Application of Random Walk in Manpower Planning

Abstract

The career of an employee can be described (under certain circumstances) by a random walk, where the states of the random walk are determined by the level and position of an employee. At each decision moment the state of the employee is changed by four stochastic transformations: upgrading one position at the same level, upgrading one level, staying until the next decision moment in the current state and absorption in the current state. We obtain explicit formula for the long term behavior of the distribution of all employees using generating functions.