How Could You Define Manpower Planning?

Most of the matters pertaining to economic planning are concerned with a balance, a balance in between for and supply of goods; a balance in between inputs and outputs; a balance in between saving and investment and a balance in between demand for and supply of foreign exchange etc. in the same way a planning agency requires a balance in between demand for labor and supply of labor. This is the essence of manpower planning MPP that the planner would devise such a strategy that the labor surpluses and labor shortages be equalized. In this way, there would not be the unemployment as well as excess demand. Accordingly, the plan objectives and targets could be realized.

There are a lot of differences in the meaning of MPP. However, to understand its basic essence MPP is concerned with matching of manpower requirements and resources. Manpower planning usually involves the projection of manpower demand, and projection of manpower supply, and action to bring demand and supply into balance at a desirable level.
Now we can say manpower planning describes the demand and requirements of manpower, the supply of the same, and the balancing of the two, all of course in the context of social and economic objectives of the society. Thus the planning of manpower provides a framework for making rational decision in respect of deployment of labor force. All this shows that their three ingredients of the subjects; demand, supply and their integration.

Manpower planning refers to optimal use of human resources. Human resources are indeed no less important than financial resources in achieving the objects of planned development. That is why the subject of human resources development has increasingly attracted attention of both planners and policy makers. It is assigned top priority in almost every plan document and ways and means are found for more effective use of human resources. An average American workers said to be twice as productive as European, largely due to more optimal use of manpower in America. Other contributing factors such as greater capital intensities and economies of scale play only a secondary role.

Manpower is sometimes defined in terms of critical shortages and critical surpluses. Critical shortages refer to the shortages in critical fields such as atomic energy, electronics etc while critical surplus refers to surpluses in important fields e.g. of doctors, engineers, educationist. The unemployment of man power in such fields results in wastages and social unrest. Manpower planning is therefore undertaken to overcome critical shortages and to avoid critical surpluses.

Manpower planning in terms of human resource development is the skills, knowledge and capacities of all human beings actually or potentially available for economic and social development in the country.

The first essential component in manpower is its development. This component involves optimal development of human resources through formal and informal educations and creation of congenial conditions for rising technical, managerial, Economics and other skills. Arousing of public enthusiasm or development of motivation is also an essential part of manpower development.

Then come towards manpower utilization. This stage involves optimal and effective utilization of various categories of manpower classified on the basis of education and sex. The development manpower turns from a stock into a flow as a consequence of proper utilization.

Next component is manpower forecasting. The future demand of manpower along their essential characteristics is forecast using relevant statistical techniques. The various methods used are: through conduct of surveys and seeking the opinion of employers; the use of incremental labor- output ratio; density quotient method that estimates the number of people required to do a certain job in an efficient manner; Productivity change method and lastly through international comparisons.

Matching of manpower supply with manpower demand; this phase involves matching manpower supplies with manpower demand keeping in view the nature of manpower requirements and its characteristics. This takes us into the orbit of policy action.
Last component is provision of productive and gainful employment. It involves provision of productive and gainful employment to the new entrants in the job market.