The purpose of this paper is to construct a model of hierarchical manpower systems which follow proportionality policies in recruitment and promotion of their staff, ostensibly with a view to safeguard the career interests of their existing employees.
The manpower systems are modeled as Markov systems, and their inherent characteristics and long‐term behavior are studied.
Significantly it is shown that such proportionality systems do not compromise on flexibility in the long term, and can also provide an additional means of controlling the blend of manpower in the system. The theoretical results were tested with real‐world data, and a good degree of conformity was observed between the theoretical predictions and the actually observed behaviour.
The model can also be applied to organizations which outsource a part of their work, the outsource workforce being notionally being considered as recruits to the system.
Outsourcing of work is being practiced on an ever‐increasing scale nowadays, and becoming, at times, even controversial, and as a consequence, an increasing number of organizations are resorting to protectionist policies; the model in this paper provides a theoretical framework in which to view and analyze this phenomenon.
