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1 – 10 of 61Siew Chen Sim, Maniam Kaliannan and Mohan Avvari
This study aims to provide a conceptualisation of HR outsourcing (HRO) effectiveness from a service quality perspective and subsequently develop a scale – HROSERVPERF to measure…
Abstract
Purpose
This study aims to provide a conceptualisation of HR outsourcing (HRO) effectiveness from a service quality perspective and subsequently develop a scale – HROSERVPERF to measure HRO service performance underpinned S-O-R theory.
Design/methodology/approach
Grounded on theoretical conceptualisation, literature and information collected through semi-structured interviews, HRO service performance items pool were generated. 257 responses from manufacturing firms in Malaysia that have outsourced their HR were collected. PLS-SEM is used for scale confirmation and validation.
Findings
The conceptualisation of HRO effectiveness and HRO service performance suggests a need for scale development that encompasses service quality-satisfaction-loyalty framework supported by S-O-R theory. Operational improvement, resource alignment and service delivery emerged as the service performance dimensions of HROSERVPERF.
Research limitations/implications
This study was limited to manufacturing firms in Malaysia, hence little generalisation could be drawn beyond this context. However, this serves as future research opportunities.
Practical implications
HR managers and service providers can employ HROSERVPERF to measure and improve HRO service performance more effectively. Service providers can re-strategise and target their scarce resources to better retain their clients.
Originality/value
This is the first paper that provides HRO effectiveness conceptualisation from a service quality perspective followed by a scale development with formative measures using PLS-SEM underpinned S-O-R theory.
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Siew Chen Sim, Mohan Avvari V. and Maniam Kaliannan
The purpose of this study is to provide deeper and broader insights into human resource outsourcing (HRO) trends and practices specific to the Malaysian context.
Abstract
Purpose
The purpose of this study is to provide deeper and broader insights into human resource outsourcing (HRO) trends and practices specific to the Malaysian context.
Design/methodology/approach
Data were collected from HR managers through a questionnaire-based survey, using convenient sampling with random selection.
Findings
HRO practices were found to have evolved into second-generation outsourcing, with considerable potential to grow further in the future. Firm size and sector had little or no effect on the degree of HRO. Both cost benefits and resourced-based benefits were key drivers of HRO decisions, with a majority of the firms reporting having achieved these benefits equally and positively. Most of the functions outsourced were traditional-transactional HR functions. Slightly more than half of the HRO decisions were made by top management without the involvement of HR managers. More than half of the firms surveyed intended to do more outsourcing in the near future (i.e. within the next two to five years), including firms that had previously experienced HRO failure.
Research limitations/implications
While convenience sampling limits the generalisability of the findings, it is suitable for a study like this, especially as there is no pre-established list of firms outsourcing HR available in Malaysia. The study did not cover trends in either HR shared services or insourcing – either of which could potentially affect future HRO trends in the future. The findings also serve as a warning to future HRO researchers about the importance of contextual knowledge to strengthen the validity of their findings.
Practical implications
The findings provide both practitioners and service providers with insights into HRO practices and trends in Malaysia, which are comprehensively discussed in the paper.
Originality/value
This paper presents a broad, yet up-to-date, overview of HRO practices and trends specific to the Malaysian context. It covers aspects and details of HRO not explored or explicitly discussed before.
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Thuy Thi Thanh Nguyen and Man-Ling Chang
The purpose of this paper is to explore the antecedents of the decision of whether to outsource human resources (HR). Two moderators are considered: the lack of in-house HR…
Abstract
Purpose
The purpose of this paper is to explore the antecedents of the decision of whether to outsource human resources (HR). Two moderators are considered: the lack of in-house HR expertise and positive HR outcome.
Design/methodology/approach
This study uses data collected from 85 Vietnamese firms of different sizes. Regression analysis is used to examine the research hypotheses.
Findings
The strategic involvement of HR management is positively related to the decision to outsource HR. As expected, a positive significant relationship exists between cost reduction and the decision to outsource HR for non-core HR activities. For core HR activities, demand uncertainty relates positively to the decision to outsource HR, and the lack of HR expertise moderates the process of HR outsourcing (HRO).
Research limitations/implications
Although the focus on firms in Vietnam may help to control for cultural factors, it may also limit generalizability. Because of the limited number of samples, this study cannot compare results across different industries. Future research should focus on the cross-cultural aspects of this issue or compare differences across industries.
Practical implications
This study provides HR managers with guidelines for making appropriate decisions regarding HRO. Vendors can exploit aspects of core vs non-core activities to provide professional services that satisfy the demands of firms.
Originality/value
Based on a theoretical approach, this work analyzes the decision to outsource HR in developing countries, an area that heretofore has received scant research attention.
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Thomas J. Norman, Natasa Christodoulidou and Marcus Rothenberger
Human resource technologies in the hospitality industry are a means by which an organization can gain competitive advantage technologically. The technology-oriented human capital…
Abstract
Purpose
Human resource technologies in the hospitality industry are a means by which an organization can gain competitive advantage technologically. The technology-oriented human capital embedded in an organization's human resources is a source of sustainable competitive advantage in an industry that is heavily dependent on people and makes it unique and inimitable. This study uses data collected on 34 different practices to provide a snapshot of current practices in the hospitality sector, which can be used to benchmark individual technology operations against the current norms. The paper aims to discuss these issues.
Design/methodology/approach
This paper uses survey data collected from dozens of managers working in the hospitality sector on the level of outsourcing of 34 different HRM practices to provide a snapshot of current practices in the hospitality sector.
Findings
Starting with the theoretical predictions of total cost of ownership and transaction cost analysis, multiple regression models are used to test whether or not human resource outsourcing (HRO) technology-related activities in hospitality are associated with negative outcomes, such as higher voluntary turnover of good employees.
Research limitations/implications
This is one of the first articles to explore HRO technology in the hospitality sector and the findings suggest that what an organization outsources matters.
Practical implications
These results can be used by hospitality managers to benchmark their operations against the current HRO technology norms.
Originality/value
It is expected that the type of HR technology-related activities outsourced in hospitality will affect how employees and employers view and react to HRO in hospitality.
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Thuy Thi Thanh Nguyen and Man-Ling Chang
The causal conditions leading to successful human resources outsourcing (HRO) have until now attracted only limited research attention. To address this shortcoming, the purpose of…
Abstract
Purpose
The causal conditions leading to successful human resources outsourcing (HRO) have until now attracted only limited research attention. To address this shortcoming, the purpose of this paper is to investigate how a firm and a HR provider should work together to ensure successful HRO.
Design/methodology/approach
By applying a fuzzy-set qualitative comparative analysis, the authors demonstrate how combining in different ways provider quality, business understanding, trust, and closed HRO networks can lead to HRO success. In addition, this study compares the causal combinations between cases with differing levels of HR-task interdependence and IT use.
Findings
The results of this study reveal three common solutions that lead to successful HRO from both economic and relational viewpoints. The findings also indicate that, from an economic viewpoint, trust is a core condition for achieving HRO success. Moreover, HR-task interdependence and IT use alter the number of solutions and the conditions for attaining HRO success.
Practical implications
Based on the solutions proposed herein, firms can consider different ways to achieve HRO success under diverse conditions.
Originality/value
This work also contributes to building new theories regarding HRO, trust, knowledge sharing, and IT use.
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Mohsen Shafie Nikabadi and Delshad Hoseini
The production of a good or service requires that the supplier performs a wide range of activities. Many companies are trying to fit outsourcing with the dimensions of their…
Abstract
Purpose
The production of a good or service requires that the supplier performs a wide range of activities. Many companies are trying to fit outsourcing with the dimensions of their organization. Outsourcing is increasingly being used among Iranian companies in the field of the electric power industry. Human resources are among the factors that consider outsourcing as an obstacle for their growth because staffs declare that the development of outsourcing is a serious threat for unemployment of them and ultimately expulsion from work. Thus, this study surveys the dynamic effects of human resources and work experience on outsourcing decisions. This paper aims to propose a model for dynamic strategic outsourcing focusing on human resource and work experience.
Design/methodology/approach
Presenting a model for strategic outsourcing can help organizations to resolve their outsourcing problems. The data needed for examining the dynamic impact of human resources and work experience on outsourcing have been compiled using library and field studies. The method used in this study is an integrated approach, so the model could consider the general effects of manpower and present a systematic view. After interviewing with experts in power industry, the causal relationships of the variables were determined, and a dynamic model based on the applications of the dynamic system was developed in VENSIM software. The research model will be completed in a three-year period (2016-2019) in the power industry of Iran.
Findings
For completing projects in an organization, cooperation between internal employees and external contractors is needed; thus, results based on both external contractors and internal staff have shown that outsourcing through working of a number of contractors will be more effective than frequent use of one contractor. On the other hand, improving the quality of projects could be done by training new employees using skilled and expert employees.
Originality/value
Existence of one-dimensional models (only with qualitative factors or only with quantitative factors) in the context of outsourcing in the past studies has prompted to study different types of factors together as a dynamic model. This paper presents a quantitative and qualitative model in the field of strategic outsourcing with emphasis on human resources and work experience. In the past studies, there was no way to formulate the qualitative factors, and they simply used the data from the organization, and the only formulation in their works was based on quantitative factors. But in this study, both factors with dynamic modeling have been formulated.
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To highlight that human‐resource outsourcing (HRO) arrangements have proved to be strategic partnerships that help to put people matters at the top of corporate strategic…
Abstract
Purpose
To highlight that human‐resource outsourcing (HRO) arrangements have proved to be strategic partnerships that help to put people matters at the top of corporate strategic decision‐making.
Design/methodology/approach
On the basis of a survey by The Conference Board, produced in partnership with Accenture HR Services, the article demonstrates the key motivating factors in the decision to outsource. The article presents a case study of a mid‐size American chemical producer that, because of human resource outsourcing (HRO), can now more effectively perform financial analyses because of better HR reporting. Additionally, the company now pays 99 percent of employee claims within two weeks and manages every service request within 48 hours.
Findings
The article demonstrates that HRO is about the best use of company resources, not a means for cost savings or job cutting. By fully understanding the economics and opportunities of HRO, executives can help their companies to achieve new heights of performance.
Practical implications
The article demonstrates that the key advantages of HRO include lower costs, better insights, greater control over the HR function and improved customer services.
Originality/value
The article contains plenty to interest top managers who are considering outsourcing their HR functions.
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Klaas Szierbowski-Seibel and Ruediger Kabst
Two simultaneous trends have arisen in the field of HRM: the development of the human resource (HR) function toward a more strategic, value adding unit and the trend of HR…
Abstract
Purpose
Two simultaneous trends have arisen in the field of HRM: the development of the human resource (HR) function toward a more strategic, value adding unit and the trend of HR outsourcing (HRO). Opinions are divided in the field of HRM research regarding the interdependences between these two trends and whether the HR function has a positive or negative effect. Therefore, the purpose of this paper is to examine the triangular relationship among strategic HR integration, the HR-to-employee ratio and HRO.
Design/methodology/approach
This study analyses data from three large evaluations conducted in 14 European countries and compares the results obtained from the 2000, 2005 and 2010 Cranet survey waves. For the hypotheses, a multilevel regression design was used.
Findings
The results allow concluding that HRO supports the professionalization of the HR function in an effort to make it a strategic asset.
Research limitations/implications
This study extends prior understandings of the theoretical perspective on HRO and its organizational impact. The sample is nested within 14 European countries and influenced by cultural aspects and institutional factors. These influences could be an exciting avenue for further research.
Practical implications
This paper includes important implications for HR practitioners. The results support a rather optimistic view of the HR function regarding its relationship with HRO and the latter’s impact on the HR-to-employee ratio and strategic HR integration.
Originality/value
The study answers the question: has HRO downsized internal HR staff over the past decade, and how is it related to the strategic integration of the HR function? In this context, this study analyses Cranet data to contribute to the discussion on the development of strategic HR integration and the impact of HRO on such efforts. Moreover, the study examines the influence of HRO on internal HR staff based on the theoretical framework of the resource-based view.
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Sim Siew-Chen and Gowrie Vinayan
The purpose of this paper is to provide insights into the conduct of recruitment process outsourcing (RPO), based on a real-life case study of one company in Malaysia. The paper…
Abstract
Purpose
The purpose of this paper is to provide insights into the conduct of recruitment process outsourcing (RPO), based on a real-life case study of one company in Malaysia. The paper analyses the company’s process of recruitment outsourcing from beginning to end, in three sections: RPO decision, RPO implementation and RPO outcome.
Design/methodology/approach
The case study was carried out through semi-structured interviews with relevant respondents, including the country HR manager, the HR staff and operation managers in the organisation, plus with the RPO provider.
Findings
The key findings, from a theoretical and academic viewpoint, are that RPO decisions and implementation cannot be fully or properly explained by one theory, but are better explained by integrating transaction cost economics, the resource-based view and the Agency Theory. The study also highlights the importance of involving end users in the RPO process.
Research limitations/implications
While this single case study gives a clear, in-depth insight into the issues in this particular instance, future research extending to a wider range of organisations would serve to expand the findings and provide more generalisable results.
Practical implications
Practitioners and service providers should be able to draw valuable lessons from the experience of Tech-solution, particularly from the different perceptions and levels of satisfaction about the service provider’s performance between internal HR and the internal end users (operation managers).
Originality/value
This paper provides a specific and detailed analysis of RPO implementation in practice. It also addresses the call for more RPO outsourcing-specific research in the extant literature.
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