What is Manpower Planning?

What is Manpower Planning – Introduction

Though the organisation of men for managing a purpose is an age-old thing, the science of management is still in nascent stages.

Manpower is a primary resource without which other resources like money, material etc. cannot be put to use. Even a fully automatic unit such as an unmanned satellite requires manpower to execute it and plan further improvements/activities. That is why man learned the use of manpower much before he learned to use other resources.

In order to achieve a goal, manpower requirement needs to be assessed, located and harnessed. Manpower planning requires not only a simple assessment of the number of men required but also their categories and skills as well as their balanced allocation. Improper planning may lead to either over-staffing or under-staffing, both of which should be avoided. Over-staffing not only increases direct cost (salary) but adversely affects the cost of training, housing amenities etc., besides production cost. Under-staffing also affects production morale and, therefore, industrial relations.

Optimum manpower planning therefore assumes importance.

It should aim at:

1. Avoiding imbalances in distribution or allocation of manpower

2. Controlling the cost aspect of human resources

3. Formulating transfer and succession policy

Manpower planning is needed wherever production of goods and services is involved. It is an important factor of labour productivity and profitability of the enterprise. In an industrial undertaking this is done very carefully by-

External agencies such as professional consultants and suppliers of plant and machinery for they have the knowledge of working of similar units. It is generally done in the initial stages or when internal agencies do not have the required expertise for manpower planning.

Internal agencies such as the personnel department, industrial engineering, plant manager and finance department as all these agencies are interested in production, productivity, industrial relations and other aspects of manpower planning.