1. Review of Organisation's Objectives
The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.
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2. Estimation of Manpower Requirements
The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.
3. Estimation of Manpower Supply
The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.
4. Comparison of Manpower
The HRD manager then compares the manpower requirements and manpower supply.
5. In case of no difference
If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.
6. In case of difference
If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.
1. Manpower Surplus
If the manpower requirements are less then the manpower supply then there is a surplus.
During manpower surplus, the HRD manager takes the following actions :-
- Termination i.e removal of staff.
- Voluntary retirement.
2. Manpower Shortage
If the manpower requirements are greater than the manpower supply then there is manpower shortage.
During manpower shortage, the HRD manager takes the following actions :-
- Training to improve quality.
- Hire staff from outside, etc.
7. Motivation of Manpower
HRP also motivates the employers and managers by providing, financial and non-financial incentives.
8. Monitoring Manpower Requirements
The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation.