How Do Companies Really Handle Manpower Planning? Let's Discuss Strategies and Challenges

Good morning,

I want to know how companies perform manpower planning in their organization.

Dear,

Manpower planning is generally done considering the following:

1. Volume of jobs/shop loading/orders booked for the next financial year.
2. Number of effective manufacturing man-hours available in that year (excluding support service department).
3. Various categories of workmen and staff.
4. Efficiency factors (in the case of workmen) (e.g., 8 hrs. working of permanent employee = 6 hrs. working of temp./casual worker and 4 hrs. working of trainee/apprentice).
5. Future plans (short-term and long-term goals).

Thus, you need to carry out backward calculation and derive the number of employees (category-wise/cadre-wise) required during the year.

Hope this will serve your purpose. Feel free to ask in case of any further queries.

Regards,
Ketan Desai

Hi Everyone,

I am currently working in the Manpower Planning section of the HR department in an oil company in the UAE.

Manpower planning is essential to make the optimum utilization of the greatest resource available, i.e., manpower, for the success of any organization.

The first step in Manpower planning is to have a plan and then a Manpower Budget.

The initial step is that each department head must submit their department's manpower requirements to the HR department. The department heads will determine how many new staff they would require in the next financial year or if there needs to be a change in job titles due to changing work needs.

The HR department then creates a draft Manpower Budget based on the new requirements and submits it to the Financial Controller and the management, who will review and give their approval.

After this, the HR department prepares the Final Manpower Budget, and the finance department prepares the Salary Budget. Of course, all approvals for the budgets are subject to the profit reports and the company's annual performance.

The last step is to proceed with retention, retrenchment, or recruitment of staff.

This is the process our company follows. However, the following are the steps in Manpower planning:

1. Predict manpower plans

2. Design job descriptions and the job requirements

3. Find adequate sources of recruitment

4. Make internal promotion possible

5. Address expected losses due to retirement, transfer, and other issues

6. Plan for replacements due to accidents, deaths, dismissals, and promotions.