After reading this article you will learn about:- 1. Definition of Manpower Planning 2. Factors Affecting Manpower Planning 3. Objectives 4. Principles.

Definition of Manpower Planning:

Manpower planning may, be defined as, “the replacement planning which analyse labour turnover, recruitment policy, promotion, development and maintenance of employee programmes and assess the future needs of the organization so that sufficient number of persons may be procured well in time.”

Manpower planning is “the process by which management determines how the organization should move from its current manpower position to its desired manpower position.”


“Manpower, the labour force is not only an active, deep linking and essential factor of production, but it activates their factors of productions.”

“Manpower planning is a dual process, which identifies le manpower requirement, in future and develops, its manpower resources accordingly.

According to M.N. Rudrobasavraj, “Manpower planning may be defined as a strategy for acquisition, utilisation, improvement and presentation of an enterprise human resources.”

Edwin B. Geisler defined as, “Manpower planning is the process, including forecasting, developing, and controlling by which a firm ensures that it has the right number of people and the right kind of people at the right places at the right me, doing work for which they are economically most useful.”


Coleman Bruce P defined as, “Man power planning is the process of determining manpower requirements and the leans for meeting these requirements in order to carry out le integrated plans of the organization.”

E.W. Velter, defines manpower planning as “The process which management determines how the organisation should love from its current manpower position. Through planning le management strives to have the right number and right type of people at the right place, at the right time doing things, which result in both the organisation and the individual receiving maximum long hour unbenefits.”

Edwin B. Flippo defind Manpower planning as, “the planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and social goals.”

Factors Affecting Manpower Planning:

The following are the factors affecting manpower planning which constitute the basis of manpower planning:


1. Exciting Stock of Manpower:

This is the first basis of manpower planning and it is the starting point of all planning processes. By studying the position of total stock of manpower, by dividing it into groups on the basis of function, occupation, level of skill or qualification, we can analyse the existing stock of manpower.

2. Wastage:

The second basis of manpower planning is wastage. For a good planning, appropriate adjustment in the existing stock of manpower should be made for the possible wastage of manpower caused by any foreseeable changes in the organization. Labour turnover rate, labour stability rate and the period of active management can be studied to analyse the wastage of manpower. All these factors should be taken into consideration to make necessary adjustments in the requirement of personnel to plan the manpower.


3. Future Manpower Requirement:

We can easily measure the future requirements of manpower, after assessing the existing stock of manpower and analysing the several factors of wastage.

To analyse the future manpower requirements, the following factors should be considered:

Future plans of the company:


a. Government plans and programmes.

b. Employment policy.

c. Demand and supply.

d. Manpower in future.


e. Labour productivity.

f. Other factors of production and replacement needs

Future manpower requirements:

a. Direct and indirect labour cost


b. Administrative cost

c. Overtime allowance is payable to worker.

d. Maintenance and repair charge.

e. Wages can be paid according to time rate or price rate system.

f. Worker’s requirement during peak and sluggish period.

4. Future Withdrawal of Workers:


Effective manpower requires that the human resource manager should take into consideration decrease in the working force in future due to retirement demotion.

5. Future availability of people dismissal and resignation.

6. Expected changes in the composition of labour force.

7. Workers cost benefit analysis.

Objectives of Manpower Planning:

The objectives or importance of manpower planning are given below:

1. Optimum Productivity:


Skilled and qualified workers are recruited or they become so through the training programme provided by the organization, through the manpower planning. Hence, an organization can achieve the effective optimum utilization of human potential, which will result in optimum productivity and thereby, the production is carried out on uninterrupted.

2. Reduction in Labour cost:

Effective use of manpower, and optimum productivity will reduce the wastage. It will reduce the labour cost.

3. Effective Recruitment and Selection:

Right person can be placed at the right job and at right time through manpower planning. Because future need can be predicted by manpower planning. Therefore, effective recruitment and selection can be achieved so that no need to spend much amount on the training and labour turnover can be reduced.

4. Group Satisfaction:


By establishing mutually satisfying work relationship between all the members of the organization, group satisfaction and team spirit can be achieved.

5. It helps in maximizing individual development.

6. Effective manpower planning may help the management in developing the good employer-employee relationship. It leads to improve the industrial relations.

7. It maximizes the contributions and the satisfaction of the employees of a business.

8. It gives due consideration to the capacities, interests, opportunities and reactions of the workers.

9. To develop the future training and management development needs.


10. To avoid the staff surplus and unnecessary dismissals in the manpower planning.

11. To control the wages and salary costs.

Principles of Manpower Planning:

1. Every business Activity:

Every business activity—sales, purchases, production etc. needs men to direct and perform it. A business is no better than the people it has. The success of a business depends upon the capacity, ability, integrity, motivation and enthusiasm of the group of employees in it.

2. Participative Management:

Worker must be recognized by the owners as partners in the business because both of them have a common interest. Workers must be encouraged to participate in the formation and development of all plans and programmes of the business.


3. Opportunities for Growth:

A good business must provide reasonable opportunities for growth to each of its employee. Individual differences must be recognized. Decisions regarding the nature of action be based upon the understanding of the individuals comprising the group.

4. Social Justice:

The management must consider the expectations and aspirations of the employees. There must be some system of public recognition and appreciation of meritorious work.

5. Co-Operation with Trade Unions:

The management must seek the co-operation of trade unions. It must try to avoid the likely points of conflicts with the trade unions.