---
title: "Personnel policy and manpower planning"
subject: "Organization and Management"
chapter: 7
key: "semester_7/organization_and_management:personnel-policy-manpower-planning"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-policy-manpower-planning
site: BCT Engineering
---

# Personnel policy and manpower planning

Organization and Management · Chapter 7: Personal Management

- Asked in: 2073 Shrawan, 5+3 marks
- Video: [What are the steps in a Workforce Planning process?](https://www.youtube.com/watch?v=EvGhsGOtToI) — myHRfuture
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-policy-manpower-planning
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-7

## Question

Why is personnel policy necessary to be discussed? Discuss the importance of manpower planning.

## Short answer

Discussing personnel policy ensures uniform rules, clarity, better decisions, legal compliance, acceptance, fewer disputes and adaptation to change. Manpower planning estimates future employee needs so the right people are available at the right time, controls labour cost, supports recruitment and training, reduces shortages or surplus, and raises productivity.

## Answer

#### 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.**

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why is it useful to discuss policies with employees and unions before adopting them?
   A. They are accepted more easily
   B. It removes the need for legal compliance
   C. It lets managers avoid review
   D. It increases the number of disputes
   Answer: A. Participation leads to better acceptance of policies. (Key point: Why discuss personnel policy)

2. Why must personnel policies be reviewed regularly?
   A. Because employees dislike old policies
   B. To adapt to changes such as technology or law
   C. To increase the number of rules
   D. Because policies expire after one year
   Answer: B. Technology and law change, so policy needs regular review. (Key point: Adaptation to change)

3. What does manpower planning do?
   A. Fixes salaries of present staff
   B. Evaluates past performance only
   C. Estimates the number and kinds of employees needed in future and ensures availability
   D. Replaces recruitment completely
   Answer: C. Manpower planning estimates future staff needs in number and kind and ensures they are available at the right time. (Key point: Manpower planning meaning)

4. How does manpower planning control labour cost?
   A. By paying lower wages to all
   B. By avoiding over-staffing and shortage or surplus
   C. By stopping all training
   D. By hiring only temporary staff
   Answer: B. Having the right number of people avoids surplus staff and the cost it brings. (Key point: Cost control)

## Related in Organization and Management

- [Personnel policy; referral recruitment](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-policy-referral) — Organization and Management, chapter 7
- [Personnel policy / employee handbook](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-policy-handbook) — Organization and Management, chapter 7
- [Recruitment and selection of manpower](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Arecruitment-selection) — Organization and Management, chapter 7