The MPP process goes as follows:

The resource manager is the one, who cares the MPP

Conducted in each quarter

He is informed by respective Operations Manager of each Business Unit

About the attrition and required headcount

PEOPLE INVOLVED in MPP

1.Resource Manager

2.Operations Manager

3.Recruitment Team

Factors affecting MPP

1.Level of business

2.Attrition

3.Season planning

4.Growth in process

5.Market condition

6.Expansion & contraction

Methods of demand forecasting and supply forecasting done at the organization

Demand Forecasting

1.Based on trends of attrition in each quarter

2.Growth prospect
Supply Forecasting

1.Based on demand

2.Based on channels of recruitment

3.Trends in each channel analysed

MANPOWER planning is a simple process, and consists of

five essential elements:

* Analysing the current manpower resource

* Reviewing employee utilization

* Forecasting the demand for employees

* Forecasting supply

* Developing a manpower plan

BUT IN REAL LIFE, you need a lot of base information to work with . If you are doing it for the first
time yourself and the company, you need to collect / collate the database,

before you could a meaning exercise.

The manpower planning is interlinked with Organization planning and the HR planning , and one
cannot be planned without the support of the other two.
Whether it is a

-organization with no expansion plan or

-organization with major expansion plan or

-organization start up,

the conceptual approach is the same. You may not consider all the elements in all cases.

Other important factors that need to be considered are

-investment dimension

-time frame

-product plan / range

-nature of operation [ mfg. marketing or mfg only or trading only etc]

-geographical coverage

-distribution / channel plan etc etc.

These factors plus the corporate planning objectives / strategies plus the consequences of the
inbalances from the ANALYSIS & INVESTIGATIONS would dictate the creation of MANPOWER/ HR
planning strategies/ tactics [ policies/ procedures/practices etc]

The inbalances could come from

-organization circumstances

-opportunities and expectations

-requirements and availability

-behavioural consequences

-policy on organization structure

-policy on individuals
OBJECTIVES AND NATURE OF MANPOWER MANAGEMENT

Manpower and HR plannings involves applying the basic planning process to the human resource
needs of the organization. To be effective any MP/ HR plan must be derived from the CORPORATE
strategic plan of the organization. The success of the MR/HR depends largely on how closely the
HRdepartment can integrate effective people planning with the organization's business planning
process.

Corporate business planning seeks to identify various factors critical to the success of the
organization.It also focuses on how the organization can become better positioned and equipped to
compete in the market. This provides

-a clear statement of the organization's mission.

-a commitment from senior management to the mission.

-an explicit statement of assumptions.

-a statement of objectives / strategies.

-a plan of action in light of available or acquirable resources , including human resources.

MP/HR planning contributes significantly to the corporate business process by providing the means to
accomplish the outcomes desired from the planning process. In essence

the HR demands and needs are derived from the corporate strategic business plan and then compared
with HR availability.

MANPOWER SYSTEM

Once the corporate objectives , strategies and plans are outlined, the directions are filtered down to
the business units and departments, involving all levels of management in the organizational planning
process.

The business units management and departments management work closely with the HR management
to determine the people requirements to achieve their objectives.

Manpower planning has five essential elements:

* Analysing the current manpower resource

* Reviewing employee utilization

* Forecasting the demand for employees

* Forecasting supply

* Developing a manpower plan

While these can be seen as sequential steps, in practice thinking about manpower can begin with
almost any of these. This is what makes manpower planning a dynamic process. For instance, a
manufacturing function might want to introduce new machinery that will do a job to a better standard
and more quickly. To justify the expenditure, the manufacturing manager will be expected to show a
saving on labour, which may translate into fewer people. In another case, a downturn in business may
provoke an urgent drive to reduce overheads and cuts in office staff. The point is that manpower
decisions have been triggered outside the HRM function, and most certainly outside the hands of
anyone who carries the title of manpower planner.

The other point that the two examples highlight is that planning can have a short , medium-, and
long-term aspect. The long term is necessary to provide a framework for managing broad trends.
Long-term planning should be done regularly and systematically, and plans kept under review. The
short to medium term, however, is what matters to most managers.

KEY INFLUENCE ON MANPOWER PLANNING--INDICATORS

Analysing the current manpower resource

Internal labour

Market

Turnover

Cohort analysis

Profiles

Skills audit

Succession

Manpower system

External labour Market

Quality

Availability

Sources

Price [rewards ]

Organization

Assessment

Performance

Productivity

Structure

Technology

Skill change

Rewards

Corporate Strategy

Growth/decay
New markets

opportunities

Objectives

Manpower system

Work methods

KEY INFLUENCES OF MANPOWER PLANNING-CURRENT STATUS

The starting point for planning is to have proper records of existing employees. Basic records cover:

* Personal data - including date of birth (age), qualifications, special skills, and training record

* Position data - including current job and work history in the organization

* Financial data - including current pay, how this is made up (for example, overtime and shift premia),
incremental scale, and pension rights.

Many of these details will traditionally be kept for payroll purposes.

*Headcount analysis, by age, service, skills, grades, and department. The overall profile of the
workforce generated in this way is basic to any manpower planning system, and a vital aid to
management decision making on things like redundancy. It can highlight impending problems, such as
the retirement of a whole cohort of employees, and the need for fresh recruitment and training.

KEY INFLUENCES OF MANPOWER PLANNING--WASTAGES

*Employee turnover, using data on joiners and leavers over a year. Along with headcount analysis,
this is basic to forecasting supply. It may also identify problems - for example, particular jobs where
there is high turnover - and stimulate corrective action
*Absenteeism and sickness. This will be especially geared to alerting management to problems and
the need for corrective action. It will interact with other indices concerned with productivity (such as
the amounts of overtime that are incurred simply to provide cover for absenteeism and sickness). Like
turnover data, this information clearly needs to be generated on an on-going basis, as distinct from
basic records (the 'inventory'). It is likely to be a natural product of payroll data and the subject of
regular reports from line functional management.

*Overall structure of the paybill, including how salary costs will rise with increments and reduce with
new entrants at lower points in a scale

*Actual paybill against budget, with areas of variance.

Analysis in these various ways can identify significant issues of performance and productivity, and
imbalances that may need to be corrected. It underpins the shift in manpower planning from
macro-forecasting towards the more problematic approach.

KEY INFLUENCES OF MANPOWER PLANNING - labor utilization

The audit activity described above may be supplemented from time to time by data from other
sources concerned with how efficiently people are being used. Whether this is part of a normal
auditing process will depend from company to company. Data on analysis of manning ratios ('directs'
to 'indirects') is a case in point. This may come under review only when cost pressures or the example
of a competitor cutting indirect staff focuses attention on labour costs. Many large organizations have
permanent staffs using work study and O&M (organization and methods) techniques to undertake
periodic reviews of working methods and the efficiency of staff levels.

Forecasting the demand for labour

At first, forecasting the demand for labor might seem straightforward. Unfortunately, it is not. The
problem is how to convert volumes of work into numbers of people. Two of the favoured means for
doing this are ratio-trend analysis and the use of work study standards.
Ratio-trend analysis

The basic principle here is to say if it takes six people, for example, to perform an existing amount of
work, it will take twelve people to do twice as much. Organizations measure activity levels in a variety
of different ways. The ratio between 'directs' and 'indirect' in manufacturing is a classic one.

Individual departments in an organization also will have their own rule-of-thumb measures. A sales
department, for instance, may have an idea of the number of customer calls a salesperson should
make in a week, and, indeed, use this as one criterion for monitoring sales efficiency. If the business
plan projects an increase in the number of new customers, this can be translated into a proportionate
increase in the sales force.

The problem with measures like these is that they are crude. They take no account of economies (or
dis economies) of scale which affect efficiencies; nor of local conditions; nor of the potential of new
methods and technology to increase efficiencies.

What ratio-trend analysis can do is to provide ballpark figures, which then focus attention on ways of
improving efficiencies and a closer look at the underlying implications.

Work study

Work study is a more systematic method, but limited to manufacturing, certain other areas of manual
work, and large clerical functions. For it to be worth while and do-able in the first place, an activity
has to be repeated sufficiently often to generate a reliable standard and justify the cost of measuring
it.

KEY INFLUENCES OF MANPOWER PLANNING - Forecasting supply

Forecasting supply has two components, internal and external. Forecasting external supply means
understanding the impact on recruitment and retention of such factors as:

•Demographic patterns
•Levels of unemployment

•Developments in the local economy like transport, education, and housing

•The pay policies of other employers, locally and nationally, and their plans for growth and
contraction.