Abstract for: Risks and opportunities of a training policy implementation a system dynamics perspective

Organizational changes figure among one of most challenging topics in management literature. In the real world, managers are trained to navigate change and maximize organizational performance through decisions and policies. However, unintentional consequences of their interventions are almost inevitable and difficult to be detected in advance. This study is based on the observations of the authors about a multinational organization, where a recently implemented training policy imposed a significant increase in the number of hours of training required per employee. In this paper, we use system dynamics modeling to analyze the companyís expected performance through the interplay of Hullís Theory key variables - productivity, motivation and skills. Three scenarios were considered: 1) business as usual; 2) desired situation; and 3) reality. Our model depicted the complexity and effects of the introduction of a training policy as well as points of leverage and sensitivity where unintended consequences may arise. Future research should amplify the level of analysis of ostensive training and development initiatives through the expansion of model boundaries and the application of case-specific assumptions.