Modelling heterogeneity in a manpower system: a review

Manpower planning is an essential methodology for business and industry; it allows managers to make more efficient use of human resources. However, human behaviour is highly variable and it is therefore essential for manpower planning that population heterogeneity is successfully modelled. In this paper we review methods of incorporating population heterogeneity into manpower modelling. The analysis of differentials in a manpower system is emphasized since they are a source of aggregation error in stochastic models. Two strategies have been stressed, the use of observable sources of heterogeneity as they affect wastage, and the latent sources which cannot be identified precisely but are known to affect the key parameters of most models.