East West University

Course Title: Human Resource Planning

Course code: HRM411

Submitted by:

Name: Ashik ibna yusuf

ID: 2016-2-10-199

Section: 2

Submitted to:

Tamanna Parvin Eva

Senior Lecturer, Department of Business Administration.

Methods of Wastage Analysis

1. There are five levels of manpower system in an organization. For the year January
2018, number of employees for Junior Officer (JO), Probationary Officer (PO), Assistant
 Manager (AM), Manager (M) and Senior Manager (SM) positions are given below. There
are three entry points in the system, they are at the JO, PO and AM level respectively.
There is an employee turnover at every level, although the percentage of turnover drops
at every level as the flow goes up the hierarchy level. The data for these employees are
given below:

Particulars JO PO AM M SM

No. of employees 50 130 40 20 5

Employee Turnover Rates 25% 32% 20% 10% 2%

New recruitments as a % of total 80% 15% 5% - -

recruitments

Percentage promoted to next levels 75% 15% 4% 2% -

(per annum)

There are two assumptions which underlie that (i) the employee in any group has a fixed chance
of promotion in any given year and (ii) there is no requirement of vacancy to exist in the higher
grade like M and SM level

Requirement:
a) Calculate the number of JO, PO, AM, M and SM for the end of the year 2018 by using
Markov Chain Model.
b) If we recruit 70 new employees for the next two years, what will the number of
employees in JO, PO, AM, M and SM level at the end of the year 2019 and 2020?

Ans. to the q. no 1

(a) Current number of employee

n(t) = JO PO AM M SM
50 130 40 20 5

JO PO AM M SM
JO 0.0 0.75 0.0 0.0 0.0
PO 0.0 0.53 0.15 0.0 0.0
P= AM 0.0 0.0 0.76 0.04 0.0
M 0.0 0.0 0.0 0.88 0.02
SM 0.0 0.0 0.0 0.0 0.98
 Number of employees junior officer at the end of 2018 = 0 + (50+0)

=0

Number of employees Probationary officer at the end of 2018 = (50*.75) + (130*53)

= 106

Number of employees Assistant Manager at the end of 2018 = (130*.15) + (40*76)

=50

Number of employees Manager at the end of 2018 = (40*0.04) + (20*.88)

=19.2

Number of employees senior Manager at the end of 2018 = (20*.02) + (5*.98)

= 5.3

(b) Ending of the year 2018 = Beginning of the year 2019

So number of employee beginning of the year n(t+1) =

JO PO AM M SM
0 106 50 19 5

After recruiting 70 employee total employee beginning of the year 2019 will be
JO = (0.80*0.70) =56
PO =106+ (0.15*0.70) =117
AM= 50+ (0.05*0.70) =53
So number of employee ending of the year 2019

JO 0+(56*0) 0
PO (56*.75)+(117*.53) 104
AM (117*.15)+(53*.76) 58
M (53*.04)+(19*0.88) 19
SM (19*.02)+(5*0.98) 5

Ending of the year 2019 = Beginning of the year 2020

So number of employee beginning of the year n(t+2) =

JO PO AM M SM
0 104 58 19 5

After recruiting 70 employee total employee beginning of the year 2020 will be

JO = (0.80*0.70) =56
PO =104+ (0.15*0.70) =115
 AM= 58+ (0.05*0.70) =61

n(t+2) = JO PO AM M SM
56 115 61 19 5

So number of employee ending of the year 2020

JO 0+(56*0) 0
PO (56*.75)+(115*.53) 103
AM (115*.15)+(61*.76) 64
M (61*.04)+(19*0.88) 19
SM (19*.02)+(5*0.98) 5

At the end of the year junior employee become 0. Probationary officer is decreasing. Assistant manager
is increasing. Manager is not changing. Senior manager is not changing. Junior employee should be
given motivation. Probationary officer should be given motivating strategy. Manager, Senior manager
case strategy should not be change.

Book Math:

2. There are four levels of manpower system in an organization. For the year January
2018, number of employees for Management Trainee (MT), Assistant Manager (AM),
Manager (M) and Senior Manager (SM) positions are given below. There are two entry
points in the system, they are at the MT, and AM level respectively. There is an
employee turnover at every level, although the percentage of turnover drops at every
level as the flow goes up the hierarchy level. The data for these employees are given
below:
 Particulars MT AM M SM
No. of employees 60 180 50 20
Employee Turnover Rates 22% 30% 10% 4%
New recruitments as a % 95% 5% - -
of total recruitments
Percentage promoted 78% 5% 2% -
to next levels (per
annum)

There are two assumptions which underlie that (i) the employee in any group has a fixed
chance of promotion in any given year and (ii) there is no requirement of vacancy to exist in
the higher grade like M and SM level

Requirement:
a) Calculate the number of MT, AM, M and SM for the end of the year 2018 by
using Markov Chain Model.
If we recruit 70 new employees for the next two years, what will the number of employees in
MT, AM, M and SM level at the end of the year 2019 and

Ans. to the q. no 2

a) Current number of employee

n(t) = MT AM M SM
60 180 50 20

JO PO AM M
MT 0.0 0.78 0.0 0.0
P= AM 0.0 0.65 0.05 0.0
M 0.0 0.0 0.88 0.02
SM 0.0 0.0 0.0 0.96

Number of employee at the end of 2018

MT 0+(60*0) 0
AM (60*.78)+(180*65) 164
M (180*.05)+(50*.88 53
)
SM (50*.02)+(20*.96) 20
 (b) Ending of the year 2018 = Beginning of the year 2019
So number of employee beginning of the year n(t+1) =

MT AM M SM
0 164 53 20

After recruiting 70 employee total employee beginning of the year 2020 will be

JO = 0+(0.95*0.70) =67
PO =164+ (0.05*0.70) =168

n(t+2) = MT AM M SM
67 168 53 20

Number of employee at the end of 2019

MT 0+(67*0) 0
AM (67*.78)+(168*65) 161
M (168*.05)+(50*.88 52
)
SM (50*.02)+(20*.96) 20

Ending of the year 2019 = Beginning of the year 2020

So number of employee beginning of the year 2020 n(t+2) =

MT AM M SM
0 161 52 20

After recruiting 70 employee total employee beginning of the year 2020 will be

MT = 0+(0.95*0.70) =67
AM =161+ (0.05*0.70) =165

n(t+2) = MT AM M SM
67 165 52 20

So number of employee ending of the year 2020

MT 0+(67*0) 0
AM (67*.78)+(165*65) 160
M (165*.05)+(52*.88 54
)
 SM (50*.02)+(20*.96) 20

Management trainee should be given motivation. Manager, Assistant manager should also be given
motivation. Senior manager case strategy should not be change.