Supply Chain Management for Effective People Management: Issues and Challenges Indranil Mutsuddi*
Managing people in the highly volatile and turbulent business environment has always been an issue of concern for Human Resource (HR) heads and industry captains. This has particularly become challenging with organizations facing high attrition rates, on the one side, and businesses demanding talent supplies having newer and more cross-functional skill and competency sets to meet the changing needs of their businesses, on the other. Hence, HR professionals need to maintain a steady supply chain of their talent resources in order to remain competitive where rival organizations may poach their employees with impressive compensation packages and Human Resource Development (HRD) policies that would encourage them to find better career and development options in such organizations. This paper makes an attempt to examine and understand the nature, relevance and peculiarity of the supply chain function in HR practices. The paper also discusses the interrelation and roles of issues related to and the challenges of implementing supply chain management for effective people management.
Retention and management of human capital and particularly the identification, selection, development and retention of the ‘talents’ professionals and employees in an organization had become a daunting task for the Human Resource (HR) captains (Mutsuddi and Mutsuddi, 2008). HR think-tanks and eminent academicians like Peter Cappelli of Wharton Management School are of the opinion that failing to retain and manage talent needs is equivalent to failing to manage the organization’s supply chain (Knowledge@Wharton, 2008). It has been argued that frequently the role of HR captains has become similar to those of supply chain managers who are constantly developing new strategies that enable them to match supply and demand at affordable costs. With more and more businesses going global, managing people across the globe is becoming more and more similar to that of managing global supply chains (Hugos, 2003), which are constantly evolving into dynamic process networks in which * Assistant Professor, MBA Department, DSMS Business School, Shahid Sukumar Banerji Sarani, Bidhannagar, Durgapur 713212, West Bengal, India. E-mail: firstname.lastname@example.org Supply IUP Management for Effective People Management: Issues and Challenges © 2012 Chain All Rights Reserved. . 53
organizations can network in various combinations based on the context and requirement of their business needs. The increasingly dynamic business environment requires effective communication, team management, and constant life cycle innovation. Hence in order to harness such challenges it has become important for business captains to apply insights of and supply chain management practices for managing, developing and engaging a pool of effective professionals/human capital. Hence, considering this argument it has become important to understand and analyze the role of supply chain management for effective HR management. The objective of this paper would be to examine and understand the supply chain function in HR practices. The paper would also discuss the interrelation and roles of issues related to and challenges of implementing supply chain management for effective people management.
Supply Chain Function of HR Practices: A Model
Supply chain management involves cross-functional activities in an organization to obtain required materials and services. It involves the process of identifying, evaluating, procuring, and managing the entire material cycle from planning stage to the delivery of finished goods. A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Interactions across multiple...
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