The head of a business must assure himself that his

managers , clerks & foremen are the right men for their
work & are doing well
Views of Economist Alfred Marshall in 1890
 It is the process-including forecasting,
developing, and controlling by which a firm
ensures that it has the right number of
people and the right kind of people at the
right places at the right time doing work for
which they are economically most useful.

a process by which an organization should

move from its current manpower position to
its desired manpower position
 Manpower planning quantitative approach
which is concerned forecasting demand &
supply of labor
HRP comprises of :
A. Forecasting future demand for HR
B. Forecasting future internal supply of HR
C. Forecasting future external supply of HR
D. Formulating responses to the forecasts
 The paradox often is that even with the
growing unemployment ,there has been a
shortage of HR with the required skills &
capabilities
Large numbers of employees who retire, die
leave org, or become incapacitated because
of physical or mental ailment ,need to be
replaced by new employees .HRP ensures
smooth supply of workers without
interruption
 Both a process and a set of plans

Provides mechanisms to eliminate any gaps

that may exist between supply and demand

Process very dynamic by nature

Requires periodic readjustments as labour

market conditions change
 Employment policy
Employment status & records
Employee benefits
Payroll
Workplace guidelines
Employee conduct
E-policies
 To recruit & retain the HR of required quantity &
quality
To foresee the employee turnover & filling up
consequent vacancies
To meet the needs of the programmes of expansion ,
diversification
To foresee the impact of technology on work ,
existing employees & future HR requirements
To asses surplus or shortage of HR & take measures
accordingly
To maintain congenial IR by maintaining optimum
level & structure of HR
To minimize imbalances due to non availability of HR
To estimate the cost of HR
 Checks the corporate plan
offsets uncertainty & change
Provides scope of advancement &
development of employees through T & D
Facilitates the control of all functions & cost
of HR
Anticipate the cost of salary & benefits
Gives an idea of the type of tests to be used
for selecting future HR
 Corporate level planning (changing market
situation)

Intermediate level planning (SBU strategy)

Operations Planning

Planning short term activities (day to day)

 1st stage 4000 -quarry workers , haulers
and masons
16 K -20k secondary workers- ramp builders
, tool makers , people supplying food
clothing and fuel.
HRP included:
No of blocks delivered and installed
No of trips to the quarry
Length of work day and work week
Food and housing need
Number of salaries
1. Identifying Core knowledge workers super
keepers

2. Traditional job seekers- Keepers

3. Employees whose skills are less strategic

value

4. Identifying the alliance /partners

 Level 3
Contribution to
organizational results

HRP
Level 2
Facilitating programs
impacting on employees &
organizational
Development

Activities impacting to
establish ing and maintaining
the basic employment
relationship
External environment (Agencies)

Suppliers of plant and machineries,

Government policies and labour market ,
level of technology,
level of economic development
International Factors
Outsourcing Facilities
 Company Policy and Strategy
Personnel Department
Job Analysis
HR Policies
Trade Unions
Type & quality of information
Company s production /operations policy
 Department chart Work study of the
Skill matrix department (input ,
Quality of work output, supplier)
Competency gap Current manpower
Planning work flow
Performance indicator
Standard operating
KRA procedures
Business Matrix

Matching individual Organizational context

 Labour Market Condition
migration trends
Part time labour

Macro level factors

Unemployment rate
Government policies
Demographic factors
 Analyzing the organizational plans(both corporate & unit level)
Forecasting the overall HR Requirement(Demand/supply)
Determination of manpower gaps
Formulating HR plans
Balancing supply & Demand
In case of surplus , plan for redeployment ,lay off
Plan to modify the org plan
Managerial Judgment approach in small sector and unorganized
industries
 It refers to the interaction between the
decision makers perceptual and cognitive
processes and the objective characteristics of
the environment

Demand analysis identifies the future

workforce requirements needed to maintain
the organizations mission and goals.
 Expert (management) forecasts
Market Prediction Method
Ratio Trend Analysis
Key Predictive Factors - business factors
Delphi Technique - decrease subjectivity of
opinion
Structured Analogies
Work standards data
Work force analysis
Work load analysis
Job Analysis
 Selecting a business factor that best predicts
HR needs
Plotting the business factor in relation to the
number of employees to determine the labour
Productivity Ratio
Computing the productivity ratio for the past
5 years
calculating HR demand by multiplying the
business factor by the productivity ratio
Projecting HR demand out to the target years
 Skill inventory
Replacement charts
Succession planning
Analysis of staffing tables
Markov Analysis
Turnover analysis (data from exit interviews)
Wastage analysis and its methods :
1. labor turnover index
2. stability index
3. Cohort Analysis
 Resistance by employers & employees
Uncertainties absenteeism, seasonal
employment , labor turnover
Inadequacies of information system
Internal Communication
Forecasting techniques -deficiency
Time lag between communication of strategic
information
 Recruitment Plans
Selection & Promotion plans
Training Plans
Appraisal Plans
Redeployment plans
Downsizing plans
 Overstaffing

VRS /Golden Handshake

De - layering and downsizing

Recent trends

Outsourcing

Contingency clause in HRP