Applying system dynamics to human resource management
Luuk Collou and Guido Bruinsma
Strategic Human Research Management Research Group, Saxion
One of the biggest challenges for a strategic Human Resource Manager is to construct multiyear HRM policies and practices that are in alignment with the strategical goals of the organization. The difficulty to create such a ‘HRM system’ is due to the number of possible HRM interventions to choose from, their interdependency and the effects of implementation order. In the present research three tools were developed and grounded based on a single system dynamics model: an electronic Strategic HRM system; a serious game on strategic HRM (Minion Mundo); and an HRM practitioner simulation game (InLine). These instruments respectively aid practitioners with strategic HRM policy creation, introduces students into strategic HRM policy theory, and foster fundamental research into strategic HRM theory. In the current research the system dynamics simulation model is based on configurational HRM theory combined with empirical data from over 150 HRM practitioners. Although the application of system dynamics is novel to the field of HRM research, thus far results are promising. The application of a system dynamic simulation aids HRM decision makers to confront the challenge of constructing multiyear HRM policies and practices that align with the strategic goals of an organization. Furthermore, the level of detail needed in system dynamics is able to provide tooling for HRM researchers to address paradigms in research.