Journal of Management Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Critical Factors in Human Resource Outsourcing


Affiliations
1 Independent Management Consultant 1876 Oak Bend Drive Rockwall, Texas 75087, United States
2 Department of Marketing & Management Texas A&M University – Commerce Commerce, Texas, United States
3 Department of Educational Leadership Texas A&M University – Commerce Commerce, Texas, United States
     

   Subscribe/Renew Journal


Outsourcing has infiltrated the world of human resource management in a major way. Over time the number of organizations skilled in performing specific human resource activities has grown to the point where there is now a general provider or a specialist provider organization that can perform almost any human resource management task or activity. This article aims to identify some of the key elements necessary for successful outsourcing. For outsourcing of human resource management activities to be truly effective, companies must understand what can be outsourced as well as what cannot be outsourced. This article presents a hierarchy that identifies the kinds of activities that lend themselves to outsourcing and then it identifies the characteristics that preclude certain functions from being outsourced. Successful outsourcing of human resource activities also demands that organizations know and understand the advantages and disadvantages of outsourcing. Another prerequisite for successful outsourcing is to understand what actions are necessary to create a successful ongoing relationship between the company doing the outsourcing and the subcontractor or outsourcing firm.

Keywords

HR Outsourcing, Outsourcing Activities, Outsourcing Advantages, Outsourcing Disadvantages, Outsourcing Relationships
User
Notifications

  • Anonymous (2005), HR Outsourcing Gets Mixed Reviews in New Survey, HR Focus, 82(12): 8.

  • Belcourt, M. (2006), Outsourcing—The Benefits and the Risks, Human Resource Management Review, 269-279.

  • Boguslauskas, V. and Kvedaraviciene, G. (2009), Difficulties in Identifying Company’s Core Competencies and Core Processes, Engineering Economics, 62(2): 75–81.

  • Caruth, D. and Caruth G. (2010), Outsourcing Human Resource Activities: A Proposed Model, Supervision, 71(7): 3–8.

  • Caudron, S. (2003), HR is Dead, Long Live HR, Workforce, 82(1): 26–30.

  • Cooke, F. L., Shen, J. and McBride, A. (2005), Outsourcing HR as a Competitive Strategy? A Literature Review and an Assessment of Implications, Human Resource Management, 44(4): 413–432.

  • Choudrie, J., Grey, S. and Selamat, M. H. (2009), Meta-abilities and Outsourcing: An Individual Based Conceptual Framework, Knowledge and Process Management, 16(2): 30–39.

  • Davidson, G. (2005), Why HR Outsourcing Continues to Expand, Human Resource Management International, 13(3): 3–5.

  • Elmuti, D. (2003), The Perceived Impact of Outsourcing on Organizational Performance, Mid-American Journal of Business, 18(2): 33–41.

  • Fisher, S. L., Wasserman, M. E., Wolf, P. P. and Wears, K. H., (2008), Human Resource Issues in Outsourcing: Integrating Research and Practice, Human Resource Management, 47(3): 501–523.

  • Galanaki, G. and Papalexandris, N. (2007), Internationalization as a Determining Factor of HRM Outsourcing, The International Journal of Human Resource Management, 18(8): 1557–1567.

  • Garaventa, E. and Tellefsen, T. (2001), Outsourcing: The Hidden Costs, Review of Business, 22(1/2): 28–31.

  • Geisel, R. W. (2006). Get Star-quality Service, HR Magazine, 51(3): 78–83.

  • Handley, S. M. and Benton, W. C., Jr. (2009), Unlocking the Business Outsourcing Process Model, Journal of Operations Management, 27: 344–361.

  • Ketter, P. (2007), HR Outsourcing Accelerates, Tand D, 61(2): 12–13.

  • Klaas, B. S. (2008), Outsourcing and the HR Function: An Examination of the Trends and Developments within North American Firms, The International Journal of Human Resource Management, 19(8): 1500–1514.

  • Lievens, F. and DeCorte, W. (2008), Development and Test of a Model of External Organizational Commitment in Human Resources Outsourcing, Human Resource Management, 47(3): 559–579.

  • Miller, S. (2009), Companies Continue to Selectively Outsource HR Programs, HR Magazine, 54: 76–78.

  • Noe, R. A., Hollenbeck, J. R., Gerhart, B. and Wright, P. M. (2010), Human Resource Management: Gaining a Competitive Advantage (7th Ed.), McGraw-Hill Irwin, New York.

  • Petraco, A. (2008), Take it Outside! Workforce Management Outsourcing, Workforce Management, 87(4).

  • Potkany, M. (2008), Personnel Outsourcing Processes, Ekonomika Management, 4: 53–62.

  • Shen, J. (2005), Human Resource Outsourcing: 1990-2004, Journal of Organizational Transformation and Social Change, 2(3): 275– 296.

  • Smith, P. C., Vozikis, G. S. and Varaksina, L. (2006), Outsourcing Human Resource Management: A Comparison of Russian and US Practices, Journal of Labor Research, 27(3): 305–321.

  • Tremblay, M., Patry, M. and Lanoie, P. (2008), Human Resources Outsourcing in Canadian Organizations: An Empirical Analysis of the Role of Organizational Characteristics, Transaction Costs and Risks, The International Journal of Human Resource Management, 19(4): 683–715.

  • What Lies Ahead for HR? HR Focus 81(10), 1, 14-15(2004) 1, 14-15. Retrieved on December 6, 2010, from http:// firstsearch.oclc.org

  • Woodall, J., Scott-Jackson, W., Newham, T. and Gurney, M. (2009), Making the Decision to Outsource Human Resources, Personnel Review, 38(3): 236–252.


Abstract Views: 1097

PDF Views: 11




  • Critical Factors in Human Resource Outsourcing

Abstract Views: 1097  |  PDF Views: 11

Authors

Donald L. Caruth
Independent Management Consultant 1876 Oak Bend Drive Rockwall, Texas 75087, United States
Stephanie S. Pane Haden
Department of Marketing & Management Texas A&M University – Commerce Commerce, Texas, United States
Gail D. Caruth
Department of Educational Leadership Texas A&M University – Commerce Commerce, Texas, United States

Abstract


Outsourcing has infiltrated the world of human resource management in a major way. Over time the number of organizations skilled in performing specific human resource activities has grown to the point where there is now a general provider or a specialist provider organization that can perform almost any human resource management task or activity. This article aims to identify some of the key elements necessary for successful outsourcing. For outsourcing of human resource management activities to be truly effective, companies must understand what can be outsourced as well as what cannot be outsourced. This article presents a hierarchy that identifies the kinds of activities that lend themselves to outsourcing and then it identifies the characteristics that preclude certain functions from being outsourced. Successful outsourcing of human resource activities also demands that organizations know and understand the advantages and disadvantages of outsourcing. Another prerequisite for successful outsourcing is to understand what actions are necessary to create a successful ongoing relationship between the company doing the outsourcing and the subcontractor or outsourcing firm.

Keywords


HR Outsourcing, Outsourcing Activities, Outsourcing Advantages, Outsourcing Disadvantages, Outsourcing Relationships

References