Abstract for: Analysing Grading and Promotion using System Dynamics Modelling

Most organizations feel the need to predict future human resource levels in order to forecast recruitment and training needs and to ensure that sufficient experienced people are rising through the ranks to fill vacancies at higher levels. This paper described how system dynamics may be used a tool to model and analyse the human resource planning HRP problems associated with staff shortages, staff promotion and progression between different salary grades within an organization. The case of three salary grades is considered and the model produced extends work already completed by the authors on the use of Skill Pool Model (SKPM) in human resource planning. The model is mapped onto an overseas petrochemical company's staff recruitment and attrition situations and subsequently tested using real data. Strategies for HRP. The model involves several control parameters, whose value affects the behaviour of the promotion and progression situation. By simulating different combination of parameters optimum design guidelines are provided to reduce unwanted scenario of staff surplus and/or shortage. We anticipate that system dynamics modelling would help the decision maker to devise medium to long term efficient human resource planning strategies. Keywords: human resource planning, system dynamics, simulation, Promotion and progression