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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.

Data were collected from HR managers through a questionnaire-based survey, using convenient sampling with random selection.

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.

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.

The findings provide both practitioners and service providers with insights into HRO practices and trends in Malaysia, which are comprehensively discussed in the paper.

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.

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.

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.

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.

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.

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.

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.

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.

This study uses data collected from 85 Vietnamese firms of different sizes. Regression analysis is used to examine the research hypotheses.

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).

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.

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.

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.

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.

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.

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.

The article demonstrates that the key advantages of HRO include lower costs, better insights, greater control over the HR function and improved customer services.

The article contains plenty to interest top managers who are considering outsourcing their HR functions.

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.

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.

The results allow concluding that HRO supports the professionalization of the HR function in an effort to make it a strategic asset.

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.

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.

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.

The purpose of this paper is to investigate whether insights into high reliability organizations (HROs) are useful for innovation management teams. HRO teams can keep failure to a minimum level due to high alertness and resilience. Project teams working on innovation management could benefit from HRO principles and thus reduce their chances of failure.

A survey among in total 260 team members and team leaders of project teams in innovation management was conducted to study the relation between, on the one hand, organizational features of HROs (“mindful infrastructure”) and HRO principles (adjusted as “innovation resilience behaviour”, IRB), and on the other hand, between mindful infrastructure and IRB and project outcomes.

From the results it could be concluded that mindful infrastructure associates with IRB, and that IRB has a mediating role in the relation between mindful infrastructure and project outcomes. Innovation management project teams can thus learn from the practice of HRO teams.

To the authors’ knowledge, HRO-thinking has not been applied to team behaviour in innovation management. A fruitful transfer of insights from the domain of safety and crisis management seems applicable to the domain of innovation.

This paper aims to explore patient to care provider reverse exchanges to improve the care processes and service supply chain using an online feedback platform. This paper demonstrates how a better understanding of timely and unsolicited feedback (“voice of the patient as a customer”) stimulates local interventions to improve service delivery and enact the essential characteristics of highly reliable organisations (HRO).

A realist approach involving an exploratory hospital case study using user feedback from an IT patient feedback platform. The methodology included interviews, secondary data and access to thousands of patient feedback narratives.

The findings show that a systems approach to the supply chain, using real-time feedback to enact process improvement is beneficial and a fruitful source of innovation for professional services staff. The setting of the improvement focusses on a true “voice of the customer” rather than attempting to improve arbitrarily internal process efficiency has major benefits for staff and their engagement with the right interventions to support higher performance.

The findings show major positive benefits for the adaptation and constant reflection of staff on the service provided to patients. The approach provides a means of reflecting as to whether the current supply chain and service provision are fit for purpose, as well as reliable, efficient and of value to the consumer.

This study is one of a few that adopt the consumer orientation needed to fully exploit the concepts of patient-centric improvement by including dynamic feedback in the supply chain and systems approach to care.

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.

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.

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.

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.

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.

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.

In humanitarian logistics operations, performance measurement is crucial for effective operation. The purpose of this paper is to develop a set of indicators for humanitarian relief organizations (HROs) for their organizational-level logistics operations.

The authors applied the supply chain operations reference (SCOR) framework to the context of humanitarian supply chains. By taking a bottom-up approach with the support of a large HRO, the authors identified the most important metrics through examining its supply chain processes. The initial metrics are then validated by seven HROs to ensure their applicability in humanitarian logistics operations.

A hierarchical benchmarking framework is proposed, and a set of 26 metrics is identified. The validation of these metrics supports the initial work with all metrics deemed important. It also highlights the implementation difficulty as only five indicators are readily available. The authors further suggested the automation of key logistics processes, which would significantly increase the number of implementable metrics to 14.

The sample size of the validation is small, and the last mile delivery is not covered by the metrics.

With these performance metrics, HROs are able to monitor their logistics performance better with processed-based measures, which may lead to their policy and process adjustments for performance improvement.

The work contributes to performance measurement in humanitarian logistics with a framework of a generic metrics set. The validation result is also original to reveal the state of performance measurement on the ground.

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.

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.

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.

Based on the solutions proposed herein, firms can consider different ways to achieve HRO success under diverse conditions.

This work also contributes to building new theories regarding HRO, trust, knowledge sharing, and IT use.