What is significance of manpower planning?

Answer 1

Manpower planning is a process of assessing the need for manpower keeping in view the overall Organizational objectives and policies, forecasting the supply of manpower and matching the demand and supply with the help of various manpower programmes. It also consists of overseeing implementation and evaluation of the plan and final integration with the other human resource plans.

The steps required in manpower planning:

1. Examining organizational objectives and policies

2. Assessing manpower demand

3. Forecasting supply of manpower

4. Gap analysis

5. Designing manpower programmes

6. Manpower plan implementation

7. Evaluation and feedback

Answer 2

Significance of Human Resource Planning or Manpower planning

Provides quality workforce

Effective Human Resource Planning fulfills the organization needs for a quality workforce. Quality workforce aids in giving a company a competitive advantage over its rivals.

Reduces labor costs

A proper Human Resource plan reduces labor costs substantially by maintaining a balance between demand for and supply of HR i.e. works as a cost saving device for the company.

Facilitates rise in skills

It facilitates the rise in skills, abilities and potential of the workforce through training and development. Training employees helps them improve in their working capacity thus tend to develop to a quality workforce.

Effective motivation

An effective Human Resource Plan provides multiple gains to the employee by way of promotions, increase in salary and other fringe benefits. This definitely boosts employee morale.

Safety of health

It provides for welfare, health and safety of its employees thus leads to an increase in productivity of the employees in the long run.

Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.

Efficient utilization- Efficient management of personnel becomes an important function in the industrialization world of today. Setting of large scale enterprises requires management of large scale manpower. It can be effectively done through staffing function.

Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong through effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.

Higher productivity- Productivity level increases when resources are utilized in best possible manner. Higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and its related activities (Performance appraisal, training and development, remuneration)