EXPERIENTIAL

LEARNING
ASSIGNMENT
Operations Research Project by using 3 Phase and 8
Step Methodology

By
Akshay Raut
PRN: 20020141025
Roll No.: 43125
Phase 1:
Pre-Modelling Phase
1. Identification of Problem:
Human Resource Allocation in TCS with Organizational Costs Reduction Orientation.
In this research, we have tried using linear programming to present a model for supply and
application of human resource in different units of an organization so that allocated cost and
budget was considered for each unit.

Stages for research

1-Nature and importance of human resource programming
2- Human resource programming methods
3- Previous research in human resource programming
4- Information collection
5- Data analysis and model optimization
6- Model running by software
7- Conclusion and suggestion
Since today Human resource is the most valuable production agent and the most important
capital of each organization and productive main resource of competitive advantage and
creator of basic abilities of each organization, so one of the main organizational programming
is human resource programming. Important factor for human resource programming
existence is programming for achievement to skill and educational needs and finally human
resource enhancement.
Human resource programming has two stages: Human resource needs programming:
existence of statistics and personnel information is needed. Human resource supply
programming: employment circumstance is necessary.
Our purpose in this research is human resource needs programming so that we will need
information in connection of statistics and power of present human resource of organizational
units, salary, promotions, budget, personnel classifying and other organizational
information regarding human resource.
In purposes and activities analysis method comparative and part by part analysis of
organization programs is started. Each effort for human resource needs determination will be
result less without doing of this stage. Organization program includes some information such
as organization and construction organizational in present and future circumstance. This
program may determine organization major and minor units with purposes break.
Compilation of exact job description for obtained jobs in human resource programming
possesses much importance because it influences promotion and education programs in the
future. Program time is also important in personnel needs determination. In the procedure rate
method, present standards accept human resource and extend them to future. In this research,
proportions play an important role. Factors such as type of work, amount of yield and change
in all of activities influence procedure rate method and change the proportion. Choosing of
reasonable and correct proportions is the most basic thing in this method. Various proportions
in human programming are the way of needed human resource preparation and supply.
Employment programming is considered when human resource supply via present personnel
of organization is considered that means how we recognize, educate and prepare qualified
personnel in organization to supply organization needs and to fill vacant position. Personnel
have been educated to strengthen their scientific knowledge, practical experience, and extent
of insight and thought manner, self-confident and sense of responsibility to obtain higher
jobs.

2. Quantification of Problem:
This information includes:
1 . Different parts of organization
2 . Mean received salary of each of related organization unit's personnel
3 . Grading of related units personnel
4 . Education cost of ordinary personnel of organization
5 .Maximum allocated budget foe personnel’s salary and education supply
6 .Mean amount of outage of personnel from related units of organization
7 . A program presentation of needed announcement and number of applicant's participants
for employment
8 .Resource reception percent determination in term of personnel grading

Different parts of under studied organization are observable in organizational chart of this
organ. Organizational information related to unit's name, personnel grade in each unit,
personnel’s mean received salary, number of needed persons in each unit for human resource
programming
Other needed information for human resource programming model creation is as follows:
Education cost per each ordinary employee equal 600000 tomans
Maximum allocated budget for organization ordinary personnel education equal 600000
tomans
Maximum allocated budget for organization expert personnel’s salary supply equal 740000
tomans
Maximum allocated budget for organization semi-expert personnel’s salary supply equal
1500000 tomans
Maximum allocated budget for organization ordinary personnel’s salary supply equal
1000000 tomans
Number of applicant employees for employment in expert personnel group equal 70 persons
and number of applicant employees for employment in semi- expert group 90 persons and
also there has been 120 applicants for ordinary employees and organization policy for
employment is as this that it has not have more than 15 relinquished persons or outage from
organization, thus during investigations done in organization, outage amount from it has been
estimated for expert personnel 5 percent and for semi-expert and ordinary personnel 8 and 15
percent respectively. On one hand, maximum 50 percent of total of employees must be
receipted in expert personnel realm and at least 30 percent in semi-expert realm and 20
percent are applied in ordinary personnel realm.

In this research, after data collection and assurance from present information accuracy,
human resource programming model will be presented via linear programming. On the other
hand, because value of each of decision variable must be integer number, thus integer number
linear programming has been used. In this research, obtained model includes 19 decision
variables and 21 limitations. Finally, operation research software (QM) has been used for
model execution and for obtaining results. Operation research software(QM): This software is
subset of DS software and is abbreviation of quantitative methods and in most cases, it can
perform industries engineers and managers' need for problem solution of linear programming,
integer number, projectcontrol, stock control, ideal programming. Linear programming model
for presentation of human resource allocation program is as follows
Phase 2:
Modelling Phase
3. Formulation as a Mathematical Model
In this model, as mentioned, 19 decision variables have been defined that each xi decision
variable states number of needed persons in each parts of organization regarding personnel
grade.
Following table how decision variables of linear programming model in this research are
significant.

Human Resource Allocation Program Using Linear Programming

Linear programming model of this research includes target function, decision variables and
finally defined limitations and as mentioned previous, decision variable value that states
number of receptive persons in whichever of organizational realm, must be integer number.
4. Data Collection

Number of needed Personnel mean Personnel

persons in each unit received salary grade Unit name
       
8 1250000 expert Jobs
  850000 Semi-expert  
  5250000 ordinary Companies
  1000000 expert  
4 850000 Semi-expert  
Value
2 550000 ordinary Added
  850000 Semi-expert  
Salary
3 550000 ordinary Executions
2 850000 Semi-expert  
2 550000 ordinary  
2 850000 Semi-expert  
Properties
3 850000 Semi-expert and Heir
  550000 ordinary  
Accountanc
3 850000 Semi-expert y
3 850000 Semi-expert Transports
3 450000 Semi-expert Secretariat
  400000 ordinary  
2 450000 ordinary Pantry
 5. Algorithm Validation and generating model Solution

In this research, purpose is determination of needed persons for organization in different parts
provided that total costs of personnel salary supply for employees become minimum by
organization. Thus, target function considered in this research is of minimum type that
available coefficients of decision variables in target function state mean value of personnel
received salary in whichever of organization units regarding personnel organizational grade.
Target function presented as follows:

Limitations have been defined regarding organization policies in resource reception direction
as well as budget and possibilities to the extent that is possible and available in organization
so that first to tenth row limitations in model is related to organization need value in resource
reception for whichever of organization units and present limitations in eleventh to thirteenth
rows state maximum number of applicant persons in whichever of expert, semi-expert and
ordinary personnel. Limitations related to fourteenth to seventeenth of this model include
maximum allocated budget of organization for employed personnel salary supply and cost
related to ordinary personnel education period and finally present limitations in eighteenth to
twenty-first in model are indication of maximum and minimum percent of resource
employment in whichever of organization different parts and percent related to expert, semi-
expert and ordinary personnel outage.
In this research, pattern used in human resource allocation is corresponding to an integer
number linear programming model
Using Solver on Excel:

After preparing of linear programming model of this research and decision variables and
limitations definition, solution of this model is performed by one of the operation research
software in the name of QM that model outage includes 19 decision variables with integer
values, thus integer number programming technic has been used in software. Outage results
of model by software are as follows:
 6. Sensitive Analysis
After we are done with modeling phase, sensitivity analysis is the next step, we can do it
manually in excel by the use of what if function or there is an option of getting sensitivity
report when we solve the problem by excel solver. Here we used in-built option of solver
for getting the sensitivity analysis report. Here are the points why we do sensitivity
analysis:
a. A sensitivity analysis determines how different values of an independent
variable affect a particular dependent variable under a given set of
assumptions.
b. This model is also referred to as a what-if or simulation analysis.
c. Sensitivity analysis can be used to help make predictions in the share prices of
publicly-traded companies or how interest rates affect bond prices.
d. Sensitivity analysis allows for forecasting using historical, true data.

Phase 3:
Post-Modelling Phase
7. Data Interpretation and Decision making
Traditional employee monitoring systems have created uniform processes based on which
their results could be analysed. These were centralized processes, usually in the function of
human resources and each manager was required to assess the performance of all employees
who were his subordinates. These assessments usually took place once a year, usually at the
end. This called for managers and employees to attend meetings where they discussed the
results of their work. Usually, these meetings have led to employee performance monitoring
means that were not documents which could be constantly updated. Usually, they were
archived within the human resources department and their content was used only at the next
meeting where results were evaluated. By using quantitative and qualitative indicators,
various items were monitored and evaluated, usually covering the employee's personality,
behaviour and performance at work. Qualitative indicators usually contain an unstructured
narrative description of the overall results of the employee, along with some discussion topics
that were mentioned during the performance evaluation. The problem with evaluating work
quality was reflected in the fact that there has always been a very high probability that some
areas of importance could be omitted, while the biggest drawback was that this method was
not suitable for any type of comparison
It is revealed by software that in which realm and with which grade, personnel's must be
employed so that organizational costs that include allocated budget for personnel salary are
minimized. For example and considering outage model in jobs part, it is revealed that only
allowed organization for reception of 8 ordinary personnel is in this realm(because value of
x1=0, x4=0 ,x13=8) total amount of optimum costs by this model considering calculated
value of decision variables equal 23050000 rials. For accuracy of outage results model sum
of decision variable value in table 3 must be number of needed persons in whichever of
organization units that this has been become possible and value will be 32. Thus it is
suggested that dynamic programming methods and post inventive methods such as genetic
algorithm be used for retention and dynamic of model for various period of time.
 8. Implement, Monitor and Control
Human resources are allocated according to the requirements, and inventories are updated
over a period. The plan is monitored strictly to identify the deficiencies and remove it.
Comparison between the human resource plan and its actual implementation is done to ensure
the appropriate action and the availability of the required number of employees for various
jobs.
Aligning HR practices to strategic objectives is fundamental to an effective human resources
plan. In a perfect world, human resources management works hand in hand with other top
managers so there is a clear understanding of ultimate goals, and then they focus on the
human capital needed to meet them. It’s vital that the human resources plan encompasses
every part of the company from product development to sales and expansion plans. 
Forecasting human resource demand involves estimating the number of future employees of
the right quality and quantity, with a view to the company’s strategic plan over a given period
of time. Forecasting demand is the most crucial part of human resource planning and the most
daunting. It’s challenging for many reasons, and even more so because there are no absolute
answers on how to accomplish it. 
There are two categories of forecasting methods: quantitative and qualitative. You can use
both methods to track the work performance of the workforce as a whole, individuals, or
business units. Qualitative reports contain anecdotal observations, while quantitative data is
statistical or more data-driven. Select the methods that make the most sense in your
environment. For example, in a non-manufacturing company, the work-study method which
calculates the necessary working hours to produce units may not make sense. By gathering
both quantitative and qualitative information, you can identify issues that are impacting your
business's productivity, and then develop a well-rounded forecast to increase the company's
efficiency, ensure you’re not over or understaffed, and understand future needs.
With your forecast completed, you’ll have an understanding of future needs and if you will
need to fill them with external workers hired full-time, part-time, or as contractors. If you
have the right number of employees that don’t have the right skills, you can use training and
development to upgrade employee skills to fill the gaps, or you may need to deploy workers
in another role.