Study on Five Commonly Outsourced Human Resource Activities

Description
The use of the outsourcing has been considered for the number of (overlapping) recognizing advantages. The resources are allowed to first pay the attention on the main business activities where they have the skills and are likely to do the best.



Study on Five Commonly Outsourced
Human Resource Activities

According to this study the most important five commonly outsourced human
resource activities are:
? The assistance or the counseling of the employee.
? The plans about the pensions or the retirement.
? The benefits of the other employee (Health, Medical, Life, Insurance,
Cafeteria, etc)
? Training
? Payroll
The use of the outsourcing has been considered for the number of
(overlapping) recognizing advantages. The resources are allowed to first pay
the attention on the main business activities where they have the skills and are
likely to do the best. Secondly, from the specialized service providers it allows
the firms to profit from the increasing comparative advantage and who are
having the skills in the areas they are concentrated. By the usage of the
temporary subcontractors to cover the fluctuating demands for the labor it
enables the organizations with the greater flexibility and the productivity.
Other benefits of the saving the direct costs have also been brought by the just
in time use of the human resources (e.g. reducing the headcount and the
overtime working) and the indirect costs (e.g. cutting the administration and
backup costs, saving recruitment and training costs, saving the absenteeism
costs, and reducing the industrial relations problems). Fourth one is the, the
opportunities for the organizations to transform the burden of risk and
uncertainty that is associated with the business to someone else are created by
the outsourcing .
For the renewal of the contract the outsourcing provides the organizations to
keep the future costs down by the selection of the most competitive tender.
The final reason that is listed here is mainly interested on the capability of the
building of associated with the organizational learning if the above reasons for
the outsourcing are mainly concerned with the cost reduction. The
partnerships can be created between the contractors and clients by the
outsourcing which may allow the learning and cross fertilization among the
two organizations which has been in the argument .
The learning processes are considered as the associated achievements that
have been resided in the networks and do not respect the formal
organizational boundaries is the argument by the writers on the organizational
learning . From the point of the strategic outlook the importance of the
networks and inter organizational relationships (e.g. alliances, partnerships) is
also recognized. A network is considered as the one that provides the timely
access to the knowledge and the resources which are otherwise unavailable
according to the Powell et al while testing the internal skills and learning
capabilities.
The outsourcing is also believed to be the most productive one for the
development of the core competence of the organization by the advocates of
the resource based view of the organization mainly in the relation to the
human resource practices. Werner felt have rediscovered the idea of the RBV
and it has been developed into the robust theory by the Barney . To gain the
support for competitive advantage by the execution of the strategies this uses
their internal strengths, by responding to the environmental opportunities,
while neutralizing the external risks and avoiding the internal weakness. For
the more competitive product the outsourcing can enable the shortcut, but for
the building up of the people embodied skills it dynamically contributes very
little amount that are required to support the product leadership which has
been pointed out by the Prahalad and Hamel.


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