"An entrepreneur must pay attention to the quantity and quality of the manpower for his business as it directly impacts the performance and resulting productivity of the organization."
In the light of the aforesaid statement, identify the component of a business plan that helps an entrepreneur fulfil the stated purpose. State the objective and importance of the identified component.

Question

"An entrepreneur must pay attention to the quantity and quality of the manpower for his business as it directly impacts the performance and resulting productivity of the organization."

In the light of the aforesaid statement, identify the component of a business plan that helps an entrepreneur fulfil the stated purpose. State the objective and importance of the identified component.

Accepted Answer

Manpower Plan (Human Resource Planning). Objective: To ensure that the entrepreneur has the right number of people, and the right kind of people with appropriate skills, at the right place and the right time. Importance: (i) It helps assess what kind of people are required in terms of qualifications, skills, knowledge, and experience. (ii) It helps determine how many people are required considering total work, work per person, absenteeism, and labour turnover. (iii) It helps decide how to procure personnel through recruitment, selection, and training strategies.