International Research Journal of Applied and Basic Sciences

© 2013 Available online at www.irjabs.com

ISSN 2251-838X / Vol, 6 (2): 136-143
Science Explorer Publications

Presentation of Mathematical Model of Human

Resource Allocation inOrganizations with
Organizational Costs Reduction Orientation (Case
Study: Finance and Economy Affairs Organization
Ardakan Township)
Morteza Rahmani Nikoei1, Zinat Jamshidi2, Ali Morovati sharifabadi3
1, 2. Department of Management, Science and Research Branch, Islamic Azad university, Yazd, Iran.
3 . Yazd Universities, Faculty of Management, Yazd, Iran.

Corresponding Author: Morteza Rahmani Nikoei

ABSTRACT: Programming is one of the main principles in management. Programming is the base of
procedural and managerial principle that organizations combine and incorporate all their activities and
efforts about desired purposes, the way to reach it and how going through the way and achievement to
organizational results is its performance purpose. Therefore, management must have an appropriate
programming for all it's under control resource. One of these resources taken into account strategic
resource for organization is human resource that is important and associate to strategic issue component.
Human resource programming is a part of overallorganization programming and its purpose is recognition
and supply of needed personnel regarding future changes. Human resource programming helps
organization to estimate organizational and environmental changes relevance to its activities with
minimum costs. Indeed, human resource programming considers human needs in two quantitative and
qualitative respects that mean it answers two basic questions: how many persons? And what type of
personnel? At the same time, human resource programming considers more extensive issue related to
employment methods and personnel developments for enhancement of organization effectiveness and
for this reason it plays an important role in human resource management. Our purpose in this research is
a model presentation for human resource allocation in Finance and Economy Affairs Organization in
Ardakan Township via linear programming using obtained information from mentioned organization
including number of organizational units, persons classifying in different parts of organization, employee’s
mean received salary, ordinary employee’s education cost and maximum allocation salary and
employee’s period budget. Operational research software (QM) has been used for model results
achievement.
Key Words: Linera programming, human resource programming, Operational research, Persons
classifying, Strategic resource.

INTRODUCTION

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 programmingsis humanresource programming. Important factor for
human resource programming existence is programming for achievement to skill and educational needs and finally
human resource enhancement. Workers welfare revolution started at the end of 1800, informed employers
regarding this fact that it must be attended to employee’s welfare affairs. This tought manner was caused job under
the name of employee’s welfare affairs responsible is made. This job that taken into account beginning of
personnel management profession, took responsibility for cultural, dwelling, hygiene, treatment, education and
employee’s exercise and diversion requirements and usually persons who were chosen as welfare affairs
responsible that they had record of service in charity and public welfare institution (Ganji and Akhavan,2011).
Intl. Res. J. Appl. Basic. Sci. Vol., 6 (2), 136-143, 2013

Modern personnel programming was used in critical states or resource and skills shortage from 1940 to allocate
activities to employees and job structure development and first interpretation of human resource programming was
that it is subject to participation programming with two purposes of guarantee of present personnel appropriate use
and needs preparation of future employees in term of their abilities, talents, number and age but regarding rapid
changes caused in world because of technology development, human resource role and place also was influenced
by rapid changes. Mentioned orientation was criticized by Edward in 1984. He believed that human resource
analysis must be influenced the participation strategy. So, different authors defined human resource programming
corresponds to philosophic frams and their special orientations (Abbaspour and sahraei, 2010). 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.

Research Performing Stages

Figure 1 shows the procedure of the present 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

Figure1. Research performing stages

Nature and importance of human resource programming

In recent years, human resource programming has been considered as a tool that can directly join the
purposes and strategic of the organization to human resource goals and programs. The first and simplest definition
belonged to Melikog and Mahoti (1979) believed “human resource programming predicts employee’s future supply
and demand organized(Ganji and Akhavan, 2011). Abbaspour(2012) considers human resource programming as
prediction of organization needs from human resource and stage by stage programmings viewpoint that must be
covered to those needs. Human resource programming permits to human resource operation to influence efficiency
of organization(Abbaspour, 2012). The most efficient way achievement to competitive advantage in the present
circumstance is that organization employees be more efficient via enhancement of them and what has importance
in human resource development direction doesn’t achieve only with technical educations but it must be turned to
personnel development and this important matter is not possible unless with strategic management in human

137
Intl. Res. J. Appl. Basic. Sci. Vol., 6 (2), 136-143, 2013

resource management realm (Talebian, 2012). Achievement to organization to organization purposes needs a
complete and comprehensive planning and programming that all their needs and resource supply will be predicted
at least. It is obvious that programming in each of these affairs without needed human resource prediction and its
supply, training and distribution correct way will not succeed. With human resource programming interim personnel
future needs prediction, optimum use of present human resource and correct selection of personnel as well as
future foundation of organization will be well programmed (Ganji and Akhavan, 2011). Human resource
programming includes orderly predictions about amount of future needed human resource and its special manner
of supply so that organization estimates number of its needed human resource regarding those predictions and in
direction of demand replying, supply needed persons via inter or intra supply and lay the foundation of successful
organization via optimum use of present personnel and correct selection of future personnel (Abbaspour and
Rezvani, 2010). Research importance is in the way of that it enables organization to estimate its numbet of needed
human resource and to know shortages of human resource in each levels and to take required actions for
replacement and appropriate tavts adoption for increasing of human resource in a predictable future.

HUMAN RESOURCE PROGRAMMING METHODS

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 (Alvani, 2006).
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.
Human resource needs programming method includes two methods:
Purposes and activities analysis method (theoretical method)
Procedurerate method
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 (Alvani, 2006). 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 (Alvani, 2006).
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 (Alvani, 2006).

Review of Previous Research in Human Resource Programming

Workers welfare revolution started at the end of 1800, informed employers regarding this fact that it must
be attended to employee’s welfare affairs. This tought manner was caused job under the name of employee’s
welfare affairs responsible is made. This job that taken into account beginning of personnel management
profession, took responsibility for cultural, dwelling, hygiene, treatment, education and employee’s exercise and
diversion requirements and usually persons who were chosen as welfare affairs responsible that they had record of
service in charity and public welfare institution ( Ganji and Akhavan, 2011). Modern personnel programming was
used in critical states or resource and skills shortage from 1940 to allocate activities to employees and job structure
development and first interpretation of human resource programming was that it is subject to participation
programming with two purposes of guarantee of present personnel appropriate use and needs preparation of future
employees in term of their abilities, talents, number and age but regarding rapid changes caused in world because
of technology development, human resource role and place also was influenced by rapid changes. Mentioned
orientation was criticized by Edward in 1984. He believed that human resource analysis must be influenced the

138
Intl. Res. J. Appl. Basic. Sci. Vol., 6 (2), 136-143, 2013

participation strategy. So, different authors defined human resource programming corresponds to philosophic frams
and their special orientations (Abbaspour and sahraei, 2010).
Here, necessity of Markofobe Onvaniki model usage that is from the prediction methods of interdemand
that considers the personnel transmission circumstance and interreplacement within organization is revealed
because of its valid and scientific technics are appropriate guide for equilibrium keeping of human resource within
change and development. Resource input and output procedure prediction in organizational units and finally
consideration shortages and surpluses estimate in organization are possible based on Markova chain model
(Abbaspour and Rezvani, 2010). In addition to human resource programming, researches are done in the course of
human resource enhancement in organization that one of the enhancement technics is job change. Job change is
taken into account one of the most important type of education because in advanced organization it is believed that
qualitative level of personnel is most important agent of success and this goal is obtained via education within
work; for example in Japanese institutes, education within work accompanied with job change technic takes into
account as meanestpivoted of education managers and it is not attached educations out of work space.These
educations are done via replacement in different jobs and are most common and reasonable method for
enhancement of human resource enhancement (Rashidi et. al 2001).
Todays, organizations are in pursuit of new capital under the name of human capital. I dare say that human
capital is a factor that more than other factor influences retention and growth of organization. Today's human
capital importance is developed in all realm so that modern growth attend to human resource concentration and
even human capital considers as influencing factor in economic growth and development of societies. Some
researchers of human capital believe that investment on persons will cause economic efficiency of organization
and societies. Official education and graduation are important and require tools for enhancement of production
capacities of a society based on studies and researches of Sholtz (1971) Sakamoto and Pour (1995) and Wedhal
(1997). They have this reasoning that a graduated population (Hassanzadeh and saadat, 2011).
Researches are done in the course of operation research application in human resource programming that
we can point to allocation model application in this realm. During a research is done in shanog university in china
that has pointing to allocation model application in human resource, allocation model has been converted to a zero
or one linear programming model that has extensive application in personnel choosing and better organization of
human resource(Ma Xian-ying, 2012). Morever, a research is done in the course of science and technology human
resource indices estimate based on AHP phasic integration and phasic Demental orientation in this realm that
phase multiple indices decision methods(MADM) has been used in optimization of human resource that in this
study, first it has been considered estimate of weight of each indices such as value, amount of cooperation, human
capital and work market using AHP technic; then it has been taken into action creation descriptive relationships
among defined indices using phase Demote method caused better selection for long time period in training and
education, research and development and immediate present of production(Ying-Chyi etal, 2012).

RESEARCH METHOD

From research method point of view, this research is from model designing type that will be from
descriptive or test research. This research is from applicable type based on obtained information from the
government organization (Finance and Economy Affairs organization of Ardakan Township) that its results can use
for programming and better control and organization enhancement of human resource considering payable costs to
personnel that its requirement will be a model formation based on organizational obtained information.

Research Needed Organizational Information

First, needed information must be gathered from the under studied organization( Finance and Economy
Affairs organization of Ardakan township) that these information was obtained and gathered under policy
surveillance experts and manager of related organization and therefore they have accuracy and truth of matter.
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

139
Intl. Res. J. Appl. Basic. Sci. Vol., 6 (2), 136-143, 2013

Different parts of under studied organization are observable in figure 2 via 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 is as table 1.

Affair dean

company and salary and jobs group

value group properties group dean
dean dean
accounta masters masters masters properties transport Implemen masters masters masters masters masters
bility 833 masters s masters tation 824 823 822
832 831 812 821
masters
bachelor bachelor bachelor bachelor bachelor bachelor bachelor bachelor
833 832 propertie 823 822 821
831 s 812

Butler’s pantry secretariate

Figure2. Different parts of under studied organization

Table1. Information related to units grade, mean salary, number of needed persons
Number of Personnel Personnel grade Unit name
needed mean received
persons in salary
each unit
1250000 expert jobs

8 850000 Semi-expert

5250000 ordinary
1000000 expert companies

4 850000 Semi-expert

550000 ordinary
850000 Semi-expert Value added
2
550000 ordinary
3 850000 Semi-expert Salary
Execoutions
550000 Ordinary
2 850000
Semi-expert

850000 Semi-expert Properties and

2 heir
550000 Ordinary

850000 Semi-expert accountancy

3

850000 Semi-expert transports

3

3 450000 Semi-expert secretariat

400000 Ordinary

450000 ordinary Butler’s pantry

2

140
Intl. Res. J. Appl. Basic. Sci. Vol., 6 (2), 136-143, 2013

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.

Data Analysis
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;

Introduction of linear programming model decision variables

In this model, as mentioned, 19 decision variables have been defined that each x i decision variable states
number of needed persons in each parts of organization regarding personnel grade. Table 2 shows decision
variables of linear programming model in this research.

Table 2. Model decision variables

Number of needed persons via Resource employment unit Decision
personnel grade name variable
expert jobs X1
expert companies X2
expert Salary and properties X3
Semi-expert jobs X4
Semi-expert companies X5
Semi-expert Value added X6
Semi-expert Salary and properties X7
Semi-expert transports X8
Semi-expert executions X9
Semi-expert Properties and heirs X10
Semi-expert accounting X11
Semi-expert secretariat X12
ordinary jobs X13
ordinary companies X14
ordinary Value added X15
ordinary Salary and properties X16
ordinary Properties and heirs X17
ordinary secretariat X18
ordinary Bulter’s pantry X19

Presentation of 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. Structure of

141
Intl. Res. J. Appl. Basic. Sci. Vol., 6 (2), 136-143, 2013

Target Function of Linear Programming Model

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:

( ) ( )
( )

( )

Linear programming Model Limitations

In this research, 21 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 (Mehregan, 2009).
1)
2) 4
3) 2
4) 3
5) 2
6) 2
7) 3
8) 3
9) =3
10) 2
11) 07
12) 07
13) 027
14) 0207777 0777777 0777777 0477777
15) 007777( ) + 407777 00777777
16) 020777 + 007777 ( ) + 477777 +407777 07777777
17) 077777 ( ) 0777777
18) 7.0 ( )
19) 7.3( )
20) 7.2( )

Human Resource Allocation Programming Model solution

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 (table 3).

142
Intl. Res. J. Appl. Basic. Sci. Vol., 6 (2), 136-143, 2013

Table 3. Model outage by software (QM)

Number of needed persons via Resource employment unit Number of selected persons by Decision
personnel grade name software variable
expert jobs 0 X1
expert companies 1 X2
expert Salary and properties 2 X3
Semi-expert jobs 0 X4
Semi-expert companies 3 X5
Semi-expert Value added 2 X6
Semi-expert Salary and properties 1 X7
Semi-expert transports 3 X8
Semi-expert executions 2 X9
Semi-expert Properties and heirs 2 X10
Semi-expert accounting 3 X11
Semi-expert secretariat 3 X12
ordinary jobs 8 X13
ordinary companies 0 X14
ordinary Value added 0 X15
ordinary Salary and properties 0 X16
ordinary Properties and heirs 0 X17
ordinary secretariat 0 X18
ordinary Butler’s pantry 2 X19
23050000 Calculated cost optimum value by software

CONCLUSION

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 in table 1 that this has been
become possible and value will be 32. Used model in this research is from static type and it is considerable for
special period of time, 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.

REFERENCES

2010. Finance and Administrative Report. Finance and Economy Affairs OrganizationArdakan Township, Yazd, Iran.
Abbaspour A, Sahraei R.2010. Organization Human Resource Interdemand Prediction Using Markove chain model.
Abbaspour A. 2012.Advanced Human Resource Management. Research and Development of Human Science Center Press.
Ajorlou M.2010. Research in Operations (Linear Programming). Imam Hossein University Press. (In Persion)
Alvani M.2006. General Management. Research and Development of Human Science Center Press.
Ganji H, Akhavan Fomani S. 2011. Human Resource Programming Role and its Optimum Solution. Management Scientific Articles Website.
Hasanaalizadeh S, Saadat M. 2011. Introduction to Human Capital Concepts. Management Scientific Articles Website.
Mehregan M. 2009. Mathematical Modeling. Research and Development of Human Science Center Press.
Rashidi M, Asili G, Farhadi SM.2001. Human Resource Enhancement in Research Organizations via Job Changes. Thirth International
Conference of Research and Development centers of Industries and Mines.
Talebian A.2012. Human Resource Programming with Strategic Orientation. (In Persion)
Xian-ying M. 2012.Application of Assignment Model in PE Human Resources allocation. International Conference on Future Energy,
Environment, and Materials.
Ying-Chyi C, Chia-Chi S, Hsin-Yi Y.2012.Evaluating the criteria for human resource for science and technology (HRST) based on an integrated
fuzzy AHP and fuzzy Dematel approach.Journal homepage, www.elsevier.com/locate/asoc.

143