Human Resource Planning

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System Dynamic Modeling of Human Resource Planning for a Typical IT Organization Narahari N. S." and Narasimha Murthy H. M ''
This paper is a report on the study conducted to investigate the changing dynamics of the Human Resource Planning (HRP) systems in a typical Information Technolog}' (IT) industries. Human Resource Planning subsystem in an organization involves analyzing and forecasting the talent requirements ofthe organization. The main focus in the study was to construct and de'elop a system dynamic model for the human resource planning process. System Dynamics is used as a research vehicle to provide useful insights for human resource planners in arriving at the Strategic plans in achie\ing the stratégie plans for the organization. The variables ami factors included in the modeling process have been derived based on inputs obtained from the Human resource planners of leading IT organizations. The systematic methodology adapted in the study and presented in this paper details the assumptions in modeling, the construction ofthe causal hop diagrams involving the feedback loops and testing the model with inputs using the ßeld data. The analysis of this initial conceptual mode! of the human resource planning problem is then performed using a system dynamic simulation tool namely /- think. The HR planners can now simúlate the effect.^ ofthe uncertainties in .supply and demand, using the system dynamics model. This model will help a HR planners in generating implementable human resource plans.

Key words: Human Resource Planning System, System Dynamic Modeling, Causal Loop Diagi-am. Stock flow diagram. Feedback loop. Work force level, Flow Variables, Converter Variables, 1. Introduction Information Technology (IT) industry is a growth oriented mdustry and is continuously developing both m terms of scale and stze of operations. Tlie industry is now venturing into new areas in a globalized business environment. IT organisation requires professionals with right skills and right attitude to be deployed for positions based on global business opportunities. The human resource planning subsystem in an IT organization is faced with the challenge of matching supply and demand. The human resource planners need to address cultural and technological issues in a global, market driven, flexible strategic planning for the human resource. Integration of the IT organization with the eco system is cmcial for deriving optimal plans for „managing human resources. In order to be profitable and sustainable in a immensely competitive environment, the planners have to devise responsive and robust planning models with the integrated perspectives of all the levels in the organization and with the consideration of the right set of influencing variables, that impacts the planning process,

^ Research Scholar, Avinashilingam University, Coimbatore and Head - lEM Department, R V College of Engineering, Bangalore 560 059, India, E-mail: '' Department of Mechanical Engineering, R.V.College of Engineering, Bangalore 560059, E-mail: * Author for correspondence

2009,1'oL 2, !Mp. S


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System Dynamic Modeling of Human Resource Planning for a typical IT organization

The top three concerns of the top management in a Infomiation Technology product and services companies are managing the labour cost, managing risk and rapid pace of technology changes requiring quick skill transformation and adaptation. "Human Resource Planning can be defined as a systematic analysis of Human Resource needs in order to ensure that correct numbers of employees with the necessary skills are available when tbey are required". Human resource forecasting of demand and supply, using statistical techniques or mathematical models are commonly used. However, the existing methodologies, due to their fundamental limitations, fall short of enabling dynamic structural analysis or identification of delayed...
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