Strategic Human Resource Management and Corporate Performance

Abstract

It is essential for success to build an organization filled with good, talented, well-trained people, which is also the center of human resource management. The author combined the complex network with human capital to solve the problems. The author employed fuzzy synthetic evaluation method to figure out the Euclidean distance between different departments in ICM, and then built the human capital network of various departments. Based on the Lyapunov stability theory, the author described the dynamic process of human capital in ICM. Through establishing the dynamic complex network model of human capital, the author drew the conclusion that the next two years’ budget of recruiting and training is 34.22σ when the annual churn rate goes to 18%. By Pajek programming, the author used the visualization tools to simulate the staff flow. Through establishing the dynamic simulation model of the staff turnover, the author reached the position’s integrity condition of ICM when the job churn rate is 25% and 35%, respectively. Then the author explained the costs caused by high turnover rates and the indirect effects of high churn rates. The author simulated the change of position’s integrity degree of junior managers and experienced supervisors in the next two years. The author concluded that the HR health of the organization is below the expectation. In addition, the author made sensitivity analysis on the 7 factors of human capital value and consequently drew that the amount of employees of each hierarchy has the greatest influence on human capital value. At last, to make further discussion on the model, the author established the multilayer complex network model including flow, trust, influence and friendship.