Personnel policy and manpower planning

Necessity of discussing personnel policy

Personnel policy is a guide for handling employee-related matters. It needs to be discussed because:

1. Uniformity: Same rules for all, reducing partiality.
2. Clarity: Managers and workers know what is expected and permitted.
3. Better decisions: Policy saves time on routine decisions.
4. Legal compliance: Must be in line with the Labour Act, 2074, Bonus Act, 2030 and Contribution-Based Social Security Act, 2074.
5. Participation and acceptance: Policies discussed with employees and unions are accepted more easily.
6. Consistency with organizational goals and culture.
7. Fewer disputes and a better workplace.
8. Adaptation to changes such as technology or law needs regular review.

Importance of manpower planning

Manpower planning is the process of estimating the number and kinds of employees needed in the future and ensuring they are available at the right time.

1. Right people at the right time: Avoids shortage or surplus.
2. Controls labour cost by avoiding over-staffing.
3. Supports recruitment, selection and training plans.
4. Prepares for retirement, turnover and expansion. For example, NEA must plan for engineers as new power plants come on line.
5. Develops skills by identifying skill gaps.
6. Improves utilisation of human resource and productivity.
7. Helps in organizational planning and budgeting.
8. Adapts to technological and economic change.