Week 4 Project

The Correlation of Supply Chain Management and Employee Selection

It is important for decisions makers to be able to compare and assess every aspect of the business. The HR professional should have the foresight to incorporate utility analysis, HR analytics, predicative analytics, and other business concepts into reports that would become actionable and will drive business. In the previous lecture, you were introduced to utility analysis and supply chain analysis. To further elaborate on the correlation of these concepts, we will apply it to the staf�ng process. Each time a new hire is selected to work for an organization, the new hire has agreed to offer a service and, in return, the organization will invest in this individual. Such investments can be seen as wages or salary, bene�ts, tuition reimbursement programs, etc. Every time the organization invests in the employee(s), an expense incurs. The decision makers expect to see a return on investment (ROI). To determine any �nancial risks, the HR professional must have the capability of assessing the risk. Before employees are hired, there must be a logical and clearly de�ned system in place to identify the vacancies and the steps for employee selection. What will make the most sense to decision makers when attempting to justify the expenses for all the areas of HR? “The idea is that, by using proven business logic and applying it to the question of selection utility, the results will be more credible and more easily understood” (Cascio & Boudreau, 2011, p. 260).

Below is a chart to further explain the concept of supply chain management and its relevance to employee selection. (Cascio & Boudreau, 2011, p. 276)

Table 10-1 How Supply Chain Management and Employee Selection Share Business Logic

Supply Chain Management Employee Selection

Demand Planning and Forecasting

Predicting future resource needs in terms of quality, quantity, cost, and timing, based on business activity and other factors. Planning approaches to better forecast or smooth demand levels for better planning.

Predicting the needed quantity, quality, and timing of future job openings and vacancies. Utility analysis can show where better performance has the highest payoff. Selection data can show where having a longer lead time can improve selection validity or applicant quality.

Supply Chain Management Employee Selection

Production Planning and Scheduling

Predicting and establishing future production schedules or inventory-acquisition schedules. Optimizing production to �t quality and quantity needs.

Predicting and planning future recruitment and staf�ng processes. Utility analysis can show the payoff from increased applicant "production" that produces lower selection ratios and the impact of longer tenure among new hires that reduces turnover and increases the timeframe of the payoff from improved selection.

Distribution and Logistics

Planning how goods will move through space and time, identifying where to place warehouses and transportation channels, and determining how to optimize choices about which sources to use.

Planning whether to recruit locally or more broadly. Locating workplaces near applicant sources. Utility analysis can show the relative quality of applicants from different sources and the relative predictability of applicant quality. Utility analysis can compare the payoffs and costs from different applicant sources.

Inventory Management

Planning how much and where to hold inventory of goods, where shortages and surpluses should be tolerated, and how to optimize the risks of being out of stock, having too much stock, against the costs of ordering and holding inventory.

Planning how far in advance to build inventories of applicants and potential applicants. Planning where to hold a surplus of jobholders and where to allow shortages to occur. Utility analysis captures the ordering costs of improved selection and the potential quality improvements from anticipating job openings to attract better candidates or select more carefully.

The HR professional should consider recruitment analytics, which is a way to measure the effectiveness of the employee selection program and have a well-thought-out plan prior to presenting the request to the stakeholders for the �nal approval. Remember, this is an investment.

Additional Materials

From your course textbook, Process Metrics and Measurement Complete Self-Assessment Guide, review the following chapters:

Criterion #1: Recognize

Criterion #2: De�ne

Criterion #3: Measure

Criterion #4: Analyze

Criterion #5: Improve

From the South University Online Library, review the following article:

Lean Six Sigma Tools in the Hiring Process (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com/login.aspx? direct=true&db=edb&AN=102140309&site=eds-live)

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