Need And Importance Of Manpower Planning

Modified: 1st May 2017
Wordcount: 1543 words

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Planning not only includes obtaining right person at right place but it also comprises of motivational programmes such as incentive plans for active participation of employees and certain other schemes and facilities which are integral part of a staffing function. The training and development of workforce that leads to co-operation and better human relations with which the Human Relation can be developed and stabilize through effective control, clear communication and effective supervision. Where there is a maximum utilization of resources there is increase in productivity level and the higher productivity leads result to minimum wastage of time, money and efforts and this is possible through activities such as training and development, remuneration and performance appraisal. It is an important element in the present industrialization where large scale industries requires management of large scale manpower and this could be effectively done with the help of staffing function. Staffing is the key to all managerial functions and Human resources help in implementation of all major four functions which are known as planning, organizing, directing and controlling. It is considered to be a two phase process because it not only analyses the current human resources but it also makes a future forecast and helps to draw employment opportunity. Manpower is advantageous to this hotel in different aspects such as

Helps in growth and diversification

Shortages and surpluses can be identified so that quick action can be taken

Avoids overstaffing and reduces labour costs as excess staff can be eliminated

Based on manpower planning recruitments and selection process would take place

Helps in stabilizing the organization with the help of manpower management

Helps in identifying the skills of the employees and provide appropriate training to develop and utilize those skills and talent.

Labour Market Strategy in Holiday Inn

Holiday Inn addresses the challenges with respect to what to deliver to stakeholders over a time frame of 5-10 years and lead the thinking of providing information and direction regarding overall labour market dynamics. It has pathways to develop and create sustainable growth and prosperity. For development it requires retention, provincial economic sustainability, attraction of highly skilled and educated labour force. A strong system of communication that brings people together to ensure that public and private institutions spend time and money wisely and the goal of the labour market strategy are like

High level participation in high quality and diversified employment

Highly skilled workforce

High quality and productive workplaces

Incremental change on existing knowledge and skills


B. External factors

The macro-environmental or external factors of a Holiday Inn Hotel can be identified by using PEST analysis which is Political, Economic, Social and Technology.

Political factors:

This factor mainly deals with the government policies and procedures which is worked out through legislation and consists of all legal factors such as

How stable is the political environment?

Government position on market ethics

Government view on culture and religion

Government policy on Economy

Taxation policy on tax rates and incentives

These are some of the political factors that include legal issues, government implementations and define both the formal and informal rules under which the organization must be operated.

Economic factor:

Each and every organization is affected with national and global economic factors such as

Cost of labour

Interest and Inflation rates

Economic growth rates

Business cycle stage (e.g. recession, recovery)

Unemployment rates

Socio-cultural factor:

It includes the cultural and demographic aspects of the external macro environment. The potential of the employees who come from different back grounds and work together in the hotel and customer trends and aspect which the hotel has to consider as per their needs and wants such as

Change in lifestyles

Level of education

Value in society

Demographics (age, sex, race etc.,)

Change in consumer needs and wants

Technological factor:

This factor is the major driver of globalization which reduces the minimum efficient of production levels and some of the technological factors are

Recent technological developments

Rate of technology changes

Alternative way of providing services

New discoveries

Communication technology

The technology has now become the most important aspect in any hotel as when the customers are mostly delighted and satisfied with service including latest technology that is available in the hotel.

1. Manpower Demand Factors

There are several factors that are considered which created a requirement of manpower in Holiday Inn and are related to economic cycle such as like adaption of new Technology, a new demand either by increasing the productivity or by creating new goods especially in hotel industry. By adopting machines like coffee machines which are used to prepare quick coffee to the customers and ovens, refrigerators, coolers & air conditioners which are used in kitchen for the quality production of food and wifi a free use of internet mobility for the customer and heaters which make the customers warm and comfortable. This adoption has made new kind of requirement of employees who could operate it correctly, quickly and maintain.

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The other factor is changing in Skill requirements where staff needs to perform different task by provided training and make them indulge with their job which is necessary to focus or they would lose the interest of doing the same activity and would probably look after the other job by changing the organization which results in labour turnover. By changing in skill requirements it has made the change in manpower planning by recruiting people from different backgrounds and training them in different departments and fields where they can have the overall control in different situations and skills to perform the service effectively and can have job satisfaction.

The Productivity improvements is another factor which has created a demand for manpower in Holiday Inn which measures the productivity based on the number of task performed or the service that is provided to the customers in any given time of period. This measure includes a comparison of the service provided to established company or the customer quality standards. To measure the productivity improvements the time sheet has been maintained to indicate the time taken to complete particular task and look at the minimal customization of the quantity of work, for example the number of calls received per day, the number of queries handled, the number of customer served and many more which will be used as a measure.

The hotel has also considered Expansion plans as the factor of demand for the manpower which needs skilled and efficient labour to give good start by providing effective and quality service. The diversity of hotel management is greater which involves combination of variety skills such as food and beverage, management, housekeeping services, accounting, sales and marketing, front office operation. While expansion the main aim of the organization is to maintain their position, service and quality standards in order to compete in the current market and the utmost importance is given to the employees, the skills and efficiency to achieve the organizational goals.


2. Labour turn over

As per Holiday Inn, the labour turnover determines the rate of recruitment. In the year 2008 the total number of leavers during the year is 120, the total number of employed at the beginning of year is 400 and at the end number of employed is 430. This can be measured as Number of Leavers / Average number of employers Ã- 100 i.e., 120 / 415 Ã- 100 = 29%, during the period there was a major change in employment level as the percentage does not measure the essential relationship between recruitment and labour turnover. Though there are many ways to find out the labour turnover but stability can be measured by indicating effects of policy change in the external labour market. The percentage of labour turnover can hide areas of stability within the target population. The 100% labour turnover may be produced by 400% labour turnover of a quarter of the target population. The labour turnover is considered based on the different market conditions.

3.Supply and Demand

The supply and demand of the labour can be ensured with the help of the manpower planning that matches the overall business strategy and plan. Demand is a kind of analyzing, reviewing and attempting to achieve the organizational objectives and supply is what kind of action is necessary to ensure that labour is available when required.


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