Modeling the Human Component in Computer-Based Business Simulations

From the perspective that business simulations are tools that aid teaching, this model comprises four functions: concave exponential, convex exponential, logistic, and cusp catastrophe. The functions determine the effects of recruitment cost, benefits cost, training cost, and wage cost on the productivity of new hires, as well as rate of attrition, productivity of trained employees, and size of the labor pool. A simulation (CEO) allowing participants to change both the variables and the parameters of these functions has been developed. Tactical decisions involve variables; strategic decisions involve parameters. These functions allow a clear distinction to be made between the two types of decisions.