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Explain the process manpower planning (MPP)?
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(A) Deciding objectives of manpower Planning -The ultimate objective of manpower planning is one of matching or fitting employee abilities to enterprise requirements with an emphasis on future instead of present arrangements. The objectives may be laid down for a short term i.e. for one year for example the short term objective may be to hire 50 persons from backward classes for purposes of training. The long- term objective may to start a new industry or to expand the market or to produce a new product or to develop its own sales force.
(B) Estimating future manpower requirements — The management must estimate the structure of the organisation at a given point in time. For this estimate, the number and types of employees needed have to be determined. This determination is affected by many environmental factors viz., business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mire and competition. After estimating the future organisation structure the next step is to draw up the requirements of human resources, both for existing departments and for new vacancies. In determining the requirements of human resources, the expected losses due to labour turnover dismissals, promotions, layoffs etc. should be considered. Then, the real shortage o( surplus will be found out.
© Auditing Human Resources — Once the future human resources needs are estimated the next step is to determine the present supply of manpower resources through "skills inventory". A skills inventory contains data about each employee's skills, abilities, work preferences etc. Some organisations prepare "Organisation charts". "Manning Table" or "Manpower Replacement Charts" Ail these help in determining and evaluating the quantity and quality of the present human resources of an organisation.
(D) Job-Analysis — After having decided how many persons would be needed, it is necessary to prepare a job analysis which records details of training, skills, qualifications, abilities, experience and responsibilities etc. which are needed for a job. Job analysis includes the preparation of job descriptions and job specification. 
(E) Developing a Human Resource Plan — The last step is to develop and to implement the human resource plan which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing to be decided is whether the personnel be hired from within the organisation or to be obtained from an outside source. The best policy, which is followed by most organisations is to fill up higher vacancies by internal sources i.e. promotion etc and lower level positions by recruitment from external sources. The personnel manager should have a thorough knowledge of the labour market. Which source in the labour market will be tapped, depends upon the policy of a firm, position of labour unions and Government regulations.
