Stochastic Model to Determine the Expected Time to Recruitment with Three Sources of Depletion of Manpower under Correlated Interarrival Times
It is a common phenomenon that some personnel leave an organization after completing a certain period of services to that organization voluntarily or involuntarily due to death, retirement or termination. It usually happen that whenever the policy decisions regarding promotion and target of work or sales to be achieved are revised, then, there will be exit of personnel, which in other words called the attrition or wastage. In any organization like marketing, industrial, software, the depletion of manpower due to policy decisions is quite common. This results in manpower attrition and then recruitment becomes necessary. Frequent recruitment is not advisable due to the cost of the same. Hence recruitment is postponed till a point called the breakdown point of total depletion beyond which the normal activities cannot be continued due to shortage of manpower. This level of allowable manpower attrition is called threshold. In this paper a Stochastic model to determine expected time to recruitment with three sources of depletion of manpower attrition under correlated interarrival times has been derived. It provides the optimal solution because; it takes into consideration the cost of frequent recruitments, depletion of manpower and the cost of shortage of manpower. The Stochastic model discussed in the paper is not only applicable to industry as a whole but also in a wider context of other applicable areas.
Keywords: Attrition, Threshold, Depletion of Manpower, Correlated, Interarrival Times, Optimal Solution
Volume: 4 | Issue: 1
Issue Date: February , 2014