Capsim Simulation: The Human Resources Module

Updated on March 14, 2018
JamesCage profile image

In 2014, James retired from teaching at Georgian Court University, where he taught the Capsim business simulation for four years.

Source

Human Resource Module

The Capsim Simulation has changed since this article was originally published in the summer of 2012. We start the Human Resource Module in the second round of the computer simulation. Through repeated simulations, we have found that the best choice for recruiting spending is $2000 and training hours is 25 hours. A variation of $2200 to $2500 for recruiting spending and 30 hours of training are also optimal selections.

Here, we shall review the Human Resource Module in the Capsim simulation course. At Georgian Court University, Lakewood, NJ, in summer session 2012, there are six companies:

  1. Andrews
  2. Baldwin
  3. Chester
  4. Digby
  5. Eire
  6. Ferris (Computer)

The industry simulation is the sensor industry. The teams play six rounds in the simulation. The simulation modules are:

  • Research and Development
  • Marketing, Production and Finance
  • The Human Resources module is now added in the third round

In this example, we will use Team Andrews at the completion of round two. The Human Resource Module is set to begin now in round three. However, before we go to the Human Resource module, we will go to "Decisions" and click on the "Production Module" first. In the "Workforce" section of the "Production Module" we have the "Complement" section.

Complement Section

"Last Year’s Complement Box" has 900 and the "Needed Complement Box" has 793. Note that "This Year’s Percent Box" has a green background but the 100% has a red line through it. This means, "This Year’s Percent Box" is enabled and Team Andrews must make a calculation to get rid of the red 100%.

We divide 793 by 900, which is 88.11%. Then we enter 88% in "This Year’s Percent Box." The box should now turn green without any red lines. When "This Year’s Percent Box" is red there are too many or too few workers, and your team must make a calculation adjustment. Calculation adjustments are made after completion of the "Production Schedule" and any capacity or automation changes made in the "Physical Plant Section."

Also note the "Overtime Box." At the end of round two for Team Andrews, we have an "Overtime Percent" of 14.2%. This shows the percentage of first shift workers performing overtime, on average, is 14.2%. Remember that overtime increases employee turnover and decreases productivity.

Next, go to "Decisions" and open the Human Resource Module. Within the Human Resource Module the rows for staffing are:

  • Needed Complement
  • Complement %
  • Complement
  • 1st Shift Complement
  • 2nd Shift Complement
  • Overtime %
  • Turnover Rate
  • New Employees
  • Separated Employees
  • Recruiting Spending
  • Training Hours
  • Productivity Index
  • Recruiting Cost
  • Separation Cost
  • Training Cost
  • Total Human Resource Administration Costs.

A student should click on the red arrow next to each box. A display box opens with an explanation for each section. There are corresponding columns with number boxes for "Last Year" and "This Year."

Human Resources

We shall concentrate on the two sections that are enabled in Human Resources for this simulation. The "Recruiting Spending" and "Training Hours" sections are green, thus they are enabled.

The higher your "Recruiting Spending Budget," the better a worker your company has. The base amount for recruiting spending is $1000. There are diminishing returns for spending above $5000. In this simulation, Team Andrews should never spend more than $5000 to recruit an employee. If Team Andrews leaves a zero in the box, there is no effort to spend money to recruit a better workforce. Team Andrews can conservatively spend $1000 to $3000 for a higher level employee. It will take several rounds or years to see a significant cumulative effect for this increase in recruiting. Note that a better workforce increases worker productivity and lowers worker turnover. When an employee separates from the company, there are separation costs.

The minimum employee turnover each year is 5%. If you replace 5% of workers after each round, there is a 30% employee change after six years, which is significant.

"Training Hours" are the number of hours each year a worker is taken off-line for training and development. When this box is green, "Training Hours" are enabled for the module. Workers can spend up to 80 hours or two weeks of training each year. When an employee is in training, another worker must fill the position. Therefore, a team’s workforce complement increases. If you send an employee for 40 hours of training, you increase your workforce complement by one week divided by fifty-two weeks for the year, or (1/52 = 1.9%). Increasing the workforce by 1.9% is not very much. If you choose to train employees for 80 hours per year, that is (2/52 = 3.8%). This 3.8% increase in workforce complement for training may be too expensive. It is up to the individual team to decide the correct amount of training necessary to have a strong workforce.

Training produces a higher productivity index and a lower turnover rate. Each training hour costs $20 per worker in additional training costs. Higher productivity means fewer workers are necessary, and this drives down labor costs per unit.

When the "Productivity Index" displays 100%, that means new workers are just as good as old workers. If 110% is displayed in the box, that is 100% divided by 110% or (1/1.1 = 91%). This means you only need 91% of the workforce complement, because these workers are higher quality recruits and are better trained. One final note, overtime spending and a high employee turnover rate decreases the productivity index.

Human Resource Module (Video)

© 2012 JamesCage

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://owlcation.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized. (Privacy Policy)
    CloudflareThis is used to quickly and efficiently deliver files such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisements has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)