...Impact of Outsourcing in improving productivity in modern Organizational Introduction In today’s world of ever increasing competition, organizations are forced to look for new ways to generate value. The world has embraced the phenomenon of outsourcing and companies have adopted its principles to help them expand into other markets (Bender 1999). Strategic management of outsourcing is perhaps the most powerful tool in management, and outsourcing of innovation is its frontier (Quinn 2000). Outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300 billion by the year 2001 (Dun and...
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...An Organizational Perspective of HCL Technologies Michael Franklin MBA – 6241 16 September 2012 Abstract This organizational perspective paper provides an overview of outsourcing, how the relationship between development and performance management effects outsourcing services and the goals of HCL Technologies. An Organization Perspective on HCL Technologies Introduction In order for a company to effectively provide outsourcing services, it is important that some the internal aspects of the company, such as development and performance management, be established and operating proficiently. In doing so, it is also important that the Human Resource Management (HRM) team know what type of development is needed within an organization as well as establish a good performance management system in order to meet outsourcing organizational strategic goals. “For a company to have a good strategy foundation, certain tasks must be accomplished in pursuit of the company’s goals, individuals must possess certain skills to perform those tasks, and these individuals must be motivated perform their skills effectively.” (Noe, R., Hollenback, J., Gerhart, B., Wright, P. 2010, p. 9) This is where the importance of development and performance management becomes essential for a company. When providing outsourcing services for global clients, it is important that internal aspects such as development and performance management are operating at the highest level. HCL Technologies is a technology...
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...Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Schillen & Steinke Mitigating the Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Sarah J. Schillen Seattle Pacific University USA sschillen@gmail.com Gerhard Steinke Seattle Pacific University USA gsteinke@spu.edu ABSTRACT This paper explores how outsourcing activities and decisions put the well-being of the remaining employees at risk, ultimately affecting productivity and creating further costs to the employer. It highlights four potential threats to remaining employees: trust, job satisfaction, motivation, and stress. The paper provides several suggestions for mitigating these impacts, including communication to retain trust, acting ethically to ensure satisfied employees, seeking an understanding of employee perspectives to build employee motivation, and providing good planning along with training and development to reduce employee stress. INTRODUCTION Globalization provides organizations with more options than ever before. Business leaders are continuously encouraged to adapt, reevaluate, and strategically improve processes and approaches. Best practices are reinvented rapidly in attempt to keep up with market trends. The quest to recognize new methods for increasing revenue has become the inspiration for exploring new management techniques and strategies. One such rising trend in the advent of global markets is that of outsourcing. Common purposes for outsourcing include improvements...
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...Perceived Impact of Outsourcing on Organizational Performance Dean Elmuti, Eastern Illinois University Introduction In todays world of ever increasing competition, organizations are forced to look for new ways to generate value. The world has embraced the phenomenon of outsourcing and companies have adopted its principles to help them expand into other markets (Bender 1999). Strategic management of outsourcing is perhaps the most powerful tool in management, and outsourcing of innovation is its frontier (Quinn 2000). Outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300...
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...Proposals and Research Nashira Wiggins American Intercontinental University Abstract What are the differences between formal research and a business proposal? What are the similarities? This paper will compare and contrast the theoretical and practical differences between formal research and a business proposal. The second part of this paper will explore the effects of human resources outsourcing on leadership performance and employee commitment. This paper will show that human resources outsourcing has a negative effect on employees and their morale. Part 1 Formal research provides basic information and statistics in a given field or industry depending on the focus of the research. Formal research may be used to research the demand for a specific product or service by researching similar products or services that are already on the market. Included in this research would be the general sales rate, the companies that market these products or services, and the current sale price. Research will reveal whether the market for the product is flooded or if it is indeed a good business opportunity. A business proposal is a document that proposes a method for completing a task. A business proposal can be used for launching a new product or for something like implementing a new strategy for a marketing campaign. “A proposal includes a brief description for the task at hand, a section describing the general approach to the task, a schedule for the task in question and a budget...
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...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 the resource-‐based view. The studies are classified into two categories: those studying the propensity to procure and those studying the relationship between procurement decision and firm’s performance....
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...Outsourcing – A Global Challenge MBA-700 International Economics Abstract The choice to outsource is a major strategic decision not made lightly by companies in today’s global marketplace. Though it brings probable results of cost reduction, loss of control in your product or the quality of service rendered makes this a decision that should not be taken lightly. Though a concept decades old, outsourcing is a topic that brings out fervor in individuals fighting for or against it. It’s a debate centered on moral, economical, and political aspects, with feelings that intensify during economic downturns because of the This paper will discuss theories of outsourcing, while comparing and contrasting the disadvantages and advantages (SWOT Analysis – see Appendix 1) of a concept that is growing in global business. The paper will conclude, most importantly, with discussions on three outsourcing alternatives and their potential to re-invent the status quo. Introduction The advent of globalization has proven that outsourcing is not a hypothetical situation; it is a major strategic business decision growing in popularity that our American workforce must now face in the decline of our U.S. economy. Some believe that outsourcing has become a serious issue not only for our workforce, but also in our major corporations, and the political arena. Issues such as the security of our nation have become debate topics, with critics arguing that outsourcing has weakened national security...
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...Outsourcing refers to a company which contracts with another company in order to provide services that might otherwise be performed by its own employees. These jobs are handled by separate companies that specialize in each service. Often, these outsourced employees may be located overseas. To know whether outsourcing is appropriate in a given circumstance, it is important to understand several key concepts. Many professors and experts in the business world have conducted case studies and general research to understand the implications of outsourcing, both positive and negative, and the environment which provides the greatest chances for a successful outsourcing venture. The framework within which a firm must decide whether to outsource or not will often involve a two-stage decision process. First, the business must make its decision and secondly, it must take managerial action to implement the decision. To begin with, a company must identify why outsourcing can be useful in an ideal situation and then evaluate whether their circumstances fit these conditions. Essentially, outsourcing can ideally benefit a company from a financial perspective since the outsourced work can be cheaper in and of itself and secondly because it allows the company to focus on other, perhaps more pressing issues. As important as it is that the company can identify appropriate conditions it is equally necessary to be aware of circumstances which will not provide an appropriate environment to outsource...
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...BS/FO/76 Institute Of Personnel Management Sri Lanka NAME OF THE PROGRAMME :- Professional Qualification Resource Management in Human TOPIC OF THE CASE STUDY :- Strategic Human Resource Management in Walmart stores MODULE NUMBER : - 19 NAME OF THE LECTURER : - Mr. Ruwan Egodage Name of the Student D.M.C.S.Dissanayake Index Number T-PQ/KR/03/KDY/10/07 Contact Number 071 0954739 E-mail chathushkas@gmail.com Date of the Examination 31.05.2015 Date of Submission 07.06.2015 For Office Use Only: 1. Final Marks : ……………………….. 2. Remarks : ………………………… (To be filled by the Examiner) LATE SUBMISSION NO OF DAYS Executive Summery Wal-Mart is the biggest retailer in U.S. and also one of the biggest multinational companies in the world. It is well-known for its low-cost structure and has been doing very well despite of the current market instability. Walmart maintains its competitive advantage through its satellite-based distribution system, and by keeping store location costs to a minimum by placing stores on low-cost land outside small to medium-sized towns, no matter in the US or in its abroad affiliations. Since, Walmart Company is obviously taking the cost leadership strategy, it uses the efficient stock control system and imports many goods from China for low cost which helps to make its operating costs lower. So the company-level strategy of Walmart is low cost and low cost, with little differentiation...
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...September 2, 2012 Part One (Theoretical Framework) What are the effects of human resources outsourcing on leadership performance and employee commitment? This is a question facing every business. Although this is not a new topic of discussion there are still questions about its true effect on leadership performance and employee commitment. Outsourcing different jobs throughout a business’s many departments has been a common practice since the 1970’s. (Pence, 2010). At first the most common job/task that was outsourced was the company’s payroll but over the last decade more and more businesses are finding it more economical to outsource the majority of the jobs/tasks performed in a human resource department. (Nash, n.d.). In the following report we will discuss the variables and identify if they are dependent, independent, mediating, or moderating. The first variables needing to be discussed are the dependent or criterion variables. In this study they would be leadership performance and employee commitment. Leadership performance is always going to be present whether it is good or bad. The same can be said about employee commitment. These two variables may be influenced by other factors as to which end of the scale they will be located, but they will always be present. The second variable that needs to be discussed is the independent or predictor variable. (Bazerman, 2009). In this situation the outsourcing of human resources jobs/tasks would be considered this type...
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...the Federal Government and military entities. The A-76 study reviewed the supply and maintenance operations to determine the effectiveness of maintaining these positions as military and Department of Defense (DOD) civilian entities or privatizing the positions through outsourcing. Contrary to popular belief an A-76 study is not contracting. Its purpose is to create cost savings for the DOD through a competitive sourcing program. “The A-76 circular mandates that the government procure commercially available goods and services from the private sector when it makes economic sense to do so”. (A-76 Cost Comparison Overview, p.1, 2002). The cultural makeup of the organization is active duty and federal employees. The A-76 was implemented before our retirement, we would like to revisit the process and research the outcome and its affect on the organization and its members. This research will uncover some of the problems associated with A-76 studies/processes outside of cost effectiveness. This study will provide the effects outside of cost savings, it will demonstrate the negative affects it has on federal/military personnel jobs, civilian pay, training and the morale of the organization. Premise: The outsourcing/A-76 study was implemented to save governmental dollars and increase privatization and competitiveness within the industry. We believe the cost became progressively greater than what the DOD had predicted. In the Schoefield article Warren reported, “in 1998, DOD projected...
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...Outsourcing Outsourcing is a strategy that concentrates an organization’s resources on its core competencies allowing the organization to achieve a definable preeminence and provide a unique value for customers (Behara, Gundersen, & Capozzoli, 1995, p. 45). The goals of outsourcing are strategic: improved efficiencies, lower costs, improved flexibility, higher quality, and a greater ability to achieve a competitive advantage. The ultimate strategic goal is to develop core competencies that develop into barriers of entry that make it difficult for competition to copy. By focusing on core competencies, and utilizing qualified vendors to provide process that are not one of the organization’s core competencies, the organization’s risk can be shared with its suppliers, and minimized. Core competencies are the collective institutional learning and capabilities of the company that allow it to supply products and services that uniquely add absolute preeminence in those competencies (Hilmer & Quinn, 1994, p. 47). “Core competencies are the innovative combinations of knowledge, special skills, proprietary technologies, information, and unique operating methods that provide the product or the service that the customer value and want to buy” (Greaver, 1999, p. 87). Activities that the organization must be proficient in are called its core activities. Core activities are those activities that are: 1. Traditionally performed internally with long standing precedence. 2. Critical...
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...Emerging Issues in Human Resource Management Organizational growth and excellence is driven by strategic and effective human resource management (HRM). The start of the global economy has brought awareness that the only permanent competitive advantage is an organization’s ability to effectively exploit human resources. HRM has become a significant factor in the management for organizational success. While there are many emerging HRM issues, there is one particular area that I found to be most concerning. Thomas Singleton, the Human Resources Director at Lifespan Corporate Services assisted me by proclaiming that, “…as globalization and the information age continue to advance, organizations need to adapt to the changes in technology and the changing issues in management of people.” Furthermore, he stated that managing globalization is a critical issue for human resource managers. Due to globalization and expected changes in technological and the social environment it has become critical for human resource managers to effectively and efficiently handle the competitive environment that affects the performance of organization at domestic as well as global platforms. “Globalization represents the structural making of the world characterized by the free flow of technology and human resources across national boundaries as well as the spread of Information Technology and mass media presenting an ever-changing and competitive business environment” (Česynienė, 2008). ...
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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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...results could be dramatically different from that intended. Communication is essential among the stakeholders to establish a firm foundation resources Global Communication has at its disposal to work with. Emotional Intelligence and its effect on the all interested stakeholders must be fully explored. In order for a cohesive plan to be effective, a consistent delivery to the stakeholders is required. Absence of consistency among stakholder communication and full understanding of emotions almost certainly ensures a plan is not set up for success. Creative thinking will be required on every level of leadership throughout the company. “This involves generating new ways to view a problem and seeking out novel alternatives to the problem” (DeJanasz, Dowd & Schneider, 2001, pg 404). This paper will explore possible solutions available to the senior management of Global Communication and make a recommendation to get them where they want to go tomorrow. Situation Analysis Issue and Opportunity Identification Global Communication faces numerous issues and an equal number of opportunities that arise as a result. The issues facing GC range from Loss in stock value to current and future communication challenges to organizational commitment. Global Communication seeing a drastic drop in stock prices has the stockholders and...
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