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



Analysis and investigation

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.