An application of Stochastic Models - Grading system in Manpower planning

Abstract

Manpower planning refers to the rather complex task of forecasting and planning for the right number and the right kind of people at the right places and the right time to perform activities that will benefit both the organization and the individuals in it. Human resource management is an important aspect of study and the manpower planning is to be done taking into consideration the dynamics of manpower availability and requirements. In any organization it usually happens that whenever the policy decisions regarding pay, perquisites, promotion and targets of work or sales to be achieved are revised there will be exit of personnel, which in other words is called the wastage. The expected time to cross the threshold level of cumulative loss of manpower is obtained under the assumption that an organization has two grades of personnel and that the loss of manpower in one category is compensated by utilization of manpower available in the order to sustain the activities intact. In this paper we made an attempt that the threshold follows the special case of Exponentiated exponential distribution (EE distribution) is used/depicted, to study the two grade system with numerical illustration.