...REPORT ON OUTSOURCING Executive Summary Out sourcing can be defined as taking services of third party in order to get the solution or task done on time without hiring employees permanently in an organization. This paper is based on a case named “report on outsourcing”. In this case a manger wants to get an advice regarding the future of outsourcing in an organization. As per the current trend in the industry, outsourcing is the best way to get work professionally from experts all over the world. E-HRM is the term that defines “outsourcing HR” more technically. This paper includes academic journal articles and other literary sources; in addition company analysis examples are also included in this task. The issues discussed in particular are the evaluation of HRM factions in terms of outsourcing. Table of Contents Executive Summary 1 Introduction 3 Discussion 4 Concept of Our Sourcing 4 HR Fuctions Generally Outsourced 5 Recruitment 5 Training 5 Learning 6 Advantages and Disadvantages of HR Outsourcing 7 Advantages of Outsourcing HR 7 Disadvantages of Outsourcing HR 9 E-HRM 10 Role of E-HRM in Outsourcing HRM Function 11 Advice to the Client 13 Case Scenario Summary 13 Advice 13 Conclusion 16 References 18 Report on Outsourcing Introduction The Intelligent outsourcing is the use of contracted resources, assets and capabilities of a third party, guaranteed quality criteria, performance and value levels against the cost, as well...
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...document.] | Contents 1. Definition of outsourcing 3 2. Functions outsourced by HR 3 3. Advantages of outsourcing HR Functions 4 3.1 Managing and minimising risk 5 3.2 Cost Savings 5 3.3 Efficiency and economies of scale 5 3.4 Professional Expertise 5 3.5 Improved Employee Morale 6 4. Disadvantage 6 4.1 Poor Performance and decline in quality 6 4.2 Distance and lowering moral 6 4.3 Recruitment Problems 6 4.4 Leak of important internal information 6 4.5 Perceived loss of power and control 7 4.6 Increased Direct Costs 7 5. e-HRM 7 5.1 Objective of e-HRM 7 5.2 Advantages of e-HRM 8 5.3 Disadvantages of e-HRM 8 6. Conclusion and Advice to the Client 8 1. Definition of outsourcing The Human Resource department is considered to be one of the highly accredited departments of the organization; these are the people who provide the working resource to the company and keeping the company afloat even in the worst economic downtime. The best way in which the HR can be managed is decided by the HRD. The ways in which the human resource management is done has changed considerably in the recent years. The HR activities and functions can now be delivered, not only by the specialised Human Resource professionals, but also through outsourcing (Ulrich 1996; Tremblay, Party and Lanoi 2008). The HR outsourcing can be defined as the purchasing of the HR functions and services from a third party supplier. HR outsourcing can also be defined as the process of...
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...Running Head: HR OUTSOURCING AT PEPSICO HR Outsourcing at PepsiCo HR Outsourcing We all are aware with the truth that Human resources are the most crucial assets of every organization as the success of organization depends upon the management of its human resources. Ensuring the satisfaction of employees requires expert human resources department that is in reality a costly affaire for most of the organizations and due to this in present most companies are making decision regarding outsourcing their human resources management functions from offshore destinations (HR Outsourcing, 2008). Basically in this process of HR outsourcing an organization generally make use of the services of a third party for taking care of its HR functions. An organization may outsource a little or all of its HR related activities from a particular or grouping of service provides situated in offshore destinations. Role of HR Outsourcing at PepsiCo In this stream of HR outsourcing, PepsiCo is also not left behind from it as HR outsourcing plays a prominent role in its business operations. For getting various advantages of HR Outsourcing PepsiCo had selected Hewitt Associates for a 10-year deal that concentrates on HR business process outsourcing services like workforce and benefits administration, payroll and contact centre support (Bednarz, 2005). This HR outsourcing deal of PepsiCo with Hewitt Associates also concentrates on the...
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...Personnel Review HR outsourcing: threat or opportunity? Jeroen Delmotte Luc Sels Article information: To cite this document: Jeroen Delmotte Luc Sels, (2008),"HR outsourcing: threat or opportunity?", Personnel Review, Vol. 37 Iss 5 pp. 543 - 563 Permanent link to this document: http://dx.doi.org/10.1108/00483480810891673 Downloaded on: 27 September 2014, At: 02:58 (PT) References: this document contains references to 65 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 10667 times since 2008* Users who downloaded this article also downloaded: Jean Woodall, William Scott#Jackson, Timothy Newham, Melanie Gurney, (2009),"Making the decision to outsource human resources", Personnel Review, Vol. 38 Iss 3 pp. 236-252 John Hindle, (2005),"HR outsourcing in operation: critical success factors", Human Resource Management International Digest, Vol. 13 Iss 3 pp. 39-42 Peter Brown, (2010),"The power of HR outsourcing", Strategic HR Review, Vol. 9 Iss 6 pp. 27-32 Access to this document was granted through an Emerald subscription provided by 131740 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald...
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...HR OUTSOURCING HR outsourcing is the process of sub-contracting human resources functions to an external supplier. Different HR functions that can be outsourced: One can outsource various HR functions depending upon the expertise required. Recruitment is unarguably the most common functions outsourced. However, it is functions like payroll, leave tracking, record keeping, etc. Recruitment: Outsourcing recruiting makes a lot of sense. The organization will always have the final say in the selection of the candidate, but the screening of resumes, and initial selections can be completely outsourced. Then there are also entrepreneurs who believe that recruitment should never be outsourced to an external party as they cannot fully understand the culture of your organization and will fully understand your requirements. Administration: This includes maintenance of employee master payrolls, tracking of leaves, any kind of employee redressal and grievances, entry and exit process, paying provident fund and life insurance, and so on. These are people- and effort-intensive activities that can be mastered over a period of time. This is the reason why it makes sense to outsource it to a service provider. Strategy: This includes setting up a performance management system, building an employee handbook, and undertaking activities that offer value addition for employees. A number of strategic drivers for outsourcing HR services are: 1. Reduced cost 2. Increased efficiency ...
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...Phida HR OUTSOURCING The Human Resources department or support systems are responsible for personnel sourcing and hiring, applicant tracking, skills development and tracking, benefits administration and compliance with associated government regulations. A human resources department is a critical component of employee well-being in any business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws. Any mix-up concerning these issues can cause major legal problems for your business, as well as major employee dissatisfaction. But small businesses often don't have the staff or the budget to properly handle the nitty-gritty details of HR. Because of this, more and more small businesses are beginning to outsource their HR needs. HR outsourcing services generally fall into four categories: PEOs, BPOs, ASPs or e-services. The terms are used loosely, so a big tip is to know exactly what the outsourcing firm you're investigating offers, especially when it comes to employee liability. A Professional Employer Organization (PEO) assumes full responsibility for your company's HR administration. Business Process Outsourcing (BPO) is a broad term referring to outsourcing in all fields, not just HR. Application service providers (ASPs) host software on the Web and rent it to users--some ASPs host HR software. E-services are those HR services that are web-based. Both BPOs and ASPs are often referred...
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...challenge for all types of companies and organizations. When faced with struggling budgets outsourcing and or downsizing are often seen as the only possible solutions for businesses to stay afloat. Trying to maintain competitiveness while downsizing and or outsourcing brings about additional challenges for human resource management organizations. Containing Human Resource Costs During Economic Challenges The current economy brings challenges to every level of a corporation, including human resource management. Maintaining an effective budget is not always easy and becomes even more difficult with the strains of an economic crisis. While the elimination of unnecessary materials and or processes may help in curtailing costs and spending, it is not always an easy task; and an even more difficult task involves the elimination of actual jobs. As companies are faced with having to cut costs, eliminating jobs is sometimes an unfortunate solution. Human resources management is defined as the process of managing human talent to achieve an organization's objectives (Bohlander & Snell, 2010). Being able to effectively execute the process of human resources management relies on several factors. Being able to compete, recruit and staff globally; embrace new technology; manage change; manage talent; respond to the market and contain costs are imperative to a successful human resources management organization In today's challenging economy, containing costs can be a challenge...
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...Lori Whidbee American InterContinental University Abstract The first part of this paper examines the similarities and differences between formal research and business proposal. The paper finds that the process taken for both research methods are comparable in nature. However, both research methods have difference uses in business. The purpose, use and goals of the research determines whether formal research or business proposals add value to the decision making process in corporate world. Part two of the paper examines a hypothesis question: What are the effects of human resources outsourcing on leadership performance and employee commitment? Upon review of several journal articles, research suggests that the outsourcing of key human resource functions such as training, employee benefits, and recruitment has had a positive impact on leadership performance and employee commitment. Human resource professionals indicated the delegation of more complex tasks to third-party administrators has given them the opportunity to practice core competencies with employees which has resulted in a satisfied workforce. Individual Research Project – Preliminary Research Design Managers are required to make decisions in business every day. Making the right decision can mean the difference between a financial gain or loss and retaining or losing valuable employees. Bazerman (2009) states most of our decisions are evolved by our emotions before higher level reasoning can take place...
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...for Decision Making IP 2 Tonja A. Brooks AIU Online Abstract This paper attempts to develop a framework for interrelationships among human resources information systems (HRIS), outsourcing, and corporate culture. This research investigates impacts of outsourcing HRIS on corporate culture. In this paper, we hypothesize that Outsourcing corporate HRIS is less desirable (1) if the quality of product and customer service matters for a firm, (2) if an organization is concerned with a loss of intellectual property, and (3) if an organization requires maintenance of a distinctive, human resource utility activity that is capable of meeting the challenges of fast changing customer demands in a dynamic business environment. In addition, this paper argues companies must be aware of the total costs associated with HRIS before outsourcing its human resource functions. Finally, the impact on employee morale and implementation must also be considered. By outsourcing HRIS, managers will be able to spend more time and resources dedicated to an employee’s professional career development. Business Research for Decision Making – IP 2 Introduction There has been a tremendous amount of research and studies done on corporate culture, outsourcing, and HRIS; however, there have been only menial research and studies done on Outsourcing HRIS and the sense that it has on the corporate culture. Hagood and Friedman [9] argue that the need for an organization to measuring the performance...
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...of Resource- Based View of An Organization Phuong Duong University College Dublin (12251697) 4112 words ABSTRACT Procurement has become an increasingly widespread practice among organizations and is today of strategic importance that attract great interest from scholars in the literature. The primary purpose of the paper is to contribute with a review of leading studies that analyze procurement from the resource-‐based view of the organization. The paper begins by setting out the business environment of procurement and then presents the development and propensity of procurement. This is followed by a review of principal works and differences of perspectives of resource-‐based view. The next section contains an analysis of the relationship between procurement and resource-‐based theory and discusses empirical works on outsourcing that address outsourcing from...
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...Should Human Resources be an Inside Job? A Study on the of Outsourcing Human Resources Departments Prepared by Nneka A. Gunn Report Distributed July 21, 2011 Prepared for Dr. Mike Chase Managing Human Resources MBA BUSM 533 – Group 13 This is to certify that this paper was constructed and written solely by Nneka Gunn INTRODUCTION In a world that is filled with financial turmoil and economic upheaval, companies are looking for ways to cut costs at every turn in order to maximize profits. This research paper will delve into the world of outsourcing. One may ask, “What is outsourcing?” Outsourcing in business is when an organization contracts or hires another company to perform duties and tasks or provide a service that is normally performed in-house, which offers access to skilled expertise, a manageable and variable cost structure, and opportunities for increased focus on an organizations’ core business. The idea of outsourcing is traced to have originated in the 1960s with the Electronic Data System. The history of outsourcing as a strategy shows that it developed from a need for specialized, lower cost labor; which makes outsourcing a great fit for small businesses that are often short of labor, and need low costs. Businesses can keep control of the training function, but gain a strategic partner that can address key needs at a reasonable cost. Human Resources (HR) is the fastest growing segment of the business process outsourcing sector. HR is...
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...OPERATIONS Role of operations management Strategic role of operations Operations management is an essential key business function that overlaps with the other business functions such as marketing, finance and human resources management. Strategic means ‘affecting all key business areas’; that is, the strategic role of operations management involves operations managers contributing to the strategic plan of the business. Some of the different costs in the operations function include; input costs, labour costs, processing costs, inventory costs and quality management costs. Cost leadership involves aiming to have the lowest costs or to be the most price-competitive in the market. A key aspect to cost leadership is that although trading with the lowest cost, the overall business should still be profitable. One aspect of cost leadership arises from a business creating economies of scale. Economies of scale refers to cost advantages that can be created as a result of an increase in scale of business operations. Typically the cost savings come from being able to purchase lower cost per unit and from efficiencies created through improved use of technology and machinery. Goods/services differentiation is a key strategy applied by operations managers. Product differentiation means distinguishing products in some way from its competitors. Ways a product could be differentiated include: varying the actual product features, varying product quality, varying any improved features, varying...
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...Outsourcing the IT Function of an Organization Frank Bicocchi CMGT/578 12/15/2014 DENNIS FINIGAN Outsourcing the IT Function of an Organization Strategic analyst and business analyst in the organizations of today have uphill battles. Often miss understood or limited by the executives of an organization, these positions function as the go-betweens for internal operations, clients and stakeholders. Managers also have the duty of handing similar aspects in terms of managing teams, ensuring project profitability and improving process efficiencies. Enter outsourcing; a solution that helps managers and analysts maintain standards while provide the most ‘bang’ for the ‘buck.’ Information systems and information technology are the latest functions to see large segments become outsourced to third parties as a means to an end. Outsourcing is not a new trend. In most businesses some percentage of each department is outsourced in some way. For instance, 94% of the businesses surveyed by HR Magazine outsource some aspect of their organizations’ human resource functions to be handled by one or more third parties; in most cases it is more than 60% of the given function (Gurchiek, 2005). Strategic planners use outsourcing as a tool to help organizations meet their goals while maintaining financial leanness and low cost/benefit ratios. In the information technology environment, outsourcing has increased primarily due to the sheer number of specialties involve in the field as a...
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...Abstract Human resource management (HRM) is a field in flux. Currently great strides are being made within organizations to change the way their human resource (HR) departments function. Advances in technology have caused HR departments to function in new ways; organizations are making a conscious move away from the administrative aspects of HRM. Instead, organizations are now looking at their HR managers and staff to provide information of a strategic nature. While this is not an easy process, it is one that organizations are committed. To stay competitive, organizations are reevaluating all aspects of their businesses. HR teams are now created to help in business matters; they are being used to further the business nature of the organization. In this paper, the new direction human resource management is headed will be presented. Also investigated will be the history of HR management, the ways human resource staff can stay relevant to organizations and the ultimate end state for HR. Introduction The business world is changing. The recent trend in globalization means competition is no longer local. Competitors can come from anywhere, and thanks to the internet, they do not even need to be constructed of brick and mortar. These changes require organizations to save money wherever they can if they wish to stay competitive. One of the ways organizations are saving money is by outsourcing much of their human resource requirements. By outsourcing portions of...
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...Outsourcing Risks of Information Technology 07 January 2013 CMGT 442 Pro's and Con's of Outsourcing Information Technology The cost of maintaining an informational technology department rises tremendously each year. The replacement of parts, the increase of service agreement, personnel raises, and new mandates from local and federal governments. By outsourcing some internal functions you immediately save money by managing services. Though there are a wealth of benefits to be gained through outsourcing only the services that you require there are inherent risks that accompany that given choice. If exploited any one risk can ruin all the benefits of outsourcing your internal company functions. We will explore any and all risks that may be inherented with outsourcing rolls such as data storage, payroll, human resources, sales order taking, and finally desktop and network support. The first important action before committing to outsourcing your data storage is to address a series of questions that are contained in a Records Management Risk Assessment checklist. These questions will remove assumptions and provide a better detailed course of action on how your data should be stored, what data will be stored, and address if any local or compliance laws may be in question. Company Compliance risks: 1. Can my data be stored outside my jurisdiction? 2. Is Audit Management sufficient enough in this instance...
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