Outsourcing Human Resources for Borouge - Assignment Example

Outsourcing Human Resources for Borouge Introduction Outsourcing is a strategy employed in many organizations by the HR department, with an aim of minimizing the cost. Outsourcing practice is an activity performed effectively by relocating some work to the external suppliers instead of doing the work inside the organization. Its effectiveness depends on the use and can be more advantageous if used appropriately. In Borouge organization, the strategy can be employed by the HR department in order to increase the production of the company. This strategy was used by the HR managers in order to meet various objectives of the research that could eventually benefit the organization. The highlighted objectives of the research that led to the research include; examining the advantages for outsourcing human resource as compared to increasing the number of employees in the company, to determine some outsourcing models for worldwide competitive organizations as well as the local competitive organizations, obtain systems that use the models of outsourcing in determining the objectives as well as the aims of the business Other objectives are to examine the use of the models in both global and local competitive organizations and recommend the best and suitable strategies that the human resource need to employ in the organization to reduce the cost and increase the production and the profits of the business. The paper gives report of the research conducted to determine and obtain various objectives of the research. The report will cover the survey as well as the analysis of the information collected. One of the major aims of this research was to determine the significant, outcomes and the importance of outsourcing human resource in the organization. In the report, the advantages and the benefits of the strategy to the organization are expected to be more than the disadvantages. Clearly the research to obtain numerous objectives related to outsourcing human resource. This strategy has both benefits and shortcomings. Although the strategy has disadvantages, the benefits are more than the advantages. Comparing the method to other options such as hiring more employees, the outsourcing model appear to be more beneficial to the organization. Therefore, it is advisable that the human resource department use and adopt the models of outsourcing strategies in the businesses. The human resource department has various functions in the company. They handle the payroll of the employees as well as the filing of tax. The department is also responsible for ensuring health and the benefits of the employees. The HR department of this organization, is responsible in outsourcing the human resource for a numerous number of ad vantages. There are numerous benefits of outsourcing the HR in the organizations such as; The management of risks, minimizing risks in businesses is one of the most essential activities that determines the future and function of the business. Outsourcing the HR is among the most significant strategies that are used by the HR professionals in most firms to minimize risks. In Borouge, the strategy was important for management of risks in the firm. Most employees, whose role in the firm is manpower, are not able to follow the regulations and the laws. The firm has a team of the human resource department that ensures to remind the employees of the right and the laws based on the business. In order to minimize risks in the business, all rules and regulations of the business should be followed. The HR outsourcing strategy plays a vital role of reducing the risks in the firm. Instead of leaving some part of the work unfinished or exhausting the employees with the work, the outsourcing method is used by the HR professionals in the organization. The risks are reduced since the work is complete and the employees are not overworked hence, the quality of the work is accomplished. Secondly, the strategy is also important in saving the costs. Maintaining the expenses of the back office as well as the non-revenue costs are reduced by the HR outsourcing. The department of the human resource in the Borouge firm is composed of technically trained and experienced HR professionals who are in a spacious space office. The cost of hiring more manpower is high as compared to the alternative method of outsourcing the HR. The strategy is evidently the most appropriate and efficient in terms of costs management. Reducing the costs in the firm is important since the profits are maximized and the expenses of the firm are customized. Another benefit of the outsourcing in the organization is the maintenance of work force and efficiency of the business. The outsourcing of the HR strategy increased the efficiency of the human power and the human resources. The employees are given the work they can handle and perform effectively without being overworked or exhausted. The outsourcing strategy helps and improves the functions of the HR such as compliance management, payroll and administration among others. The human resource managers and the employees in the human resource department are determined in increasing the efficiency as well as the effectiveness of the manual workforce. The managers and others staff in the human resource department, are even more focused in promoting the efficiency of workforce to an extent of spending most of their in the workforce than in the papers and offices. Outsourcing HR is significant to the Borouge Company since it increases the effectiveness as well as the efficiency of workforce. Finally, the outsourcing of the human resources for Borouge organization is also important for the development of the employees. The management in the company should be able to examine and manage the employ’s performances. The plans for the performance management are implemented by the providers in order to ensure that the employees meet the goals and the aims of the company as well as they adhere to the regulations and the rules of business. The workload of the managers and the supervisors is reduced by the outsourcing of the human resource for the organization. The management of the development and the performance of the employees are well monitored and managed by the human resource managers in order to improve the production of the business as well as maintain the relationship of the employees and the human resource management. Evidently, the strategy of outsourcing the human resource is beneficial to the Borouge community and the entire organization. However, the strategy is beneficial but has some shortcomings. In the organization, the shortcomings that the organization might face, as a result of the strategy are two. One of the disadvantages is the poor performance of the production of the company. As a result of minimizing the costs in the company, the organization might experience a decrease in the performance of the organization. The main responsibility of the human resource is to ensure the performance of the employees and the entire department (Dolgui & Proth, 2013). The outsourcing human resource might be important in reducing the cost hence reducing the performance (Dolgui & Proth, 2013). If the performance of the human resource department is not efficient, then the performance of the entire organization will definitely reduce. The performance of the human resource is essential for the development and the rise in the production performance of the organization. The other disadvantage caused by the implementation of the outsourcing strategy in the human resource department is the difficulty in the recruitment of the employees. The outsourced employees may lack the required knowledge of the organization. For employs to work effectively in the company, they must understand the culture of the company. It is significant to understand and know the culture of the company as well the functions and the duties of the employees in the organization (Dolgui & Proth, 2013). Outsourcing employees may obviously lack the required knowledge and the experience in the company. In addition to this, the employees should fit the culture of the he organization. The organization has a specific and unique culture from other Companies. The employs outsourced should fit the culture of the organization. The Company’s culture ensures that the company maintains a certain level of production, as well as the trend of production in the organization. Clearly, a problem in the recruitment might occur as a result of the outsourced employs in the organization (Dolgui & Proth, 2013). Outsourcing employs in the human resource is clearly a beneficial project in the organization. The benefits resulting from the strategy are many as compared to its disadvantages. The preliminary recommendation to the managers of the human resource in the organization is to adopt the strategy in the organization because it is comparably beneficial than the other strategy. The project is beneficial than just employing new employees in the business (Dolgui & Proth, 2013). The human resource department is responsible for increase in the production as well as maintenance of the culture and the production of the organization. Consequently, the department ought to implement strategies and techniques that will make the employs and the workforce effective. Analysis This section will analyze the result collected during the investigation, the research was done to obtain the objectives and with respect to the research questions. The main method used to collect information and data from the research is the use of questionnaires. The research team used questionnaires to collect the required information. The questionnaires were given to 35 people in from the human resource department. The questionnaires were given to random members of the HR department such as the employs, the human resource department staff, the human resource managers and the any other employees in the department. The cooperation of the human resource members to the research determined the outcomes and the results of the research. The method used to collect the data, which is the questionnaire followed the objectives of the research. The questions were determined by the hypothesis of the research. On the literature review part of the research, the hypothesis were set and to investigate and confirm the objective of the research. The questions below were used in the questionnaires to collect required information and data. 1. Name 2. Designation 3. Organization’s name 4. Organization’s nature 5. How many employees are in the organization? 100 - 500 500 - 1000 1000 - 5000 5000 - 10000 above 10000 6. Does the management outsource the human resource? Yes No 7. If yes, what is the number of employs outsourced by the organization in the human resource department? 100 - 500 500 - 1000 1000 - 5000 5000 - 10000 above 10000 8. How would you rate the use of outsourcing strategy in the organization? Excellent Good Average Poor Very poor 9. How would you rate the influence of the outsourcing strategy on the reduction in the expenses such as the salaries of the employees? Excellent Good Average Poor Very poor 10 Examine the significant influence of human resource outsourcing in terms of preventing the practice of hiring new workers in the organization. Excellent Good Average Poor Very poor 11. How effective is the outsourcing of the human resource in the prevention of training and monitoring of new employees in the organization. Excellent Good Average Poor Very poor 12. Rate the effectiveness of reduction of costs in the organization as a result of the human resource outsourcing in the organization. Excellent Good Average Poor Very poor 13. Remark on the effect of outsourcing human resource on the performance of the organization. Excellent Good Average Poor Very poor 14. Assess on the impression of the outsourcing strategy in the neighboring organizations. Excellent Good Average Poor Very poor 15. What is the effect of outsourcing to the advantages of global and local competition to the organization? Excellent Good Average Poor Very poor 16. How is outsourcing human resource affecting the development of the organization? Excellent Good average Poor Very poor 17. How would you rate the current art state of outsourcing comparing to other organizations?Excellent Good Average Poor Very poor 18. Gauge the importance of outsourcing on the performance quality as compared to organizations that don’t practice outsourcing strategy. Excellent Good Average Poor Very poor 19. Rate the influence of outsourcing on the organization in terms of challenges facing the organization and changes of the organization. Excellent Good Average Poor Very poor 20. In terms of performance, rate the amount of using outsourcing in the organization. Excellent Good Average Poor Very poor 21. Rank the knowledge and skills of outsourced employees on the work allocated. Excellent Good Average poor Very poor 22. Rate the challenges that have affected the organization since the organization started practicing outsourcing strategy. Excellent Good Average Poor Very poor 23. Assess the responsiveness of the outsourced employees in answering to the needs of the organization. Excellent Good Average Poor Very poor Results and Findings The research was performed and the results collected were analyzed in the report. 35 people working for the organization were given the questionnaires to fill. Due to the responsiveness and the cooperation of the members, the results were obtained adequately. The results were analyzed quantitatively using the statistical methods such as the calculation of the mode, median and mean among others. The final results were obtained from the analysis. According to the questions asked in the questionnaire, the answers assessed in the many questionnaires were similar and aimed at supporting the hypothesis. The questionnaires were given to the employees, staffs and managers of different departments among many others. To ensure the collection of valid information, the questionnaires were given randomly by the research team so as to obtain complete results from the research. After the questionnaires were filled, the research team collected the filled questionnaires and took them for analysis. After the analysis, it was obtained that that answers of many people were similar. The analysis was done and the average of the same answers was taken. According to the questions asked, the answers were in favor of the outsourcing strategy. After the analysis, the findings as well as the results of the research confirmed the importance as well as the significance of the outsourcing to the organization. According to many employs, the development and the performance of the organization was influenced greatly by the outsourcing human resource strategy performed in the organization. Recommendation Based on the results and the findings of the research, I would recommend that the Borouge organization employ the outsourcing strategy in order to improve the production and maintain the development of the company. I recommend that the human resource department should apply the strategy and to avoid hiring new employees in this situation. Conclusion In conclusion, the benefits of the outsourcing human resource strategy to the organization are more than the shortcomings. The research even compared the performance of the organization in form of development and the competition of the organization in business. It was found that the organization was faring well than organizations that don’t practice outsourcing strategy. Evidently, the research supported the hypothesis stated in the research and obtained the objectives as a result. The objective of the experiment was accomplished using the appropriate and recommended procedures for research. Outsourcing human resource is clearly one of the strategies that should be used in many organizations to develop and improve in terms of performances. Reference Dolgui, A. & Proth, J. M. (2013). Outsourcing: definitions and analysis. International Journal of Production Research, 51(23-24), 6769-6777. Read More