System dynamics of manpower planning strategies under various demand scenarios

The development of human resources recruitment and training strategies in a dynamic environment poses a challenge to many policy makers in various organisations. The goal of every human resource manager is to recruit, train and deploy the right personnel at the right place and at the right time in order to meet organizational requirements. We develop a system dynamics simulation model that captures the dynamic behaviour of a typical corporate manpower system. Three major strategies are indentified and simulated under different manpower demand scenarios. Based on a set of performance indices, the impact of the strategies is simulated under assumed demand scenarios including steady increasing, fluctuating, and s-shaped demand. Useful managerial insights are derived from the study. The model is a decision support tool for developing reliable dynamic manpower policies in terms of recruitment, training capacity, available skills, and attrition. This approach can assist organizations to design effective manpower strategies.