Application of Markov chains in managing human potentials

Abstract

Human potentials make a unique foundation to every organization. Due to individuals' differences which enable a business surroundings and create competitive advantage, it is necessary to coordinate them to the mission, vision and goals set by the organization in order to satisfy the needs for specific knowledge and skills, and effectively realize the defined business goals. Application of Markov chains enables prediction of random variables' movements. This study shows, via a practical example, predicting the necessity for human potentials in an ICT company throughout a period of three years.