By: Gurpreet

Kaur

Macro and Micro Level Human

Resource Planning

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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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By: Gurpreet
Kaur

Major issues for Macro Level HRP

• Population Planning and

Control
• Literacy and Education
• Health and Medicare
• Housing

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Social Sector Schemes of the Government
Sr.No Scheme Provisions
1 Jawahar Gram SGSY is a Credit-cum-Subsidy programme. It
covers all aspects of self-employment, such as
Samriddhi organisation of the poor into self-help groups,
Yojana(JGSY) training, credit technology, infrastructure and
marketing. Efforts would be made to involve
women members in each self-help group.

2 Employment Assurance As its name suggests, the primary objective of

the EAS is to provide gainful employment during
Scheme (EAS) 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 to provide public assistance to its citizens in

case of unemployment, old age, sickness and
Assistance disablement and in other cases of undeserved
Programme 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 The SGSY aims at providing self-employment to
villagers through the establishment of Self-help
Gram Swarozgar groups. Activity clusters are established based on the
Yojna (SJGS) 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 This scheme has been launched by the Govt. of India
in 1993 to provide self employment opportunities to
Rozgar Yojana 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 HRP
1. 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 HRP
2. 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

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