A Strategy for Enhancing Enterprise's Human Capital: A System Dynamics Model for Resources Allocating

摘要

It is the critical task for decision makers of enterprises that how to develop enterprise’shuman capital and make the valuable decision of investment on human capital by fullyutilizing the limited resources. This article deals with two investment decisions ofhuman capital by the approach of system dynamics modeling: the resource allocationbetween different types of human capital and the suitable investment intensity whichmay be in the terms of the ratio of the training expenditure to sales. In this article,human capital of organization is divided into two types: general human capital andfirm-specific human capital, and the employees be divided into two groups: Keyemployees and general employees. The system employed here consists of foursub-systems: workforce system, resource allocation system, operating & performanceevaluating systems and competencies development system.. Through the analysis ofinteraction between these sub-systems and simulation results using the actual data, thesuggestion for decision makers on the resource allocation on human capital investmentwill be given out.