It is proposed, in this research, a methodology for a public sector organization to integrate policy making in human capital development and utilization area. In this case the researcher used system dynamics method for modeling and analyzing the situation, to describe the mechanisms that produce the difficulties in the organization. The researcher mentioned the differences between public sector and profit organization, in designing the main part of the model and also the use of dynamic capability approach in designing human capital development parts of it. The model built in this research, describe the events before and after the 1990s separately, according to the different policy making...