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Article
Publication date: 20 June 2016

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.

2015

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.

Details

Strategic Outsourcing: An International Journal, vol. 9 no. 2
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 8 May 2018

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…

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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.

Details

International Journal of Manpower, vol. 39 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 18 September 2017

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…

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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.

Details

Management Decision, vol. 55 no. 8
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 11 November 2014

Joana Kuntz and Abigail Roberts

The purpose of this study was to investigate the unique contributions from social (i.e. trust climate, departmental integration) and organisational factors (i.e. managerial…

Abstract

Purpose

The purpose of this study was to investigate the unique contributions from social (i.e. trust climate, departmental integration) and organisational factors (i.e. managerial recognition, goal clarity and technology support) to work engagement and identification with the organisation in a human resource offshoring (HRO) context.

Design/methodology/approach

Participants were recruited from a large Australian financial institution with an HR centre located in the Philippines. Ninety-one members of the captive HR centre completed the anonymous online questionnaire consisting of quantitative items and open-ended fields. Regression analyses were conducted to ascertain the relationships hypothesised.

Findings

The findings suggest that goal clarity is a key predictor of both engagement and identification with the organisation, and that technology support and managerial recognition also influence offshore staff members’ motivation and workplace attitudes.

Research limitations/implications

The cross-sectional, self-report nature of the study, along with the small sample obtained, are noted as limitations of the study. Nevertheless, the high response rate (91 per cent) and availability of qualitative data provide valuable insight into the key factors that impact HRO operations and performance.

Practical implications

The study uncovers social and organisational variables that affect staff motivation and attitudes in an HRO context, and offers a number of guidelines for practitioners operating in these settings, focussing on goal clarity, managerial recognition and technology support.

Originality/value

The study contributes to a growing body of research into the organisational and human capital factors that account for HRO performance and sustainability, and offers preliminary evidence for their unique contributions to key performance drivers. Guidelines for future research and business practice are proposed, namely, the consideration of multilevel and temporal approaches to the management and investigation of HRO operations.

Article
Publication date: 1 August 2016

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…

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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.

Article
Publication date: 14 May 2021

Ahmad Ghaith, Huimin Ma and Ashraf W. Labib

High-reliability performance and high-hazard are intertwined in High-Reliability Organizations (HROs) operations; these organizations are highly safe, highly hazardous and highly…

Abstract

Purpose

High-reliability performance and high-hazard are intertwined in High-Reliability Organizations (HROs) operations; these organizations are highly safe, highly hazardous and highly significant for the modern society, not only for the valuable resources they have, but also the indispensable services they provide. This research intend to understand how HROs could produce high quality performance despite their challenging and demanding contexts. The research followed an emic approach to develop an organizational framework that reflects the contribution of the seeming traits of the organizations to the operations safety based on the workers point of views about the safety of workstations.

Design/methodology/approach

This research adopted mixed methods of in-depth interviews and literature review to identify the structural characteristics of high-reliability organizations (HROs) embedded in the organizations studies and developed a theoretical based structural framework for HROs. Furthermore, a systemic literature review was adopted to find the evidence from the organizations literature for the identified characteristics from the interviews from the first stage. The setting for this study is six Chinese power stations, four stations in Hubei province central China and two stations in the southern China Guangdong province.

Findings

The organizational framework is a key determinant to achieve high-reliability performance; however, solely it cannot explain how HROs manage the risks of hazard events and operate safely in high-hazard environments. High-reliability performance is attributed to the interaction between two sets of determinants of safety and hazard. The findings of this research indicate that HROs systems would be described as reliable or hazardous depending on the tightly coupled setting, complexity, bureaucracy involvement and dynamicity within the systems from one hand, and safety orientation, failure intolerance, systemwide processing, the institutional setting and the employment of redundant systems on other hand.

Originality/value

The authors developed an organizational framework of organizing the safety work in HROs. The applied method of interviewing and literature review was not adopted in any other researches.

Details

International Journal of Quality & Reliability Management, vol. 39 no. 4
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 13 February 2024

Jennifer Ford, David B. Isaacks and Timothy Anderson

This study demonstrates how becoming a high-reliability institution in health care is a priority, given the high-risk environment in which an error can result in harm. Literature…

Abstract

Purpose

This study demonstrates how becoming a high-reliability institution in health care is a priority, given the high-risk environment in which an error can result in harm. Literature conceptually supports the need for highly reliable health care facilities but does not show a comprehensive approach to operationalizing the concept into the daily workforce to support patients. The Veterans Health Administration closes the gap by documenting a case study that not only demonstrates specific actions and functions that create a high-reliability organization (HRO) for safety and improvement but also created a learning organization by spreading the knowledge to other facilities.

Design/methodology/approach

The authors instituted a methodology consisting of assessments, training and educational simulations to measure, establish and operationalize activities that identified and prevented harmful events. Visual communication boards were created to facilitate team huddles and discuss improvement ideas. Improvements were then measured and analyzed for purposeful outcomes and return on investment (ROI).

Findings

HRO can be operationalized successfully in health care systems. Measurable outcomes verified that psychological safety was achieved through the identification and participation of 3,184 process improvement projects over a five-year period, which yielded a US$2.8m ROI. Documented processes and activities were used for educational teachings, which were disseminated to other Veteran Affairs Medical Center’s through the Truman HRO Academy.

Practical implications

This case study is limited to one hospital in the Veterans Health Administration (VHA) network. As the VHA continues to deploy the methods outlined to other hospitals, the authors will perform incremental data collection and ongoing analysis for further validation of the HRO methods and operations. Hospitalists can adapt the methods in the case study for practical application in a health care setting outside of VHA. Although the model is rooted in health care, the methods may be adapted for use in other industries.

Originality/value

This case study overcomes the limitations within literature regarding operationalizing HRO by providing actual activities and demonstrations that can be implemented by other health care facilities.

Details

The Learning Organization, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-6474

Keywords

Article
Publication date: 2 August 2018

Peter F. Martelli, Peter E. Rivard and Karlene H. Roberts

Given the pace of industry change and the rapid diffusion of high reliability organization (HRO) approaches, lags and divergences have arisen between research and practice in…

Abstract

Purpose

Given the pace of industry change and the rapid diffusion of high reliability organization (HRO) approaches, lags and divergences have arisen between research and practice in healthcare. The purpose of this paper is to explore several of these theory-practice gaps and propose implications for research and practice.

Design/methodology/approach

Classic and cutting-edge HRO literature is applied to analyze two industry trends: delivery system integration, and the confluence of patient-as-consumer and patient-centered care.

Findings

Highly reliable integrated delivery systems will likely function very differently from classic HRO organizations. Both practitioners and researchers should address conditions such as how a system is bounded, how reliable the system should be and how interdependencies are handled. Additionally, systems should evaluate the added uncertainty and variability introduced by enhanced agency on the part of patients/families in decision making and in processes of care.

Research limitations/implications

Dramatic changes in the sociotechnical environment are influencing the coupling and interactivity of system elements in healthcare. Researchers must address the maintenance of reliability across organizations and the migration of decision-making power toward patients and families.

Practical implications

As healthcare systems integrate, managers attempting to apply HRO principles must recognize how these systems present new and different reliability-related challenges and opportunities.

Originality/value

This paper provides a starting point for the advancement of research and practice in high-reliability healthcare by providing an in-depth exploration of the implications of two major industry trends.

Details

Journal of Health Organization and Management, vol. 32 no. 5
Type: Research Article
ISSN: 1477-7266

Keywords

Article
Publication date: 5 June 2017

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…

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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.

Details

Personnel Review, vol. 46 no. 4
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 12 April 2013

Louise Curran and Michael Thorpe

The aim of this paper is to shed light on recent debates in this journal on differences in home‐region orientation depending on type of company and the home region in which they…

Abstract

Purpose

The aim of this paper is to shed light on recent debates in this journal on differences in home‐region orientation depending on type of company and the home region in which they are based.

Design/methodology/approach

The paper looks at the structure of trade (imports and exports) across different types of goods in order to shed light on differences between sectors and types of technology. The paper also explores structures across regions in order to shed light on regional differences.

Findings

This research indicates that there are major differences in structures of trade between different types of goods. However, these differences do not necessarily conform to a clear pattern across different technological levels and differ between regions and the direction of trade. The fact that Asian cultures have greater psychic distance from European and North American cultures is not reflected in higher levels of home‐region orientation.

Research limitations/implications

The paper helps to clarify some of the hypotheses on home‐region orientation recently identified in this journal and, thus, helps to advance theories about why this orientation is so prevalent. The main limitations are related to the methodology. Using trade data, the paper cannot define the boundaries of the firm and, therefore, can only make conclusions at the macro level. These conclusions can, nevertheless, help to orient work at the micro level to further explore the key questions which recent work has raised.

Originality/value

Limited comparative work across sectors or technologies has been undertaken in the context of the debate on home‐region orientation. Differentiating between different types of goods can help to give us insights into why so many companies tend to focus so consistently on their home region, while others are more global.

Details

Multinational Business Review, vol. 21 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

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