Understanding Manpower Planning

Manpower Planning or Human Resource Planning (HRP) refers to a systematic approach to optimize the output of the company’s most valuable asset, that is quality employees. It aims to ensure the employees are suitable for their jobs, and focus on avoiding labor shortages or surpluses. Investing in manpower planning can prove to be highly profitable for the companies as strategic interventions can maximize the productivity of the workers. It allows companies to plan ahead, and maintain a steady supply of skilled laborers by evaluating their needs and preparing in advance for meeting them. This is important as achieving the goals of an organization, although dependent upon a range of factors, is primarily driven by the workers. And any disruptions in this steady supply of workers could be costly. It is therefore an essential component of human resource management. 

Step To Manpower Planning

• Analyzing Labor Supply 

Human resource planning begins with examining the company’s existing human resource strength and supply, in terms of number of employees, their qualifications, skills, positions, benefits and performance levels. This information is crucial for the HR personnel to make plans for future needs of the company

• Predicting Labor Demand

The next step in HRP involves the use of forecasting techniques to predict the needs of the organization wherein the HR department outlines the future of its workforce by considering issues including promotions, retirements, layoffs, and transfers, etc. They also study the external conditions which affect labor demands. Some of the techniques commonly used in this process are expert forecasts, trend analysis, workload analysis, workforce analysis and using mathematical models.

• Balancing Labor Supply & Demand

Once the labor supply and labor demand has been recognized, the HR department conducts a gap analysis to evaluate and lay out specific needs to bridge the gap between the company’s labor and the future demand. They must decide whether they need to hire new employees, managers,  upskill the current workforce, and ensure if they play to their strengths in current roles. And so, HRP involves recruitment, selection and employee training.

Finally, human resource planning culminates in the development and implementation of a plan for which a budget and collaborative effort is prerequisite. 

Importance Of Human Resource Planning

• Expand productivity

The success of a business enterprise lies in the generation of profits. Human resource planning allows to hire, and train your employees to perform optimally in their assigned roles maximizing worker productivity, and in turn augmenting profits. It lets the employees use their strengths effectively.

• Reduce input cost on labor

Selecting the perfect candidates for the job role and imparting custom tailored training to employees can save time, money and resources for the company. It attracts the right kind of talent to the company. 

• Effective recruitment 

Under human resource planning, recruitment adopts a scientific approach, employing tested strategies to ensure effective recruitment and selection. It can have long term positive impacts on the company. 

Need For Manpower Planning

Organizations are learning about the relevance of manpower planning to stay ahead in the game. It is future-oriented and thinks beyond the immediate needs of the organization. The contingency planning involved in HRP allows organizations to withstand and overcome challenges. 

It performs some crucial functions:

• Ensure labor shortages do not occur, and availability of workforce for expansion.
• Helps combat high labor costs by identifying issues like understaffing and overstaffing
• Forces companies to recognize the significance of manpower supply

Challenges Of Manpower Supply Planning

HR departments confront several challenges in manpower supply planning, many of which are unpredictable. They include:

• Inaccuracy & Uncertainties

One of the main objectives of HRP is prediction of labor demand and supply. The forecasting may be fraught with inaccuracies, either due to faulty techniques or as a result of unforeseen factors such as absenteeism, labor turnover, seasonal trends in demand, technological changes, competition etc. 

•  Lack of Support

HRP often faces a lack of support because many organizations fail to commit to it, allocate funds as they do not see immediate tangible gains. In addition, when manpower supply planning results in the weeding out of unwanted laborers, the others may complain about workload, refusing cooperation. 

• Resistance 

Employers as well as employees show resistance to the changes brought about human resource planning. Employers feel it amplifies labor cost while employees feel they are being subjected to productivity bargaining. 

• Time and Expense

Manpower planning is both cost and time intensive. The HR professionals find it difficult to obtain funds for undertaking HRP. Collecting data and deriving conclusions from it is a time consuming process but one that pays off. However many employers fail to appreciate its benefits. 

Understanding the significance of manpower planning and what advantage it can offer your organization is extremely important to succeed in the highly competitive global market which is spending on human resource management and embracing the newest developments in the field of management.

World Star Manpower Solutions, is an authorized manpower supply company in the UAE which has been delivering their quality service across the country for over 15 years. They are pioneers in the industry, providing labor for the blue and white collar worker requirements of organizations. It is the one stop destination for all your manpower needs!