Manpower Planning

Manpower planning system implies estimating desired level of human resources in terms of quality and quantity to meet organizational goals and objectives. It estimates manpower need for future keeping in mind long term goals of the organizations and compares it with present available manpower and analyses them. If surplus is found arrangements are made to separate them and if deficiency is recognized, necessary arrangements are made for recruitment. It also takes into consideration various internal and external sources for recruitment and training needs to match future needs.

The various components for auditing manpower planning are:

Situation Analysis

• Assessment of external environment
• Consideration of market trends, technological developments, business challenges and government policies.
• Documentation of the analysis for reference of manpower decision.
• Consequences of changes in working practices
• Impact of new technology on manpower involvement and output.
• Impact of manpower turnover on organizational performance
• Calculation of manpower turnover ratio.
• Comparison of past trends and projection of future trends.
• Studying reasons for high/low turnover.
• Studying its impact on turnover.

Manpower demand analysis

• Assessment of manpower requirements are from business plans
• Consideration of various aspects of business plans, capital equipment plans, marketing plans, financial limitations etc.
• Analysis of required changes in manpower with respect to growth plans.
• Analysis of more relevant skills and competencies for future
• Ascertain important existing skills for future demands.
• Ascertain new skills to be developed.
• Analysis of current manpower profile and utilization to meet future manpower requirements
• Available data on employee category, qualification, experience etc.
• Performance appraisal data.
• Extent of training possible.
• Retirement plans.
• Assessment of organizational capability to retain current manpower
• Reputation of organizations and its brands in the market.
• Pay scales against industry standards.
• Ability to attract people from current manpower
• Comparison of pay scales, culture and reputation against other organizations.
• Motivational and retention strategy.
• Organizational and individual growth plans.

Manpower supply

• Analysis of current manpower profile and utilization to meet future manpower requirements
• Available data on employee category, qualification, experience etc.
• Performance appraisal data.
• Extent of training possible.
• Retirement plans.
• Assessment of organizational capability to retain current manpower
• Reputation of organizations and its brands in the market.
• Pay scales against industry standards.
• Ability to attract people from current manpower.
• Comparison of pay scales, culture and reputation against other organizations.
• Motivational and retention strategy.
• Organizational and individual growth plans.

Manpower plan

• Availability of adequate supply of manpower when required
• Thorough manpower demand and supply analysis.
• In depth plan to meet manpower requirement.
• In-depth plan for recruitment, motivation and retention strategies.
• Ensuring optimum utilization of manpower
• System of performance management and development.
• Clear job description.
• Involvement of other departments
• Participation of committee consisting of top management.
• Detailed instruction to all departments about plan.
• Adequate information collected from functional heads in terms of manpower required with respect to business strategy and growth.

Action Strategy

• Recruitment of manpower
• Strategy stating sources of manpower and selection methods.
• Retention of skilled employees
• Plan for motivation and commitment.
• Performance management and training and development to meet manpower
• Systematic process and systems.
• Involvement of line managers in HR systems.
• Strategy for reduction of manpower to avoid redundancy
• Pre-retirement plans.
• Early retirement strategies.
• Counseling to manpower likely to retire.

Auditing Methods and Techniques for manpower planning

Interviews – Interview of HR manager, to know about:

• Methods of assessing manpower requirements.
• Sources of manpower supply.
• Reputation of the firm in the market.
• Recruitment strategies used.
• Retention and separation strategies.
• Motivation and performance management strategies.
• Involvement of line managers in HR decisions etc.

Interview of line managers – To be familiar with their participation, knowledge, contribution and belief about functioning of HR interventions in the organization.

Documents or Secondaray Data

• Reports on analysis of external environment, changes in working practices;
• Reports on key reasons for high/low turnover.
• Repot on assessment of manpower requirements.
• Data available about employee categories, qualification, experience etc.
• Performance appraisal plan.
• Documents about retirement plans.
• Documented plans about recruitment, motivation and retention strategies.

Questionnaire Data – Information from HR managers, line managers and staff from HR Audit questionnaire