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Managing people and organisations - Strategic human resource management - Essay Example

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1 Introduction Outsourcing is a form of externalisation if employment which involves an outside contractor taking over an in-house function (Morgan, 2008 p26). Outsourcing causes an aspect of a business to be handled by a third party organisations which leads to a situation where some job functions and activities are handled by human resource outside the organisation in question…
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Managing people and organisations - Strategic human resource management
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Download file to see previous pages On the other hand, outsourcing persists in the 21st century because it ensures that non-core functions of an organisation are carried out by external parties and this allows a business to focus on its core commitments (Morgan, 2008 p26). This means that in the conflict between human resource challenges and the role outsourcing will exist into the foreseeable future. This paper examines the elements, features and components of outsourcing in the context of human resource management. It analyses the unexpected costs and competitions that arises from outsourcing. It does examine the failures of outsourcing, challenges of outsourcing in relation to human resource strategy alignments as well as the tangible and intangible consequences of outsourcing. The paper will also touch on other aspects of human capital that is affected by outsourcing like the learning and development of employees in relation to innovation, job security matters as well as contractual issues and matters. 2.0 Alignment of HR Strategies and Patterns in Outsourcing Outsourcing intervenes in the overall strategy of an organisation as well as specific departments of organisations. Firms choose to outsource components of their operations because of some cost advantages and/or strategic benefits. The advantages that outsourcing brings to an organisation include; allowing staff to focus on their core areas, attainment of key strategic objectives, lowering and stabilising costs, responsiveness to market conditions and reductions in costs (Kleim, 1999: Quinn, 1999). In spite of these advantages, outsourcing comes with some inherent costs and obvious disadvantages which can affect the overall strategy of an organisation. This include over-dependence on outsiders, hidden costs and contract issues, loss of control and motivational/commitment issues on the part of employees from the external firm (Currie & Willcocks, 1997). The costs and benefits of outsourcing are quite enormous. Although some of them are obvious, others are hidden. These dynamics have a strong and significant effect on the human resource strategy of an organisation. 2.1 Elements of HR Strategy Human Resource strategy is a component of corporate strategy. It involves three main elements: 1. Long term plans 2. It affects the whole organisation and 3. It involves top level managers (Tribus, 1987). This implies that human resource strategy is determined by senior management of an organisation like directors and other senior HR executives in the organisation. In the practical sense, HR strategy is the concern of the Human Resource Manager and it is determined by the wider views and strategies of the CEO and the Board of Directors. Additionally, the activities of some of the committees of the board of directors affect the components and operation of the human resource unit of a business. Secondly, HR strategy has long term implications. In other words it involves plans and policies that are created for a period of over 7 years. This include blueprints on how employee concerns must be identified and resolved. Furthermore, HR strategy affects the entire organisation. The strategic plans and objectives of the HR department are meant to determine the actions of different parts of the organisation including the various employees and management. Human resource management intervenes with organisational strategy, ...Download file to see next pagesRead More
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