Manpower Allocation: Maximizing Efficiency and Productivity in Workforce Management

Manpower allocation plays a vital role in optimizing efficiency and productivity in workforce management. Effective allocation of human resources ensures that the right people are assigned to the right tasks at the right time, enabling organizations to achieve their goals and objectives seamlessly. In this article, Viindoo will delve into the intricacies of manpower allocation, exploring its significance, best practices, and how it can revolutionize the way businesses operate.

What is Manpower Allocation?

Manpower allocation, also known as workforce allocation or human resource allocation, refers to the process of efficiently distributing and utilizing human resources to meet the requirements and goals of an organization. It involves various activities such as identifying manpower needs, recruitment, training, development, resource allocation, and personnel management to ensure that employees can perform at their best and contribute to the highest productivity for the organization.

What is Manpower Allocation?

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The role of manpower allocation 

Manpower Allocation plays an important role in human resource planning, bringing good results to enterprises. Here are the benefits of HR:

For businesses and organizations 

Manpower allocation plays an important role for businesses. As a result, businesses can know how to operate better.

  • Contributing to helping to monitor the current personnel situation in the enterprise, creating a more organized company environment.
  • Helping businesses understand the exact number of employees available and the capacity to meet the job to maximize work efficiency.
  • Helping businesses easily solve HR problems. Simultaneously staffing is the basic foundation to carry out activities to promote new positions, and recruit or rotate personnel.
  • Used as a basis for formulating personal benefits or compensation payments.
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Manpower allocation helps businesses solve human resource problems

For employees 

The implementation of human resource scheduling also has a positive effect on employees. Thanks to manufacturing, employees can choose more suitable directions.

  • Support to help employees better understand their own ability to find the right job.
  • Help employees develop in the right direction in accordance with their capacity to increase work efficiency.
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Human resource allocation helps employees develop in the right direction

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What are the conditions for staffing? 

So, what are the specific conditions for human resource allocation? Here are the basic elements needed for staffing:

For nowFor departments
  • It is necessary to have a specific and clear human resource development orientation.
  • It is necessary to have a reasonable business strategy in accordance with the set budget and prepare a change plan for unexpected situations.
  • There is an organizational structure, specific tasks and functions of each department.
  • Have a specific plan for cash flow activities including investment and financing activities.
  • There should be a clear information system and regulations.
  • Understand well position, duties and powers of work.
  • Define tasks and processes effectively.
  • Determine the exact number of transactions.
  • Identify proficiency expectations and estimate placement outcomes.
  • Understand the degree of application of automation in work and data management systems.

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In order to implement human resource manning, enterprises need to meet specific conditions

Principles of staffing

When conducting staffing, businesses need to follow certain principles below to ensure the most accuracy:

Correlation ratio

Billion Correlation ratio is an important principle in staffing. Enterprises applying the principle of correlation ratio will often rely on the number of personnel increase and decrease between years.

Rule
For example
  • The rate of increase or decrease compared to the previous year will correspond to the rate of increase or decrease in sales.
  • Enterprises whose revenue is determined to increase by 60% in 2022 will increase their staffing by 40%.
  • Correlation ratio between direct positions (manufacturing & sales) with the group of indirect employee positions.
  • Direct personnel - indirect personnel is 60% - 15%
  • Staff - Manager is 70% - 10%.
  • Correlation between the amount paid to the management team and employees, direct and indirect employee groups.
  • If an enterprise has an expense-revenue ratio of 80%, the salary fund paid to the management team - employees will be 20% - 80%.
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Principle of staffing according to the ratio

Labor norms

The principle of labor norms will be based on the quantity and quality of work to evaluate. Here are the details of specific boundary coefficients:

Rule 

For example
  • Rates are based on volume.
  • Applied to jobs associated with production or services, increasing according to the level of perfection of workers.
  • 25 products/shift/person.
  • 80 products /that/chain (group)
  • 10 customers served/day.
  • Norms based on coefficient spending system
  • Applies to business units.
  • Set of revenue targets (50 billion) and number of customers (300 guests) in the year.
  • Norm based on service object
  • Apply to indirect block.
  • 1 HR employee corresponds to 50 people in the business.
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Personnel allocation is made based on labor norms

Frequency and duration

Enterprises applying the principle of frequency and duration need to be evaluated based on the position and working frequency of the personnel.

Rule
For example
  • Determined based on job title, frequency and duration of tasks.
  • Usually applied to indirect block

The Accountant position includes the following duties:

  • Check vouchers, accounting, daily payment, 200 vouchers/day.
  • Work together with the tax inspector at the end of each quarter for a period of 4 days.
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Manpower allocation based on the principle of frequency and duration

Steps to staffing in the enterprise 

To perform manpower allocation, businesses need to perform the following 5 basic steps in turn:

Identifying and forecasting human resource needs

The first step to mention is that the business needs to determine the relative needs of human resources in the enterprise based on the development goals and strategies. Thereby, businesses need to clarify the following information:

  • In a specific time, it is necessary to recruit a large number of potential and highly specialized personnel.
  • Exact quantity per position, per part.
  • Necessary requirements for professional skills and qualities of personnel suitable for the position.
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The first task of an enterprise is to identify human resource needs

Situation analysis

Next in this step, enterprises need to carefully analyze the quality of existing human resources. Enterprises will consider both the advantages and limitations of resources to conclude whether they can meet the current needs or not. In the process of business analysis should be divided into 2 groups of basic factors for easy tracking such as system factors and process factors.

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Enterprises conduct detailed situation analysis

Making the decision to increase/reduce manpower

Based on the carefully examined and analyzed personnel situation, enterprises will begin to selectively make decisions to increase or decrease personnel. This is an extremely important step in screening the employee system including the leadership department. Therefore, businesses should have a broad view of the situation and be careful to come up with the most optimal solution.

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Enterprises began to make decisions to change the number of employees

Planning 

After completing the above 3 steps, the business will continue to plan the implementation of appropriate staffing. If the staffing process is done properly, the human resources department can both save time and costs and help optimize human resources. Basic information that should be included in the plan:

  • Plan and schedule, time to recruit specific personnel.
  • Promotion and rotation of internal personnel.
  • Reallocating the number of personnel in departments, and restructuring the enterprise structure.
  • Cutting personnel with poor expertise, low working performance and not bringing positive value to the company
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Enterprises make specific plans to allocate appropriate personnel

Evaluation of the implementation of the plan 

The final step in completing the staffing process is that the business needs to conduct a plan review to find out where the errors occur between the set goals and reality. Once the specific causes are understood, businesses will learn lessons and have a better direction in the future.

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The enterprise makes a specific assessment of the implementation of the plan to complete the process

FAQs

Manpower allocation plays a significant role in boosting employee morale and engagement. When employees are assigned tasks that align with their skills and interests, they feel valued and motivated, leading to higher levels of job satisfaction and engagement.

No, manpower allocation is relevant to organizations of all sizes. Efficient workforce management through proper allocation is crucial for businesses seeking to optimize productivity and maximize the potential of their human resources, regardless of their scale.

Technology plays a crucial role in streamlining manpower allocation processes. Human resource management systems (HRMS) and workforce management software provide advanced features that facilitate skill matching, workload visualization, and efficient communication. These tools automate administrative tasks, enhance accuracy, and enable data-driven decision-making for optimal resource allocation.

Absolutely. Manpower allocation ensures that projects are staffed with individuals possessing the necessary skills and expertise. This targeted deployment of resources enhances the chances of successful project completion within the designated timeframes. Matching the right people to the right projects significantly increases the likelihood of achieving desired outcomes.

The above article has provided readers with information to explain the definition of manpower allocation. A business without proper human resource management will not be able to manage resources well. Vindoo hope that this article will help readers better understand the staffing process.

Manpower Allocation: Maximizing Efficiency and Productivity in Workforce Management
Jun Nguyen June 27, 2023

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