Journal of Management Research

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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
     

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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
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  • Critical Factors in Human Resource Outsourcing

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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