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Macro and Micro Level Human Resource Planning

By: Gurpreet Kaur

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Macro Level HRP• HRP at macro level is to ensure optimal production , economic

growth and development of human resources themselves

• Rate of growth of HR at macro level is determined by two factors- Quantity and Quality- They determine the supply of HR.

• Quantity is determined by

Population policy,

Population structure,

Migration and

Labour force participation

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Macro Level HRP

• Quality is determined by

Education and training

Health and nutrition, and

Equality of opportunity (social &economic equity)

Of the above, Education &training is most important to

improve quality of HR. Hence, HRP and Educational planning are synonymous in general.

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• Population Planning and Control

• Literacy and Education• Health and Medicare• Housing

Major issues for Macro Level HRP

By: Gurpreet Kaur

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Social Sector Schemes of the Government

Sr.No Scheme Provisions

1 Jawahar Gram SamriddhiYojana(JGSY)

SGSY is a Credit-cum-Subsidy programme. It covers all aspects of self-employment, such as organisation of the poor into self-help groups, training, credit technology, infrastructure and marketing. Efforts would be made to involve women members in each self-help group.

2 Employment Assurance Scheme (EAS)

As its name suggests, the primary objective of the EAS is to provide gainful employment during the lean agricultural season in manual work to all able bodied adults in rural areas who are in need and desirous of work, but cannot find it. 

3 National Social AssistanceProgramme

to provide public assistance to its citizens in case of unemployment, old age, sickness and disablement and in other cases of undeserved want within the limit of its economic capacity and development.

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Social Sector Schemes of the Government

Sr.No Scheme Provisions

4 Swaran Jayanti Gram Swarozgar Yojna (SJGS)

The SGSY aims at providing self-employment to villagers through the establishment of Self-help groups. Activity clusters are established based on the aptitude and skill of the people which are nurtured to their maximum potential. Funds are

provided by NGOs, banks and financial institutions.

5 Nehru Rozgar Yojna To provide employement to unemployed youths

6 Prime Minister’s Rozgar Yojana

This scheme has been launched by the Govt. of India in 1993 to provide self employment opportunities to the unemployed youth and women. Under the Prime Minister Rozgar Yojna, loans upto Rs. 1.00 lac for business and Rs. 2.00 lac for Industrial & Agricultural activities are advanced by the Banks to those unemployed Youth and Women who are 18 to 35 and 18 to 45 years of age respectively and whose income (including the income of the parents / spouse) does not exceed Rs. 40 thousand per annum

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Approaches to Macro Level HRP1. The Manpower Requirement Approach (MRA) This assumes that there is a definite relation between education

and economic growth, and hence, lack of educated &skilled people (HR) will impede growth.

In this approach, future requirement of HR (educated people) to fulfill a targeted GNP/industrial production is forecast over a given period.

Let us understand how it works,

• It establishes a linear relation between employment and output and then extrapolates manpower requirements in different categories for years to come

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The Manpower Requirement Approach (MRA)

ii. Initially category wise manpower coefficient are computed, based on past data .

iii. Thereafter, aggregate manpower requirements of different categories are worked out

iv. These inputs are then converted to different types of educational requirements.

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Approaches to Macro Level HRP2. Rate of Return Approach: (RRA)

• This looks upon education as a contributor to productivity and thus it is expected to facilitate investment decisions in education

• Returns to education may be direct monetary benefits, indirect monetary benefits and Non-monetary benefits.

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Micro Level HRP• HRP (at micro level) may de defined as a strategy for the

acquisition, utilization, improvement and preservation of the human resources of an enterprise.

• HRP is a process by which an organization ensures that it has the right number and kinds of HR, at the right place, at the right time, capable of effectively and efficiently achieving the organizational objectives

• The major activities of Micro level HRP is,

Forecasting Future Demand

Inventorying Present Human resource availability

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Micro Level HRP• Determining Gap between demand and

availability • Planning the activities such as recruitment,

selection, training &development etc

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Manpower Planning Model Markov Model

Renewal Model

Simulation Model

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Markov Chain Model• This is a method to analyze internal movements in an

organization.• If systematic personnel records are maintained, the

transition probabilities

( percentages of employees moving from one grade /post to another based on length of service, performance etc) can be determined through

Thus, an accurate forecasting of supply of HR can be made.

• Because of the characteristic of “Pushing” Markov model is called as Push Model

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Markov chain model

• 0-3 years 3-10 Above 10 • A

• B

• C

Transition probabilities are estimated for each movement, thereby the employees in each level at any point of time is estimated accurately.

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Renewal Model• Renewal models concentrate on the basic assumption that

requirements are met by changes in promotion and recruitment rates

• Knowing the manpower requirements , what is required is knowledge of how much recruitments and how many promotions should take place to satisfy them

• In this way employees are “Pulled” through the system to meet predetermined requirements

• Because of this renewal model are also called as Pull Model

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Simulation Model• In simulation model each co-model interacts with

other co-model• In this, each level of the organisation is divided

into a number of years• These years denote the length of time that

employee stay at a certain level• Employee flow from year to year until they reach

the maximum number of years that they can remain at the same level before being promoted

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Simulation Model

Generic Model of a typical Organisation