Friday 21 October 2016

Article

Development Strategy Through Human Resource Planning: Keralas Experience

Dhanya. K
Assistant Professor in Economics
SHIJIL. K
PG Student, Department of Economics
 DGMMES Mampad College (Autonomous)
Abstract

In India each state follows their own development strategies. Kerala follows a development strategy of investment in human resource. The major outcome of this strategy is Kerala Model of Development (KMD). The service driven KMD is highly correlated with the investment in human resource through education and health. The state government could increase the capability of human resource by imparting skills, knowledge and training. This paper focuses on the sustainability of development strategy of Kerala by comparing it with other states like Bihar, Gujarath and also at the national level.

Keywords: Human Resource Management, Kerala Model of Development, Health, Education, Development,


Introduction

Human resource planning is the process including forecasting, developing and controlling by which a nation ensures that it has the right number of people and right kind of people at the right place at the right time doing work which they are economically most useful.

Kerala government is well aware of the efficient allocation of human resource to achieve economic growth and development. Kerala is one of the states which give more priority to education and health other than any states in India. Kerala is a labor surplus state so in such an economy human resource can play a vital role in its development. Kerala stands top in terms of its health and educational indices, in terms of Human Development Index (HDI), Kerala ranks first among all Indian states.

Development Strategy of Kerala

In India, different states are following their own development strategy. Some states may follow a development strategy by making more investment in agriculture and industrial sector like Gujarath and Andhra Pradesh. And some other states may focus on trade sector, education, health etc.

Kerala follows a development strategy by making more investment in human resource, which is more investment in health and educational sector. Investment in health and education will bring multiple effects in the economy. Generation by generation the economy can utilize its efficient human resources. One of the important outcomes of this development strategy was Kerala Model of Development (KMD).

Kerala Model of Development

Kerala Model of Development is a set of high material quality of life indicators coinciding with low per capita income through a set of wealth and resource distribution programmes.

KMD shows considerable development in social sector with low per capita GSDP (Gross State Domestic Product). Often economists say that KMD is service sector or state driven model of development. Efficient allocation and planning of human resource helped Kerala to mold KMD. When we take the health indicators of Kerala, Kerala stands tops among all other states in India. Now we can check the health status of Kerala along with so called Gujrath mode, of development and recently the Bihar Model of Development.  

Major Health Indicators
State
Population
Life Expectancy
IMR
MMR
Birth rate
Death rate

Kerala
33387677
74
12
66
14.6
6.6

Gujrath
60383628
64.1
50
122
22.6
6.9

Bihar
103804637
61.6
56
136
28.9
7.3

India
1.21 crore
64
53
178
22.8
7.4

Source:  Census 2011, Government of India

From the above table, it is very clear that, Kerala stands top in terms of its health indices in India. Indicators like MMR and IMR is very low in Kerala compared with Gujarath, Bihar and national level which shows efficient functioning of health institutions in Kerala. Kerala government provides better health services through CHCs, PHCs, Taluk District and Medical Colleges. Kerala government provides large number of job opportunities in health sector. Lakhs of trained and qualified personnels are working in this sector. Government is spending crores of rupees for health sector development. Kerala enjoys low birth rate and low death rate, which shows Kerala is in the third stage of demographic transition like that of any other developed countries. Life expectancy of Keralites is high in India (74). From this, it is understood that Kerala gives high priority for the treatment of aged people (17.5%). The population growth rate is also low in Kerala when compared with Gujarath, Bihar and national level.

The basis for the states impressive health standards is the state wide infrastructure of primary health centers. There are over 2700 government medical institutions in the state with 330 beds per one lakh population, the highest in the country. State supported programmes for pregnant and new mothers, IMR in 2011 was 12/1000 live births, compared with 91 for low income countries generally. In Kerala the birth rate is 40 percent below that of the national average and almost 60 percent below the rate of poor countries in general.


Education

On going changes in the global economic structures, along with information revolution have produced an environment where knowledge and skills or education and training are considered increasingly valued commodities. This is based on the simple notion that nations economic progress is linked to education and training. Human resource is an investment for future, more training and education leads to better work skills, educational institutions play a central role in the development of human resource, training enhances employment ability, and training can compensate for skill shortage. Education is one of the chief areas of concern in KMD. Without knowledge and skill no state can develop, so education has an important role in the development process of any economy. Kerala witnessed educational revolution after its formation by making education accessible to all irrespective of caste or religion. Considerable changes can be found in literacy rate of Kerala since 1951.

Year
Literacy
Male
Female

1951
47.18
58.35
36.43

1961
55.08
64.89
45.56

1971
69.75
77.13
62.53

1981
78.85
84.56
73.36

1991
89.81
93.62
86.17

2001
90.92
94.20
92.86

2011
93.91
97.10
92.12

Source: Census 1951 to 2011, Govt: of India

From the above table, it is very clear that Kerala made magnificent achievements in educational sector. Kerala is one of the first states in India to achieve total literacy. Male literacy and female literacy is increasing year by year. Kerala government spends crores of rupees for education.

When we compare this highest literacy rate of 93.91 percent with other states like Gujarath (79.31%), Bihar (63.82%) and National level (74.04%), it is a remarkable achievement in Keralas educational sector. In terms of Gross Enrolment Ratio in I-VIII class in 2011, Keralas figure (96.2) is below that of Gujarath (107.2), Bihar (102.9) and the national level (104.3). It is because of declining trend in population growth rate.

Expenditure on Education

During the first year of 12th five year plan (2012-17) an amount of rupees 590.24 crores had been earmarked for education sector of which 98.78 percent was spent. Kerala is one of the states which utilizes much of the allocated funds in education sector. In the total outlay, 48.7 percent was earmarked for the school education, 34.2 percentages for higher education and 17.1 percentage for technical education. The percentage allocation for the general education has been continuously increasing in all these three years. It had increased from 82.81 percentages in 2012-13 to 83.14 percentages in 2013-14 and to 83.71 percentage in 2014-15. The percentage allocation for higher education during this period is increasing substantially.


2014-15 (Percentage of total outlay)

School education
28.97

Higher education
16.83

General education
22.91

Technical education
29.67

Total
24.00

Source: Kerala Economic Review- 2014

The percentage allocation for technical education is very high in Kerala. Kerala Government gives considering all levels of education, especially school education and technical education. The drop-out ratio of Kerala is about 0.48 percent which is lowest in the country. There are 16985 teachers are working in education institution of which 9959 teachers are in arts and science colleges. There are 389 VHS are in Kerala. The enrolment of students in arts and science colleges in 2 013-14 was 2.32 lakh. In 2014-15 enrolment of all students was 38.01 lakh. These indicators are better in Kerala other than any states. The annual plan allotment to science and technology and environment in Kerala has increased from 150.25 crores in 2007-08 to 446.52 crores in 2012-13, during 2013-14 it was 534.43 crores. So, recently government is doing more for research and development.

The contribution from different sectors of Kerala economy shows that, service sector contributes 3/4th of GSDP. The contribution of primary sector is below 10% (8.95 in 2014-15). Similarly, the contribution from industrial sector was low, which is below 25 per cent. Despite the achievements in service sector there exists the problem of unemployment especially educated unemployment. The total unemployment of Kerala is 7.4 percent which is highest in the country. To counter this problem, government has undertaken many programes and policies. Here are some programmes under taken by Kerala government and also some suggessions to tackle the problem of unemployment.
National skill Development Mission: It envisages producing 500 million skilled manpower by the year 2022 and in Kerala it is 1.5 lakh to 2 lakh.
Self employment schemes implemented through employment exchanges like KESRU (Kerala Self Employment Scheme for Registered Unemployed).
Kerala Academy for Skills Excellence (KASE): To facilitate mass human resource development through specialized skill development courses across the state.
The Kerala perspective plan 2030 on education; It proposes a shift from knowledge disseminating approach to knowledge creating approach.
Promote vocational education.
Promote the functioning of IHRD (Institute for Human Resource Development).
Government should promote employment opportunities through MSMEs: MSMEs play a critical role in innovation and have ability to experiment with new technologies on small scales. Etc

Conclusion

Kerala government has achieved considerable development in health and educational sector. The health and educational indices of Kerala are far ahead among all Indian states. The efficient allocation and planning of human resources helped Kerala to achieve this status. The development strategy adopted by Kerala is better than that of other states in India, because it can bring multiple effects on the economy, which can not be measured. Despite the achievements in health and educational sector, Kerala also faces some problems like unemployment. In order to bring a sustained development, the government should need to impart more skills and training to its workforce.


References

Kerala Economic Review 2014-15.
Census 2011, Government of India.
Ministry of Human Resource Development.
National sample Survey Report, 554.
Directorate of Employment, Government of Kerala, 2014.

Friday 12 August 2016

Development Strategy Through Human Resource Planning: Keralas Experience

Dhanya. K
Assistant Professor in Economics
SHIJIL. K
PG Student, Department of Economics
 DGMMES Mampad College (Autonomous)
Abstract

In India each state follows their own development strategies. Kerala follows a development strategy of investment in human resource. The major outcome of this strategy is Kerala Model of Development (KMD). The service driven KMD is highly correlated with the investment in human resource through education and health. The state government could increase the capability of human resource by imparting skills, knowledge and training. This paper focuses on the sustainability of development strategy of Kerala by comparing it with other states like Bihar, Gujarath and also at the national level.

Keywords: Human Resource Management, Kerala Model of Development, Health, Education, Development,


Introduction

Human resource planning is the process including forecasting, developing and controlling by which a nation ensures that it has the right number of people and right kind of people at the right place at the right time doing work which they are economically most useful.

Kerala government is well aware of the efficient allocation of human resource to achieve economic growth and development. Kerala is one of the states which give more priority to education and health other than any states in India. Kerala is a labor surplus state so in such an economy human resource can play a vital role in its development. Kerala stands top in terms of its health and educational indices, in terms of Human Development Index (HDI), Kerala ranks first among all Indian states.

Development Strategy of Kerala

In India, different states are following their own development strategy. Some states may follow a development strategy by making more investment in agriculture and industrial sector like Gujarath and Andhra Pradesh. And some other states may focus on trade sector, education, health etc.

Kerala follows a development strategy by making more investment in human resource, which is more investment in health and educational sector. Investment in health and education will bring multiple effects in the economy. Generation by generation the economy can utilize its efficient human resources. One of the important outcomes of this development strategy was Kerala Model of Development (KMD).

Kerala Model of Development

Kerala Model of Development is a set of high material quality of life indicators coinciding with low per capita income through a set of wealth and resource distribution programmes.

KMD shows considerable development in social sector with low per capita GSDP (Gross State Domestic Product). Often economists say that KMD is service sector or state driven model of development. Efficient allocation and planning of human resource helped Kerala to mold KMD. When we take the health indicators of Kerala, Kerala stands tops among all other states in India. Now we can check the health status of Kerala along with so called Gujrath mode, of development and recently the Bihar Model of Development.  

Major Health Indicators
State
Population
Life Expectancy
IMR
MMR
Birth rate
Death rate

Kerala
33387677
74
12
66
14.6
6.6

Gujrath
60383628
64.1
50
122
22.6
6.9

Bihar
103804637
61.6
56
136
28.9
7.3

India
1.21 crore
64
53
178
22.8
7.4

Source:  Census 2011, Government of India

From the above table, it is very clear that, Kerala stands top in terms of its health indices in India. Indicators like MMR and IMR is very low in Kerala compared with Gujarath, Bihar and national level which shows efficient functioning of health institutions in Kerala. Kerala government provides better health services through CHCs, PHCs, Taluk District and Medical Colleges. Kerala government provides large number of job opportunities in health sector. Lakhs of trained and qualified personnels are working in this sector. Government is spending crores of rupees for health sector development. Kerala enjoys low birth rate and low death rate, which shows Kerala is in the third stage of demographic transition like that of any other developed countries. Life expectancy of Keralites is high in India (74). From this, it is understood that Kerala gives high priority for the treatment of aged people (17.5%). The population growth rate is also low in Kerala when compared with Gujarath, Bihar and national level.

The basis for the states impressive health standards is the state wide infrastructure of primary health centers. There are over 2700 government medical institutions in the state with 330 beds per one lakh population, the highest in the country. State supported programmes for pregnant and new mothers, IMR in 2011 was 12/1000 live births, compared with 91 for low income countries generally. In Kerala the birth rate is 40 percent below that of the national average and almost 60 percent below the rate of poor countries in general.


Education

On going changes in the global economic structures, along with information revolution have produced an environment where knowledge and skills or education and training are considered increasingly valued commodities. This is based on the simple notion that nations economic progress is linked to education and training. Human resource is an investment for future, more training and education leads to better work skills, educational institutions play a central role in the development of human resource, training enhances employment ability, and training can compensate for skill shortage. Education is one of the chief areas of concern in KMD. Without knowledge and skill no state can develop, so education has an important role in the development process of any economy. Kerala witnessed educational revolution after its formation by making education accessible to all irrespective of caste or religion. Considerable changes can be found in literacy rate of Kerala since 1951.

Year
Literacy
Male
Female

1951
47.18
58.35
36.43

1961
55.08
64.89
45.56

1971
69.75
77.13
62.53

1981
78.85
84.56
73.36

1991
89.81
93.62
86.17

2001
90.92
94.20
92.86

2011
93.91
97.10
92.12

Source: Census 1951 to 2011, Govt: of India

From the above table, it is very clear that Kerala made magnificent achievements in educational sector. Kerala is one of the first states in India to achieve total literacy. Male literacy and female literacy is increasing year by year. Kerala government spends crores of rupees for education.

When we compare this highest literacy rate of 93.91 percent with other states like Gujarath (79.31%), Bihar (63.82%) and National level (74.04%), it is a remarkable achievement in Keralas educational sector. In terms of Gross Enrolment Ratio in I-VIII class in 2011, Keralas figure (96.2) is below that of Gujarath (107.2), Bihar (102.9) and the national level (104.3). It is because of declining trend in population growth rate.

Expenditure on Education

During the first year of 12th five year plan (2012-17) an amount of rupees 590.24 crores had been earmarked for education sector of which 98.78 percent was spent. Kerala is one of the states which utilizes much of the allocated funds in education sector. In the total outlay, 48.7 percent was earmarked for the school education, 34.2 percentages for higher education and 17.1 percentage for technical education. The percentage allocation for the general education has been continuously increasing in all these three years. It had increased from 82.81 percentages in 2012-13 to 83.14 percentages in 2013-14 and to 83.71 percentage in 2014-15. The percentage allocation for higher education during this period is increasing substantially.


2014-15 (Percentage of total outlay)

School education
28.97

Higher education
16.83

General education
22.91

Technical education
29.67

Total
24.00

Source: Kerala Economic Review- 2014

The percentage allocation for technical education is very high in Kerala. Kerala Government gives considering all levels of education, especially school education and technical education. The drop-out ratio of Kerala is about 0.48 percent which is lowest in the country. There are 16985 teachers are working in education institution of which 9959 teachers are in arts and science colleges. There are 389 VHS are in Kerala. The enrolment of students in arts and science colleges in 2 013-14 was 2.32 lakh. In 2014-15 enrolment of all students was 38.01 lakh. These indicators are better in Kerala other than any states. The annual plan allotment to science and technology and environment in Kerala has increased from 150.25 crores in 2007-08 to 446.52 crores in 2012-13, during 2013-14 it was 534.43 crores. So, recently government is doing more for research and development.

The contribution from different sectors of Kerala economy shows that, service sector contributes 3/4th of GSDP. The contribution of primary sector is below 10% (8.95 in 2014-15). Similarly, the contribution from industrial sector was low, which is below 25 per cent. Despite the achievements in service sector there exists the problem of unemployment especially educated unemployment. The total unemployment of Kerala is 7.4 percent which is highest in the country. To counter this problem, government has undertaken many programes and policies. Here are some programmes under taken by Kerala government and also some suggessions to tackle the problem of unemployment.
National skill Development Mission: It envisages producing 500 million skilled manpower by the year 2022 and in Kerala it is 1.5 lakh to 2 lakh.
Self employment schemes implemented through employment exchanges like KESRU (Kerala Self Employment Scheme for Registered Unemployed).
Kerala Academy for Skills Excellence (KASE): To facilitate mass human resource development through specialized skill development courses across the state.
The Kerala perspective plan 2030 on education; It proposes a shift from knowledge disseminating approach to knowledge creating approach.
Promote vocational education.
Promote the functioning of IHRD (Institute for Human Resource Development).
Government should promote employment opportunities through MSMEs: MSMEs play a critical role in innovation and have ability to experiment with new technologies on small scales. Etc

Conclusion

Kerala government has achieved considerable development in health and educational sector. The health and educational indices of Kerala are far ahead among all Indian states. The efficient allocation and planning of human resources helped Kerala to achieve this status. The development strategy adopted by Kerala is better than that of other states in India, because it can bring multiple effects on the economy, which can not be measured. Despite the achievements in health and educational sector, Kerala also faces some problems like unemployment. In order to bring a sustained development, the government should need to impart more skills and training to its workforce.


References

Kerala Economic Review 2014-15.
Census 2011, Government of India.
Ministry of Human Resource Development.
National sample Survey Report, 554.
Directorate of Employment, Government of Kerala, 2014.