HR and logistics


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Relationship between human resources management and logistics, by graph

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  • . #Facing today’s competitive marketplace, managers are concerned with how to nurture and utilize a firm’s distinctive competence to obtain competitive advantage.#The trend of globalization has made logistics elements of delivery speed, dependability, and flexibility important parts in a company’s value-added chainThere are organizational arrangements can facilitate the implementation of logistic strategies to cope with the implementation of company’s competitive strategy specifically aside from investments in operating infrastructure and advanced technologies in information systems, “an educated and well-trained logistic work force”, “effective and comprehensive approach to performance measurement”, and “well-designed work processes” are “key elements that should be in place before they can effectively enhance firm performance”. This suggests that certain human resource management (HRM) practices are instrumental in the successful implementation of logistic strategies
  • Strategy A company’s competitive strategy is developed based on the firm’s unique strengths, limitations, market opportunities and threats. Strategic objectives coordinate and direct all organizational activities and resources.
  • 3. respond to the demands of their clients and logistics partners by flexibly adjusting their supply chains to provide differentiated products and services.4. emphasize communications and interactions among constituting parties on their supply chain, with ultimate goals on customer service and satisfactions.Uncertainty in tasks is high
  • Uncertainty in tasks is low
  • Logistics represent 60 to 70 % of the supply chain processes
  • we also use the term “logistics strategy” to indicate a pattern of action plans designed for the achievement of logistics Goals.“logistics” refer to the activities involved with the inbound of production materials as well as with the outbound of finished products to final customers;
  • # we propose that the logistic strategy a company pursues will be associated with the competitive strategy it adopts.#Companies who adopt differentiation strategy can best achieve their goals by leveraging their logistics capability that focus on customer service and flexibility (outbound logistics) # cost leaders must focus on “simple, consistent, and efficient processes to streamline their logistic procedures” (inbound logistics).
  • Short term vs long term perspective
  • Under such circumstances, offering skilled logistic workers with high level of involvement, autonomy, and extensive trainings can attract, motivate, and retain qualified employees, who will internalize (be committed to) the goals of the firm.
  • High wages
  • Low wages
  • The logistic strategy a company pursues will be associated with the HRM strategy it adopts. If a company pursues market-oriented logistic strategy, it will tend to adopt maximum commitment HRM strategy. If a company pursues cost-oriented logistic strategy, it will tend to adopt cost-reduction HRM strategy.
  • the guide plans dictated by competitive strategy should cope with and complement the guide plans set forth by the logistic as well as the HRM functional strategies. Otherwise, workers will feel confused of what are the correct behaviors expected of them.
  • HR and logistics

    1. 1. Relationship between “Human Resources Management and logistics”
    2. 2. purpose of the research We aim to : 1. Explore the relation between logistics and HR 2. Prove that HR practices can facilitate the execution of logistics strategies and enhance Co. competitive strategy 3. State the types of competitive, logistics and HR strategies and show the link between them. 4. prove in the end that there is a direct relation ship between logistics and external customers and indirect relationship between HR and external customers
    3. 3. introduction  Importance of logistics as a mean of achieving competitive advantage .  logistics has gradually been regarded as a functional area and an important constituent contributing to a firm’s competitive ability  Importance of HR practices to facilitate the implementation of logistic strategies to cope with the implementation of company’s competitive strategy.
    4. 4. i. Competitive strategy 2 types that a Co. may pursue superior performance efficiency (responsiveness)
    5. 5. characteristics of Differentiation strategy  A company pursuing differentiation strategy will : 1. 2.  segment target markets on particular clients and tailor offerings to match exactly the demands of those niches. require detailed client knowledge as well as operational flexibility to respond quickly to customer needs. Required Logistics tasks  emphasizing quality in products or services, as well as paying attention on responsiveness to target customers’ demands
    6. 6. Characteristics of cost leadership strategy  A company pursuing cost leadership strategy will : 1. provide relatively standardized products or services at competitive prices. 2. deliver products or services with maximum reliability to a broad range of customers.  Required logistics tasks  finding the best standard in providing logistic services and offering simplified and standardized logistics to lower operating cost and enhance efficiency.
    7. 7. Logistics definition Logistics - Logistics is that part of the Supply Chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet Customers' Requirements. (CLM)
    8. 8. Logistics strategies 2 types of logistics strategies
    9. 9. Linking competitive and logistics strategies  Company pursuing Will adopt Will adopt Company pursuing
    10. 10. HR definition  The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising
    11. 11. HR strategies 2 types of HR strategies
    12. 12. linking logistics strategies and HRM strategies  In the previous section, we have established the link between competitive strategy and logistics strategy.  Now we will explore what HR strategies can facilitate the implementation of different logistic strategies?  The logic linking logistic strategy and HRM strategy stems from the different level of uncertainty in tasks when implementing different logistic strategies  Since strategy is an action guide plan and all strategies must finally be executed through people, companies may use workplace HR practices to Shape employee behaviors for the effective execution of different missions
    13. 13. Market-oriented logistics strategy  Working circumstances  firms must be flexible enough to quickly shift logisticrelated organization resources to meet changing market demands.  (Workers in such companies must have the skills and trainings to perform a variety of different tasks)  it is difficult to predetermine all possible contingencies, standardization is less possible and the level of uncertainty in Performing logistics tasks increases. • (Workers engaged in uncertain logistic tasks are required to use some discretion in determining when and how to perform different logistics jobs )
    14. 14. Market-oriented logistics strategy  Characteristics of workers needed  Skilled logistics workers with high level involvement, autonomy, extensive trainings can attract, motivate, and retain qualified employees, who will be committed to the goals of the firm.  These characteristics match with the description of the maximum commitment HRM strategy, whose primary objective is to encourage discretionary employee behaviors and decisions under conditions of high task uncertainty.
    15. 15. Cost-oriented logistics strategy  Working circumstances  Involves producing standardized products and services, and emphasizes cost reduction and logistic efficiency. • ( logistics processes are narrow and workers perform well-defined jobs)  it is more easier to predetermine all possible contingencies, standardization is high and the level of uncertainty in Performing logistics tasks decreases • (low skills workers don’t need to use any discretion in performing well-defined logistics jobs)
    16. 16. Cost-oriented logistics strategy  Characteristics of workers needed  Workers with low skills requirements, low innovative or creative behavior and less involvement and information sharing.  These characteristics match with the description of the cost-reduction HRM strategy, whose primary function is to reduce direct labor costs and other employment related expenditures
    17. 17. summary  Summarizing the discussions above:
    18. 18. Comparison of Competitive Strategy, Logistic Strategy, and HRM Strategy Cost Leadership Strategy Cost-oriented Logistic Strategy Cost reduction HRM strategy 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. Strict cost control Efficient way of operation Tight control of employees Clearly-delineated responsibilities Standardized work process Production design based on facilitating production process Cost reduction in logistic process Emphasizing logistic efficiency Logistic process reengineering Trustworthy suppliers Offering standardized products and services Extended service areas and large amount of customers Specific and well-defined work definitions Tight control to prevent cost of error Close surveillance over workers Low worker participation Limited trainings Result-oriented performance evaluation used as control mechanisms Differentiation Strategy Market-oriented Logistic Strategy Maximum Commitment HRM strategy 1. 1. 2. 3. 1. 2. 2. 3. 4. 5. Strong abilities in product design, development, and marketing Emphasizing quality in products and services Pay attention to responsiveness to customers' demand Serving particular market segments Value employees with skills and creativity 4. 5. Providing high value-added products or services Emphasizing quality in products and services Pay attention on responsiveness to target customers’ demands Providing services to particular clientele Pay attention to communication and cooperation with customers and logistic partners, form longterm cooperative relationships 3. 4. 5. 6. 7. Emphasize innovation and flexibility Loose job definitions with cross functional communications Proper empowerment Problem solving through work teams Select employees with high technology standard and innovative ability Emphasizing development and training Process-oriented evaluation used as basis for worker development
    19. 19. From the previously discussion we have proved:  There is direct relationship between logistics and external customers (customer satisfaction)  A direct relationship between human resources and internal customers (employee's satisfaction)  Indirect relationship between human resources and external customers
    20. 20. HR How? Relationship between “HR and Logistics” Should engage with the staff by using authorities Staff authority Output Implied authority What? When? Before Hiring Making Right People Decision During Operation Recruitme nt Selection After leaving the company Salaries Interview Training Backgroun d investigati on Promotion High performance work system Performance Satisfied Internal customer Why? *Transparency *Fairness *Credibility Productivity Outcome Satisfied External customer Profit Business Value Image Competitio n