what is Manpower Planning.
Manpower planning refers to the process used to determine the number of positions / people needed for the company to operate optimally. Manpower planning is usually also accompanied by the various labour cost expense elements in order to determine the cost of labour in the company (again broken down into functions, departments, inert-departments and positions). Manpower plans are usually updated annually in respect of a future year whilst also being corrected monthly to accommodate short term changes. Labour cost is usually the biggest expense item in any company’s budget and it is therefore important to have effective manpower planning and budgeting routines in place.
