Human Resource Management – Simulations

Human Resource Management is a comprehensive process of appointing the suitable personnel for the right job, compensating them and training them to improve their productivity.

The simulation process is the process of providing training to the employees. Simulations is a modern technique to train the employees. It involves training by moving out of the classrooms and into the simulated business environment. The students here don’t learn through the books or theory but by experiencing practical business solutions in the simulation. The simulation creates an environment of the real situation for the employee to make him more careful and skilled.

Through simulations, the employees learn the frequent changes occurring in the business dynamics and it makes them capable of taking immediate actions in the business. The simulations create an environment similar to a business which enables the employee to determine his course of action for a real situation. A simulation brings about a positive effect on the organization’s morale and performance. It helps in bringing a positive change to business and the employees are able to bring the customer in the real business action.

How can Simulations help in the business?

The simulations prove to be an effective way to train the employees:

  1. Reduces the error: Business simulation helps to create a business- like situation which helps the employee in understanding the business situations in a better way. Regular training on the simulator will make the employee specialized in a particular field. Thus when he will do the same task in the real business environment he will not face problem to adapt himself and as a result, the error will be relatively less and the output will be more.
  2. Reduces the risk: Business Simulator given the whole idea of the work to the employee, how he is supposed to work in the organization, responsibility areas etc. Thus, the employee has a complete overview of the functions to be carried out by him. This helps in reducing the risk in the business because the employees try out everything in the simulator before.
  3. Trying out of new plans and ideas: Due to being in a simulator, the employees have the liberty to try out their new plan and ideas because the simulator is just a duplicate of the business and not the real business. Thus it encourages the employees to try new plan in the simulator first rather than trying in the real business directly.
  4. Measurement of training impact: The performance in the simulator can be easily determined and it helps in determining if the employee is trained or not. It is beneficial in deciding the training level.
  5. Competency of employees: Due to regular training and practice, the employees become specialized in their respective fields. They become competitive with other employees (inside and outside). The vast experience and training help them to achieve the business objective with effectiveness and efficiency.
  6. Boasts morale: The simulations act as a morale booster for the employee as they are under no pressure and can try out the new things and practice freely. This helps in boosting the morale of the employees greatly.

Types of Simulations:

There are 2 types of simulations present which help in training the employee for the business:

  1. Scenario Simulation: A scenario simulation is a kind of simulation in which the business simulation or simulation game is created in which the learner picks up a team and acts according to the rules of the game which helps him in learning a specific role or function. This is similar to a Role- Play game. The whole scenario is played out using the roles and making decisions according to the tree and branches method.
  2. Numeric Simulation: In the numeric simulation, the whole of the organization is mimicked for simulation. The players or the learners make the decisions using the numbers or dialers. The review or evaluation is done using the numerical data so produced such as the Balance Sheet, Profit and Loss Statement. The decisions so processed in this kind of system are compiled in a report and shown in the numerical form and graphs.

Drawbacks of Simulation Technique:

  1. Low cost but high skepticism: The simulations may be a low-cost method of training but it requires a lot of skepticism i.e. questioning and intelligent brain to frame an effective simulation that can help the employee to gain all the required skills. This can be a tactical task.
  2. Assessment of risk: Sometimes the simulator fails to assess the risk completely. It fails to provide precaution against the risk in the business and does not prepare the employee for the same. Thus this can cause a huge failure in the training process. The assessment of risk needs to be precise and should be based on some reliable source.
  3. Rigidness: The simulator is very rigid in nature. It gets tough for the employees to adjust according to it and adapt their processes. This can create hindrance in the overall development of the employees and can even cause a loss in the morale of the employees.
  4. Difference between the real and the simulation: Sometimes the simulators fail to create a similar situation as in the real business. This difference can create huge deviations when the employee moves from the simulator to the real business environment.
  5. Hinders Innovation: Sometimes the rigidness of the simulators causes the limit on the thinking ability of the employees. The training becomes monotonous and even hinders the innovation of the employee because the employees are supposed to stick to the protocol and cannot go outside the box.

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