Analysis Of Human Capital Investment Of Banking Based On System Dynamics

Under the background of the "knowledge economy", human capital becomes more andmore important. Human capital plays a leading role in the value creation of enterprise andbusiness innovation. In order to enhance the competitiveness in the future economy, manyenterprises attaches great importance to human capital management and put the humancapital investment to a strategic development level. The banking industry, as the keycomponent of the financial industry in China, particularly emphasizes the value of itshuman capital. It carried out large-scale investment on human capital and took variousmeasures to increase the revenues of human capital investment. However, due to the specialnature of human capital and the complexity of related factors of human capital investment,as well as the profit of human capital investment is strong uncertain, it is necessary toresearch it systematically to find out the key factors which will influence the profit levelsstrongly.Based on the previous research of human capital investment of banking:Firstly, this paper established the system of the factors of human capital investment ofbanking through questionnaire survey methods and relationship analysis between thevarious factors.Secondly, using system dynamics method, established the system of cause and effectdiagram from the perspective of the input and output of human capital investment, definedthe variables in the system, built the system dynamic equation, and eventually set up themodel of human capital investment of banking.Finally, I ran the simulation successfully using the data of M bank T branch, whichmake the mechanism of the system factors and the change trend of income level clear. Thecontrastive analysis of the simulation proved that the change of the factors influenced theincome level. This research shows that proper adjustment of investment structure canincrease the income level effectively. Finally, in view of the research achievements of thispaper, I put forward the corresponding rationalization proposal on the human capitalinvestment of banking.