You are on page 1of 7

Social Demand Approach: The social demand approach lies on the assessment of societys

requirement for education. In principles, it is an aggregate of individuals demand for education in

respect of all individuals within the society. It is not always possible particularly in large
societies, to assess individual demand for education. In practice, therefore, social demand
approach relies on a projection of past trends in demographic aspects of population and the
enrollment at the different levels of education.
Social demand approach is thus capable of revealing the number of students with differently
types of professional preparations that may be a given target date, based on past experiences.
Projections of social demand for education are contingent upon given levels of:

Income of educated people,

Taste and references of household for education,
Demographic characteristics such as fertility and mortality,
Direct costs of education,
Student grants, and
Existing standard of admission to various levels of education.
Added to these constraints, there are the perennial problems associated with the data base on
demographic aspects at disaggregated levels such as districts, blocks and villages and data on
wastage and stagnation in education, and intensity of utilization of existing educational facilities.
Social demand approach thus suffers from the difficulties associated with any futurological
Rate of Return Approaches: Critics of social demand approach argue that the decision to
choose more or less of education, beyond a legal school-learning age, is made by an individual
who attaches a positive value to the present and the future benefits of education. Aggregate of
individuals demand for education, which is constructed the social demand for education, should
then be based exaggerate of individuals assessment of benefits of education-reflecting the social
benefits. This brings us the rate of return approach to education:
Rate of return approach looks upon education as a contributor to productivity and this sense, it is
expected to facilitate investment decisions in education whether or not the students should
undergo more schooling, or whether or not the state should invest more and expand educational
facilities. Like in the rate of return on investment analysis, rate of return on investment in
education is used to expand educational facilities until schooling equalizes.

On the one hand yield of investment in different types of education, and

On the other hand yield of investment in education vis--vis other sectors of economy.
Manpower Requirement Approach: The fundamental axioms of manpower requirements
approach is that there is a definite link between the education and economic growth and that lack
of skilled manpower in required number impedes growth. In this approach an attempt is made to
forecast future requirements of educated manpower to fulfill a future target of Gross National
Product (GNP) or specified targets of industrial production. Based on the forecasts of educated
manpower requirement over a specified period, the planners would then indicate the directions of
development of the educational sector over the same specific period.
The basic steps involved in this exercise are as under:

Anticipating the directions and the magnitude of development of each individual sectors
of the economy.

Evolving norms of the employing manpower in each individual sector keeping the view
Technological optionsPresent as well as futurefor each sector of the economy.
Translating the physical targets for the development of each individual sector into the
manpower requirement using the sector specific manpower norms.
Estimating the educational; equivalents of the manpower requirement.
Analyzing the implications of estimates of educated manpower requirements for
educational development, based on assumptions regarding the enrollment rates, transitions
probability and wastage and the stagnation rates at the each level of education.
Limitations of the Manpower Requirement Approach:
The first limitation assumes that the educated manpower of different types are used in fixed
proportions and that there no substitutions possibilities among the various categories of educated
The second limitation is that it postulates a definite link between an industrial task and an
educational level.
The crucial information in all forecasting exercises is the assumptions about the distant unknown
future. Any error in judgment, in this regard, will seriously affect manpower balances at a later
date resulting in either excess supply or excess demand. In the context of educational planning,
excess demand is relatively easier to manage. Excess supply, on the other hand, leads to serious
economic and sociological problems which are often difficult to deal with.
Approaches to HRP
HR planning is a mechanism created to forecast the required human resource to perform a
specific task. It also assesses the skill requirement of employees for each job. It is a complex task
which estimates the future demand and supply position of HR in the organization. Hence, it gives
a picture of infinite future in advance in terms of human resource requirement for the company.
Here, the approaches to HR planning are as follows
Quantitative Approach
It is also known as top down approach of HR planning under which top level make and efforts to
prepare the draft of HR planning. It is a management-driven approach under which the HR
planning is regarded as a number's game. It is based on the analysis of Human Resource
Management Information System and HR Inventory Level. On the basis of information provided
by HRIS, the demand of manpower is forecasted using different different quantitative tools and
techniques such as trend analysis, mathematical models, economic models, market analysis, and
so on. The focus of this approach is to forecast human resource surplus and shortages in an
organization. In this approach major role is played by top management.
Qualitative Approach
This approach is also known as bottom up approach of HR planning under which the
subordinates make an effort to prepare the draft of HR planning.Hence, it is also called subordinate-driven approach of HR planning. It focuses om individual employee concerns. It is
concerned with matching organizational needs with employee needs. Moreover, it focuses on
employee's training, development and creativity. Similarly, compensation, incentives, employee
safety, welfare, motivation and promotion etc. are the primary concerns of this approach. In this
approach, major role is played by lower level employees.

Mixed Approach
This is called mixed approach because it combines both top-down and bottom-up approaches of
HR planning. In fact, the effort is made to balance the antagonism between employees and the
management. Hence, it tends to produce the best result that ever produced by either of the
methods. Moreover, it is also regarded as an Management By Objective(MBO) approach of HR
planning. There is a equal participation of each level of employees of the organization.

Benefits/Importance of Human Resource Planning

Human resource planning or manpower planning is necessary for ail organisations because of
following reasons:
1. To meet up requirements of the organisation: To do work in the organisation, every
organisation needs personnel of desired skill, knowledge and experience. This human
resources requirement of organisation can be effectively fulfilled through proper human
resource planning. It helps in defining the number of personnel as well as kind of
personnel required to satisfy its needs. It ensures the reservoir of desired human resources
as and when required.
2. Counterbalance insecurity and change: There must be proper utilisation of human and
non-human resources in the organisation. Sometimes the organisation may have adequate
non-human resources e.g. machines, materials and money but inadequate human
resources as a result, manufacturing process/production cannot be started. Human
resource planning helps to offset uncertainties and changes as far as possible and enables
to ensure availability of human resources of the right kind, at right time and at right place.
3. It helps in checking labour imbalance: Human resource planning helps to anticipate
shortages and/or surpluses of manpower in the organisation. The shortage of manpower
as well as surplus of manpower is not good for the organisation. It proves very expensive
for the organisation. In case of shortage of human resources, physical resources of the
organisation cannot be properly utilized. In case of surplus of human resources, this
resource may remain under-utilized It helps in counter balancing the problem of shortage
and surplus employees very comfortably. Human resource planning helps in correcting
this imbalance before it become unmanageable and expensive.
4. Right-sizing the human resource requirements of the organisation: In an existing
organisation, there is a constant need for right-sizing the organisation. In the organisation,
some posts may fall vacant as a result of retirement, accidents, resignations, promotions
or death of employees. Consequently, there is constant need of replacing people. Human
resource planning estimates future requirements of the organisation and helps to ensure
that human resources of right kind, right number, in right time and right place.
5. To meet expansion and diversification needs of the organisation: It helps to execute
future plans of the organisation regarding expansion, diversification and modernization.
Through human resource planning it is ensured that employees in right number and of
right kind are available when required to meet these needs of the organisation. It ensures
that people of desired skills and knowledge are available to handle the challenging job
6. Training and Development of Employees: There is constant need of training and
development of employees as a result of changing requirements of the organisation. It
provides scope for advancement and development of employees through training and

development etc. Thus, it helps in meeting the future needs of the organisation of highly
skilled employees.
7. Fulfill Individual Needs of the Employees: It helps to satisfy the individual needs of the
employees for promotions, transfer, salary encashment, better benefits etc.
8. Helps Formulation of Budgets: It helps in anticipating the cost of human resources e.g.
salary and other benefits etc. It facilitates the formulation of human resource budget for
various departments/divisions of the organisation. So, it may also help in, the formulation
of suitable budgets in an organisation.
9. To Check Joblessness: In the exercise of right-sizing of employees by the organisation,
some of the employees may become surplus. It means their services are no more required
in the organisation. It tries to foresee the need for redundancy. It plans to check job loss
or to provide for alternative employment in consultation with various concerned parties
and authorities.
Barriers to HRP:
Planners face significant barriers while formulating an HRP. The major ones are the following:
1. People question the importance of making HR practices future oriented and the role
assigned to HR practitioners in formulation of organizational strategies. Their argument is
simple-there are people when needed. Offer attractive package of benefits to them to quit
when you find them in surplus.
2. HR practitioners are perceived as experts in handling personnel matter, but are not
experts in managing business. The personnel plan conceived and formulated by the HR
practitioners when enmeshed with organisational plan, might make the overall strategic
plan itself defective.
3. HR information often is incompatible with the information used in strategy formulation.
Strategic planning efforts have long been oriented towards financial forecasting often to
the exclusion of other types of information.
4. Conflicting may exist between short-term and long-term HR needs. For example, there
arises a conflict between the pressure to get work done on time and long-term needs, such
as preparing people for assuming greater responsibilities. Many managers are of the
belief that HR needs can be met immediately because skills are available on the market as
long as wages and salaries are competitive. These managers fail to recognize that by
resorting to hiring or promoting depending on short-term needs alone, long-term issues
are neglected.
5. There is conflict between quantitative and qualitative approach to HRP. Some people
view HRP as a number game designed to track the flow of people across the departments.
These people a strictly quantitative approach to planning. Others take a qualitative
approach and focus on individual employee concerns such as promotabilty and career
development. Best results would accrue if there is a balance between the quantitative and
qualitative approaches.
6. Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an
Hr department function. Successful planning needs a co-ordinated effort on the part of
operating managers and HR personnel.