Purpose of manpower planning

a. Right-sizing the human resource requirements of the organisation: In an existing organisation, there is a constant need for right-sizing the organisation. In the organisation, some posts may fall vacant as a result of retirement, accidents, resignations, promotions or death of employees. Consequently, there is constant need of replacing people. Manpower planning estimates future requirements of the organisation and helps to ensure that human resources of right kind, right number, in right time and right place.

b. To meet up requirements of the organisation: To do work in the organisation, every organisation needs personnel of desired skill, knowledge and experience. This human resources requirement of organisation can be effectively fulfilled through proper human resource planning. It helps in defining the number of personnel as well as kind of personnel required to satisfy its needs. It ensures the reservoir of desired human resources as and when required.

c. To counterbalance insecurity and change: There must be proper utilisation of human and non-human resources in the organisation. Sometimes the organisation may have adequate non-human resources e.g. machines, materials and money but inadequate human resources as a result, manufacturing process/production cannot be started. Manpower planning helps to offset uncertainties and changes as far as possible and enables to ensure availability of human resources of the right kind, at right time and at right place.

d. To Check Joblessness: In the exercise of right-sizing of employees by the organisation, some of the employees may become surplus. It means their services are no more required in the organisation. It tries to foresee

the need for redundancy. It plans to check job loss or to provide for alternative employment in consultation with various concerned parties and authorities.

e. To meet Technological changes and Globalization: Technological changes and globalisation usher in change in the method of products and distribution of production and services and in management techniques. These changes may also require a change in the skills of employees, as well as change in the number of employees required. It is manpower planning that enables organisations to cope with such changes.

f. To meet expansion and diversification needs of the organisation: It helps to execute future plans of the organisation regarding expansion, diversification and modernization. Through manpower planning it is ensured that employees in right number and of right kind are available when required to meet these needs of the organisation. It ensures that people of desired skills and knowledge are available to handle the challenging job requirements.

g. To check labour imbalance: The need for manpower planning is also felt in order to identify areas of surplus personnel or areas in which there is shortage of personnel. Then, in case of surplus personnel, it can be redeployed in other areas of organisation. Conversely, in case of shortage of personnel, it can be made good by downsizing the work force.

h. To fulfil Individual needs of the Employees: It helps to satisfy the individual needs of the employees for promotions, transfer, salary encashment, better benefits etc.

i. For Training and Development of Employees: There is constant need of training and development of employees as a result of changing requirements of the organisation. It provides scope for advancement and development of employees through training and development etc. Thus, it helps in meeting the future needs of the organisation of highly skilled employees.

j. For Budget Formulation: It helps in anticipating the cost of human resources e.g. salary and other benefits etc. It facilitates the formulation of human resource budget for various departments/divisions of the organisation. So, it may also help in, the formulation of suitable budgets in an organisation.

Benefits of Manpower Planning

1. Manpower planning meets the organisation need for right type of people in right number at right times.

2. By maintaining a balance between demand for and supply of human resources, manpower planning makes optimum use of human resources, on the one hand, and reduces labour cost substantially, on the other.

3. Careful consideration of likely future events, through manpower planning might lead to the discovery of better means for managing human resources. Thus, foreseeable pitfalls might be avoided.

4. Manpower shortfalls and surpluses may be avoided, to a large extent.

5. Manpower planning helps the organisation create and develop training and succession planning for employees and managers. Thus, it provides

enough lead time for internal succession of employees to higher positions through promotions.

6. It also provides multiple gains to the employees by way of promotions, increase in emoluments and other perquisites and fringe benefits.

7. Some of the problems of managing change may be foreseen and their consequences mitigated. Consultations with affected groups and individuals can take place at an early stage in the change process. This may avoid resistance for change.

8. Manpower planning compels management to asses critically the strength and weaknesses of its employees and personnel policies on continuous basis and, in turn, take corrective measures to improve the situation.

9. Through manpower planning, duplication of efforts and conflict among efforts can be avoided, on the one hand, and coordination of worker’s efforts can be improved, on the other.

10. Last but no means the least, with increase in skill, knowledge, potentialities, productivity and job satisfaction, organisation becomes the main beneficiary. Organisation is benefitted in terms of increase in prosperity/production, growth, development, profit and, thus, an edge over its competitors in the market