Training in Human Capital Investment Game

Paper Keywords: cost of Investment portfolio Investment model Becker model of game theory
Abstract: Human capital portfolio Investment model for qualitative analysis only the staff and business characteristics of human capital Investment behavior, the application of game theory to the corresponding quantitative analysis, the Becker model the Investment mode and the combination of portfolio Investment, the establishment of corporate Investment to determine ratio formula for enterprise training Investment in human capital provide a quantitative basis for decision making.

Becker will be in-service training is divided into general training and special training of two types. General training is training the staff of the acquired knowledge and skills to improve the productivity of various companies are available. Trainees to improve labor skills, will enhance its in a variety of wage employment opportunities, so training costs should be borne by the trainees from Pakistan. Special training is training the staff received special knowledge and skills training can greatly improve the productivity of enterprises, other than for training productivity of the enterprises have little or no effect. special training costs are much higher than the general training, but also to bring considerable business benefits, the cost of training by the enterprises themselves. resulting Becker Investment mode theory.

Becker Investment model as a supplement, some scholars have proposed a staff of enterprises and joint investment in human capital investment model portfolio. The mode in accordance with the "value of human capital" and "unique human capital" to human capital is divided into four types: ① unique high-value high-human capital, ② unique high-value and low human capital, ③ high value and unique nature of the low human capital, ④ low value and low uniqueness of human capital. and that ①, ④ two kinds of human capital follow the Baker Seoul investment patterns, and ②, ③ two kinds of human capital investment by enterprises and joint staff. portfolio investment mode is only in the training of staff and investment in human capital analysis of behavioral characteristics to draw qualitative conclusions, but the actual course of business in the enterprise requires a quantitative investment analysis and decision making. Therefore, this model in the portfolio based on the application of game theory analysis of the training of human capital investment behavior, and find a reasonable combination of quantitative investment analysis and decision making.

2 Classification of human capital
This training package still use human capital human capital investment model in the classification. Human capital as a key competitive advantage in gaining access to resources, not the enterprise has the same importance.

The organization's human capital can be based on "the value of human capital" and "unique human capital" to be divided. "Human Capital Value" means "relative to the employment costs of human capital, human capital, through its skills to the enterprise greater customer value associated with the strategic interests of the property. "If the staff can help companies reduce costs or create more customer value with product, then he has a high value, on the contrary, only low-value." Human Capital unique "means their skills can not be copied, and not imitative. the uniqueness of human capital will affect the transaction costs and directly affect the human capital can become a source of competitive advantage. Because of the unique skills of more of a apply the skills of a particular environment, companies can not get on the open labor market, the implementation of these human capital externalities would not be feasible or will lead to more costs, so the unique human capital needs for internal development. On the contrary, for the majority of the ordinary business skills, it is easy to obtain in the labor market, depending on the external labor market will be unique to low human capital better choice.

In accordance with the properties of these two human capital within the enterprise can be divided into four categories of human capital: the first with high-value human capital and is unique, that these officers have a specific business skills, these skills in the labor market is difficult to access, and staff to the strategic interests of the enterprises far more than hiring and developing their management costs. In other words, the class of competitive advantage of human capital has the core skills required. The second class human capital has a higher value, but the staff have the skills to be in the labor market. In other words, its own unique character skills are low. The third category of human capital in a way unique, but they do not create customer value has a direct role. That is, the lower its ability to create value or does not directly produce value. The fourth category of human capital have common skills, with limited strategic value. above four types of human capital and the four mentioned in the introduction the type species of human capital in order correspondence.

2 Human Capital Analysis of the selected game
Game theory is the study of interaction in the case of the interests of the players (the game of the participants) what strategy to get maximum utility theory. Game Theory in Economics, Management, and other fields to solve a number of orders classical theory no staff. Game Theory is the study of the most important characteristics of specific decision-making relative to the case of the optimal decision, that is, relative to the most satisfactory strategy for finding the optimal strategy rather than corporate and investment in staff training, human capital existing in the course selection It is a game problem.


Portfolio model based on the idea of ​​enterprise and investment in human capital staff, in fact, investment in training during the game, as shown in Figure 1 can be used to describe the game tree. Assuming enterprises to bear the cost ratio of investment in training, choice of investment strategy probability q, the staff selected a probability of P. investment strategy through training investment, enterprise human capital increases due to improved operating efficiency for the benefits received by the staff due to the increase of human capital to improve his career or salary, benefits obtained by increasing r. to increase the interest of the training of human capital and the cost of the investment portfolio in accordance with the mode c. the idea of ​​corporate commitment to: the the CX, staff bear the cost c (1 a). Obviously, r a c> > r a c> 0,1> P, q,> 0.

Inverse sub-game equilibrium under the inductive method, only to find a balance: companies do not bear the cost of investment in training, the training of staff to bear all investment costs. However, if the staff of the players irrational, then choose not to undertake training in business investment , the staff may also choose not to bear the cost of investment in training and ultimately benefit businesses and staff are not. that choose not to invest in corporate strategy, the staff of the investment strategy may also choose not to threaten the enterprise. As enterprises to choose investment strategies , the staff chose not to undertake any investment strategy there is no possibility of investment in training costs, and profit-driven enterprises will be a threat to the staff of the compromise, so the staff of this potential threat is valid. In this context, staff training that is, the probability of investment if the staff of the players for the rational probability. If staff are rational, then get a raise or a better career development, driven by the interests of the staff will be active on their own investment in human capital, and vice versa, is not. not difficult to find, business investment, the staff does not not invest in investment and enterprise, the staff portfolio investment in the outcome of two strategies, the outcome of the former corresponds to Becker's special training, the latter outcome is corresponding to general training. This is in line with the actual situation. reality, firms tend to invest with unique and high-value human capital, and the staff tend to invest in general and high-value human capital. in business and staff to understand What type of training is the case, their investment will be their own interests as a starting point, that is to follow Becker's investment patterns, corporate commitment to the full cost of special training, staff assume the full cost of general training. Links to free papers Download Center http://www.hi138.com However, other types of situations do not understand (including the difficulty attributable to the special case of training or general training), investment in training during the game will be shown in Figure 1. According to Figure 1 The game tree can be:

(7) gives the enterprises to bear the cost of the rate of investment in training The range. Obviously, the size of the relationship between n and m is uncertain, and only if m> n, the (7) was set up, so in practice, enterprises must first determine the size of m and n can be determined investment ratio. As businesses and employees tend to the existence of investment, so it can inferred P and q have a certain relationship, and is associated with decreasing. That is, when P (or q) increases, q (or P) will reduced. However, the company's investment decision-making process and staff is relatively independent, they determine the type of investment is not completely understood each other, so the probability of their investments do not follow a strict function.

This allows to determine the size of the relationship between n and m there is considerable uncertainty, that is, n <m if there is uncertain. However, the business relationship between the decision the size of n and m are not powerless, can develop appropriate investment strategies (ie, change the size of q) to appropriate changes in the size of n, so efforts to make the m> n established.

So, to satisfy (7) under the premise that when a large P, q is small. That staff tend to invest in, companies tend not to invest, m tends to 0, n will be less than 0, the values ​​are close to 0. This shows that investment in this case, the enterprises in the investment portfolio to assume the cost of small, close to not invest. Similarly, when P is small, q large, the staff tend not to invest in enterprises tend to invest, m tends to infinity, n tends to I, the value of close to 1. This shows the kind of investment, companies in the portfolio investment costs borne by many species, close to all. This shows that by (7) investment patterns may Becker and portfolio investment patterns together.

3 Conclusion
Combination mode of investment in training based on the idea, using game theory analysis training combinations of investment costs obtained for determining the range of business investment ratio calculation formula, and model portfolio model combined with Becker. Therefore, (7) the training of human capital for business investment in the process of determining investment strategy and provides a basis for decision making ratios. Meanwhile, the style also reflects the ratio of staff of the impact on investment strategies, business investment is not reflected in the more the better.

In theory, (7) is about the business of their own investment strategies can be appropriately adjusted, to find suitable investment ratio. For example, in (7) holds in the case, if the staff intends to consider their own interests to not choose the investment strategy (ie lower P), allowing companies to bear the training cost of the investment ceiling for larger the ratio, trying to force companies to take on more investment in training costs. At this point, companies can adopt the strategy tends not to invest (eg to give up part of the benefit to offset the reduction of the r behavior on cooperation in the destruction of the staff. Essentially, it is theoretically respond to the threat of corporate strategy for staff. in determining the cost of investment in training during their rate of assumed there still exist many similar cases. But the staff of the variables can affect only the P and r, enterprises can affect only the q and r variables according to (7), we know that when staff change strategy (that of variable size) trying to change the range of inequality, the enterprise can be found offset the impact of this behavior policy that staff can avoid by taking the threat of irrational policy, and investment strategy to avoid poor choices because of the risk arising.

It should be noted that the unilateral efforts of business enterprises and the staff not to co-invest in human capital, reduce the quit rate of staff training purposes. Enterprises in the process of investment in training should also analyze the investment behavior of the staff to master staff of the investment strategy, investment in training can be truly "win-win." Links to Research Papers Download http://www.hi138.com