Effects of contraction of demand on human resources strategy in knowledge firms

Authors

  • Nuria Calvo Babío Profesora contratada doctora. Departamento de Análisis Económico y Administración de Empresas. Universidad de A Coruña (España)
  • Rafael García Rodríguez Catedrático de universidad. Departamento de Análisis Económico y Administración de Empresas. Universidad de A Coruña (España)

DOI:

https://doi.org/10.51302/rtss.2011.5205

Keywords:

human resources planning, simulation, system dynamic, talent management, intellectual capital, strategic management

Abstract

According to the needs detected, the main goal of this analysis is to help managers belonging to professional services firms, to maintain their critical intellectual capital, in periods of contraction of demand. We have used a dynamic simulation model to represent the behavior of the professionals flow between non experienced juniors and senior category in consulting firms. Based on this model, an analysis was made to evaluate the consequences of a demand contraction of professional services over the human resources strategy. This evaluation has allowed a better understanding of which policies can moderate the effect of this change of demand scenario in these organizations.

In this project we planned two main goals: a) the analysis of the effect of a contraction of the demand of consultants on the flow of professionals in these firms and b) the evaluation of the consequences of a change of human resources policies on the flow of professionals and the attractiveness of the company in the consulting sector.

The data related to the evolution of the number of junior and senior consultants, and their relation with the attractiveness of the firm in the sector revealed that the relative level of investment in training could reduce the company's capacity for future growth. Because of these results, we could state that a contraction in demand should not be a reason justifying a change in professional development policy strategy at these companies. However, in case of a change in the demand cycle, managers should wait a period of time to internalize a reduction of market requirements, to improve the match between the number of current professionals and those demanded by the market in the short term. This decision could improve the relative competitive advantage of the firm.

Finally, this analysis let to assess the use of the system dynamic methodology as an instrument in support of executive decision-making in the field of strategic human resources management.

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Published

2011-02-07

How to Cite

Calvo Babío, N., & García Rodríguez, R. (2011). Effects of contraction of demand on human resources strategy in knowledge firms. Revista De Trabajo Y Seguridad Social. CEF, (335), 229–256. https://doi.org/10.51302/rtss.2011.5205