Role of Simulation in HR
“Simulation means imitation or copying”.
Simulation is a quantitative technique developed
for studying alternative courses of actions by
building a model of that system and then conducting
a series of experiments to predict the behavior of the
system over a period of time.
Example
Haggins Plumbing and Healing maintains a stock of 30-gallon hot water
heaters that it sells to home owners and installs for them. The owner likes the
idea of having large supply on hand so as to meet all customer demand, but he
also recognizes that it is expensive to do so. He examines hot water heater sales
over the past 50 weeks and notes the following:
Hot water heater sales per Number of weeks
week
4 6
5 5
6 9
7 12
8 8
9 7
10 3
TOTAL 50
Assigning Probability and Random Number Intervals
Step 1. Write down the probability , cumulative and probability and assign random number intervals
based on cumulative probability.
Random
Demand per Cumulative
No. of weeks Prob. Number
week Prob.
Interval
4 6 0.12 0.12 00 – 11
5 5 0.10 0.22 12 – 21
6 9 0.18 0.40 22 – 39
7 12 0.24 0.64 40 – 63
8 8 0.16 0.80 64 – 79
9 7 0.14 0.94 80 – 93
10 3 0.06 1.00 94 – 99
Total 50 1.00
Probability = Frequency / ∑Frequency
Random Number Interval is in proportion to probability associated with demand per week.
Simulation Worksheet
Step 2. Allocate Random Numbers.
Week Random Number
1 10
2 24
3 03
4 32
5 23
6 59
7 95
8 34
9 34
10 51
11 08
12 48
Contd…
Week Random Number
13 66
14 97
15 03
16 96
17 46
18 74
19 77
20 44
Simulation Worksheet
Step 3. Check Random number and correspond it with random number Interval and demand of that
interval.
Wee Random Random Number Demand
k Number Intervals
1 10 0-11 4
2 24 22-39 6
3 03 0-11 4
4 32 22-39 6
5 23 22-39 6
6 59 40-63 7
7 95 94-99 10
8 34 22-39 6
9 34 22-39 6
10 51 40-63 7
11 08 0-11 4
12 48 40-63 7
Contd…
Random Number Demand
Week Random Number
Intervals
13 66 64-79 8
14 97 94-99 10
15 03 0-11 4
16 96 94-99 10
17 46 40-63 7
18 74 64-79 8
19 77 64-79 8
20 44 40-63 7
Total 135
Contd…
Q&A to Illustration 17.4
Q1. If Higgins maintain a constant supply of 8 hot water heaters in
any given week, how many times will he be out of stock during 20-
week simulation period?
A1. Number of weeks he is expected to be out-of-stock = 3 Weeks
Q2. What is the average number of heaters demanded per week over
the 20 week interval?
A2. Average demand for heaters per week = Total Demand / Number
of Weeks
135/20 = 6.75
How the Simulation Works
The HR Consultant Simulation Exercise simulates the important aspects of a human
resource consultant's job. In the simulation, candidates assume the role of a Human
Resources Consultant in a fictitious agency. The candidate deals with a range of issues
and problems where they must respond to requests for service and advice and work
with managers as partners. The individual's role is to advise managers responsible for
making human resource management decisions.
Up to a week before the assessment day, each candidate receives a package of
background materials. The candidate prepares for the simulation by reviewing the
material.
On the assessment day, the individual receives the exercise items (memoranda, letters,
reports, etc.) and is given 3 hours to review these items and to complete two tasks:
The individual will be asked to complete a written action plan, and prepare an oral
presentation.
Contd…
The next step in the simulation process is the oral
presentation before the assessors (maximum 30
minutes).Now here , the assessors question the candidate on
the content of the presentation (his/her analysis of the items
and how he/she proposes to deal with the situations).
In the final phase of the simulation, the candidate takes part
in an exercise where he/she interacts with managers to
provide advice and assistance
These interactions focus on interpersonal communication
and on the interactive behaviors required in the consultant's
job, in varying levels of complexity. They may involve:
Contd…
Basic Advice, where the candidate must respond to everyday
requests for advice and service;
Redirection, where the candidate identifies a potential problem and
provides advice on other options;
Intervention, where the candidate recognizes a definite problem
and must act (intervene) to alter the course of action;
Conflict, where the candidate must deal with a difficult complaint,
person, or controversial issue.
The assessors observe the individual throughout the different
phases of the exercise, interact with the individual as described
above, and then integrate all of the information gathered from the
simulation.
What Competencies are Assessed
The HR Simulation Exercise assesses 8 specific
competencies:
Oral Communication
Interpersonal Relations
Client Orientation
Strategic Thinking and Analysis
Adaptability
Integrity/Personal Accountability
Leadership
Action Management