The discipline of operations is central to every organization. Fundamentally, it can be defined as a transformation process of inputs (raw materials or information) into outputs (goods or services). The Human Resource professional must work with operations professionals to secure quality labor and thus should have an understanding of the fundamentals of operations management. These include planning the operation system, managing the supply chain, and managing quality.

Planning the system involves developing a product, designing the operations processes, planning capacity, and planning facilities. The supply chain issues start with purchasing but also include transportation and the overall management of inventory levels. The "just-in-time" approach is designed to minimize inventory levels, allowing more efficient use of an organization's scarce financial capital. The management of quality is critical to the long-term success of the organization and concepts such as Total Quality Management (TQM) are important in the area of operations management.

For the HRM professional, an understanding of operations provides important contextual information that will inform your decisions when recruiting, hiring, and training workers for an organization.

Question: The staffing needs of a service organization differ substantively from the needs of a manufacturing business. Discuss the operational issues and the differences in HRM policies and procedures for a manufacturing firm with a variable output versus a service provider with a steady client base. Describe an effective operational approach to supply labor to a cyclical-based, service-based business, such as tax preparation. Provide details on the approach you advocate. Include one recruitment model for each of the two types of organizations to recruit employees. Would the same recruitment model be appropriate to use for both types of organizations?