Businesses rely on manpower irrespective of size and industry. Interestingly, even when the organization of workers and laborers has been around for centuries, these signs of manpower management are still new.
If you are a manager, then you must understand the importance of manpower planning in HRM and how to maximize the utilization of the workforce for productivity and profits. It is essential to know how manpower can be planned and aligned with the company’s goals and visions. In this article, we will discuss manpower planning in detail.
What is manpower planning in human resource management?
Manpower is the primary resource for any company. In its absence, other resources like raw materials, money, machinery, etc., cannot be used. Workers are needed for every unit, even those with a high degree of automation, such as pharmaceuticals.
This is why manpower is an essential resource that needs planning more than any other aspect of running a company. To become a successful manager, you must learn the importance of manpower planning. Manpower planning is evaluating, strategizing, and assessing the workers’ skills to create manpower teams that work at optimum productivity within an organization.
Improper planning of the workforce can lead to overstaffing or understaffing, resulting in productivity and revenue losses. Manpower planning, as part of human resource management, empowers managers to create schedules and manage workers while improving production, work culture, and industrial relations.
Types of manpower planning
Manpower planning is a complicated process that has several levels of management. For organizational human resource management, there are probably two types of manpower planning.
First, based on the level at which manpower planning is done. Second, based on the period for which it is done.
1. Manpower planning at an organizational level
For the overall development of an organization, manpower planning can be done at an organizational level to create more opportunities for employment while utilizing available human resources most efficiently.
An ample example of manpower planning at the macro level is when a company goes through a dramatic transformation that requires large-scale training of workers. For instance, Corning grew from a glass manufacturer to the biggest supplier of Gorilla glass today. Its success is based on excellent manpower planning.
2. Manpower planning at micro-level
A more practical approach to manpower planning is at the micro level. At this level, managers take various measures at the business unit’s recruitment, selection, promotion, and expansion stages to train, compensate, and plan workers.
Next is the types of manpower planning based on the duration.
3. Short-term manpower planning
When manpower planning is done for one year, it is called short-term manpower planning. Annual plans are beneficial at the company level because short-term gains can be integrated easily into the company’s positive medium-term or long-term growth.
4. Medium-term manpower planning
Generally, manpower planning that is for a period of 2 to 5 years is considered medium-term. Training and development of employees is often part of medium-term Manpower planning as it focuses on imparting skills that will be useful for the company in the next five years.
5. Long-term manpower planning
Any manpower planning scheme that is over ten years is long-term manpower planning. Most companies utilize long-term manpower planning to forecast the growth of the company and plan further expansions. As part of long-term manpower planning, essential decisions regarding investments, acquisitions, and mergers are taken.
How to do manpower planning?
Before managers can forecast future manpower planning, they must evaluate the current manpower inventory. The type of manpower planning in HRM that will be suitable for your company depends on the kind of organization, the number of departments, and the employees in each work unit.
Manpower planning is multidisciplinary and utilizes several forecast models. It usually includes:
- Trend Analysis: Managers have to use extrapolation (projecting past trends), indexation (using the current year as the basis), and statistical analysis to anticipate any sudden demand or decline in the number of workers in the company.
- Work Load Analysis: It involves evaluating the nature of workload in a department, a branch, or the division to map it to the available manpower.
- Developing employment programs: Once you have accurately created future forecasts based on the current manpower inventory, you can create employment programs to hire or train more the number of workers as per the forecast.
- Design training programs: Also, during workload analysis, you may need diversification, training, and development programs to make workers more productive at their jobs. The training programs depend on the extent of improvement required in the workforce or the level of technological advancement to be implemented in the company
Need for manpower planning
Any company with future growth prospects requires manpower planning to support sustainable growth and expansion.
Manpower planning is a two-phased process that analyses the current human resources and makes forecasts related to the manpower that initiates the creation of employment programs.
The need for manpower planning arises from the following requirements of a company:
- To proactively identify any shortage of surplus in the workforce to take necessary steps before any serious damage to the company’s financial prospects.
- Ensure that all recruitment and selection programs are based on manpower planning for best results.
- To reduce labor costs from hiring excess staff or overstaffing shift schedules.
- Manpower planning can also help identify the available talent, such as skilled laborers within the workforce, to further chalk out a development plan for such workers.
- It also supports the growth and diversification of your business, as through manpower planning, you can best utilize available human resources.
Factors that affect manpower planning in HRM
Manpower planning requires coordinated efforts from managers, supervisors, and executives. The following factors must be considered for manpower planning in HRM:
1. Monitoring of current manpower
Available manpower must be closely monitored to evaluate their productivity and efficiency. Automation software like Truein can significantly simplify the process of staff time and attendance management.
It is an AI-based, hardwareless employee time and attendance tracking software that companies across industries-manufacturing, mining, construction, automobiles, pharmaceuticals, etc., can deploy in their facilities to track and monitor workers in real time.
Schedule a free demo today and see how Truein can automate the time and attendance tracking of your employees.
2. Participation of all stakeholders
Management, top-level executives, and workers must be part of manpower planning. Low-level workers can provide important information regarding the work environment, resource utilization, and training requirements.
3. Socio-economic work culture
Manpower planning in HRM is also affected by the work environment within an organization. If your workers are unsatisfied, continuously stressed due to work, or have an unhealthy work/life balance, it can adversely affect your manpower planning efforts.
Any business that anticipates future growth or sustainable expansion of its products and services must invest in manpower planning. When done correctly, it can be a powerful strategy to fuel your company’s growth and workforce development.