Critically examine the motives for and consequences of HR outsourcing. Is outsourcing HR good or bad for organisations?
2500 words (+/- 10%, 2250 min, 2750 max)- Point Evidence Comment
Introduction -150 Words (evaluate)
• History of outsourcing, growth and trends
• Why do people outsource and how environmental factors have triggered this
• Examples of those who outsource
• Outsourcing and its impact on the hr function
• Core activities – competitive advantage
• Globalisation encourages the hr function
• Commonly outsourced functions
• Advantages for outsourcing
• Consequences of outsourcing
• Reality of outsourcing and challenges and devolution of hr
• Disadvantages
• Shared services
• Predictions for outsourcing
Outsourcing in the Human Resource industry has become significant, as it has assisted organisations to manage their time and resources effectively. Outsourcing transpires “when an organisation contracts with another organisation to provide specific Human Resource services or activities” shifting the basic and traditional functions that are normally completed internally, to “an external provider” (Wilton, 2011).
There are a variety of factors that outline the significance of outsourcing and its rapid growth over the years. Firstly, there has been an “increased desire on the part of organisations to focus efforts on core activities, which are the source of competitive advantage” (Wilton, 2011). This allows the organisation to invest all efforts
“The Man to Send Rain Clouds” by Leslie Marmon Silko: This story tells of the death of a tribal elder (Teofilo). Upon his death, his grandsons, Leon and Ken, secure his body and proceed to apply their cultural rituals for a burial. “Before they wrapped the Oldman, Leon took a piece of string out of his pocket and tied a small gray feather in the old man’s long white hair. Ken gave him the paint. Across the brown wrinkled forehead, he drew a streak of white and along the high cheekbones he drew a strip of blue paint.” (Silko, 439) Not knowing much about Native American beliefs I do know that feathers and face painting is a large part of their culture. This is the first clue given that the characters in this work are Native American. After gathering his body they proceed to bring him back to they have an interaction with the local Catholic priest, Father Paul. During this interaction, the family members don’t tell Father Paul that their grandfather has passed when he asks did they locate him. At once I could tell that there is a rift of some nature because the ritual they just performed on the body would be in stark contrast/opposition to a Catholic burial. The author of this novel is describing the encroachment of religion on Native American culture. This is again shown when Ken and Leon stop by the church to ask Father Paul to use holy water to the graveyard. The reasoning for the sprinkling of the holy water is so that Teofilo could send big thunderclouds from the
The current HR trends will be analyzed to determine the impact on labor unions as a result of outsourcing. The trends in union membership, the growth in union membership, the process for organizing a labor union to enter a nonunion company, the impact the current legal environment has on labor unions and companies, the labor movement and the affect of outsourcing, the services HR is outsourcing will be evaluated and the effect HR outsourcing has on organized labor in companies will also be evaluated.
The HR office can be viewed as the heart of the organization and is in charge of a large portion of the important capacities in a partnership. It is responsible for the capacities that permit the organization to address the issues of the administration and staff. Outsourcing is turning out to be more basic to organizations that are attempting to lessen their costs, the topic of it aiding or harming the organization is a begging to be proven wrong theme. Thomas Stewart and Keith Hammonds are adversely incredulous of the human asset division in the article "Determination: Close Down the Human Resource Department". Despite the fact that their sentiment is regarded, a great human asset office can positively affect an organization.
An insulin injection is used to control blood sugar in people who have type 1 or type 2 diabetes when the body lacks insulin production. Type 1 diabetes is when the body does not make insulin and cannot control the amount of sugar in the blood. Type 2 diabetes is when the body cannot produce or use insulin normally to lower the high blood sugar level. Insulin cannot be taken by mouth because it is a protein. The acid in the stomach would digest the insulin. An insulin injection stops the pancreas from producing more sugar and helps move the excess sugar from the blood to other body tissues where they can be used for energy. More than one type of insulin may be injected and is usually injected several times a day. Even though insulin helps
Outsourcing HR functions help businesses manage employee performance and development. Providers implement performance management plans to ensure employees comply with company policies and procedures and successfully meet business goals. Outsourcing firms periodically monitor employee performance and report findings to management. This reduces the workload of managers by minimizing the amount of administrative responsibilities they must focus on.
The profound result of how HR outsourcing affects in an organization serves as a two-edged – double sword. That is to imply that, the employees can be highly challenged to do their best in the organizational performances or become highly demoralized to execute their roles and responsibilities. The HR outsourcing practices impact on challenging the employees as they feel charged to do better than the currently are doing to improve their performance than the outsourced employees (Ketter, 2007). For the permanent employees, it is not good to show the management that an external employee can do better than a permanent employee. In turn, one may risk losing their job to the outsourced employee, hence, feels challenged to do the best they can to outdo the outsourced employee.
Ernest Hemingway is celebrated as one of the greatest 20th-century novelists. Penning roughly twenty-seven novels throughout his lifetime, Hemingway declared that "a writer's job was to tell the truth," (Bloom, pg 10). It was through this belief that he often drew upon worldly experiences and events as well as personal happenings and musings to create his works. In his 1926 novel, The Sun Also Rises, Hemingway utilizes and references his time spent as Red Cross volunteer in Italy, his adventures in Pamplona, Spain, and his profound love for alcohol to fuel the adventures of Jake Barnes and his assorted company throughout the novel, focusing on underlying themes of alcoholism, personal rebellion, and sensuality.
In response to the question, global corporations should outsource transactional HR functions but not the whole HR department, and still it depends on the organization’s core competencies in the business environment. HR outsourcing has been a prevalent topic since 1980’s, MNC’s have been outsourcing various HR functions such as legal activity, recruitment, pension, benefits, payroll etc. as a means to cut costs and shift it to the expertise service providers. The literature on HR outsourcing consists of ample evidence that shows the importance of maintaining an in-house strategic function, despite HR outsourcing according to the firm’s activities in the value chain (Heikkala and Cordon,2002), However, with the change in business strategy
When most people think of Human Resource Planning, the first thing that usually comes to mind is the internal environment of the organization. There is, however; the external environment which is just as important. The external environment consists of governmental policies, condition of the economy, demographics, technology, international influences, competitors, and a changing labor force (Greer, Peters & Youngblood, 1998). Neglecting the external environment can have devastating effects on an organization. Entire civilizations have vanished for failing to address external environmental factors and the need to adapt in an ever-changing environment. You may ask what extinct cultures have to do with HR planning and
The recent competitive challenges of the global marketplace are creating demand for outsourcing some of the responsibilities of human resource professionals. Outsourcing can save time and money while allowing HR professional’s to focus on core tasks and participate in business strategy. With the increase in the use of the internet and software programs, outsourcing some HR tasks has been made much easier. People can now apply to a position, access payroll and benefits, take company surveys, plus much more online.
Outsourcing can be defined as ‘the strategic use of outside sources to perform activities traditionally handled by internal staff and resources’. In this strategy, the organizations contract out major functions of their manufacturing products to more specialized and efficient service providers, who later become valued business partners. It looks more like a simple supplementation of resources by subcontracting, but it is actually different to outsourcing. In actual outsourcing, the organization is also involved in substantial restructuring of particular business activities including, often, the transfer of staff from a host company to a specialist, usually smaller, company with the required core competencies. The current stage in the evolution of outsourcing is all about the
The strategic effort of outsourcing is to allow concentration on what the organization does best. In addition, outsourcing assist companies to acquire cost advantage by tabbing into cheap labour; identifying companies with high competency level in the area outsourcing is required; and adds value to the overall process of the organization. However, it is important to note that as mentioned by Child (2005) if outsourcing is not carefully considered the organization may be prone to failure. Therefore, it is very crucial that various elements be thoroughly considered before deciding on what aspect of the organization to outsource.
In this era where the world is globally evolving, due to the nature of the roles, functions and responsibilities on HR in organizations, it outsources some of its organizational activities to line managers to carry out. Although, this form of practice does not involve training, hence I will say it is quite cheap for organizations to carry out because it relieves itself from some duties but it tend to limit the capabilities of the HR practitioners in organizations i.e. instead of adopting the need to in-source, they outsource. This practice has helped in relieving HR department in organizations from heavy workloads overtime (Armstrong 2009). Human resource activities such as recruitment and selection, workers’ payroll, learning and development just to mention a few are now very much outsourced to consulting organizations to carry out and bear whatever risks involved (Taylor 2008).
Handling a variety of HR activities besides the core activity by employers would not bring useful consequences for organisations. Thus, by outsourcing, they can concentrate on their core competence which might be included in the application of various policies in different businesses. For instance, as stated by Belcourt (2006) designing products is one of the major activities in NIKE. Contracting out non-core HR tasks provides free time for managers to pay more attention and attempt to the value added activities such as leadership development, innovation and customer services. Hence, diminution of HR administrative duties like employees’ pension, benefits and payroll helps mangers to be strategists to improve companies’ competitive advantages.
Outsourcing will increasingly be used to stimulate the creation of value and innovation in organizations. Enterprises will use outsourcing as a tool to consistently position themselves at the forefront of their industries, turning to the best talents, resources and opportunities, and sometimes using outsourcing to access new markets.