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1 FEM 4204 HUMAN CAPITAL PLANNING & DEVELOPMENT: THE GOVT ZURONI MD. JUSOH RESOURCE MGT AND CONSUMER STUDIES, FACULTY OF HUMAN ECOLOGY OBECTIVES To analyze the human capital planning and development To examine the current status of human capital development in Malaysia To examine the current status of human capital development in various countries To understand the link between human capital and labor supply 1 2 REFERENCES Begg, D., Fischer, S., and Dornbusch, R. (1987) Economics, McGraw Hill Rahmah Ismail (1996) Modal Manusia dan Perolehan Buruh, Dewan Bahasa & Pustaka Eigth Malaysia Plan Seventh Malaysia Plan Ninth Malaysia Plan OUTLINE Human capital planning and development The current status of human capital development in Malaysia Human capital development in various countries Less developed, developing and developed Human capital and labor supply 3 4 1
2 Human Resource Planning and Development Consisted of the following: 1. Population 2. Labor force (tenaga buruh) 3. Employment (Guna tenaga) 4. Education The goals: To increase productivity, per capita income and income distribution 5 Human Resource Planning and The scope: Improving human capital Improving the capability of labor market Controlling labor supply through population control The benefits: Individuals: job satisfaction; safety and personal development; ensured with higher income Institutions: Increased/improved creativity, productivity and capability ~ increases profit 6 The Framework. LABOR DEMOGRAPHY Birth rate; Mortality rate; Family Planning Guna Tenaga Tenaga buruh Preparation; Allocation; Use POPULATION SOCIAL Health; Nutrition; Poverty; urban dev EDUCATION Econ aspects (formal & informal) Non econ aspects Production capabilities; Per capita Income; Income distribution 7 1. The population planning and development: Consisted of: Demographic aspects: birth rate, mortality rate & family planning 70 million population policy plan RM8: Table 4.1 Social aspects: health, nutrition, poverty and urban development It influences and related to the planning and dev of Labor force; employment and education 8 2
3 Human Resource/Captal Planning and 2. The Labor related planning and development: Consisted of: Employment (guna tenaga) Need to be planned so that the available labor force (tenaga buruh) can be absorbed RM8: Table 4-2 Labor force (tenaga buruh) In this aspect what need to be considered are: Preparation of entering the labor market Budget allocation for improving labor quality Efficient use of labor 3. The educational planning and development: Consisted of 2 aspects: Economic: formal and informal education RM8: Table 4-5; Table 4-6; Table 4-7; Table 4-9 Government allocation for education and training: RM8 Table 4-9 Non economic ~ influence the attitude and charisma Both aspects are impt in the development of one s personality and the quality of labor supplied In short, the process of improving human capital: Begin at the early stage of child development. How? Through children s nutrition intake and health The process continue when the children obtain formal and informal education When the children finished schooling, they receive training to improve their human capital. 11 HRD and Planning: What is done so far? RM7 achieved sustained econ growth through: Increase productivity from increased investment in HRD and new technology Efficiency in use of labor (unemployment rate is low) Strengthening the human resource base Thus, the SS of highly skilled and trained manpower increased due to expansion in education and training institutions 12 3
4 RM8 The economy moves towards higher capital-intensity intensity and knowledge-based production process. Thus, the HRD&P goal: to create a critical mass of trained, skilled and knowledge manpower with the right motivation and attitude to optimize the use and development of new technologies and materials Thus, in RM8 the HRD focus on the enhancement of the qualitative aspects of human resources 13 Human Resource /Capital Planning and Human Resource Policy Thrust: RM8 Promoting lifelong learning to enhance employability and productivity of the labor force Optimizing the utilization of labor force Increasing the SS of S&T manpower Accelerating the implementation of the productivity-linked wage sys Strengthening labor mkt info sys to increase labor mobility Promoting M sia as a regional center of educational excellence Reinforcing positive values 14 Human Resource Policy Thrust: RM8 Expand the SS of highly skilled and k-manpower to support the development of k-economy Increase the accessibility to quality educations and training to enhance income generation capabilities and QoL Improving the quality of teaching and learning materials, teacher training and educational support services to ensure that manpower SS is in line with technological change and mkt DD RMK 9: Teras ke-2 Meningkatkan keupayaan pengetahuan, kreativiti dan innovasi negara serta memupuk minda kelas pertama Apa yang dirancang? 2 buah universiti di Terengganu dan Kelantan RM 1.15 billion menambahbaik kemudahan sekolah luar bandar khususnya di Sabah dan Sarawak Bina 180 sekolah rendah, 229 sekolah menengah dan sekolah berasrama penuh
5 RMK 9: Apa yang dirancang? RM 690 juta membina rumah guru sebahagiannya di kawasan luar bandar RM 1.51 billion program pengkomputeran sekolah dan RM 284 juta utk program pembestarian sekolah The measurement: 1. Human capital stock The number of population completed their education at various level The number of labor force in professional occupations (e.g. medical doctors, engineers) compared with the total population 2. Human capital development rate within a period Net increase in the number of people in high level jobs Other measurements/indicators: 1. Number of teachers per 10,000 populations 2. Number of engineers and scientist per 10,000 pop 3. Number of doctors and dentists per 10,000 pop 4. Ratio of students registered at lower educational level to the total number of pop aged bet 5 to 14 yr 5. Ratio of students registered at tertiary educational level to the total number of pop Human Capital and Labor Supply Labor supply: Is linked to time allocation (mkt work vs other activities), Time is exchanged for income In the short run, how long does one work to earn income is dependent upon the following: Wage rate; unearned income; income of the spouse; no of children; household work; community work Individuals cannot change the market wage rate Wage rate differentials occur due to differences in individual labor quality (skill, knowledge, health etc) aged bet 20 to 24 yrs 5
6 In the long run, Human capital can be upgraded through education and training which in turn influence the labor earning The decision to offer/supply labor is related to the desired education level (i.e. accept low paying job that offers OJT and high paying job that require transfers to someplace else Influence family wellbeing To ensure better future, achieve higher wellbeing and standard of living, one is willing to spend money on tuition, move to someplace else, get a new job In the long run, The adjustment of labor involve assessment of current cost (low wage, transfer to someplace else) and future return. Thus, this adjustment is called INVESTMENT The LR labor SS theory is called the Theory of Human capital investment decision Types of Investment in Human Capital Investment in the workplace Formal and informal training Investment outside the workplace Schooling Health Seeking for employment Measurement of Human Capital The two main components: Education and training Thus, human capital measurement is based on the return of these two components The return of other human capital components such as health and migration are difficult to measure
7 9/26/2011 Human Capital and Labor Supply THANK YOU cont The rate of return on education Formally, it is the interest rate that equates the cost of the investment with the present value of the stream of future benefits from the investment E.g Bob is contemplating an O Level/SPM at age 17 and expects to retire at age
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