Optimal Promotion Policies In Hierarchical Grade Structures

Abstract

Recruitment and Promotion of personnel are effective control mechanisms in human resource management. Optimal policies for promotion are therefore essential in human resource management. Optimal promotion policy models are proposed when a) the impact of recruitment cost is considered under the assumption that the cost of promotion and recruitment are functions of the grade size and b) the impact of attrition cost is considered together with a certain probability of a performance-based promotion, where there are two types of promotions namely, performance-based and career advancement promotions in the grade.