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Manpower Planning Overview
Supply & Demand Analysis
​By Mansour Baker, SHRM-CP
Posted  16 February 2020
Introduction to Manpower Planning
Workforce Planning is the strategic alignment of an organization’s people resources with current and future business needs.
Workforce Planning Is
  • A strategic management tool for aligning workforce capabilities with mission and goals
  • Regular and systematic assessment of our ability to match workforce capabilities with organizational needs
  • Integrated with strategic plans, line management priorities, budget process, diversity goals, human capital plans, union agreements, etc.
  • A process that involves managers at all organizational levels and representatives from HR, strategic planning, and budgeting
Workforce Planning Is Not
  • Just a data collection exercise
  • A one-time event
  • Just an HR activity 
  • A process conducted by a small, isolated group
​Effective workforce planning methodologies will enable a company to develop a strategic road-map regarding its workforce.
​Manpower Planning Components
Strategic Business Definition
  • Identifies core business areas to be covered by Workforce Planning
  • Establishes scope of initial analysis
Supply Analysis
  • Analyzes members of the organization who perform work
  • Identifies demographic segments of the workforce, such as age, position, and functional alignment
Demand Analysis
  • Analyzes the amount of work personnel must accomplish
  • Indicates the amount of work by customer segment
Gap Analysis
  • Utilizes information uncovered by the Supply and Demand Analyses to identify future trends that will affect the size of the workforce and the amount of work requested of it
  • Predicts future workforce size and its ability to meet future demand
Road Map
  • Develops a plan for addressing issues identified by the Workforce Planning Gap Analysis (e.g., recruiting, succession planning, retraining of existing workforce, etc.)
Exhibit 1
Manpower Planning Process
Manpower Planning Process
Workforce Supply Analysis
​A workforce supply analysis provides a data-driven model of a company current composition and characteristics.
​A workforce supply baseline analysis:
  • Helps the organization better understand the workforce’s current and future characteristics and capabilities
  • Uses existing workforce data to analyze and profile the current employee workforce in terms of numbers, demographics, and representation – essentially providing a snapshot in time
​Results from the supply analysis will:
  • Allow leadership better to understand current workforce resources
  • Identify areas that may require attention to ensure the future supply of particular workforce populations
  • Inform the development of future target workforce objectives, including desired size, composition, and mix
  • Allow a basis of comparison against the future workforce requirements may be assessed, so that key gaps may be identified and addressed
Exhibit 2
A structured approach should be utilized to develop the workforce supply analysis.
Workforce Supply Analysis
Workforce Demand Analysis
​Analysis of baseline demand provides a quantifiable, multi-perspective view of the utilization of core organization services.
​The workforce demand baseline analysis:
  • Defines the core functions performed by the organization to address customer demands
  • Provides a structured means to measure activity levels associated with the key functions performed in support of the company’s customer base
Results from the demand analysis will:
  • Provide leadership with a consolidated view of services utilized by customers
  • Highlight areas that may require attention to maximize efficiency in the delivery of services
  • Inform the evaluation of future demand, including service composition and customer segmentation
  • Allow a basis of comparison against which the future workforce requirements may be assessed, so that key gaps may be identified and addressed
Exhibit 3
A structured approach to integrate the data elements involved in the baseline demand analysis.
Workforce Demand Analysis


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