An exploratory study of governance in the intra-firm Human Resources supply chain

Abstract

The human resource management (HRM) literature has paid insufficient attention to supply chain management (SCM) when exploring the architecture of human resources (HR). Drawing on an SCM perspective, this study develops our understanding of (1) the intra-firm HR supply chain, and (2) how this HR supply chain influences corporate governance processes within large organizations. We argue that the HR function, represented as an internal professional service supply chain, needs appropriate governance principles as it operates through multiple delivery channels and with a wide variety of HRM practices. Exploratory findings from a qualitative empirical study of seven large organizations investigating governance and risk management in the HR supply chain are presented. These in-depth interviews uncover how formal governance is relatively easy for these organizations to achieve, supported by outcome-focused monitoring tools, but informal governance mechanisms can fail due to insufficient attention. Although standardized approaches to HR delivery can maximize the opportunity for HR governance, little evidence was found that the organizations were considering the related governance implications explicitly.