Manpower planning is a very important component of HR management. A thorough assessment of the present resources and the future estimated resources is done. Staffing has to be optimum. With understaffing, the organization loses orders, customers, economies of specialization and scale and profits. Overstaffing results in losses in terms of salaries and competence. Manpower planning means developing strategies to match the requirement of the staff and the available positions. The people making the plans must have a full know-how of the organization's plans. Manpower planning is useful to the organization and employees.
Planning and Forecasting Diligently
To plan staffing, the HR department makes an evaluation of the past and future. The present needs and resources are contrasted with future needs and resources. For example, if 10 workers produce 100 units of the end product and the demand of the product is likely to increase 150 percent, how many more workers would be required to produce them without buying new machinery or by buying newer, more sophisticated machines? These kinds of questions are addressed, and the more profitable trade-off is chosen.
The job requirements and description are defined and designed. The skills that the chosen candidates must possess in order to do the job are tabulated. Then the process of recruitment starts. The HR department takes a call as to whether to recruit internally or invite applications from external candidates. Whether internal or external, candidates are put to grueling tests. These could be all or any of the following: personal interviews, group discussions, written tests, past credential reviews. These are usually step-by-step elimination methods. In other words, when an applicant clears Step1, she gets to Step 2.
Planning for Vacancies and Contingencies
HR must also plan for replacement of the chosen candidates. There could be deaths and accidents causing vacancies in the organization. People may leave for better avenues and prospects. The chosen candidates could be further promoted or dismissed from their offices. There could be inter- and intra-company transfers and retirements. Production could increase significantly, so manpower is needed again.