CHAPTER
TWO
LITERATURE REVIEW
2.1
Concept Of Manpower Planning
The purpose of this
study is to examine how manpower planning would be an effective tool for organizational
performance. A number of investigations and studies have been made on manpower
planning ; such investigations and studies provide a framework for further
investigation and leading to the ultimate development of existing ideas.
Manpower planning is one of the crucial
aspects of human resource management because it helps to ensure the needed
manpower for organizational performance and goal. Due to the globalization
movement, the competition to provide quality and low cost products has been
increasing day by day. In this situation, the Human Resource department has to
plan in order to provide the quality manpower to compete in the market. The
supply of manpower must be sufficient to ensure the healthy operation of the
organization. Otherwise, the stated goals and objectives cannot be accomplished
on time.
Manpower Planning ensures that
organization has right number and kind of people, at right place, and at right
time capable of performing well in the organization.
Manpower often used
interchangeably with “human resources” according to Anyanwu et al (1997)
refers to the “totality of the energies, skills, knowledge and experience available
in a country. It is the managerial, scientific, engineering, technical,
craftsmen and other skills which are employed in creating, designing,
developing, managing and operating productive and service enterprises and
economic institutions (Yesufu, 1962). Agabi and Ogah (2010) posit that manpower
is the bulk of labour available for any particular kind of work. In a more
specific term, “it is the bulk of human beings with the relevant skills,
energies, talents, knowledge and attitudes that can be committed towards the
production of goods and services (Gbosi, 2003). In Gbosi’s view, human beings
are not described as manpower or human resources except in that they can be put
to some economic use as a resource that in turn can be used for wealth
generation or for the facilitation of increases in wealth. Flowing from the
above discuss, it can be asserted that manpower (human resources) are a
nation’s most valuable resources without which other resources will not give
rise to rapid economic growth.
According to Unugbro (2012), planning can be defined
“as the process of deciding what objectives will be pursued within a future
time frame and what will be done in order to achieve those objectives”. It involves deciding in advance what to do,
how to do it, when to do it and who is to do it (Weihrich, Cannice &
Koontz, 2008). Agabi and Ogah (2010) define planning as a managerial process
directed at the optimal utilization of time and resources in the attainment of
clearly identified goals. From the above analysis, planning can be described as
a profitable activity directed at the management of human and other essential
resources with the aim of achieving an identified set of goals and objectives.
Manpower planning has been defined variously by
different authors. According to Agabi and Ogah (2010), Manpower (human
resource) planning “involves forecasting the human resource needs of an
economy, setting objectives that will lead to the realization of such needs,
designing strategies for the achievement of the set objectives, identifying
resource needs, and defining modalities for plan implementation; manpower
planning is the process of determining the policies and programmes that will
develop, distribute, and utilize human resources with a view to attaining organizational
goals of socio-economic (Anyanwu, et al., 1997); it is referred to as
“the process by which an organization ensures that it has the right number of
people, at the right place, at the right time, doing things for which they are
economically most useful” (Ibojo, 2012).
Chandan (2005) posits that Manpower planning involves objective and systematic
assessment of present staffing needs of an organization, identifying the
available personnel to satisfy the current needs, forecasting the future demand
and supply of employees, formulating staffing strategies with a view to both
short range as well as long range strategic plans and continuously monitoring,
evaluating and updating these needs and resources of supply; “it is a rational
approach to the effective recruitment, retention and deployment of people
within an organization, including, when necessary, arrangement for dismissing
staff” (Cole, 2004).
It can be adduced from the above discussion that the
essence of manpower planning is to ensure regular and adequate supply and
maintenance of relevant human resources in all sectors of the economy, at all
times by ensuring that organization guarantees the availability of the right
kind of people, in the right number, in the right place, and at the right time.
Summarily, employers should have laudable career programmes, establish improved
work climates, and above all, their personal needs and aspirations should be
factor into management decision (Adewale, Abolaji & Kolade, 2011; Helton
& Soubik, 2004).
2.1.1
Need For Manpower Planning In
Organization
Organization as defined by Hitt (1988) is the
framework of responsibility, authority and duties through which the resources
of an enterprise are brought together and coordinated for the achievement of
set goals needs effective planning for its human resources.
Skilled manpower is one of the most crucial inputs
of modern economic growth and to avoid critical shortages or surpluses of
manpower. Planners or decision makers have sought to identify future
requirements for skilled manpower and to design the education system so as to
produce a labour force with the necessary skill and technical or professional
knowledge. Planning is needful because it leads to a more effective and
efficient use of human resources. It results in more satisfied and better
developed employees because such employees have a better chance to participate
in planning their own careers and to share in training and development
experiences which often leads to greater employee satisfaction (Igbinomwanhia,
2010).
Dharamvirsinh and
Prashant (2012) identified the following benefits that organizations stand to
gain by engaging in manpower planning: shortage and surpluses can be identified
so that quick action can be taken wherever required;
all the requirement and
selection programmes are based on manpower planning; it also helps to reduce
the labour cost as excess staff can be identified and thereby overstaffing can
be avoided; it recognizes the available talents in concern and training
programmes can be done to enhance those talents; and with the help of manpower
planning, organization can optimally utilize the available human resources to
increase the growth and diversification of business. Furthermore, the
organization is better able to attract and retain the number of people required
with the appropriate skills, expertise and competences; top management has a
better view of the human resources dimensions of business decisions; and better
planning of assignments to develop managers can be done.
2.1.2
Challenges Of Manpower Planning In Organization
Obasan and Yomi (2011) outline the problems of
effective manpower planning to include: politicization of manpower planning
effort, dearth of professional trained manpower planners, lip service paid to
manpower planning/lack of commitment by stakeholders.
Manpower planning which can be seen as a conscious
and rational decision making process geared towards defining the various
courses of action that need to be carried out within an organization sometimes fail completely or do not reach
their full potential mainly because the programme is not implemented in the way
for which it was designed (Adiele, 2006). According to him, some of the reasons
for these failures are discussed below:
Lack of Communication: This
problem is the oldest and most common in personnel
administration. Manpower planning is now becoming a sophisticated process, only involving the use of experts,
and these experts must have rapid access to accurate information. Moreso,
communication channels as recommended by Okhakhu and Adekunle (2013) should be
appropriate and provide for feedback. This will help a great deal in having all-encompassing
and workable manpower plans for the organizations. With the advent and
unprecedented growth of social media, different platforms such as facebook,
blog, google, LinkedIn, my space, podcast, twitter, YouTube and yahoo, among
others can be explored for effective communication among various stakeholders
in organizations.
The Lack of Sensitivity
to Problems and Solutions: The major obstacle to
the implementation of effective manpower planning is caused by
the general apathy of line managers. Management still seems to be particularly
concerned about financial and material resources and has a tendency to neglect
the critical factor of human resources.
Over the past few
decades, productivity and performance has increased as a result of improved
technology, but any further improvement will depend, to a very great extent,
upon improved manpower utilization (Adiele, 2006).
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