An Organization 's Outsourcing Decision

Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.

In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their

The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,

The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an

The role of HR in the present scenario has undergone a sea change and its focus is on evolving such functional strategies which enable successful implementation of the major corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR works towards facilitating and improving the performance of the employees by building a conductive work environment and providing maximum opportunities to

Turning toward the human resources management (HRM) perspective, companies now include HRM as a strategic partner in accomplishing the goals of the organization. The human resources professional does not operate in isolation, but is an integral part of any organization’s strategic planning team. The human resources director “is first a business partner of the organization and then an human resources (HR) professional” (Purushotham, 2009, p. 177). The scope of the HR professional is to interpret the strategic goals of the organization, and create total compensation packages that will attract and recruit high-value targets for candidacy while being mutually beneficial for both the organization and the prospective employee.

Schuler and Jackson (1987) propose the model of Human Resource Management as the business strategic policies and practices of the organization. This framework is to achieving competitive advantage in different industry condition. They argue for fit in different industry condition and business strategic. It includes innovation, quality enhancement and cost reduction. This business strategic associated with particular employee role behaviors and HRM policies and practices.

(Greaver, 1999) proclaims that outsourcing is of a strategic nature and that the decision-making process of a company should take this into account. He then goes on to define outsourcing as the act of transferring some of company’s recurring internal activities and decision rights to outside providers, as set forth in a contract. Because the activities are recurring and a contract is used, outsourcing goes beyond use of consultants.

Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)

Outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured. Today, 73 % of Fortune 2000 Companies says “ offshoring is an important part of their overall growth strategy.” According to the 2005 Duke University CIBER/

The field of human resources (HR) plays a critical role in the performance and success of organizations. As organizations have become increasingly more complex, the effective management of HR has become even more important. The traditional perception of HR as only an administrative office is no longer valid. Instead, contemporary HR is directly involved with the internal organizational structure, business operations, and variety of functions carried out by employees on a daily basis (Reed & Bogardus, 2012). HR functions impact the organization’s strategic planning, improvement processes, and goal achievement. Six core bodies of knowledge provide the foundation for all of these HR functions. These areas are: strategic

Industrial shifting, development of knowledge and cost of employee in different parts of the world led different countries to outsource different products and services from other countries. Concept of outsourcing is not very old. It was started at the very end of twentieth century with the development of computer and information technology. Now most of the companies and almost every country outsource something from other company or country. So, it has become a widely used term all over the world. Therefore, the purpose of this study is to find out the most common areas where outsourcing is mostly used. The study has also

The four reasons that HR managers should be strategic business partners are ; to increase productivity of the labor force which will in return increase the profitability of the organization, it helps with competency and talent management, business is a changing environment and to neutralize the effects of globalization in the business landscape7. HR managers can increase the productivity of the labor force by using different policies, procedures and practices. HR managers can also work to increase pay and benefits that the company offers to increase productivity. When employees are productive, the company will make money and thus more profitable. Talent management and competence are also important for a workforce. If employees are not set to be successful or competent, then a high turnover rate will occur. Instead through the incorporation of policies, procedure and practices, employees can become competent and their talent managed correctly. This will in turn increase the retention and lower the turnover rate, which in effect saves the company money. The changing business environment is very fast paced and busy as well as stressful. This could be a large contributor to the high turnover rate and low retention rates. The HR manager can make a significant impact in reducing the attitude in the environment and improve the method of handling constant change. Globalization has made a large impact on business. Through policies, procedure and practices, the

An organization’s HRs are perhaps its most valuable assets (Swanson & Holton, 2001; Yorks, 2005). As such, HRD should be deemed as an invaluable investment (Swanson & Holton, 2001; Yorks, 2005). Sustaining a competitive advantage via development of staff increases the probability of long-term survival and financial success of the organization (Kuratko, Ireland, & Hornsby, 2001). Carneiro (2001) argues that an organization should have the capacity to

The increasing need for advanced knowledge in most of the companies call for new methods of dealing with the deficits recorded. Further, the human resource manager has several opportunities that allow them to increase the company’s profits by using methods such as strategic outsourcing. The knowledge out there is sufficient for any HR manager looking for ways of expanding the work force within the organization. As technology continues to shift, outsourcing parts of the company’s subsystems continues to expand on a daily basis as the unexploited potentials continue to present themselves to the HRMs. Problems do exist too. Managers need to strategically align human resources to deliver services effectively and efficiently to the clients, improve the capacities the company can hold at a given time, and achieve cross-coordination of value gains through integrated services. These issues are common.