Steps in manpower planning

1. Examining organizational objectives and policies: Manpower planning starts
with examining the overall objectives of the organization. In fact, manpower plan
should be integrated into the overall objectives. The number of employees required to
perform various operations will be derived from the objectives of the Organization.
Overall objectives of the Organization have to be understood in order to draw a good
manpower plan.

2. Assessing manpower demand: Manpower demand is the number of people
required to handle the present jobs. Forecasting the demand for manpower is the
process of estimating the future quantity and quality of employees required. For
instance in a Retail Organization the manpower demand is forecasted based on the
work to be performed in every Retail Stores. Obviously the long term corporate plans,
budgets and annual plans would become basis for forecasting the demand for labor.
This is a common activity in most Organizations. The existing job design and job
analysis provide useful information in this regard. The demand forecasting should
consider several internal and external factors. External factors are political,
economical, technological, legal, ecological, governmental, social, and ethical factors.
These factors influence the number and quality of manpower required.

3. Forecasting supply of manpower: Supply forecast is also known as manpower
inventory. The objective of preparing manpower inventory is to find out the number
and quality of manpower available within the Organization to employee in various jobs
identified in the Organisation. Development of supply of manpower data relating to
present human resources in terms of components, number, designations, and
department wise should be developed. Here potential losses in the existing manpower
should be considered. The loss of manpower arises out of voluntary retirements,
deaths, retirements, dismissals, layoffs, disablement due to ill health, accidents and
other losses occurring due to poor attitude and low commitment to the Organisation.
Transfers, promotions and demotions, transfers and conditions of work also effect
supply of manpower.




4. Gap analysis: Gap analysis is the process of identifying the difference in the
estimated number of employees and actual number of employees available in the
Organization. This enables to determine the quantity and quality of manpower
needed. This gap reveals the number of personnel to be recruited to fill the gaps.

5. Designing manpower programems: The next step in manpower planning is
designing various programmes relating to manpower. In this regard, changes in the
product or services in the Organization, competition and internal union pressures
should be taken into consideration. Manpower plan details the number of employees
required. Based on this, the organization should make a program of recruitment.
Selection program should be designed based on the source of recruitment and
requirement to the job. In a retail stores the shelf sorters have been given training on
billing mechanism and technology of billing, they can be now redeployed by promoting
them as billing assistants. This enables motivation and satisfaction that they are
promoted to next higher-level jobs. Training and development of existing personnel is
needed in order to ensure their productivity and satisfaction. Manpower plan enables
to decide number of trainees, type of training, methods of training, quality of trainers,
frequency of training programs and the needed budget required. Manpower plan
should enable to plan a program of retention. In the globalization scenario, retention
has become a major challenge to all Organizations. Retail sector is no exception to
this phenomenon. In Retail Sector employees leave Organization due to poor
compensation, attractive pay packages offered by the competitors, frequent conflicts
with boss, colleagues and customers, and unstable manpower policies like promotion,
recognitions, rewards, financial help etc. Thus, manpower plan should help to design a
comprehensive plan of retention of employees.

6. Manpower plan implementation: Implementation is the process of converting
plan into action. Implementation of manpower plan is done with the help of various
programmes designed. In the process of implementation, it should be noted that a
close coordination is required with the other section of the human resource
management department.

7. Evaluation and feedback: After implementation of various plans and
programmes, it is necessary to evaluate the effectiveness of these programmes. In
the process, evaluation takes into account the objectives of manpower plan. The
extent of attainment of objectives within the given time is evaluated with the help of
certain parameters. Some times manpower plans may be drawn on too conservative
manner or otherwise. So a critical feedback is required to see that any lapses
identified do not reoccur in the subsequent plans. This ensured improvement in the
manpower planning during the course of time.