Approaches to Human Resources

Planning There are three options to any educational planner. The first option is to treat the education as consumption of goods and demand for education as an aggregate of individual consumers demand of schooling, and to provide the facilities for education and training accordingly.

 The second option is to view education an investment in goods, evaluate the investments in education at par with the rate of return on investment in physical capital.

 The third option is to considered skilled manpower as basic inputs to the production of goods and services within the economy; assess the skill requirements to achieve any predetermined economic growth target, and to gear the expansion of educational system to provide the needed education and training.

there are three approaches to HR educational planning: Social Demand Approach Rate of Return Approach Manpower Requirement Approach.

1 Social Demand Approach The social demand approach relies on an assessment of societys requirement for education. In principle, it is an aggregate of demand for education in respect of all individuals within the society. It is not always possible, particularly in large societies, to assess individual demands for education. In practice, therefore, social demand approach relies on projection of past trends in demographic aspects of population and the enrollment at different levels of education.

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.

2 Rate of Return Approach 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.

Demand for education, should then be based on an aggregate of individuals assessment of benefits of education-reflecting the social benefits.

Rate of return approach to education looks upon education as a contributor to productivity and in this sense, it is expected to facilitate investment decisions in education

There are thus three parameters involved in the estimation of rate of return. Costs of education, Returns to education, and Discount rate (used in discounting future returns to arrive at present value).

3 Manpower Requirements Approach The fundamental saying of manpower requirements approach is that there is a definite link between education and economic growth, and that lack of skilled manpower in required numbers 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 specific targets of industrial production. Based on the forecasts of educated manpower requirements over a specified period, the planners would then indicate the directions of development of the educational sector.

 Limitations of Manpower Requirements Approach The first limitation is that the approach assumes that educated manpower of different types are used in fixed proportion and that there are no substitution possibilities among the various categories of educated manpower. The second limitation is that it postulates a definite link between an industrial task and an educational level.

approach-approach conflict? Approach approach conflict is a conflict where you feel like getting this as well as that. Example: Got two nice jobs but have to go to one.