Everything you need to know about manpower planning. Manpower planning is also called human resource planning. It is the first and the prime most stage in the process of staffing.
This planning ensures the organization with good quality of people in adequate quantity for its various Jobs. It means it emphasize for the right number of people and right kind of people at the right places and the right time. Many people have defined this term in different ways.
“An executive manpower planning programme may be defined as an appraisal of an organization’s ability to perpetuate itself with respect to its management as a determination of measures necessary to provide the essential executive talent”. –– E. B, Flippo
In this article we will discuss about manpower planning.
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Learn about:- 1. Introduction to Manpower Planning 2. Meaning and Definitions of Manpower Planning 3. Need and Nature 4. Objectives 5. Elements 6. Factors Influencing 7. Examples 8. Determinants 9. Methods 10. Programme for Development 11. Advantages 12. Obstacles.
Manpower Planning: Definition, Objectives, Need, Nature, Factors, Example, Methods, Advantages and Obstacles
Contents:
- Introduction to Manpower Planning
- Meaning and Definitions of Manpower Planning
- Need and Nature of Manpower Planning
- Objectives of Manpower Planning
- Elements of Manpower Planning
- Factors Influencing Manpower Requirement
- Examples of Manpower Planning
- Determinants of Manpower Plan
- Methods of Manpower Planning
- Programme for Manpower Planning and Development
- Advantages of Manpower Planning
- Obstacles in Manpower Planning
Manpower Planning – Introduction
Manpower planning, which is a staffing function of the personnel department of an organisation, means the process of determining manpower requirements and how to meet the requirement. The significance of manpower planning cannot be over-emphasised.
The development of human resources of an organisation is the aim of manpower planning and this planning concentrates on the correct estimation of future requirements of manpower in an organisation. The plans to fill up the vacancies of manpower requirements in the most suitable manner come within the purview of manpower planning.
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Manpower planning has been defined as the process of determining manpower requirements of an organisation through forecasting, developing and controlling to ensure that it has the right number of people and the right kind of people at the right places, at the right time doing work for which they are economically most useful.
In organization human resources plays an important role. In fact, human resources give life to organization. If sufficient and well trained manpower is not available then the work will suffer. Generally, most of the underdeveloped countries suffer with the shortage of man power through Job opportunities are available. Hence, in order to meet human resource need an organization should plan in advance its requirements and the sources because human resource is the most important asset of an organization.
Thus, human resource planning has become the most important managed function. This planning ensures the management an adequate supply, proper quality and quantity and also effective utilization of human resources. A manager should have thorough knowledge towards human resource planning.
Manpower Planning – Meaning and Definitions Provided by Eminent Authors and Experts
Manpower planning is also called human resource planning. It is the first and the prime most stage in the process of staffing. This planning ensures the organization with good quality of people in adequate quantity for its various Jobs. It means it emphasize for the right number of people and right kind of people at the right places and the right time. Many people have defined this term in different ways. Some of the quotable definitions given below to understand and properly the concept of man power planning.
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Manpower planning is the process (including forecasting, developing, implementing and controlling, by which a firm assures that it has the right number of people and right kind of people at the right places, at the right time, doing things for which, they are economically most useful.
Determining the present and future workforce requirements:
Personnel or manpower planning means putting the right number of people at the right place and right time to perform the tasks for which they are best suited.
Eric Vetter defines manpower planning as the “Process by which management determines how the organization should move from its Current Manpower Position to its Desired Manpower Position.” Through planning, the management strives to have the right number and the right kind of people, at the right place, and at the right time, doing things which result in both the organization and workers receiving maximum long-term benefit.
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Planning not just about the number of workers but also about the sources to find them:
Personnel planning involve an accurate determination of the present and future manpower needs of the organization, as also identification of the sources from which manpower needs would be met. Assessment of personnel requirements has both numerical and qualitative dimensions, and it is intimately linked with the immediate and long range objectives and plans of the organization.
An organization that does not do manpower planning, or does it in a haphazard manner, will find itself faced with huge labour costs and, more important, adverse affect on the quality and price of goods and services produced by it.
Various definitions emphasises the following four factors in manpower planning:
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(1) Forecasting the future needs of manpower,
(2) Developing the sound recruitment and selection of manpower;
(3) Proper utilisation of available manpower; and
(4) Controlling and reviewing the cost of work involved through manpower.
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“It is the process by which a firm ensures that it has the right number of people and the right kind of people at the right places and at the right time, doing things in the organization”. –– Dale Yoder and H. G. Haneman
“An executive manpower planning programme may be defined as an appraisal of an organization’s ability to perpetuate itself with respect to its management as a determination of measures necessary to provide the essential executive talent”. –– E. B. Flippo
“Man power planning is process of determining and assures that the organization will have an adequate number of qualified persons available at the proper times, performing Jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved”. –– Beach
Gordon M.C. Beath has said that “Manpower planning involves two stages. The first stage concerned with the detailed planning of manpower requirements for all types and level of employees throughout the period of the plan and the second stage is concerned with the right type of people from all sources to meet the plan requirements.”
Walter has defined – “Manpower planning is the process by which management determines how the organisation should move from its current manpower position to its desired manpower position. Through planning management strikes to have the right number and the right kind of people, at the right places, at the right time, doing things which results in both the organisation and the individual receiving maximum long-run benefit”.
An analysis of the above definitions will give the following characteristics of man power planning:
1. It is a continuous process.
2. It includes both the planning and development of human resources.
3. It is the future oriented involving forecasting of demands for and supply of human resources.
4. It is a major responsibility of management.
Thus, success of an organization mainly depends on the availability of the right number of qualified people in the right Jobs and at the right time. An organization will never achieve its objectives if it bruit have an appropriate and talented employees to carry out its plans.
Manpower Planning – Need and Nature
Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes.
Manpower Planning is advantageous to firm in following manner:
1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.
6. It helps the organisation to realize the importance of manpower management which ultimately helps in the stability of a concern.
Nature of Manpower Planning:
If we analyse the definitions of some eminent authors on Management, we find that their definitions though not identical, bring out certain common characteristics of manpower planning. This is dynamic in nature. It provides for new factors which modify the manpower flows.
Being based on long-term estimates, manpower planning is forward-looking and future-oriented. It is a process – process of determining manpower; process of forecasting, developing and controlling of manpower and the process of “determining how an organisation should form its current manpower position to its desired manpower position”. Its process is scientific, based on facts and rational calculation.
Manpower planning is mainly a staff function; it advises the line executives on the best utilisation of manpower. With ‘Emphasis on the interrelationships among various personnel policies and programmes’, manpower planning represents a systems approach.
Manpower Planning – Objectives
The various objectives of manpower planning are as follows:
Objective # (1) Determination of Present and Future Requirements of Personnel:
Personnel management is tasked with the responsibility to ensure that there is enough number of competent personnel to meet the present as also future requirements of the organization. This will take care of its present activities as also those to be undertaken in future to meet the proposed expansion and diversification plans.
Objective # (2) Assessment of Future Skill Requirements:
In the present-day world, an organization needs personnel who are competent to handle the available technology. However, given the pumping of enormous resources to develop ever new technology, personnel management should study the future skill requirements so that it can keep pace with technological developments.
Objective # (3) Determination of Future Training and Management Development Needs:
An organization cannot remove workers with traditional skill sets. Therefore, it needs to make arrangements to train them in the prevailing technological environment that will teach them how to handle ever new technical gadgets.
Objective # (4) Anticipation of Surplus Staff and Avoidance of Unnecessary Dismissals:
As technology is changing by the day and threatening to replace men with machines, an organization will naturally deal with the surplus staff whose jobs have been taken over by automation. What does an organization do with unwanted surplus staff? The best course will be to impart them training in new skill sets.
This may absorb some of them and the organization will have to prepare itself to remove others. How does it do it? It must pay them attractive compensation package and help them get employment in other organizations which are still using traditional skills.
Objective # (5) Control of Wage and Salary Costs:
Workers need to be paid wages and salaries. Personnel management should ensure that wages and salaries paid by the organization is cost effective and does not constitute an unbearable burden. As it is, salaries paid to government employees eat away a large portion of its revenue, leaving little to spend on developmental activities.
Objective # (6) Optimum Utilization of Current Human Resources:
It is the responsibility of personnel management to ensure that workers currently working in the organization are fully engaged in the tasks assigned to them and that they are not left unoccupied for long hours during the day.
Manpower Planning – Elements
(1) Assessment of Present Manpower Position—Human Resource Audit:
An assessment of the present manpower position will involve the following:
(a) An analysis of the employees currently working in the organization; and
(b) Regular evaluation of the jobs done by them.
This would involve collection of particulars such as names, age, educational qualifications, training, experience, and specialized skills of the employees presently working in the organization. It would give an idea of the human resources presently available on the basis of which it will be possible to know whether it can profitably expand its activities, and also which of the employees are to be trained, developed, promoted, or transferred to other jobs.
These particulars would also show whether there is surplus or deficit of workers in the organization. It will also indicate the number and time of replacements to be arranged on retirement or death of the existing employees.
Analysis or evaluation of the jobs performed by the present employees will highlight:
(a) Nature of work done by each worker;
(b) Method employed by him to do it;
(c) Rationale of doing it that way;
(d) Skills, education and training required to perform the work;
(e) How this particular job is related to other jobs; and
(f) What physical and environmental conditions need to be created for proper performance of the job?
Information about all these can be obtained through various methods. The person undertaking job analysis may personally observe the workers at work. He may interview a select number of them individually or in groups. He may send out questionnaires to the workers concerned. Or, he may ask each worker to maintain a daily record of the activities performed by him.
After careful analysis of each job, he may write out job description for it. These will give precise details of each job as also the qualities and qualifications required to do it well.
Generally, a job description would give the following details:
(a) Name or title of the job, and its location (Department, Branch etc.).
(b) Nature of duties and operations to be performed.
(c) Authority, responsibility and accountability of each job-holder.
(d) Necessary qualifications for holder of each job, i.e., education, skills, training, temperamental make-up, experience, physical standards, etc.
(e) Criteria by which each job-holder’s performance is to be measured and evaluated.
A job description may not always include the qualifications necessary for the job-holder. Where it does not, these are separately indicated in a job specification.
(2) Future Plans of Organization:
Assessment of the direction of the organization will call for a careful analysis of its objectives and plans for the immediate, medium term and distant future. Such analysis will naturally be based on-(a) Extent and type of anticipated production; and (b) Likely changes in production methods which may affect the content of the work-force.
Objectives and plans of an organization are largely determined by the demand for goods and/or services offered by it. If the demand for its goods and services shows a rising trend, it will need a larger number of personnel to enable it to cope with it. But it is not as if the necessary number and types of personnel can be made to order.
In some cases, adequate number of personnel with specialized skills may not be readily available such that the organization may have to delay working on its objectives of increased sales and profits. Take, for instance, a firm of chartered accountants. There may be a huge increase in the number of clients coming to the firm and yet the firm cannot increase the number of chartered accountants overnight. Even unskilled workers cannot be hired at will.
However, sales and income forecasts largely determine the number and kinds of future personnel requirements. But while it is easy to accurately forecast the sales and income forecasts for the immediate future, those concerning the distant future may not be as easy to make. And any inaccuracy in this is bound to affect the estimates of future personnel requirements.
(3) Future Personnel Demand and Supply:
Analysis of the future personnel demand will take into account the extent of anticipated demand; nature of production methods; and the extent of decrease in work-force due to death, retirement, dismissal, resignation, etc. Future demand is sought to be met by means of internal and external sources.
However, such estimates cannot be absolutely flawless, as it is impossible to find an exact substitute for any worker. A worker accustomed to working in one department may not easily adjust himself to working in another department. Forecasting of personnel requirements also involves an estimate not only of the number of personnel required, but also their type.
If an assessment of the future personnel demand is difficult, assessment of the future personnel supply is more so. This is because while considering the question of future demand, one can afford to be ambitious and choosy.
One may, for example, lay down that for accomplishing the sales objectives of the organization, fifty additional salesmen will be required, all of whom need to be first-class degree-holders in marketing management and possess at least five years’ experience in the field. But when one calmly considers the sources from where so many salesmen with requisite qualifications and experience are to be engaged, one might come across several difficulties.
(4) Internal Sources of Supply of Personnel:
The sources of internal supply of personnel may be:
(a) New recruitments,
(b) Inter-departmental transfer of existing personnel, or
(c) Existing personnel reporting back for work after the expiry of their leave period.
Of these, the number of personnel to be newly recruited can be easily determined. This is because the process of recruitment is initiated by the organization itself, and it is easy to estimate what number and types of personnel would be needed to accomplish its objectives—at least in the short run.
The question of inter-departmental transfers is not so easily determined. This is because even though transfers do not result in any increase in the overall number of personnel, they might affect the working of the concerned departments.
For example, if X is transferred from Sales Department to Production Department, Y from Production Department to Finance Department and Z from Finance Department to Sales Department, there will, on the face of it, appear no change in the number of personnel.
But if X has been sent on promotion, Y on demotion and Z to an equivalent position, it will affect the working of all the three departments. This is because while X would be over-enthusiastic in his new job, Y would feel depressed and demoralized. As for Z, he might perceive the whole business of transfer as a game of musical chairs played to the tunes called by management.
As for the last source of supply – personnel returning from leave – this is relatively easy to forecast. Those proceeding on annual or maternity leave are supposed to resume duties after a specified period.
Retirement, dismissal, voluntary resignation, retrenchment, or death of employees, will lead to decrease in the internal supply of personnel. Of these, retirements are the easiest to forecast. Death and voluntary resignations may not be accurately forecast, but some broad calculations about these may still be possible. Similarly, transfers out of the organization, dismissals and retrenchment can also be broadly estimated.
(5) Sources of External Supply:
The first source of external supply of personnel, are schools and colleges from which students pass out every year. Housewives seeking part-time or full time employment to supplement family income also increase the supply of personnel. Students looking for part-time jobs also contribute to this supply. Last, but not least, are those who, though employed, search for better and more lucrative or part-time jobs.
(6) Balancing the Demand and Supply of Personnel:
While an enterprise may not be able to do anything about increase or decrease in external sources of personnel supply, it can certainly benefit by anticipating it and relating it to its own future requirements of personnel.
For example, if it anticipates shortage of number and kinds of personnel, it can take steps to recruit suitable persons whether to meet its current or future needs. Similarly, it may plan inter-departmental transfers of its personnel if the right number and kinds of personnel are not readily available.
Whether the forecast indicates shortage or surplus of personnel, the basic purpose of personnel planning is to ensure that there is always a proper balance between the numbers, skills, kinds and quality of personnel employed by the organization.
However, in case such balancing becomes impossible due to any uncontrollable factors, there should be no hesitation in revising or abandoning some organization objectives. This is for the simple reason that lack of right number and kinds of personnel may prove to be a bigger hindrance in the accomplishment of organizational objectives than even shortage of financial or physical resources.
Manpower Planning – Factors Influencing Manpower Requirement
Other factors which influence the determination of manpower requirements are:
i. Layout:
If an equipment works in isolation (say a drill or lathe) but needs continuous supervision (say by excavators, etc.) then one man per machine is essential. If a group of machines works in unison, the whole group may be attended to by one or more persons. If equipment is not in continuous operation, one person may look after more than one equipment.
ii. Requirements:
There are certain positions in mines, electrical installations, hazardous places where welfare amenities have to be provided as per statutory regulations. First aid posts, creches, etc. fall under this category. For example, the Mines Creche Rules 1966 stipulate the number of categories of staff to be provided.
iii. Shifts:
Manpower requirements are determined by the number of shifts in which the work is to be carried out – whether in a general shift or in combined shifts. Once the number of persons per shift has been determined, this will be multiplied by the number of working shifts. When work goes on round the clock, manpower has to be provided for all the shifts.
iv. Leave Reserve:
Certain allowances have to be made for manpower requirements thus worked out as human beings cannot work on all days of the year. They have to be allowed regular leave for certain periods in a year depending on the legislation or mutual agreement between the unions and the management on the basis of leave availed of during the study period. A certain percentage towards leave reserves is added to arrive at the number of required manpower.
Manpower Planning – Examples: Manpower Planning at Macro-Level (National Level) and Manpower Planning at Micro-Level
Examples of manpower planning can be distinguished by two criteria:
(i) On the basis of the level at which it is done, and
(ii) On the basis of the period for which it is done.
Let us see each of these classes of manpower planning in detail. Firstly, we would see its classes as derived by the difference of level at which the planning is done.
1. Manpower Planning at Macro-Level (National Level):
Manpower planning is done on the national level as a part of the planning for overall economic development. The objective behind this is to provide more and more opportunities of employment, while utilizing the human resources of the nation most efficiently.
It goes without saying that proper manpower planning is a high necessity in a developing country like India. In Britain, manpower research section of ‘Employment and Productivity’ department undertakes necessary steps for manpower planning. In India, manpower planning is a port of overall planning and so its responsibilities lie with the Planning Commission.
Manpower planning by the Planning Commission covers:
(a) Population projections,
(b) Programme of economic development,
(c) Education facilities,
(d) Occupational distribution and growth, and
(e) Industrial and geographical mobility of personnel.
2. Manpower Planning at Micro-Level:
As manpower planning is important at national level for the maximum use of its manpower resources. It is also necessary at the level of a business unit. Manpower planning is important because it decides the various measures to be taken such as recruitment, selection, promotion, transfer, expansion, etc., by a business unit.
In order to fulfill future manpower demands, this manpower planning is possible at three levels in a unit:
(i) At the departmental level,
(ii) If there are a number of factories of company the planning can be done at the level of each individual factory taken apart; and
(iii) At the top level, i.e., by the board of directors in a company.
If the manpower planning is done at departmental level, two advantages can be derived. Firstly, the advantage of the knowledge of those who are in direct contact with the workers can be taken; and secondly, if the people who are going to execute the plans take part in the planning process, the probabilities for success of the plans would be surely higher.
A committee is formed at this level. The committee would make inspection of the manpower estimates put for the previous year and the actual manpower position of the previous year. The two records would be compared. Then, on the basis of this comparison, estimates for the next year’s manpower requirements and the sources available to fulfil these requirements would be made known.
Then, keeping in view the expected changes within next 3 to 5 years, the committee would sit with manpower planning experts and prepare a format for future manpower planning. This format would be presented before the top level and the final draft would be prepared on its approval.
At the two level, such formats as sent by different departments are considered by an administration committee. A grand plan is prepared by coordinating manpower plans of different departments. This grand plan is then coordinated with the overall planning of the business.
Here, let us see the classes of manpower planning as classified by taking into account the period for which they are formed.
Three such divisions can be made, which are discussed as under:
(i) Short-Term Manpower Planning:
Short-term planning is that which is done for the period of one year. Annual plans are made as a part of Five-Year Plans at national level. These one year plans are short-term plans. Short-term plans are very useful at company level. For better results, short-term plans should be integrated with each other and should be considered as ingredients of a medium-term plan.
(ii) Medium-Term Manpower Planning:
Generally, any plan of period from 2 to 5 years is considered to be a medium-term plan. At national level, medium-term plans are essentially prepared as a part of financial planning, medium-term plans, at national level, for manpower planning give special attention towards employment opportunities.
Such plans at micro-level think much of training and development of employees. Thus, it is possible to visualise the requirements of personnel possessing right type of skills for coming five years.
(iii) Long-Term Manpower Planning:
The planning for a longer period such as 10 to 15 years is known as long-term planning. This type of long-term planning is generally done at national level. This is important to estimate manpower needs of a nation and accordingly to raise educational and training facilities, keeping in view long-term interests of the nation.
Such long-term planning is not necessary at micro-level except a long-term development scheme has been visualised by the management of a firm. But, in normal practice, such long-term planning is not found at company level.
Manpower Planning – 4 Main Determinants of the Final Manpower Plan
Four determinants of the final manpower plan are:
1. Manpower utilization.
2. Manpower supply
3. Training
4. Personnel policies.
Let us see the effect of all these four factors on manpower planning.
Determinant # 1. Manpower Utilization:
The present manpower should be used best for the advantage of the business. Maximum productivity should be achieved for this. This can be done if two factors are taken care of. First, all the employees should be so placed that all the jobs are done most efficiently. For this, job analysis is necessary. Equilibrium should be maintained between what a job demands of an employee and what the employee can do. This is nothing but placing the right man on a right job.
Secondly, the jobs should be assigned to employees in such a way that they derive greatest job satisfaction. For this, factors like zeal of an employee, individual behaviour of the employee, group behaviour, leadership, etc., should be studied.
Manning ratio can be used to see whether maximum productivity is being achieved. This ratio takes proportion of number of employees in the company to total productivity. Manning ratio can only show the level of productivity but cannot give reasons for low productivity.
For this, tests like time-study, motion-study, etc., are performed and the results are implemented. Manpower plan should show the means to increase productivity of employees.
Determinant # 2. Manpower Supply:
In manpower plan, the action necessary to equate manpower requirements and supply are given. Arrangements for internal supply are also mentioned. If there are difficulties in obtaining manpower from external sources, the steps to do away with these difficulties should also be shown.
While thinking of internal supply, promotion policy is also formulated or modified, if necessary. In accordance with future requirements, suggestions to make promotions speedier or slower can be made. The fact that dissatisfaction may arise in employees if promotions are delayed should also be considered.
For development of employees, manpower planner should also think of transfers. Transfers can be suggested keeping in view manpower requirements.
If employees in a department are found to be more than future requirements and if it is not possible to absorb them by transfers or promotion, plan for retrenchment of some of them should also be prepared in advance.
Determinant # 3. Training:
If it is found that a certain type of trained employees will be required in future, necessary training should be imparted to the employees. Training and development schemes should be planned. New recruits should be imparted initial training, while development programmes should be undertaken for betterment of current and experienced employees.
Determinant # 4. Personnel Policies:
Personnel policies affect manpower supply. Personnel policies not only affect scopes for recruitment but also the survival rate of current employees. Salaries, perquisites, conditions of service, etc., are important for this purpose.
Whether present employees would continue for a long time in the organisation depends upon personnel policies. The manpower planner should study present situation of personnel policies and suggest modifications, if necessary.
Manpower Planning – Methods: Executive Judgment, Statistical Techniques, Work Study and Productivity Management
Methods used for Working Out the Manpower Planning:
A firm can adopt the following methods for working out the manpower planning:
(a) Executive Judgment.
(b) Statistical Techniques.
(c) Work Study.
(d) Productivity Management.
(a) Executive Judgments:
This may be done “from the bottom up” by asking the Junior Managers to outline their requirements and passing these estimates up through the organisation for collection and comment or “from the top downward” through a departmental head whose suggested forecast are circulated downwards for discussion. This is the most commonly used method assessing the manpower planning.
(b) Statistical Techniques:
Statistical methods are applied in manpower planning on the assumption that developments in the future will exhibit some continuity with the past.
The statistical methods commonly employed are:
(i) Extrapolation – This consists in extending the ‘trend line’ for a single variable over the time in future.
(ii) Regression and Correlation – This method helps in predicting changes in one variable by reference to changes in the other. Thus if an organisation finds that the number of hours put in by a group of workers bears a strong relationship to the output, which helps for forecasting the requirement of future labour.
(iii) Economic Models – This method involved the development of a complex equation to portray the inter-relationship among different variables. For example the relationship between manpower requirements and measures of environments and profitability, sales etc.
(c) Work Study:
According to this method the forecast should be converted into production scheduled and programmes of work and the work standards fixed on the basis of work study techniques like ‘time and motion study’, ‘work sampling’ etc. are used for finding out how many man-days and men will be required to implement the schedules and programmes.
(d) Productivity Management:
This method is quite akin to the work study. It is concerned with the output per man hour. The output given in the forecast is divided by labour productivity i.e. the output per man hour.
Manpower Planning – Programmes: Performance Appraisal, Management Review, Counselling and Development
With rapid economic growth and the present rate of industrialization of India, it is becoming more and more apparent that there is a serious shortage of adequately trained management personnel. This shortage is felt, more than anywhere else, by the individual industrial and business enterprises whose very survival as an operating company is dependent upon the existence of a regular supply of managerial talent.
This shortage is sought to be met by a process of development through management courses conducted at various levels within the companies, and also through participation in courses organized by outside professional agencies and educational institutions. There is no doubt that such courses do contribute to the development of management but the main problem still remains acute.
It cannot be held that all training and developmental activities within companies are geared to their present and future management requirements. Far better results would be obtained if formal, systematic and planned procedures for management development are introduced on a wider basis within Indian companies than at present.
Systematic and planned management development has come to be regarded as an important technique for manpower planning at a higher level. It is used by progressive companies throughout the industrial world and the result obtained so far have more than compensated the time and effort spent on its conduct.
Actually, this technique simply applies to executive manpower the same principles that have long been used in production planning, inventory control and other management tools. It is as undesirable and dangerous, if not more so, to place an inadequately trained man in a management position as it is to use inferior materials in production.
Yet many companies, which would never consider the use of inferior materials and maintain a strict check by means of material inventory control, would seldom maintain any form of management or executive inventory control to prevent the placement of poorly qualified and inadequately trained persons in responsible management positions.
An Outline of the Programme:
The basic objectives of any manpower development programme are two-fold. First, it provides a plan to strengthen the present effectiveness of management personnel within the company, and, secondly, it assists in meeting their long-term management needs. These ends can be accomplished effectively through a procedure consisting of the following four phases.
A. Performance Appraisal:
The performance appraisal of all management personnel is the first phase in the programme.
This is done in order to determine the effectiveness of each appraises:
(1) Performance on his present job,
(2) What potential for promotion he possesses, and
(3) What type of training would be most beneficial in assisting him to make the most of his assets.
The appraisal is usually conducted by the individual’s immediate superior or by an appraisal committee consisting of members of a level higher than the appraise, with his immediate superior acting as the chairman. It is important that all the members of the committee must be familiar with the work of the person being appraised.
The performance appraisals of all management personnel coming under the programme should be conducted at least every two years and not more frequently than once a year.
For this purpose, specially designed performance appraisal forms are used. The appraisers should objectively discuss, consider and fill in all information about the appraiser’s present performance and potential, as well as recommend how he may be further improved and developed.
The job descriptions of the various positions should be made available to the appraisers for it helps to establish standards against which a person can be judged. Personal data and service records of each appraise should also be available, for they point out abilities and potentialities of which management may not be aware. They also indicate gaps in a man’s background that should receive attention in recommending future development activities.
B. Management Review:
The review by top management of the performance appraisals is the next phase in the programme. It gives an overall picture of the strength and weaknesses of the present management force and also assists’ top management in making decisions on the steps that may be taken to strengthen further the executive manpower within the company.
After all the appraisals have been shifted through the proper channels within the organization and discussed with the heads of the appropriate units, a review of each appraisal is done by a review committee consisting of high ranking executives. They should discuss with the individual appraisers or the chairman of the various appraisal committees the evaluations and recommendations for each of their men, going into greater detail than the information contained in the performance appraisal form.
The review committee should also give advice and malts recommendations to the appraisers on specific action that may be taken by them to improve and develop their subordinates.
The overall review of the whole management force should be performed by the chief executive of the company. This is done by means of various management inventory records as well as through colour-coded organization and replacement charts for each unit or segment of the company, which are prepared from the performance appraisals. These records and charts indicate in a concise form the current status of each management man and also show just how prepared the company is to meet any vacancy that might arise through promotions, retirements or exigencies.
There are various methods of maintaining management inventory records and charts. They are in use in several companies abroad who leaders in the field of management development programmes are. They are factual and concise and yet through the use of colours and symbols provide a complete picture of management situations in any given segment of the company.
They are of particular value to the busy chief executive who is interested in the overall picture of his organization’s status as far as his management force is concerned. They highlight strong points and weak points, and emphasize those areas where special attention is needed.
C. Counselling:
This is the third phase when a superior should discuss individually with his subordinates their respective performance appraisals.
This would be with the object of:
(1) Communicating to them as to where they stand in relation to the appraisal made of their performance by higher management.
(2) Making them realize their weaknesses as well as their strengths.
(3) Exploring and pursuing the recommendations and decisions made during the performance appraisals and the management review for their improvement.
After the individual appraisers or the chairmen of the appraisal committees have met the review committee and discussed with them the evaluations of their men, they should be required to meet each one of their subordinates separately for a counselling session.
Care should be taken that these sessions are conducted with the preparation and preliminary planning on the part of the counsellor. He should be thoroughly familiar with how the appraisee’s present performance compares with his previous performance and also of the recommendations and decisions already taken for the training and development of each of his men.
In order to enable him to adjust to this approach he should always keep in mind the appraisee’s temperament, age, experience, potential and other factors that might help or interfere with his plans for effective development.
Those experienced in the field of management development agree that the most satisfactory counselling sessions are those in which the counseling is encouraged to do a good share of the talking. Both the parties should review the performance of the previous appraisal period, and emphasis should be placed on actual results or accomplishments rather than on personality traits. Once they agree upon those areas which are in greatest need of improvement they would jointly work out a line of action to be followed during the next year or two.
The success of counselling would depend greatly upon the ability of the counsellor to conduct the session, and channel them in the right direction. It must be remembered that the heart of all counselling is planning for the improvement of future performance.
The feeling should not be permitted to prevail amongst the individuals that the counsellor in serving in a judicial role, but is there as a guide to help the subordinate to improve by himself or through the assistance of training facilities provided by the company. Having an incorrect attitude on either side during counselling could be disastrous. While, on the other hand, a successful session can pay for itself a thousand-fold for all concerned.
An employee at whatever level in an organization would always like to know how he is faring in his work and what his superiors think of him. If the correct approach is made in appraising and counselling then he would certainly appreciate the time and thought that may have gone in the process. The human ego being what it is, it is always flattered to know that senior executives are spending time talking about him and his future within the company.
D. Development:
This is the final phase in the programme when steps are taken to implement the decisions regarding the training and development of management personnel. In this regard, two avenues of action may arise. First, specific small changes in methods or personality may be agreed upon during the counselling meeting that can be put into effect by the individual himself. Secondly, a definite training and development plan and time-table for each member of management is established on a long- range basis. Both avenues of action are pursued.
The real development process can take place only through the efforts of the individual himself. The whole programme becomes meaningless if he fails to utilize the information gathered by him during counselling or has no desire to do something about his personal-failings.
All the various phases or steps of the programme only act as a framework upon which the individual works out his own pattern of achievement. The most that the administration of a formalized programme can be expected to accomplish is to point out, to guide and to suggest.
In addition, the performance appraisals of die whole management force should be analysed to determine the areas where development is most needed. Based, on this analysis and guided by the advice of line management a co-ordinated plan for management training should be worked out which may be imparted to individuals and groups through various methods, some of these may be listed under the following three headings –
I. On-the-Job-Training:
(1) On-the-job-coaching
(2) Special Assignments
(3) Job Rotation
(4) “Assistant to” Assignments
(5) Enlargement of Present Job
(6) Staff Meetings and Committee Assignments
Group Instruction within the Company:
(1) Lecture-cum-Discussion
(2) Panel Discussion
(3) Conference Methods
(4) Case Studies
(5) Role Playing
II. External Courses:
(1) Participation in Professional Societies and Conferences
(2) Field Trips to Other Industries
(3) Advanced University Courses
(4) Training through Management Consultants
Various training and development activities should be conducted for individual and groups as planned during the next year or two and after this is completed the whole process of performance appraisal, management review, counselling and further development programme is a continuous process.
(1) Explaining and clarifying question that may arise during the implementation of the programme.
(2) Training of line management in making objective performance appraisals either individual or through committees.
(3) Developing and maintaining personnel inventory records for the use and interpretation of top management during the management review.
(4) Advising line management in the conduct of proper counselling techniques and in formulating training and development plans for individuals.
(5) Planning and assisting in the organization and conduct of company training courses.
(6) Designing and supplying all forms necessary for the administration of the programme.
The success of a formalized management development programme will depend largely on the creation of sustained interest in the plan by all management personnel and on purposeful and informal contacts between one level of management and the next, thus linking the entire management group.
Each manager should feel that it is important that he should assist in the development of his subordinates, who in turn must be made aware that they are being equipped to qualify for higher responsibilities within the company. When this attitude is widespread the emphasis would rightly be on personal relationship and informal contacts rather than on the mechanics of the programme.
The above views on manpower development programme are quite in conformity of the policy adopted by the then Prime Minister Rajeev Gandhi. According to his policy multinational cooperation will be allotted to open businesses in India; along with the entry of multi-national cooperation’s. The MNC’s will bring with them the necessary technology. This will greatly help the Indianization of the technology adopted by the M.N.C.
Another facet of Mr. Rajeev Gandhi’s computerization will be introduced in all the industries in India. The M.N.C.’s as well as computerization will facilitate. The pace of technology is the country and for developed…. developed managers will be badly required.
Manpower Planning – Advantages
An organisation must plan out its manpower requirements well in advance so that it could compete effectively with its competitors in the market. A well thought-out-manpower plan provides adequate lead time for recruitment, selection and training of personnel. It becomes all the more crucial because the lead time for procuring personnel is a time consuming process and in certain cases one may not always get the requisite type of personnel needed for the jobs.
Non-availability of suitable manpower may result in postponement or delays in executing new projects and expansion programmes which ultimately lead to lower efficiency and productivity further.
(1) It Reduces Personnel Costs:
It reduces personnel costs, because of management’s ability to anticipate shortage or surpluses of manpower and correct these imbalances before they become unmanageable and expensive.
(2) To Plan the Development of the Employees:
A better basis for planning employee’s development that is designed to make optimum use of worker’s attitudes within the organisation.
(3) Manpower Inventory:
Personnel or manpower inventory can provide information to management for the interval succession of managerial personnel if there is a turnover which is not anticipated.
(4) It Helps in Formulating Managerial Succession Plans:
Manpower planning helps in formulating managerial succession plans as a part of the replacement planning process which is necessitated when job change plans for managers are formulated.
(5) Thorough Performance Appraisal and Identification:
Manpower planning enables thorough performance appraisals, identification of gaps of the existing manpower so that corrective training could be imported. Thus, the training programme becomes more effective.
(6) Improvement in Business Planning Process:
Further, it leads to the improvement of business planning process.
(7) Employment Opportunities:
More employment opportunities including women and minority groups in future growth plans and identifying the specific development or training programme needed today to make specific skills available tomorrow.
(8) Greater Awareness among Workers:
Greater awareness among workers is the importance of sound manpower management throughout at all levels of the organisation.
Manpower Planning – Major Obstacles Faced by Organisation in the Process
Following are the main obstacles that organisations face in the process of manpower planning:
Obstacle # 1. Under Utilization of Manpower:
The biggest obstacle in case of manpower planning is the fact that the industries in general are not making optimum use of their manpower and once manpower planning begins, it encounters heavy odds in stepping up the utilization.
Obstacle # 2. Degree of Absenteeism:
Absenteeism is quite high and has been increasing since last few years.
Obstacle # 3. Lack of Education and Skilled Labour:
The extent of illiteracy and the slow pace of development of the skilled categories account for low productivity in employees. Low productivity has implications for manpower planning.
Obstacle # 4. Manpower Control and Review:
i. Any increase in manpower is considered at the top level of management
ii. On the basis of manpower plans, personnel budgets are prepared. These act as control mechanisms to keep the manpower under certain broadly defined limits.
iii. The productivity of any organisation is usually calculated using the formula – Productivity = Output/Input
But a rough index of employee productivity is calculated as follows – Employee Productivity = Total Production/Total No. of Employees
iv. Exit Interviews, the rate of turnover and rate of absenteeism are source of vital information on the satisfaction level of manpower. For conservation of Human Resources and better utilization of men studying these condition, manpower control would have to take into account the data to make meaningful analysis.
v. Extent of Overtime – The amount of overtime paid may be due to real shortage of men, ineffective management or improper utilization of manpower. Manpower control would require a careful study of overtime statistics.