Manpower Planning is the planning, organization, directing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that the individual, organizational and social objectives are accomplished. Manpower planning or personnel management is the management of the people employed. The employee is treated as an economic man and his services are exchanged for wages or salary.
- Job analysis
- Skill analysis
- Skill inventory
- Performance appraisal
- Manpower inventory
- Use and applicability of statistical and mathematical methods
Steps that are followed in manpower planning are:
- Analyzing the current manpower inventory
- Making future manpower forecasts
- Developing employment programs
- Design training programs
Importance of Manpower planning:
- Key to managerial functions i.e. planning, organizing, directing and controlling are based on manpower planning.
- It leads to efficient management of personnel as setting up of large scale enterprises requires management of large scale manpower.
- Various motivational plans and incentives are devised to achieve maximum outputs from their employees.
- Productivity level of the plant increases when the resources are utilized in the best possible manner. Higher productivity is the result of the minimum wastage of manpower energy, time and efforts.
- Strong human relations lead to effective and concerted efforts towards achieving maximum productivity and increase the output of team efforts.