Personnel Recruitment Policies and Long-Term Production Planning

Any organization or industry operating in a market where there is unmet demand will be under considerable pressure to meet the demand as quickly as possible. This short-term objective can be met by rapidly expanding productive capacity in terms of both plant or other equipment and also manpower. If the commodity in demand is durable—e.g. housing, cars, computers—then when the initial requirement is met, further output is for replacement purposes. Production during the expansion phase, planned to eliminate the backlog of demand may be much greater than that needed for the next phase, meeting recurrent replacement demand. If capacity is allowed to run down, a later increase in demand will possibly find the organization with too little capacity. There follows a potentially continuing cycle of under- and over-production. Since manpower comprises a significant part of the capacity, this creates a possible cycle of under- and over-employment.Mathematical models of manpower systems can be adapted to investigate the consequences of controlling recruitment policies over fairly long periods of time. If costs can be ascribed to both under- and over-production it is possible to combine the manpower models with mathematical programming techniques to produce optimal longterm recruitment policies.The possible development of the telephone network in the Republic of Ireland is used as an illustrative example. Here it has already been established by government operational research scientists that meeting the original target number of installations for the early 1980's would require impossibly large levels of recruitment immediately. Our model shows that, if the target were achieved, an intolerably large proportion of the workforce would be redundant in a few years time. We use a linear programming model to illustrate viable policies trading off present delays in satisfying demand against future overmanning.