Manpower Planning

MANPOWER PLANNING IN ORGANISATION

Introduction: Human resource planning means deciding the number and type of the human resource required for each job, unit and the total company for a particular future date in order to carry-out organizational activities. Personnel management is productive exploitation of manpower resources. This is also termed as Manpower Management'. Manpower Management is choosing the proper type of people as and when required. It also takes into account the upgrading in existing people. Manpower Management starts with manpower planning.

Manpower Planning
Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: Analysing the current manpower inventory Making future manpower forecasts Developing employment programmes Design training programmes

Objectives of Human Resource Planning

(a) To recruit and retain the human resource of required quality and quantity (b) To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies (c) To meet the needs of the programes of expansion, diversification (d) To foresee the impact of technology on work, existing employees and future human resource requirements (e) To improve the standards, skills, knowledge, ability, discipline etc., (f) To minimize imbalances caused due to non-availability of human resources of the right kind, right number in right time and right place, (g) To make best use of its human resources and (h) To estimate the cost of human resources

Steps in Manpower Planning

1. Analyzing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analyzed. For this the following things have to be noted Type of organization Number of departments Number and quantity of such departments Employees in these work units Once these factors are registered by a manager, he goes for the future forecasting.

Steps in Manpower Planning

2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows: Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements.

Steps in Manpower Planning

Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.

3. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans. 4. Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

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 personnels becomes an important function in the industrialization world of today. Setting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function.

 Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough 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 it's related activities ( Performance appraisal, training and development, remuneration

Need of Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programes. Manpower Planning is advantageous to firm in following manner: Shortages and surpluses can be identified so that quick action can be taken wherever required. All the recruitment and selection programes are based on manpower planning. It also helps to reduce the labor cost as excess staff can be identified and thereby overstaffing can be avoided.

Need of Manpower Planning

It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

Advantages of Manpower Planning:

Manpower planning ensures optimum use of available human resources. 1. It is useful both for organization and nation. 2. It generates facilities to educate people in the organization. 3. It brings about fast economic developments. 4. It boosts the geographical mobility of labor. 5. It provides smooth working even after expansion of the organization. 6. It opens possibility for workers for future promotions, thus providing incentive. 7. It creates healthy atmosphere of encouragement and motivation in the organization. 8. Training becomes effective. 9. It provides help for career development of the employees.

Sales Organisation
A company where everyone recognizes the importance of sales and consciously supports the sales process, the sales representatives have the full support of the organization and service representatives to deliver goods and services in a manner that exceed the customers' expectations.

FIVE AREAS OF A COMPANY'S ACTIVITIES

General Human Marketing Administrati Financial Operations Resources And Sales on Managemen Managemen Managemen Managemen Managemen t t t t t Function Function Function Function Function

CONNECTION BETWEEN MARKETING AND SALES MANAGEMENT FUNCTIONS

The Sales Management Function represents an integral part of the marketing management function. The sales manager, therefore, is responsible for developing an effective Sales Organization in order to implement all aspects of the company's marketing plan.

REASONS FOR A FLEXIBLE SALES ORGANIZATIONAL STRUCTURE

1.To introduce new products or services into the market.

2.To develop new sales territories.

3.To meet constantly changing customers' needs. 4.To establish another sales branch.

STEPS IN THE SALES ORGANIZATION DEVELOPMENT PROCESS

Step 1: Determine The Tasks That Must Be Performed To Implement The Sales Plan, e.g. Forecasting, Prospecting, Selling, Order-Taking. Step 2: Classify The Tasks And Group Them Into Related Sets Of Activities On The Basis Of Product, Customer, Or Sales Territory Requirements. Step 3: Assign A Set Of Activities To An Individual Position Or Positions. Step 4: Establish Supervision And Reporting Relationships Between Positions.

FACTORS IN A SALES ORGANIZATION DEVELOPMENT PROCESS THE UNITY OF COMMAND PRINCIPLE One important consideration of the sales organization development process is the Unity Of Command Principle. This principle suggests that each employee should report to only one person within the organization. This is a general principle that is particularly useful in the sales management environment. When employees report to more than one individual, they may be given contradicting instructions that can, in turn, cause ineffective performance. It is essential, therefore, to prevent such a condition to avoid confusion among sales employees.

 SPAN OF CONTROL Another issue that should be considered by the sales manager relates to the Span Of Control, or the number of subordinates that can be effectively supervised by one manager. The importance of this issue depends upon the size of the sales organization and is particularly critical for larger companies. Small and medium-sized organizations usually employ a moderate number of sales people and seldom experience problems caused by an excessive span of control.

 CENTRALIZATION OR DECENTRALIZATION OF CONTROL The sales manager should also consider the issue of Centralization Or Decentralization Of Control over the company's sales activities. A small organization normally starts its operations from one office, and management exercises centralized control over sales force activities. When the organization grows and develops business relations with customers in different geographic locations, however, it may be useful to decentralize control over the sales force activities. This may require a branch to be opened in a suitable geographic location in order to ensure effective service of local customers. Decentralization of sales activities helps minimize the travel time and expenses incurred by sales people and maximize the quality of sales service provided by customers. ORGANIZATIONAL SPECIALIZATION Finally, important consideration should be given by the sales manager to the issue of Organizational Specialization.

Types of Sales Org.

Geographic Specialization

Product Specialization

Customer Specialization

Functional Specialization

GEOGRAPHICALLY-SPECIALIZED SALES ORGANIZATION

Geographic Specialization is particularly suitable for an organization that operates in widespread geographic markets. In this type of organization, each sales person is assigned to sell all products to all customers within a specified geographic location. A typical structure of a Geographically-Specialized Sales Organization is illustrated below. The main advantages and disadvantages of the geographically-specialized organization structure are outlined below. GEOGRAPHICALLY-SPECIALIZED SALES ORGANIZATION Advantages One of the advantages of this structure is that it stimulates development of strong ties between sales people and their customers. In addition, travel time and selling costs can be substantially reduced because each sales person covers a limited sales territory. Disadvantages One of the disadvantages of this structure is that a particular sales person can handle only a limited number of uncomplicated products or product lines.

PRODUCT-SPECIALIZED SALES ORGANIZATION

Product Specialization is generally used by industrial organizations that offer various lines of products to the market. This type of structure is effective in the distribution of different highly-technical products. In this type of organization, each sales person is trained to handle a particular product or product line. Thus, the number of sales people depends upon the variety of products handled by the organization. A typical structure of a Product-Specialized Sales Organization is illustrated below.

Development of Sales Organisation

At the core of each successful sales organization is a plan. This sales and marketing plan includes goals, objectives, responsibilities, timelines, evaluation criteria, and budgeting. It addresses areas such as: Sales objectives: These should be tied to a timeframe, and be measurable and realistic. Territories: Typically dividing your market into territories is done geographically taking into consideration account concentrations. As territories are developed, they can be divided further. Customer evaluation: Not all customers are created equal. I suggest firms examine potential customers with a high degree of scrutiny paying attention to financial stability, growth, & loyalty.

Development of Sales Organisation

Sales organization development & compensation: Take the time to thoroughly think this through. Will there be territory managers? Will sales people be compensated on a commission basis? Sales support: Be sure to commit resources to supporting your sales organization. Training: Develop of training plan that will lead your team to success. Sales coordination: Who will be responsible and have the authority for the sales function? There should be a central person to coordinate efforts between outside and internal activities to avoid confusion.

Development of Sales Organisation

Customer support: Procedures and programs should be in place to support inquiries, quotes, order placement/tracking, and shipping. There are a variety of off-the-shelf contact management programs that allow you to quickly and efficiently track customer and sales related activities. ACT and Goldmine are two that are widely used. More recently, Internet based platforms have been developed tailored to the special needs of specific industries. Check with your industry trade association to see what's available. Sale materials: Review the sales materials you have on hand and determine what materials need to be further developed. This includes a website as well as field literature. Materials and your website don't have to be slick and expensive, but they need to get the message across to your customers and prospects. All information should have a purpose, be concise, and clearly presented.

Recruitment n Selection
Recruitment is the process of collection of Resumes through advertisements for certain post. Selection is the process of selecting the suitable person to the suitable job based on his performance in written test, personal interview, assessing job knowledge on the basis of his experience.

 Recruitment is the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization. Selection then consists of the processes involved in choosing from applicants a suitable candidate to fill a post. Training consists of a range of processes involved in making sure that job holders have the right skills, knowledge and attitudes required to help the organization to achieve its objectives. Recruiting individuals to fill particular posts within a business can be done either internally by recruitment within the firm, or externally by recruiting people from outside.

 The advantages of internal recruitment are that: 1. Considerable savings can be made. Individuals with inside knowledge of how a business operates will need shorter periods of training and time for 'fitting in'. 2. The organisation is unlikely to be greatly 'disrupted' by someone who is used to working with others in the organisation. 3. Internal promotion acts as an incentive to all staff to work harder within the organisation. 4. From the firm's point of view, the strengths and weaknesses of an insider will have been assessed. There is always a risk attached to employing an outsider who may only be a success 'on paper'.

 The disadvantages of recruiting from within are that: 1. You will have to replace the person who has been promoted 2. An insider may be less likely to make the essential criticisms required to get the company working more effectively 3. Promotion of one person in a company may upset someone else.

External recruitment
External recruitment makes it possible to draw upon a wider range of talent, and provides the opportunity to bring new experience and ideas in to the business. Disadvantages are that it is more costly and the company may end up with someone who proves to be less effective in practice than they did on paper and in the interview situation. There are a number of stages, which can be used to define and set out the nature of particular jobs for recruitment purposes: Job analysis is the process of examining jobs in order to identify the key requirements of each job. A number of important questions need to be explored: the title of the job to whom the employee is responsible for whom the employee is responsible a simple description of the role and duties of the employee within the organization.

Job analysis is used in order to:

1. Choose employees either from the ranks of your existing staff or from the recruitment of new staff. 2. Set out the training requirements of a particular job. 3. Provide information which will help in decision making about the type of equipment and materials to be employed with the job. 4. Identify and profile the experiences of employees in their work tasks (information can be used as evidence for staff development & promotion). 5. Identify areas of risk and danger at work. 6. Help in setting rates of pay for job tasks.

Job Analysis
Job analysis can be carried out by direct observation of employees at work, by finding out information from interviewing job holders, or by referring to documents such as training manuals. Information can be gleaned directly from the person carrying out a task and/or from their supervisory staff. Some large organizations specifically employ 'job analysts'. In most companies, however, job analysis is expected to be part of the general skills of a training or personnel officer.

Job description
A job description will set out how a particular employee will fit into the organisation. It will therefore need to set out: the title of the job to whom the employee is responsible for whom the employee is responsible a simple description of the role and duties of the employee within the organisation. A job description could be used as a job indicator for applicants for a job. Alternatively, it could be used as a guideline for an employee and/or his or her line manager as to his or her role and responsibility within the organisation.

Job specification
A job specification goes beyond a mere description - in addition, it highlights the mental and physical attributes required of the job holder. For example, a job specification for a trainee manager's post in a retail store included the following: 'Managers at all levels would be expected to show responsibility. The company is looking for people who are tough and talented. They should have a flair for business, know how to sell, and to work in a team. Job analysis, description, and specification can provide useful information to a business in addition to serving as recruitment instruments. For example, staff appraisal is a means of monitoring staff performance and is a feature of promotion in modern companies. In some companies, for example, employees and their immediate line managers discuss personal goals and targets for the coming time period (e.g. the next six months). The appraisal will then involve a review of performance during the previous six months, and setting new targets.

 Job details can serve as a useful basis for establishing dialogue and targets. Job descriptions can be used as reference points for arbitrating in disputes as to 'who does what' in a business. Selection involves procedures to identify the most appropriate candidates to fill posts. An effective selection procedure will therefore take into consideration the following: keeping the costs of selection down making sure that the skills and qualities being sought have been identified, developing a process for identifying them in candidates making sure that the candidates selected, will want the job, and will stay with the company.

 Keeping the costs of selection down will involve such factors as holding the interviews in a location, which is accessible to the interviewing panel, and to those being interviewed. The interviewing panel must have available to them all the necessary documentations, such as application forms available to study before the interviews take place. A short list must be made up of suitable candidates, so that the interviews do not have to take place a second time, with new job advertisements being placed. The skills required should have been identified through the process of job analysis, description and specification. It is important then to identify ways of testing whether candidates meet these requirements. Testing this out may involve: interviewing candidates asking them to get involved in simulated work scenarios asking them to provide samples of previous work getting them to fill in personality and intelligence tests giving them real work simulations to test their abilities.

Induction and Training

New workers in a firm are usually given an induction programme in which they meet other workers and are shown the skills they must learn. Generally, the first few days at work will simply involve observation, with an experienced worker showing the 'new hand' the ropes. Many large firms will have a detailed training scheme, which is done on an 'in-house' basis. This is particularly true of larger public companies such as banks and insurance companies. In conjunction with this, staff may be encouraged to attend college courses to learn new skills and get new qualifications. Training thus takes place in the following ways: 1. On the job - learning skills through experience at work 2. Off the job - learning through attending courses.

 Promotion within a firm depends on acquiring qualifications to do a more advanced job. In accountancy for example, trainee accountants will be expected to pass exams set by the Association of Chartered Certified Accountants (ACCA). At the same time, a candidate for promotion must show a flair for the job. It is the responsibility of the training department within a business to make sure that staff with the right skills are coming up through the firm or being recruited from outside. The ACCA has 300,000 members and students throughout the world. It is a professional body setting standards for the accountancy profession. To be properly qualified, accountants must have passed examinations that make them eligible for membership of one or more professional accounting bodies, such as ACCA. Typically accountants will improve their knowledge and experience by taking courses run and organized by ACCA during their professional training enabling them to develop and enhance their careers. Induction is the process of introducing new employees to an organization and to their work responsibilities in that organization.

 Training is for : Maintain or improve Current job performance

Development is for:
Develop skills necessary for future activity

Types of Training and Development

(I say development because Mentoring is not a training type in its strictest sense ) Classroom training The traditional type of training with lecture as the chief method of imparting learning. Vestibule training Training in a simulated setting which lets the trainee acquire the skills and knowledge with a allowance for making mistakes. Also called laboratory training. On the Job training Real time training where a person learns from following instructions or trial and error. Examples of on job training are observation assignment (understudy), apprenticeship, internship, job rotation etc which are carried out under observation of a trainer/expert. Mentoring Its an in-house coaching method where no trainer is employed but a successful and competent employee is appointed as a mentor to the mentee, who coaches the mentee over a period of time to become successful. Mentoring is an informal relationship between 2 people who are not related as a boss and subordinate.

Types of Training and Development

On-the-job training With on the job training, employees receive training whilst remaining in the workplace. The main methods of one-the-job training include: Demonstration / instruction - showing the trainee how to do the job Coaching - a more intensive method of training that involves a close working relationship between an experienced employee and the trainee Job rotation - where the trainee is given several jobs in succession, to gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments) Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multidisciplinary"

Advantages

Disadvantages

Generally most cost-effective Quality depends on ability of trainer and time available Employees are actually productive Bad habits might be passed on Opportunity to learn whilst doing Learning environment may not be conducive Training alongside real colleagues Potential disruption to production

Types of Training and Development

Off-the-job training This occurs when employees are taken away from their place of work to be trained. Common methods of off-the-job training include: Day release (employee takes time off work to attend a local college or training centre) Distance learning / evening classes Block release courses - which may involve several weeks at a local college Sandwich courses - where the employee spends a longer period of time at college (e.g. six months) before returning to work Sponsored courses in higher education Self-study, computer-based training

Advantages
A wider range of skills or qualifications can be obtained Can learn from outside specialists or experts

Disadvantages
More expensive e.g. transport and accommodation Lost working time and potential output from employee

Employees can be more confident when starting job

New employees may still need some induction training

Employees now have new skills/qualifications and may leave for better jobs

 Assuming training is effective then: Employees feel more loyal to the business

Shows that business is taking an interest in its workers Employees should benefit from better promotion opportunities
Employees to achieve more at work and perhaps gaining financially from this (depending on the remuneration structure)