Relationship between human resources management and logistics, by graph

1. Relationship between
“Human Resources Management and logistics”

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. 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. i.
Competitive strategy
2 types that a Co. may pursue superior performance
efficiency
(responsiveness)

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. 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. 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. Logistics strategies
2 types of logistics strategies

9. Linking competitive and logistics
strategies

Company pursuing
Will adopt
Will adopt
Company pursuing

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. HR strategies
2 types of HR strategies

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. 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. 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. 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. 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. summary
 Summarizing the discussions above:

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. 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. 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