Procurement Function of HRM? Importance, Types and Roles: Procurement can be defined as the operational function of the HRM department where they procure and employ individuals and goods who adequately fits the position and possesses the required set of features. It can be things like attitude, mindset, and knowledge in the case of staff, while goods should have required quality for fulfilling the job adequately.
If we talk about any average company, the human resource department is the biggest asset of a company as they play the company’s most important job. That’s why; they have to perform a variety of procurement functions, ranging from manpower planning to selection and internal mobility.
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In simple words, procurement identifies employees from external sources that may even involve competitive bidding. There are certain measures that need to be taken by the HR department for ensuring that things get on time.
Procurement Function of HRM? Importance, Types and Roles
Why is procurement important for an organization?
The procurement and human resource need to work together for providing maximum value to the company. Previously, the procuring process was the main source and pay type work for HRM, but things have become more meaner and leaner for staying competitive these days. Due to it, there is a need to have a strong & respectful relationship between procurement and HR to better identify staff and minimize risks.
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Additionally, maintaining a great strategy assists in making talent acquisition processes effective and result in giving the best value to the company. The rules set by the department needs to be followed at every cost.
What are the major types of procurement in HRM?
In a typical manner, procurement includes employing the right employees, sourcing quality raw materials, and fulfilling purchasing goals adequately. The HR department has to perform many different procurement types that we have mentioned below:
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- Direct Procurement
The process where employees are recruited directly by the human resource department is known as direct procurement. It can also involve buying raw materials and wholesale goods straight from the manufacturer.
- Indirect Procurement
Here, the HRM department won’t perform the procurement directly and uses a recruitment company or an outside vendor for completing this process. There are many cases where a management company performs these things.
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- Services Procurement
If we talk about services procurement, it involves employing temporary staffers and using short-term vendors to fulfill a company’s goals properly. Contracted employees is the major example of services procurement.
What are the major roles in procurement?
The following responsibilities are performed during procurement by HRM:
- Supervising procurement employees and agents for fulfilling the required set of functioning in the company.
- Finding vendors and suppliers for providing required goods at an affordable price.
- Making proper forecasting about the future needs of staff and goods.
- Ensuring quantity and proper timing of products and services.
- The technical features of raw materials and equipment need to be evaluated before purchasing.
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Procurement is a very important job that the human resource department needs to be performed carefully as the goals of a company depend on it.
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