The Management of Human Capital Based on Dynamic Model

Abstract

In this paper, we build a model to simulate the dynamic procedure of personnel changing and the human capital management of employees. This paper builds a personnel network model to illustrate the relationship among the employees. The human capital model calculates the value of human capital in a mathematic method, and the uncertainty measurement model generates the value of loyalty with the index matrix. The models link to each other and make up the personnel-changing model, whose variables’ changes represent the dynamic process. As case studies, this paper sticks to the rate of churn and the personnel changing in the organization. In different cases, this paper simulates the dynamic procedure,and the conclusion demonstrates that the model is able to map the human capital in the organization. Background The importance of human capital management (HCM) as a competitive tool and the relationship between human resource management and organizational performance has been the subject of systematic research (e.g. see Truss, 2001; Huselid, 1995; Delery and Doty, 1996; Becker and Gerhart, 1996)[1-3]. The competitive advantages of an organization largely depend on human capital. Human capital management focuses on people and the adjustment of their relationship, and the actions with leading affections. “Churn” of the organization, which means the resulting turbulence when people leaving for other jobs or retiring are replaced. Therefore a fluid network of human capital within an organization is vital to understand the personnel loyalties to the company and map the human capital in the organization. Introduction There are three modes of personnel changes: external recruiting, internal promoting and leaving because of natural or unnatural reasons. For the HR apartment, they need to cut down the unnatural leaving and control the internal promoting. Keeping the balance is their most important mission. Therefore, this paper combines the scientific methods with the reality and builds a personnel-changing model based on loyalty, related degree, human capital and external factors. Human Capital. Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value. Loyalty. In an organization, the loyalty of employees can influence the motivation in working and the probability of churn. Measures should be taken if the loyalty decreases. It’s a fluid process to measure the loyalty. Assumptions 1)Some other economic factors are not considered in the paper, such as stock equity and bonus. 2)The employees are all at a suitable age period for working. International Conference on Education, Management and Computing Technology (ICEMCT 2015) © 2015. The authors Published by Atlantis Press 1238 Model The con network m model incl Personn a personne The net has 10 attri Employ structure o