Fundamentals Of Manpower

Planning
(Unit1)
 CHAPTER COVERAGE
Meaning and significance of manpower planning
Objectives of manpower planning
Linking manpower planning to business plans
Steps in HRP
Factors affecting HRP
limitations of HRP
Job Analysis
 WHAT IS MANPOWER PLANNING?
 The process of deciding what positions will have to
be filled, and how to fill them for a given period of
time.
 It requires the knowledge of demand and supply
gaps in labour market.
 It requires the knowledge of costs and benefits
associated with filling of the positions.
 It requires data gathering from across the
organization and analyzing it for decision.
 PERIODICITY OF HRP
HRP is done generally once in a year
Some times it may have to be done as often as
once in three months
Organizations may have long term HRP say for
5 years with a broad perspective.
Organizations may have short term HRP with
minute details of the execution
 WHEN IS MP DONE?
Before beginning of the performance period

Step 1 Step 2 Step 3

HR Recruitment Selection
planning
 SIGNIFICANCE OF MANPOWER PLANNING
-Organizations cannot afford to have more people
than required since it will be expensive.
-Organizations cannot afford to have less people
since it will result in not meeting the business goals.
Hence to determine right number of people to meet
business goals, HR planning is required.
It is not sufficient to have right number of people,
right kind of people also matter.
Hence sources of recruitment is important.
Recruiting the people should also justify the cost.
Hence HR budgeting is required.
 IMPORTANCE OF HUMAN RESOURCE
PLANNING

Organizations use HRP to meet future

challenges, cut costs, and achieve greater
effectiveness.
 Create a talent pool
 Prepare people for future
 Expand or contract
 Cope with organizational changes
 Cut costs
 Help succession planning
 OBJECTIVES OF HUMAN RESOURCE
PLANNING
i. Forecast personnel requirements: HR planning
is essential to determine the future manpower
needs in an organization.
ii. Cope with changes: HR planning is required to
cope with changes in market conditions, technology,
products and government regulations in an effective
way.
iii. Use existing manpower productively :By
keeping an inventory of existing personnel in an
enterprise by skill, level, training, educational
qualifications, work experience, it will be possible to
utilize the existing resources more usefully in
relation to the job requirements.
iv. Promote employees in a systematic
manner: HR planning provides useful
information on the basis of which
management decides on the promotion of
eligible personnel in the organization.
 Factors affecting MP
External Internal
Govt. Policies Strategy of the company
Level of economic HR policy of the company
development
Business Environment Formal & Informal groups
Information Technology Job Analysis
Level of technology Time horizons
Natural factors Type & quality of
information
International factors Company's production &
operations policy
Trade unions
 STEPS IN HRP
Identify the number of people to be hired in each level,
location and function.
Identify the positions which need not be filled.
Identify the existing employees who can be elevated /
moved to vacant positions.
Identify the positions to be filled through contract
employees.
Identify the activities to be outsourced for which the
vacancies need not be filled.
For the remaining vacancies identify the sources of
recruitment.
Prepare the budget and get it approved.
Identify the hurdles and set them right.
Go ahead with the hiring process as per the plan.
 STRATEGIC CHOICES IN MP
Should we have high cost-high caliber people or not?
What are the gender and diversity issues to be addressed
in HRP?
What is envisaged in Business plan in the matter of HRP?
Which jobs should be moved from high cost destinations to
low cost destinations?
Which function at what level require freshers and
experienced people?
What are the statutory compliance issues to be addressed?
How can I align HRP to business goals?
LINKING HR PLANNING TO BUSINESS PLANS
 IDENTIFYING THE POSITIONS TO BE FILLED
For example: MARKETING FUNCTION
Level DUE TO Termin- Resignation Death Disable Due to Due to Due to Total
business ation ment promotion retirement superannua
growth tion
Trainee 2 5 3 6 1 5 0 0 22
Executive 1 2 3 4 1 2 3 2 18
Asst. 2 3 7 3 2 1 1 2 21
Manager
Manager 3 4 5 6 7 2 1 1 29
Senior 0 8 0 2 1 3 1 2 17
Manager
Chief 1 2 1 2 3 2 1 1 13
Manager
Gen. 2 1 0 0 1 1 1 1 8
Manager
Director 3 2 1 1 1 0 0 0 8
Vice- 1 0 2 1 1 1 1 1 8
President
Total 15 27 22 25 18 17 10 10 144
 IDENTIFYING THE SOURCES
For example: MARKETING FUNCTION
No. of No. of positions to Campus News paper Internet Consultant Walk in Employee
Level positions to positions to be filled recruitment advertiseme recruitment referrals
be abolished be filled from internal nt
sources

Trainee

Executive

Asst.
Manager
Manager

Senior
Manager
Chief
Manager
Gen.
Manager
Director

Vice-
President
Total
 ESTIMATING THE COST
For example: MARKETING FUNCTION
No. of Cost of Cost of Cost of Total Salary, Any other Total
Level positions to recruitment selection training allowances expenses
be filled and benefits
for the first
year
Trainee

Executive

Asst. Manager

Manager

Senior
Manager
Chief
Manager
Gen.
Manager
Director

Vice-President

Total
 LIMITATIONS OF HUMAN RESOURCE
PLANNING

HR professionals are basically confronted with three

problems while preparing and administering HR plans:
accuracy, inadequate top management support, lopsided
focus on quantitative aspects.
 Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning

Human Resource Planning

Demand Comparing Supply

Forecasting Requirements Forecasting
and Availability

Demand = Surplus of Shortage of

Supply Workers Workers

No Action Redeployment and Employment,

Redundancy outsourcing,
Training,
Development,
Internal mobility
 STEPS IN HRP
Identify the number of people to be hired in each level,
location and function.
Identify the positions which need not be filled.
Identify the existing employees who can be elevated / moved
to vacant positions.
Identify the positions to be filled through contract
employees.
Identify the activities to be outsourced for which the
vacancies need not be filled.
For the remaining vacancies identify the sources of
recruitment.
Prepare the budget and get it approved.
Identify the hurdles and set them right.
Go ahead with the hiring process as per the plan.
FORECASTING METHODS
RATIO ANALYSIS
JOB ANALYSIS
Process of determining duties, characteristics of person.
Methods of Job analysis
Interview – performance, duties, location, JS with the help of
building rapport, question, and activities.
Structured interviews – Questionnaire
Job analyst.
Questionnaire – Structured checklist
Inventory of time spent, quick and efficient.
Observation – Not useful for mental activities jobs. Reactivity
work cycle
Dairy/log – Record activity in a pock dictating machines
JOB ANALYSIS
Quantitative Job analysis techniques – Rate, classify
and compare
PAQ – 194 items. www.paq.com
US Department of labour procedure.
Dictionary of occupational
Electronics job analysis methods – ERP, skype
Citehr
 JOB ANALYSIS
Job analysis:
Job analysis is a formal and detailed examination of jobs.
It is a systematic investigation of the tasks, duties and
responsibilities necessary to do a job.
A task is an identifiable work activity carried out for a specific
purpose, for example, typing a letter.
A duty is a larger work segment consisting of several tasks
(which are related by some sequence of events) that are
performed by an individual, for example, pick up, sort out and
deliver incoming mail.
Job responsibilities are obligations to perform certain tasks
and duties.
 JOB ANALYSIS
Job analysis
 The procedure for determining the duties and skill
requirements of a job and the kind of person who should be
hired for it.
Job description
 A list of a job’s duties, responsibilities, reporting
relationships, working conditions, and supervisory
responsibilities—one product of a job analysis.
Job specifications
 A list of a job’s “human requirements,” that is, the requisite
education, skills, personality, and so on—another product of
a job analysis.
 NATURE OF JOB ANALYSIS

Job Tasks

Job Analysis Job Duties

Job
Responsibilities
PARTIAL JOB ANALYSIS QUESTIONNAIRE

The information about a job is usually collected

through a structured questionnaire:
JOB ANALYSIS INFORMATION FORMAT
Your Job Title_______________ Code__________Date_____________
Class Title_______________ Department_____________________
Your Name_________________ Facility___________________________
Superior’s Title______________ Prepared by_______________________
Superior’s Name____________ Hours Worked______AM______to AM____
PM PM
1. What is the general purpose of your job?
2. What was your last job? If it was in another organisation, please name it.
3. To what job would you normally expect to be promoted?
4. If you regularly supervise others, list them by name and job title.
PARTIAL JOB ANALYSIS QUESTIONNAIRE
5. If you supervise others, please check those activities that are part of your
supervisory duties:

¨ Hiring ¨ Coaching ¨ Promoting

¨ Orienting ¨ Counseling ¨ Compensating

¨ Training ¨ Budgeting ¨ Disciplining

¨ Scheduling ¨ Directing ¨ Terminating

¨ Developing ¨ Measuring Performances ¨ Other____________

6. How would you describe the successful completion and results of your work?

7. Job Duties – Please briefly describe WHAT you do and, if possible, How you do
it. Indicate those duties you consider to be most important and/or most
difficult:
(a) Daily Duties
(b) Periodic Duties (Please indicate whether weekly, monthly, quarterly,
etc.)
(c) Duties Performed at Irregular Intervals.
PARTIAL JOB ANALYSIS QUESTIONNAIRE
8.Education – Please check the blank that indicates the educational
requirements for the job, not your own educational background.
 No formal education required
 Less than high school diploma
 High school diploma or equivalent degree and/or professional
license.
 College certificate or equivalent
College degree
Education beyond graduate

List advanced degrees or specified professional license or certificate

required.
Please indicate the education you had when you were placed on this
job.
TYPE OF INFORMATION REQUIRED
FOR JOB ANALYSIS
Work activities
Human behaviors
Machines, tools, equipment, and work aids to
be handled
Performance standards
Job context/ performance conditions
Human requirements
 PURPOSE OF JOB ANALYSIS

Recruitment and Selection

Compensation and job evaluation
Performance Appraisal
Training
Discovering Unassigned Duties
Meeting statutory requirements
 CHARTING ORGANIZATIONAL
STRUCTURE AND WORKFLOW
 Organization chart
A chart that shows the organization wide distribution of
work, with titles of each position and interconnecting
lines that show who reports to whom.
 Process chart
A work flow chart that shows the flow of inputs to and
outputs from a particular job.
Understanding organizational chart and workflow chart
facilitates job analysis.
PROCESS CHART FOR ANALYZING A
JOB’S WORKFLOW
 METHODS OF COLLECTING JOB ANALYSIS
DATA

Seven general techniques are generally used to collect job

analysis data;
 Job performance: the analyst actually performs the job
in question and collects the needed information
 Personal observation: the analyst observes others doing
the job and writes a summary
 Critical incidents: job incumbents describe several
incidents relating to work, based on past experience; the
analyst collects, analyses and classifies data.
 Interview: The interview method consists of
asking questions to both incumbents and
supervisors in either an individual or a group
setting.
The reason behind the use of this method is that
job holders are most familiar with the job and can
supplement the information obtained through
observation.
 Guidelines for conducting job analysis
interviews

Put the worker at ease; establish rapport.

 Make the purpose of the interview clear.
 Encourage the worker to talk by using empathy
creativity.
 Help the worker to think and talk according to the logical
sequence of the duties performed.
 Ask the worker only one question at a time.
 Phrase questions carefully so that the answers will be
more than just “yes” or “no”.
 Avoid asking leading questions.
Secure specified and complete information pertaining to the work
performed and the worker’s traits.
 Conduct the interview in plain, easy language.
 Consider the relationship of the present job to other jobs in the
department.
 Control the time and subject matter of the interview.
 Be patient and considerate to the worker.
 Summarize the information obtained before closing the
interview.
 Close the interview promptly.
 Methods Of Collecting Job Analysis Data

 Panel of experts: experienced people such as job

incumbents and supervisors with good knowledge of the job
asked to provide the information.

 Diary method: job incumbents asked to maintain diaries

or logs of their daily job activities and record the time spent
and nature of work carried out.

 Questionnaire method: Here the job holders are given a

properly designed questionnaire aimed at eliciting relevant
job-related information. After completion, the questionnaires
are handed over to supervisors.
The Position Analysis Questionnaire: it is a standardised
form used to collect specific information about job tasks and
worker traits.
 Management Position Description Questionnaire: it is a
standardised form designed to analyse managerial jobs
 Behavioural Factors Impacting Job
Analysis

The following behavioural factors must be taken care of

while carrying out a job analysis:
 Exaggerate the facts
 Employee anxieties
 Resistance to change
 Overemphasis on current efforts
 Job Description And Job Specification

The end products of job analysis are:

Job description: this is a written statement of what the job
holder does, how it is done, under what conditions it is
done and why it is done.

Job specification: it offers a profile of human characteristics

(knowledge, skills and abilities) needed by a person doing a
job.
i. Essential attributes: skills, knowledge and abilities
(SKAs) a person must possess.
ii. Desirable attributes: qualifications a person
ought to possess.
iii. Contra-indicators: attributes that will become a
handicap to successful job performance.
 SPECIMEN OF JOB DESCRIPTION

Title Compensation manager

Code HR/2310
Department Human Resource Department
Summary Responsible for the design and administration of
employee compensation programmes.
Duties v Conduct job analysis.
v Prepare job descriptions for current and
projected positions.
v Evaluate job descriptions and act as Chairman of
Job Evaluation Committee.
v Insure that company’s compensation rates are in
tune with the company’s philosophy.
 SPECIMEN OF JOB DESCRIPTION

v Relate salary to the performance of each employee.

Conduct periodic salary surveys.
v Develop and administer performance appraisal
programme.
v Develop and oversee bonus and other employee
benefit plans.
v Develop an integrated HR information system.
Working conditions : Normal. Eight hours per day. Five days a week.
Report to : Director, Human Resource Department.
 Specimen of job specification
Education v MBA with specialisation in HRM/MA in social
work/PG Diploma in HRM/MA in industrial psychology.
v A degree or diploma in Labour Laws is desirable.
Experience v At least 3 years’ experience in a similar position in a
large manufacturing company.
Skill, Knowledge, Abilities v Knowledge of compensation practices in
competing industries, of job analysis procedures, of
compensation survey techniques, of performance appraisal
systems.
v Skill in writing job descriptions, in conducting job
analysis interviews, in making group presentations,
in performing statistical computations
v Ability to conduct meetings, to plan and prioritise
work.
Work Orientation Factors v The position may require upto 15 per cent travel.
Age v Preferably below 30 years.
 THE SKILLS MATRIX IN JOB ANALYSIS

Note: The light blue boxes indicate the minimum level of skill required for the job.
UAE CASE STUDY: NWC – CABLE MANUFACTURER

Actors
Mr. Labib Abu – HR & Admin
Mr. Al Zaab – MD
Lebanes – GM -
DETAILS

Steady market growth

Knowledge economy – Creation, Retention and
transfer
2009 – Economic downturn – Resulted market
contraction
Tendency to relay on expatriates
Expatriates are willing to work in in private
sector.
Nationalist are preferred public sectors.
DETAILS
Internal environment
Preference to keep workforce multiplication to prevent ethnic
clashes.
Prevent ethic groups rising and causing clique.
Recruitment.
 Government priority to ensure nationals are employed and
trained.
 Other objective is to reduce foreigners in UAE labor market.
 Emiritization policy – All function.
 Company wishes non-nationals apply work Visa.
 Quotas
 Tracking by government on Visa arrangement and rating
companies
DETAILS
• Ministry of Labour UAE – policy announcement.
• Work permit , entry Visa application ( 7 days), Arrival,
medical examination
• Joining formalities, Contract labour card
• Quality Assurance – personnel procedure – manpower
planning.
• Overseas hire and local hire
• Admin staff hired locally. Through Recruitment
advertisements.
• The Gulf News & The National (salary not stated)
KEY LEARNING
Q1. How external environment impact internal policies.
Q2. Whether Quality assurance is important for HR? What
HR department is effectively doing to improve Recruitment
process?
Q3. How could the HR Department can improve recruitment
process?
Q4. How HR department works closely with all
department?
KEY LEARNING
Q1. How external environment impact internal policies.
Social – small population, local job preference
Political – local employment, reduce expatriate
Economic – economic downturn, more people looking for job
Legal – Visa process and employment laws
Technological – Knowledge worker, Visa processing
Q2. Whether Quality assurance is important for HR? What HR
department is effectively doing to improve Recruitment process?
Yes,
Manpower plan and feed into NWC annual plan
Visa process – Softcopy and hardcopy
Recruitment process QR guidelines ( Flowchart 2 and Documentation
1,2)
TANMIA
Q2) Local advertisement used,
Overseas agencies used for recruitment
Importance of quality standards procedures.
Q3. How could the HR Department can improve recruitment process?
Fully staffed own department
Each member understand their responsibilities
Advertising – include salary range and expectations.
Work with managers to target the advertisement
Equality of interview process – same questions for all candidates
Importance of legal processes.