People as resource

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People as Resource:

People as Resource

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People as Resource' is a way of referring to a country’s working people in terms of their existing productive skills and abilities. Population from this productive aspect emphasizes its ability to contribute to the creation of the Gross National Product. When the existing 'human resource' is further developed by becoming more educated and healthy, we call it 'human capital formation' that adds to the productive power of the country just like 'physical capital formation'.

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Investment in Human (via Education and Health) can give high rates of return in future. This investment is same as investment in land and capital. In fact, human capital is superior to other resources. It can make use of land and capital. Land and capital cannot become useful on its own. Now, let’s take an example of Sakal and Vilas to understand it clearly.

Story of Sakal:

Story of Sakal Sakal was a twelve year old boy. His mother Sheela looked after domestic chores. His father Buta Chaudhary worked in agricultural field. Buta and Sheela were eager to teach Sakal. They forced him to join school which he soon joined. He started studying and completed his higher secondary education. His father had also raised a loan for Sakal to do vocational course. With great vigour and enthusiasm he completed his course and after some time he get a job in a private firm. He even designed a software which helped him increasing the sale of the firm. He was also rewarded him with a promotion.

Story of Vilas:

Story of Vilas Vilas was an eleven years old boy residing in the same village as Sakal. His father passed away when he was two years old. His mother geeta sold fish to earn money to feed their family. She brought fish from the landowner’s pond and sold it in nearby mandi . She could earn only Rs. 20 to Rs.30 a day by selling fish. Vilas become the patient of arthritis. His mother could not afford to take him to doctor. He could not go school either. After some time, his mother also fell sick and there was no one to look after her. Vilas, too, was forced to sell fish in the same village. He like his mother earned only a meagre income.

In The Case Of Sakal:

In The Case Of Sakal Sakal went to school and was physically strong and healthy. He acquired a degree in computer programming. He found a job in private firm. Several years of education give high rates of return in the future in the form of job in Private Firm and good salary. This also added to quality of labour. This enchased his total productivity. Total productivity adds to the growth of economy.

In The Case Of Vilas:

In The Case Of Vilas Vilas did not go to School and was the patient of arthritis. He lakes means to visit the doctor. Vilas continued with the same work as his mother . Henceforth, he draws the same salary of unskilled labour as his mother. There was a very little contribution in growth of economy.

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How Country like Japan become rich/developed? They have invested on people especially in the field of education and health. These people have made efficient use of other resources like land and capital. Efficiency and the technology evolved by people have made these countries rich/developed.

Economic Activities :

Economic Activities Like Vilas and Sakal, people have been engaged in various activities. Sakal got a job in private firm and Vilas sold fish. These activities result in production of goods and services. These activities add value to the national income. These activity is also called Economic Activity.

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Economic Activities Primary Sector Secondary Sector Tertiary Sector

Primary Sector:

Primary Sector The term primary sector is normally used in the financial terms to refer to the sector of an economy making direct use of natural resources.  It includes : Mining Forestry Farming Extraction of oil and gas sector

Secondary Sector:

Secondary Sector In this sector, the raw material we get from Primary Sector is converted into finished products. It includes : Converting iron ore into Iron or steel Manufacturing of Products

Tertiary Sector:

Tertiary Sector Tertiary sector provide services to the secondary and primary sector. It includes : Communication Banking Transport Tourism

Market Activity or Non-Market Activity:

Market Activity or Non-Market Activity Economic activity also called Market Activity. Market Activities are those activities which is performed for pay or for profit. These include production of goods or services including government services. Non-Market Activities are the production for self consumption.

Division of Labour between Men and Women:

Division of Labour between Men and Women Women generally look after domestic chores and men work in the field. But women are not paid for the services delivered in the family. The household work done by women is known as non-market activity and it is not so recognized in the National Income. The earning of a person is determined on the basis of Education and Skill. Education help individual to make better use of the economic opportunity available before him.

Problems that women faces:

Problems that women faces A majority of women are paid low as compared to men. There is no job security bill for women. In this sector, there is an absence of basic facilities like maternity leave, childcare and other social security system. However women with high education and skill formation are paid at par with the man.

Quality of Production:

Quality of Production The Quality Of Production depends upon the literacy rate, health of a person indicated by life expectancy and skill formation acquired by the person of the country. The Quality Of Production ultimately decides the growth rate of country. Illiterate and unhealthy population are a liability for economy and Literate and healthy population are an asset for the economy.

Education :

Education There is a provision made for providing universal access, retention and quality in elementary education with a special emphasis a girls. Vocational stream has been developed to equip large number of high school students with occupation related to knowledge and skills. The plan outlay on education has increased from Rs. 151crore in first plan to Rs 3766.90crore in the eleventh year plan. The expenditure on education as percentage of GDP rose from 0.64% in 1951-52 to 3.11% in 2011-12 .

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The literacy rates has been increased from 18% in 1951 to 74%in 2010-11. Literacy among males in nearly 16.6% higher than females and it is about 16.1% higher in urban areas as compared to rural areas. Literacy rate vary from 93.9% in Kerala to 54% in Bihar.

Progress In Increasing Education Rate:

Progress In Increasing Education Rate The tenth year plan endeavored to increasing the enrollment higher education of the 18 to 23 years from the present 6% to 11% by 2006-07.

Health:

Health The Health of a person help him to realize his potential and the ability to fight illness. An unhealthy person becomes a liability for an organization indeed; health is an indispensable basis for realizing one’s well being. Henceforth, improvement of a health status of the population has been prior priority of the country.

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Due to some measures adopted by government have increased the life expectancy to over 65 years in 2011 Infant mortality rate (IMR) has come down from 147 in 1951 to 47 in 2010. Crude birth rate have dropped to 22.1 Death rate to 7 within the same time. Increasing in life expectancy and improvement in child care are useful in assessing the future progress of the country. Reduction of infant morality involve the protection of children from infection, ensuring nutrition along with mother and child care

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Over last five decades India has built up a vast health infrastructure and has developed man power required at primary, secondary and tertiary sector in Government as well as private sector. There are many places in India which do not have even this basic facilities. States like Karnataka, Tamil Nadu, Andhra Pradesh and Maharashtra have 81 out of 181 medical college. On the other hand, states like Bihar and U.P. have poor health indicates and few medical college.

Unemployment:

Unemployment Unemployment is not having a job. In case of India we have unemployment in rural areas and in urban areas. In rural areas, there is seasonal and disguised unemployment. In urban areas, there is an educated unemployment.

Seasonal Unemployment:

Seasonal Unemployment Seasonal Unemployment happens when there people are not able to find jobs during some months of year. There are certain busy seasons when sowing, harvesting weeding and threshing is done. Certain months do not provide much work to the people dependent on agriculture.

Disguised Unemployment:

Disguised Unemployment There is an agriculture where some people find work. The work requires the service of five people but engages eight people. Three are extra. These three people also work in the same plot as others. If three people are removed. The productivity of the field will not decline. The field require service of five and three extra people are Disguised Employed.

Educated Unemployment:

Educated Unemployment Many youth with matriculation, graduation and post graduation degrees are not able to find job. A study showed that graduate and post-graduate has increased faster than among matriculates. There is unemployment among technically qualified person on other hand, while there is a dearth of technical skills required for economic growth.

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In case of India, statistically, the unemployment rate is low and that leads to wastage of manpower resource. A large number of people represented with low income and productivity is counted as employed. Unemployment tends to increase economic overload. If people can not used as resource, they naturally appear as a liability to the economy. In primary sector, most of the people live on a bare sustainable level. That leads to general decline in health status and withdrawn from the school system.

Employment scenario in the three sector:

Employment scenario in the three sector In Primary Sector, Agriculture, is the most labour absorbing sector of the economy. In recent years, there has been decline in the dependence of population on agriculture due to Disguised Employment. In Secondary Sector, Small scale industry is the most labour absorbing. In Tertiary Sector, various new services are now appearing like biotechnology, information technology and so on.

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Made By:- Akshit Aggarwal

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