Request For Experience Sharing On Manpower Planning

Hello Everybody,

I'm working in a private limited company. It has grown in an unplanned way since 1970, i.e., without proper structure/manpower planning. The number of employees kept on increasing as per business growth/requirement. Now, it needs to be reviewed and rationalized to improve manpower productivity. I'm taking up this assignment in one of the units. Hence, I request group members to share their experiences or suggest case studies/books on the subject matter so that I can address related issues.

Thanks & Regards,
Gaurang Sheth

Hi Gaurang,

See the basic steps of manpower planning; you can find this information in any HR book. However, manpower planning should always be organization-based.

First, you need to have the entire work structure defined:

- Job Description
- Job Specification
- The roles performed in each job

Accordingly, get an idea of the existing manpower in your organization. Create an inventory - profile-wise, age-wise, skill-wise (technical, non-technical), experience-wise, and any other organization-specific parameters.

Then, forecast the future demand and supply of manpower. Also, calculate the number of existing employees, individuals leaving the organization during the year, the attrition rate, the number of people who will retire, etc., and the types of employee movements within the organization.

Based on your business forecasts, calculate the future manpower requirements and plan accordingly. You have to calculate the manpower requirements job-wise.

The above is a very basic way of manpower planning. There is more to it; I just wrote down whatever came to my mind.

For any other queries, please revert back.

Regards,

Rajashri

Hi Gaurang,

Just to add to what Rajashri has mentioned, also consider the nature of the industry you are in.

Firstly, gain an understanding of the entire manufacturing process. Conduct a time study of the process. To begin, be present on the shop floor, observe the process, and note the required time.

For a continuous process industry, distinguish between critical and non-critical processes. Consult with the department head and try to estimate the required workforce based on your observations.

If it's a batch or piece production plant, analyze the time needed to complete one piece. Review each activity along with its time and physical requirements.

Next, based on the business plan and discussions with department heads, determine the necessary manpower.

Create an inventory of available manpower, considering factors like age, qualifications, experience, and background. Align the criteria with the process or plant requirements and compare it with the finalized plan.

Evaluate the attrition rate and upcoming retirements, especially considering the establishment date in the 1970s, to forecast the workforce changes.

In case of surplus staff, accounting for absenteeism and leave rates, consider a common pool rather than assigning individuals to specific departments. This approach will help develop a versatile workforce for potential future restructuring.

I have experience handling similar cases at GE (Lighting Division) involving restructuring and at Suzlon's new plant project. These experiences have provided valuable insights on managing such situations.

This summarizes my key learnings. I hope you find them beneficial.

Regards,

Anand