What are the needs of Manpower planning?

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Explain the importance of Manpower planning in a firm?

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(1) Increase in the size of Business—Manpower planning is very helpful when there is expansion of the plant. At the time of taking the decision for expansion of the plant, a large number of workers are required to be recruited. For this purpose a stock of the existing manpower should be taken and future need of the personnel should be assessed. It is very essential to know whether personnel are to be recruited from outside or from inside and how the training facilities are to be arranged for all this manpower planning is essential.

(2) Effective recruitment selection policy—Manpower planning helps in formulating effective recruitment and selection policy. Manpower planning is concerned with the right type of people from all sources to meet planned requirements. Manpower planning anticipates manpower needs to develop the existing manpower to fill the future gaps. Thus only right man on the right job at the right time may be recruited and selected.

(3) Effective employee development programme—Manpower planning reveals the training needs of the working manpower with the result that training and development programmes become more effective. No effective employed, development programme can be worked out unless it is linked with the manpower requirements of the organisation.

(4) Reduction in labour cost—Manpower planning ensures recruitment and maintenance of better developed manpower resource which results in reduced manpower costs. Forecasting of long term manpower needs to help the management to forecast the compensation costs involved.

(5) Efficient work force—Manpower planning ensures on the one hand, development of personnel at work and on the other hand, high morale of the personnel. Manpower planning motivates the existing employees and creates favourable psychological climate for motivation. Management succession gets the best contribution from the workers.

(6) Avoiding disruption in production—Manpower planning may help the organisation in procuring the skilled and qualified workers because future needs of personnel may be estimated and they are selected and trained on the basis of a well developed selection and training policy thus ensuring uninterrupted production.

(7) Good Industrial Relations—Manpower planning helps the management in developing the good industrial relations. With the help of manpower planning management may plan to absorb the redundant workers to some new jobs after training in case redundancies of workers are caused by automation or any other reason.

(8) National policy on employment—National policy on employment does not allow any employer to oust the worker once employed by the organisation. It is very essential to recruit the workers carefully according to the needs of the enterprise. Only manpower planning can help the organisation in this regard.