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This paper aims to describe the development and application of a manpower planning system for the Slovenian armed forces using a system approach, system dynamics (SD) and numerical optimization.

The model of the hierarchical manpower system was developed by SD methodology and formulated in discrete time space. The problem of tracking the goal trajectories in the eight topmost ranks at the prescribed boundaries was solved by application of the quadratic performance index and finite automata (FA) which was used for classification of acceptable strategies. Genetic algorithms (GA) as well as pattern search were compared at the numeric optimization.

Employing SD and a system approach increases the understanding of the system control. The definition of an optimum strategy, which would consider only target values for ranks within prescribed parameter boundaries, could provide an undesired oscillatory solution. Inclusion of rules by FA to determine acceptable strategies based on the time response of a strategy provided acceptable, nonoscillatory solutions. GA and pattern search were considered where pattern search was shown to be significantly more suitable for the task of control strategy determination.

The developed system and methodology was applied by the Slovenian Armed Forces in the process of restructuring.

The developed approach permits a moderate transition to the new desired structure. Restructuring without a clear understanding of the system structure and dynamics might result in undesired social impacts such as strikes and riots.

Provision of the systemic view of the hierarchical manpower system and application of FA to determine the proper control of a complex system.

This paper aims to present a continuous-time workforce planning model in which workforce flow occurs in terms of internal and external recruitment considering human resource strategies (HRS). The proposed model is a linear optimal control model in which promotions occur by inside appointment and outside employment of the system considering a cost leadership or a differentiation strategy and whether organizations have an internal or an external recruitment orientation. In other words, in the model and its solution procedure, this paper could determine any arbitrary function for the demand of the workforce with each HRS.

The proposed model contains five main sections, namely, applicants, newcomers, workforce who are doing sensitive-simple jobs, expert workforce and supervisors (or managers) that have a different orientation in different HRS. Each of these sections has a target value that this paper tries to attain it by applying appropriate control variables, such as recruitment, layoff, degradation, promotion and retirement. To reach this purpose, this paper formulated an optimal control problem using a linear system transition equation with a quadratic cost function.

Based on the proposed model, it was found that the optimal control model can interpret the managerial aspects. This model could be useful for different firms with different types of workforce demands. This paper has tried to have a comprehensive view of different flows of the workforce in an organization that concern to workforce planning.

Despite the considerable amount of research published, and the importance of following a human resources strategy from organizational strategy, in the knowledge, there is no comprehensive study dedicated to human resources strategy and workforce planning by optimal control models for workforce planning.