Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Manpower Planning is a process by which an entrepreneur ensures that he/ she has the right number of people, and right kind of people, at the right place and the right time to do work for which they are economically most suitable. Manpower planning is necessary for every business unit because it helps to assesses:

1. What kind of people are required? To carry on its work, each organisation needs personnel with the necessary qualifications, skills, knowledge, experience and aptitude for work. Thus, as the most basic thing, the entrepreneur must clearly state:

1. What kind/type of person is required to be hired for getting his work done.
2. As each person would have a different positions, duties and responsibilities, it becomes imperative for the entrepreneur to clearly workout a wide range of personnel ranging from managers, supervisors, administrators, engineers, technical, skilled and unskilled class.
3. Nature of business activity helps entrepreneur to a large extent in deciding the type of manpower required.

2. How many people are required? This question deals with the quantity of personnel the enterprise needs. The number of people required for various positions throughout the enterprise gets affected by:

1. The total work to be done.
2. How much work can an average person do in a specified period of time.
3. Level of absenteeism expected.
4. Rate of labour turnover.
5. The present number of employees.
6. The future plans for expansion and diversification.

3. How to procure personnel? As the next step in manpower planning, entrepreneur clearly mentions the strategies, methods, policies, rules and regulations pertaining to personnels:

• Recruitment.
• Selection.
• Training.

Procurement of "right person, at right job, at right time" is the objective of human resource plan.