | | | |Work study is a more systematic method, but limited to manufacturing, certain other areas of manual work, and large clerical | |functions. For it to be worth while and do-able in the first place, an activity has to be repeated sufficiently often to generate a | |reliable standard and justify the cost of measuring it. | | | | | |KEY INFLUENCES OF MANPOWER PLANNING – Forecasting supply | | | |Forecasting supply has two components, internal and external.
Forecasting external supply means understanding the impact on | |recruitment and retention of such factors as: | | | |•Demographic patterns | | | |•Levels of unemployment | | | |•Developments in the local economy like transport, education, and housing | | | |•The pay policies of other employers, locally and nationally, and their plans for growth and contraction. |I’m sure the reponse alongwith the response of the other esteemed professionals shall really be of immense help to you | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cite this Manpower Planning
Manpower Planning. (2018, May 12). Retrieved from https://graduateway.com/manpower-planning-essay/