The Similarities between Human Resource Management and Supply Chain Management
Human resource management is an effective management of the workforce in an organisation. This is the backbone of any business that gives it a competitive edge over others. The quality and productivity of the workforce determines the progress and sustainability of the business. A human resource management system is very similar to a supply chain management system because human resource management handles a chain of inter related departments with diverse job responsibilities working with an aim to achieve a common objective.
Recent times have noticed great developments in the supply chain industry in terms of automation, cost cutting, software aided operations, automated vehicles, etc. The introduction of these new concepts can be beneficial for the Human Resource department too. There is a lot that the human resource management system can imbibe from the supply chain management system.
Supply chain management system works on modularization. This means that the links within a supply chain management are commutable, interchangeable, compatible and exchangeable. The supply chain management system cannot allow any breakdown in the movement of goods and services. Similarly, the human resource management system must also incorporate the concept of modularization in their workforce. This will enable the human resource management system to ensure a continuous flow of workforce and prevent scarcity of manpower. Just as the demand for products is a regular affair so is the demand for talented manpower.
It has to be kept in mind though, that no matter what, humans and products cannot be equated in the same manner and so, the principles and metrics of supply chain management may not necessarily fit in to the human resource management system. The human resource management system will definitely hold its own defined techniques, procedure and practices. The modus operandi is bound to be different for both the systems. However there are certain common modularization practices that the human resource management system can incorporate in its operations:
- Outsourcing: Supply chain management involves a lot of channel or outsourced partners. Many HR functions can be outsourced too. Third party deployment can be done for security services, housekeeping, web development, etc. Even a part or all of the hiring requirements can be outsourced to job consultancies.
Automation:
Video Interviews or Interactive Voice Questionnaire can be used to select and filter candidates in the first round. This increases the efficiency of the operations, minimises biasness and saves time on the part of the recruiter. Automated mails can be used to notify candidates about job openings and also to share feedback of the interview to the candidates.
Creating Human Inventory:
Most job openings witness a large number of applicants compared to the number of vacancies. As a result, many good candidates are waitlisted for the next opening. These waitlisted candidates can be kept as reservoir or human inventory. A human inventory will consist of a pool of shortlisted applicants who are qualified and suitable for future openings. This minimises time and effort of the selection process.
The Similarities between Human Resource Management and Supply Chain Management
Every process is unique in its own way. We can derive many useful concepts for every process, be it supply chain or manufacturing. These concepts can be further modified and modulated into process specific approaches and used for overall growth of the business.