Human Resource Policy

Adva nces in Environmental Biology, 9(3) February 2015, Pages: 185-194

AEl\ISI Journals

Advances in Environmental Biology

ISSN- I 995-0756 EISSN- 1998-I 066

Journal home page: http://vv\vw.aensiweb.com/AEB/

Integrated Human Resource Supply Chain Management: A Model for Organizational Excellence

1Ravand, Mostafa and 2Razieh Lotfalian Saremi

1 Ph.D. Student in Human Resource Management, Institute oj' Econo111ics & Demography, Academy <>l Sciences, the Russia Branch, Dushanbe, Tajikistan 1Ph.D. Student in Syste111 Engineering, Stevens Institute, New Jersey, USA

A RTI C LE I NF O Article histo1y: Received 13 October 2014 Received in revised jon11 28

December 2014 Accepted 2 .Janua1y 2015 Available online 17 Febr11a1y 2015

Keywords: Supply chain nianagement, strategic h11111an resource management, integrated llR & supply chain 111anage111ent.

ABSTRACT Human as a funda1nental pillar of develop1nent in fra1nework of their own group and organizational activities, plays an i1nportant and critical role; today organizations develop1nent and gro,vth depends on the proper selection and organizing of the human capitals. According the above 1nentioned point and the disorganized condition of selection as well organizing of hmnan capital in country and necessity of paying attention to the issue in better managing the supp ly chain in business and the sign ificant i111portance of the matter in achieving co1npetitive advantages, this paper intends to designing and describing the concept of supply chain managen1ent and str.itegic hun1an resource manage1nent mea1nvhile providing a 1nodel for i1nproving human resources performance in business supp ly chain managc1ncnt through strengthening s trategic hmnan resources 1nanagemcnt scope with a the foctL~ed vic,v, as "integrated human resource supply chain 111anagement". The results o f the study can prepare the way for 1nore i1nproving capabilities and co1npetencies of active hun1an resources in business envirorunents.

© 201 SA ENS I Publisher All rights reserved .

To Cite This Article: Ravand Mostafa and Razieh Lotfa lian Sarc1ni. , Integrated Hurnan Resource Supply Chain Manage1ncnt: A Model for Organizational Excellence. Adv. E11viro11. Biol, 9(3), 185 194, 2015

INTRODUCTION

Over the past two decades, managers experienced a period of dramatic global changing for advances in technology, globalization of markets and new economic- political conditions. By increasing nun1ber of rivals in global class, organizations have to immediately improve the internal organization processes to remain at the scene of global competitiveness and among this, the role of human resource management with strategic perspective cannot be ignored.

In 1960-70s, organizations attempted to develop detailed marketing strategies that were concentrated on meeting "customer satisfaction". They found that a strong engineering and designing and having integrated and coordinated operations are considered as a prerequisite to achieve true 1narket needs and in turn greater market share. r ·herefore, designers have to incorporate their customer ideals and requirements in designing their products and in fact dispatching the products ~1ith as the highest quality as possible along ~1ith customer's ideal demands at the least cost into market.

ln the 1980s, by increasing the diversity of customers· desired patterns, manufacturing organizations increasingly tend to i1nprove the flexibility of production lines, ex isting products and processes and develop new products to satisfy customers that- in turn - ~1as follo~1ed by the number of nevv challenges for them.

ln 1990s, along with improve111ents in production capabilities, industry managers understand that the materials and services from different suppliers play a significant role in enhancing the organization capabilities to meet customer requirements, which in tum, increasingly influence the concentration of the organization and supplying base and sourcing strategies. As well, the managers found that merely producing a qualified product is not enough; in fact, supplying the products according to the customer's criteria (when, where, bow), their desirable quality and cost, created new challenges.

Corresponding Author: Ravand, Mostafa, Ph.D. Student in Human Resource Management, Institute of Economics & Demography, Acadcn1y of Sciences, the Russia Branch, Dushanbe, Tajikistan

186 Ravand Mostafa and Razieh Lotfalia n Saremi, 2015 Advances i n Environrnental Bi ology, 9(3) Febntary 2015 , Pages: 185 -1 94

In such circumstances, as a result they found that the changes are not enough to manage the organization in the long term. In managing the net\vorks, all factories and firms that supply their inputs - directly and indirectly- as well as all company nets relate to delivery and after-sales service to customer should be involved. Such perspectives opened the space for approaches like "supply chain" and "supply chain management". Figure 1 shows Manufacturing and Service Supply Chain.

I S11pplifr I I S11pplifr I ~ \\' n1t l1tmt IQI M:o 11 111'<1 "'" I LJ1ll'•nh01••I QII>m1il11io"t:jR.i nit1~Cl!1tmt1J I S11pplifr I I S11pplifr IF . . I lhrtiloun IGI S.ni<fS IGI c ...... .,. I I S11pp1~r I

Fig. 1: Manufacturing and Service Supply Chain [16].

Supply chain n1anagement consists of integrating the supply chain activities and related inforn1ation flows through improving the chain relationship to achieve reliable competitive advantage.

On the other hand, one of the n1ost in1portant criteria in facilitating the affairs in mentioned chain is the human resources management which can play a great and important role in added value and in1proving the communicative lines of supply chain. ln supply chains, if you have a separate island approach to human resources, the coordination and integrity v.rill be faced with great challenges in conducting the activities in the whole supply -customer chain and the business mission puzzle would be unrealistic and heterogeneous. Therefore, this article tries to provide a frame\vork for professional human resource role in improving the business supply chain performance via the integJated strategic human resources management by presenting the concepts of supply chain management and strategic human resource management.

Literature Revieri1: I Concept oj"Supply chain management:

Supply chain manage1nent in its 1nodern sense is derived from marketing, support and production. There are three aspects on supply chain management that includes: 1. Intra-functional coordination (admin istering the activities and processes \vithin a company's support obligation); 2. Inter- functional activities (such as coordination between support and fmancial, support and production, support and n1arketing affairs); 3. Coordination in inter-organizational supply chain activities that take place bet\Veen companies that are legally separated [13].

Supply chain n1anagen1ent represents a paradigm shift that increases the con1pany desire to the concepts of cooperation and competition. Cooperation does not seem as an inter-collection process of partners in transaction. There is currently cooperation in whole supply chain. The basic assumption for new con1petition is already that companies are not competing as before for a long time. New competitions of the global netv.rorks are centrally in agility companies with managers v.rho actively seek different interpretations and conm1entaries about the events and are eager to think about their business and promptly respond to market changes. Without needing to ne\v competition, great changes will take place betv.reen trading partners. The cooperation for \vhich some necessary information is exchanged or and some long-term contracts or contacts of supplier I customer are used by the companies is interaction threshold. That is, cooperation is the starting point in supply chain management, it is a necessary, but not sufficient. The next level is coordination by which either the process is identified or the information v.rill be transacted in a way that allo\v TIT and EDI systems and other mechanisms that attempt to integrate many traditional relationships bet\Veen and within the commercial sectors. Business ward can cooperate and coordinate so1ne activities, but do not act as true partners. Again, this evolution is also a necessary condition, but not sufficient for supply chain management. Supply chain management is constructed based on the trust and comminnent. It is agreed that trust and co1n1n itment can significantly help organization long-term stability. Trust is expressed by faith, reliance, belief or confidence to partners, si1nply it is a belief in co1npany that supply chain partner will act con1patibly and wi II do v.rhat the co1npany asks. Co1n1n itinent is a belief that by wh ich partners tend to allocate energy to rnaintain this relationship. Namely, through the co1nmitn1ent, committed partners allocate resources for 1naintain and the developing supply chain goals. For example, supply chain partners are willing to share inforn1ation about upcon1ing projects and programs as well as data on competitive forces and the R&D; they have recognized that their long-tern1 success depends on strengthening the weakest partners in supply chain. The more important and co1nplex strategic relationships in supply chain n1anagement should be conducted cooperatively. Complexity can be financially (such as a major

187 Ravand Mostafa and Razieh Lotfalian Saremi, 2015 Advances in Environrnental Bi ology, 9(3) Febntary 2015 , Pages: 185 -1 94

financial commitment) or commercial (e.g. interdependence technology, joint production processes, joint development) [7].

According to the scientific (investigative) - evolutionary viewpoint, supply chain is a netv.1ork of companies that upstream and downstream products and services in its chain length form an industry value that increasingly has attracted organizational theorists' attention since 1980. Scientific research has greatly changed over ti1ne to focus on several organizational theory perspectives one after one. Tn fact, v.1illingness to organ ization and supply chain manage1nent represents theoretical changes in point of view. This glancing review shows supply chain that firstly concentrates on the efficient transferring of co1n1nodities a1nong active companies in an industry and still constitutes as an essential component of organizational theory [15].

Shared Marktting Knowledge

Sup11li· Cboin Purtntr

Rttailtr Kno"'ltdi'C

Morktt K llO\\'lt dgt

~larktling Rt.st:trcb Kno\\lcdgt

Kno\\'ltdgt 1\ lanagtn1ent l+--+I ....._ _ _. Dt cision Sup11()f't B:uch Ptoduct Prtttnlatlo11 Prod11C'I Prodt1C'I {.)1S101ntr Rtbtion~hip S)l ltn> RtqueslS A11:11lysk ~1an•1t1nt1lf Dtplo~·1ntnl Promocion ~l-a 11a1t1ntt11

Fig. 2: Integrated knowledge n1anagement system for supply chain marketing.

Following the supply chain management concepts, three theoretical perspectives will be presented in relation to the supply chain.

Strategic Choice Perspective: Using market mechanisms within the companies began to grov.1 in the 1970s similar to markets replacement instead of hierarchy in resource allocation process and increasingly attract economists and other scientists' attention to know how the organization can combine their external resources with their Ovvn internal perfonnance. For exa1nple, in past, the production expansion in an ordinary publishing co1npany was interdependent on activity v.rh ich was 1nanaged by co1npanies and freelance writers; whi le designing the prints and other operations were conducted within the company or by external suppliers. So what the con1pany decided to do vvas clearly a strategic choice. Also, it v.1as considered as a decision to organ ize the manner for pursuit company's selected activities. It is supply chain netv.rorks that allow companies to adopt strategic choices and then create new structure plans to conduct them. Value chain downstream firn1s can support their marketers' strategies \Vi th defensive structures and processes of upstream or can chose other types of strategy combinations. By emerging organizational nets, a con1pletely new way has been opened to choose strategy, n1ost of the companies become strong competitors by jointing to professional suppliers in a coherent supply chain.

Resource-Based Perspectives: Understanding about the different types of grovvn network stn1ctures have evolved over time. Thinkers in the field gradually realize that supply chain structures that only leads to lower costs, will create slight sustainable competitive advantage, because management techniques such as comparative studies, work processes reengineering, total quality (TQ) and standard and conventional methods helps con1petitors to find out how can achieve maximum efficiency among their suppliers and partners. The automobile manufacturing industries creates available instances from combining suppliers ' ideas in BMW design to deploy the Lean production of Toyota. Changes occurred in Ford supply chain indicates emphasizing the shift of direction from concentrated strategic choice on cost efficiency to a resource-based perspective relying on increasing design power. Ford v.1hich \Vas a vertical and integrated furn attempted to purchase the stock shares of a glass manufacturing company rather than producing glass (The Company acquired the technology and determined the characteristics) to find out \Vhat skills will be designed by glass producer to be accomplished by Ford Co. The same examples were quoted from other industries; Dell may be the best representative of so-called developed (advanced) co1npany. Dell managers considers whole of supply chain as an organization and ad1ninister it to gain the effectiveness and efficiency. Of course, the manners of Ford external recourses, Dell and other con1panies can be analyzed fi·o1n the theoretical standpoint. Tt is worthy to observe that most 1nanagers have to overco1ne the deep -matured belief that says: Companies often have to maintain their own resources to ensure an efficient flow of services of high quality products. According to the researchers, hov.1ever, such a concentration may prevent scientists and 1nanagers to be aware of benefit from their capabilities and it will occur when companies create trust and confidence in their interrelationships, and they are required to share their information and skills.

Knowledge n1anagement perspectives: Most of recent researches on supply chain and other companies' networks have been raised from a knowledge management perspective. \Vhile the resource-based supply chains have created greater capabilities for producing and developn1ent process, it seems some networks take steps

188 Ravand Mostafa and Razieh Lotfalia n Saremi, 2015 Advances i n Environrnental Bi ology, 9(3) Febntary 2015, Pages: 185 -1 94

towards developing the creative process through exchange of knowledge. If vve contemplate on relationships throughout the supply chain and among the companies v.1ho can move from merely cooperation to sterling coordination, an alignment of really endless from creative ideas may be possibly be including the ideas that may function beyond the industries exist in companies. Participatory efforts interaction were based on the specific goals and agreement on cooperation and functions that in general have been specifically invaluable in enhancing network performance. But efforts based on coordination, trust, kno\vledge and specified infonnation trans1nission 1nanner and fair practices 1nay lead to the forming an organizational network in strongly entrepreneurial industries. Using Knowledge management approach, some examples can be found in designing and behavior of creativity social 1nodels. Such as Linux vVorld Group, the industrial symbiosis in Den1nark Kalandberg, partnership in U.S. construction industries and netv.rork series of entrepreneurial companies in Finland IT industry.

The common points in all these approaches have been predicated in coordination process in 1960s and 70s to establish a serious investment in trust-building and creating an organizational culture and the processes that ensure the fair behavior among cooperating partners. Fron1 the theoretical point of viev.r, it would be very easy to understand that co1npanies have invested on their coordinating capabilities and increased their capacity for creativity, as an example the recent successful creativity at HP and huge profits in Xerox and M3 was reason of power in coordinated working groups within company business. It can easily be seen why compulsion in industry creating boundaries restrict the potential creative pov.rer even in powerful companies. Forming and the pursuit the constructive ideas outside of a sustainable business are very difficult. The exact applied criteria in separating processes \Vorks conversely in an organization and erode the motivational dynamics that support coordinated community. One of the most important issues in knowledge management is integrating knowledge obtained from separate sources; for example knowledge for Marketing Decision Support Systems obtains from three 1nain sources of customer knowledge from retailing, customer knovvledge from marketing research and market knowledge from experts (Figure Two); this knowledge will be shared widely by firms such as suppliers and retailers. Nowadays, information technology and the Internet are advanced and empowered to share such knowledge.

Table 1 shows the theoretical perspectives associated with supply chain 1nanage1nent [12].

T able I : Key findings on supply chains fro1n different theoretical perspectives. Theoretical perspectives Research findin!!s

Observing the professional C()IUpanies, riva ls in each sector can create their O\Vn supply

Strategic Choice chain by evolutionary strategics and skills. In general, more efficient the supply chain

is, the industry's performance will be expanded by co1nbining the supply chain partners· ideas and experiences.

Resource-Based Perspec1ive Leader co1npanies can reduce the costs of network and drive it to,vards creativity. In

total, the industry 1nav well have creative efficiency. In the future, a group of cornpanies \viii establish coordinated networks in integrated

K.!10\vledge Manage1neat 111arkets in where knowledge is created and exchanged for business purposes. The

corporate networks enable the co1npanies to pursue continues creative strategies and 1neanwbile the industry will grow within the111.

II Strategic human resource management concepts: The concept of strategic human resource management is based on important role of human resource

management that focused on the strategic nature of HR. and integrating of HR and organizational strategy. Schuler (1992) described the Strategic human resources management as follow: "all influential activities on individuals ' behavior in motivating them to design and implement the organization strategic needs". Wright and McMahan (1992) define strategic Hu1nan Resource management as a planned human resource allocation pattern and conducting desired activities to assist organization in achiev ing its goals [18). Strategic human resources management is a way for decision making on organization objectives and projects that concerns to the issues such as: Staffing, Recruiting, Training, Rewarding and personnel Performance Management. In fact, SHRM generally pay attention to relations between HRM and organization strategic management [2]. From Guest (1989) viewpoint, the main difference between traditional concepts of human resource managen1ent and strategic human resources managen1ent is the rate of integration between human resource management and strategic decision-making processes to cope with environmental changes [10). Beer (1997) believes that the competitive environment, globalization and constant market and technology changes were the main causes for the transformation of human resource management concepts and turning it into the strategic human resources management [6]. Traditional concepts of human resource management emphasized only on physical skills, special training, special expertise and personal efficiency of the employees and concentrate on the task was done by the people rather than employees by themselves. While the strategic management of human resources focused on all sectors, and the organization overall effectiveness and the integration in various activities in addition to the above mentioned factor [2]. The main objective of the strategic hwnan resources management is to provide a macro vievv that allows addressing staffs' the substantial affairs. Strategic hwnan resources

189 Ravand Mostafa and Razieh Lotfalian Saremi, 2015 Advances in Environrnental Bi ology, 9(3) Febntary 2015, Pages: 185 -1 94

management makes organization to benefit skilled, committed and motivated employee to achieve a sustainable competitive advantage. It aims to create a sense of purposefulness and directionality in today often turbulent environments to thereby 1neet business requirements and its employees group and individual needs through designing and imple111enting the coherent and practical HR programs and policies [2]. Dyer and Holder (1998) argue that a unified, wide, contingency and in tegrated rra111e\vork should be created by strategic human reso urce management.

The interaction between the up -down and down-up approaches in fonnulating the HR 1nanagement strategy testifies that HR 111anagers participation along >vi th organ ization senior n1anagers is a requisite in fonning effective HR strategies for regula ting and developing HR strategies. Such a >vorking climate makes all levels aware of requirements of organization strategic orientation and its human resource characteristics and pertinence and thus allows defining hun1an resource strategies nlore effectively. Top-down approach implies that the organization's hun1an resources strategy should be derived from the organization's strategy and a vertical adjustment can be observed an1ong them. In other words, human resource strategy should be part of the organization strategy so that can support its in1plen1entation [2]. On the other hand, their HR requiren1ents and characteristics create gradual strategies. Thus, over time the organization's human resources conditions create emerging strategies without background that are derived from the requiren1ents. Creating the above sketched adequate space can combine and align the HR strategy with organizational strategy and thus effective exploitation of the organization's human resources. Another function of strategic integration is conm1unication and coordination between human resources policies and practices and organization strategies. Indeed, existence of this communication and coordination on the one hand can adapt the human resource and organization transformations and nlake possible the implementation of organization strategies and provide necessary actions to meet its executive requirements at all levels of the organization [14].

On the other hand, there is another interaction space between the nvo approaches based on the resources and capabilities and benefit from the opportunities. The main objective of the resource- based approach, according to Barney ( 1991 ), is to develop the strategic capabilities. It takes place due to a balance betv.reen the resources and opportunities and create added value through effective resource allocation [5].

Han1el and Parahalad (1989) argue that competitive advantage can be ach ieved if the organization is able to attract or develop the bes t hu111an resources, so that accelerating the learning and applying the learned wi ll be possible against co111petitors [1 1 ]. In contrast, there is the environment-based approach that refers to using environmental opportunities and aligning betv.reen hu111an resources strategy with circu111stances. In this approach the organization with a focus on environmental factors, such as taskforce status (in tern1s of expertise, salary, wage and etc.), regula tory require111ents, conditions of associations and trade unions and etc. will set organization's human resources strategies. After examining the space of forming organization strategic human resources, in this section, we study in detail the basic model of HR strategic planning the strategies which were the traditiona l planning nlethod with up-down approaches to examine the functional areas of human resources. This pattern shows us ho\v to convert organization strategies into HR and its different field strategies. In this model, after finding organization's strategies that are achieved according to its vision, mission and values and by examine its internal and external environment, the overall HR strategies will be developed. Developing this strategy also entails studying the environmental factors, focusing on organization HR related factors [14]. Each of the internal and external factors, play a key role in determining the organization's human resource strategy. Changes of these factors can cause essential transformation in organization HR orientations. So, it is absolutely necessary that the factors be reviewed continuously to take true strategies and policies in organization's human resources. After developing the overall human resource strategies, public areas of human resource strategies namely: HR supply management, HR development management, performance management, compensation management, and employees' relations management will be determined. The aim of this vvork is to convert macro HR strategies to various human resources work areas strategies. Certainly in developing the strategies of human resource area, attention should also be paid to overall strategy as vvell as the environmental affecting factors on that specific areas need to be addressed [ 14].

In order to study the formation of functional strategies of HR strategies, the human resource management strategies in organizations should be studied in five general areas.

A. Preparation oj'Hun1.an resources: Hu111an reso urces supply ensures existing needed employees to fulfill the organization affairs. On the

designing and i111plementation of human resource management strategies, Cape ( 1989) states "the purpose is to attract and recruit suitable employees with competencies, skills, knowledge, and required potential to pass future training courses. The way of selecting and recruiting of staffs who can nleet this category of organization needs should be considered as organization fundamental activities and most of HR policies vvhich is designed to educate and motivate the staffs should be founded based on these activities [2]. In other words, human resource planning is a process of systematic reviewing of organization requiren1ents to workforce to ensure that the necessary human resources with desired skills are available in organization [9].

190 Ravand Mostafa and Razieh Lotfalian Saremi, 2015 Advances in Environrnental Biology, 9(3) Febntary 2015 , Pages: 185 -1 94

Human resource planning can be examined from t~vo perspectives: 1 - Hard Human Resource Planning 2 - Soft Human Resource Planning

Hard planning of hun1an resources is based on quantitative analysis and ensures the availability of appropriate number of qualified personnel in necessities. But the soft aspects of human resource relates to creating organizational culture that 1nake the cohesion and hannony bet>veen the organization's goals and values, beliefs and behaviors of staff. When it is detennined how many labor forces >vith what kind of skills and competencies and when is needed as well as studying the supply of labor forces statement in organization environ1nent and esti1nating organization future needs, the >vorkforces should be recruited by HR managers through attracting and maintain the forces via creating flexibility in organization.

Recruitn1ent: recruiting efficient workforces from outside the organization in order to meet the organization hun1an resources needs entails to perform these activities: 1- Defining the skills and con1petencies and behavioral needs; 2- Analysis the affecting factors on decision making to join to the organization, such as salary and benefits, career opportunities, opportunities to utilize existing skills or learn new skills, job satisfactory (the duties, authorities and independence), the reputation of the organization, participation in the work, attractive v.rorkplace; 3- Analyzing competitors' activities: investigating v.rhat the competitors are doing for affecting factors on decision; 4- Developing tools and techniques to attract the best employees in organization such as structured intervie\vs and psychon1etric tests [8].

Retaining the force: Several challenges in recruiting workforce that are emerged as a result of skilled labor shortages, intense competition in attracting skilled forces and employ1nent laws and regulations, give a vital importance to human resource retaining.

Studies on the reason of job leaving in organization suggests that factors like feeble future job, lack of interest, feeling of undervaluation in organizations, insufficient tasks, not receiving proper remuneration, lack of good social position, boring workplace, feelings of discrimination, lack of group cohesion, unfair and unco1npetitive payment are the 1nain reasons for leaving the job. Thus, the followings can be considered as the strategies to retain human resources:

Suitable job design (in tenns of diversity, independence, grow possibility and work space), appropriate and fair compensation of their services and providing appropriate re>vards, creating a strong perfonnance in management syste1n, training, skills developn1ent and recognition personnel's potential ability, creating clear career paths and bright career future, creating com1nit1nent in employees, establishing \VOrkgroups [ 1].

Flexibility: According to Atkinson (1984), the flexibility strategy aim to create a flexible company via providing nlore flexibility in operations and roles [3]. Activities optimal allocation to staff, using the tin1e optimally, outsourcing some activities and developing employees' skills, so that they will be able to do different jobs are issues that need to be considered [I ]. It solves many concerns of organizational nlanagers regard to the recn1itment and retention of workforces, especially in project-centered companies.

B. Development o.f human resources: Emerging of modern science and technology, industrial transformation as v.rell as organizations new

strategies and orientations force them to take steps toward the training and continuous development of its human resources to be survived in the competition [ 1]. Walton ( 1999), describes the strategic human resources development as "Strategic hun1an resource development include: Creating, Deleting, Modifying and adjusting the processes and responsibilities, and guiding individuals and groups in such a >vay that all of them will be equipped by the skills, knowledge and competencies that are needed for organization current and future task" [ 17]. The purpose of the strategic human resources development is to create a comprehensive and integrated frame\vork for empowering employees. Most of the human resource development processes are devoted to the environment processing in which employees are encouraged to learn and develop their skills and knowledge. Human resource development activities may include traditional educational programs, but these activities e1nphasize on the organization's intellectual capital and promoting and enhancing the develop1nent of organization, group or individual dynamicity. Enhancing the staff competencies and capabilities 111 an organization should be seriously considered as one of the main policy in hu1nan resource develop1nent.

C. Petform.ance Management: Performance management is a part of human resources depart111ent, which 111ay play a maJOr role in

improving organizational performance. The purpose of performance management strategies is to enhance organizational effectiveness, en1ployee and business groups' productivity, acquiring higher level of skill, co1npetence and increasing commitment and nlotivation in staffs. Perfom1ance management strategies address the issues of how managing the organization to achieve goals. Perfom1ance management can be defined as a strategic and integrated approach to provide sustainable success for organizations through in1proving the

191 Ravand Mostafa and Razieh Lotfalian Saremi, 2015 Advances in Environrnental Bi ology, 9(3) Febntary 2015 , Pages: 185 -1 94

performance of employees. Performance management is considered strategic because examines the \vide issues that are faced in organization; does it operated effectively in its environment or is the organization general direction to\vard achieving organizational goals or not? Perfor1nance management strategies follow the following goals:

Assisting taskforce to i1nprove their perfonnance, developing and e1npowering the staffs in their career, using staffs' opinion in improving the organization, staffs participating and their encouraging, gathering information to co1npensate personnel's services and discovering the improvable points and planning to improve the1n [9]. Performance 1nanage1nent system consists of three co111ponents of evaluated factors, system inputs and outputs.

The nlain factors in the evaluation of the performance management systen1 include: The level of goal achievement, observing core values of the organization, individual characteristics, such as

motivation, personal skills and creativity and individuals potential ability.

System inputs can be expressed by the following titles: The evaluated scope, critical success factors and perforn1ance indicators, capabilities required to different

levels of the job hierarchy, given objectives or requirements for various jobs. Finally systen1 outputs consist of assessment and grading the performance, perforn1ance improvement

programs, such as training, job improvement plan, and bottom-up evaluation. The essential condition in implen1enting the perforn1ance managen1ent strategies is to enjoy the full support

of senior management and full participation of line managers. Employees' duty in the performance management process must be very precise and clear, because they need to know the process belongs to themselves and pave the \vay for performance improvement by their pa11icipation. The organization v1ill be more successful that pay to the fundamental goal of "creating a culture in which individuals and groups are taken the responsibility of continuous improvement of business processes and skills as \vell their O\Vn participation" [ 1].

D. Reward Management: Reward Manage1nent focus on how preparing and designing the programs by organizations to ensure that

staffs effective actions and functions are praised. As Gomez- Maj ia and Balkin (1992) argue, the re>vard strategy is "optimum use of re>vard systems as a key integrating mechanism by ~1hich the various sub-un its and staff efforts will be directed to achieve the strategic objectives of an organization" [4]. Reward strategy should be founded on the principle that the ultimate sources of value creation are organization e1nployee. It means that the reward system should respond to staffs and organization need creatively. The basis of this strategy should be organization requirements to improve the performance in the short and long term. Reward strategy can support the changes, strengthen and organizations and recognize it. Reward strategy can make the cohesion and integration of reward policies and processes by growth strategy and improving the performance. This strategy should also reinforce the organization's values, especially values such as creativity, tean1work, flexibility, quality and customer service, and also improve the organizational culture and the spread of good practices in different parts of the organization. In this case, the reward strategy will play an important role in achieving the organization goals [2]. Reward strategy can have a different orientation:

Recruiting and retaining workforce, motivating people to improve performance, nlotivating people to more participate in organization progran1 [8]. The goal is to create a reward strategy that guarantees the balance and appropriateness of reward processes and policies with business and human resources objectives and their applicability. Factors that influence compensation strategy can be stated as follows:

Rules and regulations: State legal requirements on pay ments and concluding the contracts. Policy: policies that have been taken by senior managers in relation to organization strategies and financial

position, communities and trade unions policies.

Market conditions: payment level in labor market: One striking point in employees' compensation is balance between the individuals' needs and their allocated

rewards. Given that different people have different concerns and needs; the intended rewards for the1n should be tai lored to their needs. That will 1nake more effectiveness and encourage people to atte1npt n1ore for achieving organizational needs [9] .

. E. Employee Relations A1anagement: The pattern of human resource management in en1ployee relations can be expressed that staffs' relation

managen1ent is a factor for creating and developing commitment a1nong employees, emphasizing mutual benefits, change the procedures from collective bargaining to individual contracts, taking advantage of increasing staff participation techniques such as quality circles or improvement groups, continuous emphasis on quality, increasing flexibility in work agreen1ents, en1phasizing on teamwork and coordinating all employees

192 Ravand Mostafa and Razieh Lotfalian Saremi, 2015 Advances in Environrnental Biology, 9(3) Febntary 2015 , Pages: 185 -1 94

conditions. Employee relations strategy will be designed according to conditions that organizations are faced. Factors such as organizational strategy, legal, economic, social and political issues and national and international micro policies are issues that have a strong itnpact on employee relations strategy. Establishing the appropriate relations between unions and e1nployees is one of the fundamental strategies in any organization. This builds trust and mutual respect, a shared vision about the future plans, ongoing exchange of information, common goals and culture and e1nployee participation in the decision 1naking.

After presenting the concepts of supply chain manage1nent and strategic human resources 1nanage1nent, conceptual 1nodel derived fro1n combination the components of the two 1nentioned topics issue following.

III The conceptual model a model for integrated human resources supply chain management: Human as a fundamental pillar of developn1ent plays an important and critical role in the framework of his

group and organizational activities, today organizations gro\vth and development depends on the proper selection and organizing of the human capital.

Since the 1980s, the concepts such as inforn1ation, awareness and knowledge and collective wisdom enter into the competitive advantages that effectively are mixed with workforce.

Given to the nlentioned points and disturbed condition of workforce selection and organization in country and the necessity of paying attention to it along with increasing the labor force power in optimum fulfillment of duty, a new look at resource and attracting method in inside and outside of country is an undeniable necessities. On the other hand, identifying the sources of n1aterials supply or resources of material consumption has become a nlain affair that creates the new methods, such as supply chain nlanagement (SCM). On the other hand, expanding studies and knowledge in the field of cognitive science and anthropology create new approaches to know \vorkforce better and influenced the concepts such as environmental social networks strictly. The mentioned issue raises the question in mind that ho\v we can the best workforces can be identified, selected and organized suitably by using this method and knov.rledge, the result of above question and conducted research leads to presenting a model called as integrated HR supply chain.

. ,..---.•

• (1Mf..U5tf i '· ...... _ .-_ -. _-, _-, _ _,_ -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. _:. - . -. -. -·

Fig. 3: Research Conceptual Model (an integrated hu1nan resources supply chain).

As presented in the chart, consider the business environ1nent in v.rhich the basic supplier to the final customer precedes the business line activities in business collectively and integrative. Any default and negligence in mentioned lines lead to decreased productivity and end customer dissatisfaction. Thus, all units in business are responsible to maintain optimally the cohesion and cooperation and present the best perfonnance by exchanging accurate inforn1ation and creating added-va lue in their work activities and associate with end- user satisfaction that consequently will brings about the profitability and sustainability in business environment with a competitive advantage.

Based on the provided information in conceptual model, having harmonized, empowered and professional human resources is a \Vay for gaining competitive advantage and integration in business environment units that intent to conduct optimum acts that there is no gateway, management and exit of these professionals except Human Resources Management in Organizations. lf any of HR units in business environment conduct human resource management activities in an island and decentralized manner, a unified and integrated performance should not be expected in business environment. Therefore, having a custodian and dominant unit on HR management performance in businesses can fill so many performance gaps of HR employed in the environment and help to harmonize the practices in high performance level in whole business by developing identical and appropriate to HR in each unit.

An example of such a supervisor unit (by governmental duties) as the central department of strategic human resources management in business x is as follows: 1. Formulating HR strategy based on business x strategy;

193 Ravand Mostafa and Razieh Lotfalian Saremi, 2015 Advances in Environrnental Biology, 9(3) Febntary 2015 , Pages: 185 -1 94

2. Planning and monitoring the process of Human resources entry and exit to I from the business x; 3. Planning and controlling the training and development of human resources in business x; 4. Imparting the compensation and rewarding system to human resources in the business x; 5. Evaluation and i1nprovement of human resources relations and perfonnance in business x.

Based on importance of functions in this department, it can be considered as an ad1ninistrative and faci litator unit of HR e1nployed in business alongside vital system of business such as knov.iledge 1nanagement, ERP, CRM, EDT, ... as well as who are responsible for the critical task of hannonization and 1naintaining the integration of line and staff Hun1an Resources area in whole business via coordination with other HR units in any finns and districts; in light of establishing such a unit, subsequent HR units can easily empower human resources working in such an environment by sharing knowledge and information among themselves and through the use of methods such as career development, job enrichment, job rotation within and outside the unit, etc ... and finally record their valuable experiences in business knowledge nlanagen1ent, transmit to others, and take an in1portant step in the and hun1an resources growth and maturity working in such an enabling environn1ent.

Conclusion: Supply chain is one of the fundamental sciences in formation of production and distribution of a product or

service. Without knowledge of the supply chain, the means of delivering the product to the end-consumer will be blocked or run incompletely and manufacturer producing goods and services will suffer.

Implementation of supply chain and its management is considered as one of the most crucial stages in the cycle of production and consumption of the end user of a product or service. Kno\vledge of supply chain management and in addition human resources management and information technology can contribute to the chain and the use of knovvledge management to improve further the productivity of this cycle can assist the managers. Holding the seminars and courses related to updated sciences that provided studies and researches of professors and successful achievements of practitioners can introduce the achievement to managers in short term and by implementing them, the vvay of business development \Vill be paved in country.

Managing 1noral factors in supply chain management is one of the aspects of responsible business in developing countries. Because companies have been faced v.1ith increasing pressure for involving various sections of the work space in supply chain, suitable supply chain n1anagement must consider the risk of not enforcing ethic standards. The agenda of moral fuctors in supply chain and custon1er pressure to purchase the goods in which the demands consist the moral factor have recently spread as if suppliers do not meet their needs, they will be banned.

However, the in1portant thing is the comn1unication with cooperation, coordination and trust between con1panies in a business environment \Vhere the key is hidden in hun1an resource. A professional and capable Human Resources is the largest investment of firms in the current turbulent business and is the main key in attracting, employing and uti lizing of such workforces is the existence of a authoritative strategic hun1an resource management unit at the top of business that by enacting the required laws and regulations for handling of supply chain allow the better and growing adn1inistration of the units. Thus, it propose to business units, in terms of their operation and taking the advantages of cooperation form subsidiaries establish the central department of strategic human resources management to focus on strategic HR activities fron1 entry to exit and monitor them and help coordination, consolidation and integration of the business activities by using the unified taskforces in various \Vorkplaces.

REFERENCES

[l] Armstrong, M., 2001 . some senior consultants of Coopers & Lybrand. "Human Resource Strategies". Translated by: K.h. Abili & H. Movaffaghi, Fara Publication.

[2] Armstrong, M., 2005. "Strategic Human Resource Management". Translated by: S. M. A'arabi and D. Izadi, Cultural Researches Office.

[3] Atkinson, J., 1984. "Manpower Strategies for Flexible Organizations". Personnel Management: 28-31. [ 4] Gomez-Mejia, L., D. Balkin, 1992. "The Detenninants of Faculty Pay: An Agency Theory Perspective".

Acade1ny ofManage1nent Journal, 35: 921 -955. [5] Barney, J.B., 1991. "Firm Resources and Sustained Co1npetitive Advantage". Journal of Manage1nent, 17

(1): 99- 120. [6] Beer, M., 1997. "The transformation of the human resource function: Resolving the tension between a

traditional ad1ninistrative and a new strategic role". Human Resource Management Journal, 36 (1 ): 49-56. [7] Bowersox, J., Donald, 2002. "Supply chain logistics managen1ent". McGraw-HillBoston, Mass. [8] Business Fundamentals, 2002. "Managing Human Resources". Harvard Business School. [9] Dessler, G., 2005 . "Human Resource Management". Prentice Hall. [lO]Guest, D. E., 1989. " Personnel and HRM: Can you tell the difference?". Personnel Management, 21(1): 48-

51.

194 Ravand Mostafa and Razieh Lotfalian Saremi, 2015 Advances in Environrnental Biology, 9(3) Febntary 2015 , Pages: 185 -1 94

[11) Hamel, G., C.K., Prahalad, 1989. "Strategic intent". Harvard Business Review, 63-76. [12]Harrison, F., 2005 . "Supply chain management \vorkbook". Butterv.rorth-Heinmann: Oxford. [ 13) Hu gos, M.H., 2004. "Essentials of supply chain management". John Wiley and Sons: Hoboken. [14) Kane, B., T. Palmer, 1995. "Strategic HRM or managin g the e1nployn1ent relationship? ". In tern ational

Journ al ofManpo>ver, 16: 5-6. [15) Nikam, M., S. Satpute, 2004. " RFTD: Changing the face of supply chai n 1nanage1nent". Working Paper,

Welingkar Institute ofManage1nent and Development Researc h. [16) Stivenson, 2002. "Operations Management". McGrow-Hil l. [17) Walton, J., 1999. "Strategic Human Resource Develop1nent". London: Financial Times, Prentice Hal l. [18] Wright, P.M., G.C. McMahan, 1992. "Theoretical perspectives for SHRM". Journal of nlanagement, 215-

247.