Outsourcing Human Resource Activities - Measuring the Hidden Costs and Benefits - Annotated Bibliography Example

Human resource recruitment Name Institution Wehner, C , Giardini , W & Kabst, R. (2012). Graduates’ reactions to recruitment process outsourcing: a scenario based study, Human Resource Management journal, 51(4): 601– 624. This journal penned down by Wehner, Giardini & Kabst in 2012 follows the perception of human resource department in many organizations towards the process of recruitment of new personnel in their workplaces. The journal seeks to explain the different points of view that the recruiters have upon the personnel seeking employment in these workplaces. Despite the fact that these organizations have departments that seek and recruit new employees, they still prefer to outsource this process to other companies. The reasons for this preference are explained in this journal in depth. It also shows the perception that the potential recruits have on the companies that seek to tap into their capacities. According to Wehner, Giardini & Kabst (2012), organizations tend to adopt a system of pure transparency and fairness as well as professionalism in the recruitment process so that they can portray and send positive signals to these potential workers. However, most times, huge companies prefer to employ the services of the rapidly growing stream of organizations that specialize in recruitment of personnel for other companies. One of the major reasons for this outsourcing is the belief that these outsourcing companies have the professional stances and the skills required to ensure that they recruit the best candidate for their contractors without biasness. This also ensures that blame is never shifted to the original company in case of potential recruits become bitter following a rejection. Adler, P. (2003). Making the outsourcing decision, MIT Sloan Management Review, Retrived September 12, 2013 from http://www-bcf.usc.edu/~padler/research/HR-BPO(SMR)-1.pdf Adler (2003) in this article highlights the various circumstances that necessitate companies having to go out and outsource human resource services. This article explodes the version and views presented by Wehner, Giardini & Kabst (2012). The article goes on to try and assess on the advantages of the same as well as illuminating upon the weaknesses and pitfalls of the same project. According to Adler (2003), many companies outsource human resource activities because they do not wish to conduct the processes themselves. This happens despite the fact that most organizations have their own human resource departments that are given the onus recruit, train and maintain their employees. The reasons for the dislike of this particular job are diversified and could be distinctly unique ranging from one company to the other. Outsourcing saves the organizations time. They use this time to concentrate on other issues that are designed to assist them fulfill their goals and objectives as a company. These companies also believe that they have the capacity to save some money if they employed other companies to recruit their workers for them. According to Adler (2003), the outsourcing companies have a pool of personnel who uphold professionalism and they recruit people based solely on the basis of merit without bias and without favoritism. The management of the company seeking to outsource this activity to another company must sit down and analyze this decision by establishing both the pros and cons of the project. If the advantages override the weaknesses, then it is only sensible for these companies to offer the outsourcing companies the chance to recruit personnel for them. Seth, M & Seethi, D. 2011. Human Resource Outsourcing: Analysis Based On Literature Review, International Journal of Innovation, Management and Technology, 2(2), 127- 135. Following closely on the ideologies offered by the previously discussed articles, that is, Adler (2003) and Wehner, Giardini & Kabst (2012) and offers unique insights into the process of outsourcing human resources and the various processes involved in the same. Seth & Seethi (2011) try to focus on the different factors that need to be taken into consideration before a company decides to utilize the services of an outsourcing company. There are a number of services that are offered by these outsourcing companies. Some of these services include payroll management, staff training, staff disciplining, administration of the benefits that are accrued by these staff and background checks on these employees. Through a review of literature from a number of other writers, there are a number of conflicts and issues that arise here. Some of these conflicts as discussed by Seth & Seethi (2011) are as highlighted in the discourse that follows. Managing human resource is a strategic and complex process that requires the services of professionals. There exists a challenge deciding what is core and what is non-core in human resource outsourcing. Also, other factors that affect the employees directly present some challenges. Some of these factors include the position of off shoring which in inclusive of job losses and redeployment of the employees. Norman, J. (2009). Outsourcing Human Resource Activities: Measuring the Hidden Costs and Benefits, Dissertation paper, retrieved September, 12, 2013 from http://conservancy.umn.edu/bitstream/51001/1/Norman_umn_0130E_10294.pdf This is a dissertation for a PhD degree in the philosophy prepared by Norman James in 2012. Norman (2009) explores the human resource outsourcing from another angle. He takes an observation into the hidden costs as well as benefits that are associated with human resource outsourcing. According to the author, there are a number of activities that these companies give that are skewed towards the human resource management and changes. Some of these activities include payroll management, employee recruitment and training, employee retraining and performance tracking, management of employee’s benefits as well as pension schemes among other activities. Norman (2009) notes that in this process, there are hidden costs as well as hidden benefits that are present in this process. The paper also seeks to examine the level of relationship between levels of different human resource outsourcing and three major variables namely employee turnover, satisfaction of clients as well as satisfaction of the employee. Companies and organizations need to take additional effort to ensure that the rate of employee turnover is lowered and the rate of employee satisfaction is heightened. If the employees are satisfied with their work and the remuneration is good, then it is possible to have them offer the customers the best service and this culminates into the customers being satisfied as well as lowering the rate of these employees turnover. Recommendation for further reading Kosnik et al. 2006. Outsourcing vs. insourcing in the human resource supply chain: a comparison of five generic models, Personnel Review journal, 35(6): 671-683. This journal gives a comparison of outsourcing and insourcing activities in the HR department through a comparison of five generic models. It gives the advantages as well as the disadvantages of both of these project activities and compares them side to side. References Adler, P. (2003). Making the outsourcing decision, MIT Sloan Management Review, Retrived September 12, 2013 from http://www-bcf.usc.edu/~padler/research/HR-BPO(SMR)-1.pdf Kosnik et al. 2006. Outsourcing vs. insourcing in the human resource supply chain: a comparison of five generic models, Personnel Review journal, 35(6): 671-683. Norman, J. (2009). Outsourcing Human Resource Activities: Measuring the Hidden Costs and Benefits, Dissertation paper, retrieved September, 12, 2013 from http://conservancy.umn.edu/bitstream/51001/1/Norman_umn_0130E_10294.pdf Seth, M & Seethi, D. 2011. Human Resource Outsourcing: Analysis Based On Literature Review, International Journal of Innovation, Management and Technology, 2(2), 127- 135. Wehner, C , Giardini , W & Kabst, R. (2012). Graduates’ reactions to recruitment process Outsourcing: a scenario based study, Human Resource Management journal, 51(4): 601– 624. Read More