Human resource, no doubt, is one the most important asset of an organization. Its planning forms an important part of the managerial functions of an organization.

Manpower planning ensures, putting right kind & right number of people at right place, time and job for which they are effective in order to achieve organizational goals. Proper planning of human resource will leads to adequate supply, proper quality as well as quality and effective utilization of manpower.


Manpower planning basically deals with assessing the human resource requirement and supplying adequate human resource. It is needed due to following reasons:

  1. It is helpful in meeting new demands of manpower as a result of some technological or modernization.
  2. Proper planning of manpower will avoid over-staffing of employees and hence results in reduced labour cost.
  3. It also helps in determining training & development needs of an organization.
  4. Proper manpower planning will ensures high labour productivity.
  5. It is also helpful in assessing actual manpower needs and making recruitment& selection plans.


The process of manpower planning is a crucial function that requires a systematic approach and a set of procedure. The steps in manpower planning includes:

  1. Deciding goals & objectives:

    It is the first and most important step in manpower planning. It basically deals with the goals or objectives behind the human resource planning. In simple words it determines why manpower planning is required? Once the objective is clear, it is easy to plan things accordingly.

  2. Estimating future manpower requirements:

    The another important step involves estimating or forecasting the future manpower requirements at a given point of time. In order to accurately forecast the manpower, one should take into account certain important factors like changes and development in industry, government policy, work load and management philosophy etc.

  3. Manpower inventory:

    Another step in manpower planning involves manpower inventory i.e. determining the present and future potentialities of workforce and their suitability for various other jobs. It analyses the gap between what is required and what is available and hence forms the base for other HRM functions.

  4. Job requirement or description:

    After determining the present potential of workforce, the next step will be to analyse the job. The requirements of job are termed as job description. It helps in determining the nature of job, operations involved, material or equipment required etc.

  5. Developing HR plan:

    This step basically involves the determination as well as analysis of various sources from which labour is easily available and make effective use of these sources. It requires a proper knowledge of labour market, recruitment policy, government regulations, labour supply as well as arrangement etc.


Manpower planning is an important function of human resource management due to the following reasons:

  1. HIGHER PRODUCTIVITY:Manpower planning assures that there is an effective utilization of workforce which will results in savings of energies, time, skills as well as cost of workforce. Moreover skilled workforce will use the other factors skillfully. It will ultimately reduces wastage and improves overall productivity.
  2. BETTER BUSINESS PLANNING:No management can be successful without proper manpower planning as it assures right kind people at right place, time & right job. Better manpower planning will influences the overall business planning and make it better.
  3. OPTIMUM UTILIZATION OF WORKFORCE:With manpower planning, worker are provides with jobs, in which they are more skilled. Hence, assures proper utilization of workforce.
  4. DEVELOPMENT AND PROMOTION OF EMPLOYEES:It is a great way towards the development and promotion of employees. Proper planning, makes sure that right kind of people should be placed at right job. Management , in order to fill jobs gives way to internal succession may promote or develop their employees.


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