Standardizing Contracting Services Using System Dynamics

In order to sustain its fast growth in the future, Brazil is looking for a new engine that hinges on the expansion of opportunities for learning and working. In Brazil, public companies face budget constraints and difficulties in hiring staff. Inadequate staff capacity set down workers’ motivation blocking attempts to increase productivity. However, implementing a new economic model for capacity expansion requires institutional innovation. Public companies are faced with the challenge to achieve a balanced growth of resources, one which at the same time achieves targets but does not overstretch capacities.

A model has been constructed for the Brazilian state of Minas Gerais and is helpful to meet this challenge. This Organizational Responsibility Model, developed for a public company, integrates system dynamics and agent based modeling. It captures the relations between human resources capacity, hiring, motivation, training, knowledge management and financial. The model has helped to standardize contracting services throughout public companies and aligned services by facilitating operational agreements. Part of the model is ready for simulation here (the model).

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