Thursday, September 4, 2008

Rebranding HR- Resource Supply Chain Manager

Since ages HR has travelled a long journey defining itself from its nascent form as intermediary and advisors on
human relations. The biggest debate is about the importance of HR – Is it central to business or peripheral to business.

The conventional side of HR largely deals with issues like motivation and morale. The recent and complex side of HR has transformed itself into a “Resource Development Manager” both within and outside the organization.

In view of an economy which is growing largely due to the growth of service sector, the role of HR has to be transformed into Resource Supply Chain Manager. The current resource management is to transform human capital from its “Raw Material” state to “Value Adding Material”. HR as a Supply Chain Function should handle the role of sourcing, processing and delivering value added resources. In this process the function assumes the responsibility of first adding value to the "raw" employees such that they, in turn, can "add value" to the shareholders and the customers.

All principles of Supply Chain Management is applied in the process. It starts by identifying the various class and maturity of skills which are required for an organization to deliver products and services. This is then followed by a set principle that is, at what price a particular skill is productive enough to be acquired and deployed. The cost of acquisition of the resource is determined by working out the equation of the "number of times" the value a resource can add to run a business.
A very systematic assessment of the overall sectoral demand-supply situation is made This calls for a deep understanding of the level of attrition within one’s organization, historical trends, the critical from the non-critical attributes, what is the market level of attrition in various other organizations, which skills are more vulnerable , what is the new supply in terms of fresher’s coming into the market, which are the sunrise skills, what is the supply coming, what are the alternate sources and markets for skill acquisitions etc. A clear and concise recruitment plan is made by initiating a robust skill indenting process and a method by which the HR professionals prioritize which skill is more critical for the overall achievement of the business objectives. This annual plan can then be broken to derive quarterly, monthly weekly and daily forecast
Building on the Forecast Vs Fulfillment accuracy is the next step. Each skill has a preset reorder level and an Economic Order Quantity (EOQ) for the batch to be taken up for processing. However this EOQ rule does not apply to high value yielding and critical resourcing needs. Each of the main recruitment functions is a separate process line that is indenting, forecasting, CV accumulation, bucketing CVs into skill and level buckets, testing, profiling, interviewing, offer making, closing out and inducting.

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