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Article
Publication date: 11 October 2019

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.

Details

Kybernetes, vol. 49 no. 9
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 4 June 2020

Peeyush Pandey

The construct of Organizational Learning has been studied through various perspectives but still there is a dearth of literature on how the organization’s outsourcing activities…

721

Abstract

Purpose

The construct of Organizational Learning has been studied through various perspectives but still there is a dearth of literature on how the organization’s outsourcing activities impact the learning process, specifically human resource outsourcing. This paper intends to link these two concepts.

Design/methodology/approach

Several research articles related to Organizational learning and outsourcing have been read and reviewed. Based on the understanding from the literature the insights are summarised and discussed.

Findings

This paper demonstrates linkage between organizational learning and human resource outsourcing by putting forth the impact human resource outsourcing can have on organizational learning from both positive and negative lenses.

Originality/value

Not many studies have established the linkage between two important constructs- Organizational Learning and Human Resource Outsourcing. This paper intends to bridge this gap in the literature by highlighting both positive and negative aspects of HR Outsourcing on the learning capabilities of the organizations.

Details

Development and Learning in Organizations: An International Journal, vol. 35 no. 3
Type: Research Article
ISSN: 1477-7282

Keywords

Article
Publication date: 11 March 2014

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…

3533

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.

Details

Journal of Hospitality and Tourism Technology, vol. 5 no. 1
Type: Research Article
ISSN: 1757-9880

Keywords

Article
Publication date: 31 August 2010

Mandy Sim

Describes some of the dangers in outsourcing some humanresource management tasks while keeping others in‐house.

10172

Abstract

Purpose

Describes some of the dangers in outsourcing some humanresource management tasks while keeping others in‐house.

Design/methodology/approach

Explains why some organizations have decided to outsource aspects of their HR. Shows that the measure, usually designed to cut financial costs, can entail intangible costs.

Findings

Argues that major organizational change can be more difficult to achieve if part of the HR function is outsourced; that the recruitment process could be compromised; that outsourcing transactional aspects of HR can make it more difficult for HR people to get training in these areas; and that HR outsourcing can make an organization less flexible.

Practical implications

Contends that a shared service center could be a better option, in some cases, as it can keep humanresource functions in‐house while simultaneously contributing to cost saving by consolidating transaction‐based activities in one place within the organization.

Social implications

Advances the view that measures that can seem, on the surface, to cut costs, can end up being more expensive.

Originality/value

Concentrates on the non‐financial aspects of HR outsourcing.

Details

Human Resource Management International Digest, vol. 18 no. 6
Type: Research Article
ISSN: 0967-0734

Keywords

Book part
Publication date: 16 July 2018

Gary W. Florkowski

Three decades of academic and professional discourse on HR technologies (HRTs) have produced continued disagreement over construct definitions and research streams that are highly…

Abstract

Three decades of academic and professional discourse on HR technologies (HRTs) have produced continued disagreement over construct definitions and research streams that are highly fragmented. These realities suggest that greater consistency in meanings is sorely needed if we are to integrate and upgrade knowledge in this area. This chapter draws on the findings of a systematic research review to properly define the content domains of human resource information systems (HRIS), virtual human resources (virtual HR), electronic human resource management (e-HRM), and business-to-employee (B2E) systems. An integrative synthesis was performed on 242 system-level writings that appeared in the literature from 1983 to 2017. The weight of the evidence strongly supports treating HRIS, virtual HR, e-HRM, and B2E systems as independent, complimentary constructs. While the first three comprise a firm’s HRT system, the fourth construct is more appropriately positioned in the business-collaborative system. The sample was further evaluated with an analytic framework to detect patterns of practice in research designs. This revealed that much more attention has been focused on system actions and outcomes than on attitudes and system characteristics. Different units of analysis were well represented aside from trans-organizational studies. Finally, a case is made for better contextualizing HRT research by recognizing differences in assimilation stage, functional penetration, and collective proficiency. These factors are rarely mentioned, let alone studied, raising additional concerns about measurement error. Detailed suggestions are offered on ways to incorporate them. Together, these materials should promote more sophisticated and generalizable assessments of technology, improving our ability to understand its impacts.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78756-322-3

Keywords

Article
Publication date: 10 April 2009

Jean Woodall, William Scott‐Jackson, Timothy Newham and Melanie Gurney

The purpose of this paper is to explore and describe how the decision to outsource human resources was made by 12 large and five small organisations.

11379

Abstract

Purpose

The purpose of this paper is to explore and describe how the decision to outsource human resources was made by 12 large and five small organisations.

Design/methodology/approach

Desk research and key informant interviews with senior HR staff who lead the decision to outsource human resources in a purposive sample of organisations identified through an initial search of the professional literature and nomination by an expert panel.

Findings

The research identifies a number of drivers that lead organisations to consider outsourcing their HR. In large organisations cost considerations are dominant, but other factors arise out of the organisational history and context, and very often, senior managers from outside the HR function are very influential. For most organisations, paradoxically, the decision to outsource appears not to be made on the basis of a thorough analysis of costs, with consequences for the quality of HR service offered to line managers, and also for the career paths and skill sets required from HR staff.

Research limitations/implications

This study focuses upon the perceptions and experiences of senior HR managers, but excludes the perceptions and experiences of all staff employed in the HR function. Also, while the use of a qualitative research design makes it possible to uncover the individual perceptions and motivations of the key informants in the sample, there are obvious limitations in respect of statistical generalisation.

Practical implications

The findings relate mainly to the future shape of the HR function in organisations where HR activity is outsourced, with consequent implications for the skill sets and career paths for HR professionals.

Originality/value

The views of HR directors and senior managers have provided a valuable insight into the strategic decision to outsource HR activity and will be of interest to those involved in the same field.

Details

Personnel Review, vol. 38 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 12 July 2011

Dorothea Alewell, Sven Hauff, Katrin Weiland and Kirsten Thommes

The purpose of this paper is to analyse how characteristics of the HR department and HR work, which relate to resource availability and resource needs, influence HR outsourcing

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Abstract

Purpose

The purpose of this paper is to analyse how characteristics of the HR department and HR work, which relate to resource availability and resource needs, influence HR outsourcing. The study examines the subject of human resource (HR) outsourcing.

Design/methodology/approach

The potential influence of firms' characteristics on HR outsourcing is analysed theoretically and empirically. The dataset (n=1,021) covers a broad spectrum of personnel services and is based on computer‐aided telephone interviews with chief executives and human resource managers of German firms.

Findings

Generally, we find that firm size and previous reorganization activities significantly raise the probability of an HR outsourcing. In contrast, there is no overall significant influence of central characteristics of HR work or the HR department on HR outsourcing in general.

Originality/value

Although there is a trend toward the outsourcing of work, little research is being done on the relationship between the expected effects of outsourcing, the make‐or‐buy decision of decision makers, and the firm's characteristics themselves. This study sheds some more light on the relationship between HR outsourcing and firms' characteristics and finds some interesting relationships.

Details

International Journal of Manpower, vol. 32 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 November 2006

Tom Kosnik, Diana J. Wong‐MingJi and Kristine Hoover

The purpose of this paper is to develop a typology of human resource supply chain (HRSC) models that enable comparison of different models for making more informed strategic HR…

9496

Abstract

Purpose

The purpose of this paper is to develop a typology of human resource supply chain (HRSC) models that enable comparison of different models for making more informed strategic HR outsourcing decisions.

Design/methodology/approach

In the paper interviews and company documents were used to construct multiple comparative case studies.

Findings

The paper finds that five generic HRSC models were identified in two broad categories – two in‐sourcing models (local contracting and HR centralizing) and three outsourcing models (purchasing HR, non‐staffing HR, and staffing HR). Additional findings relate to the redistribution of power and competencies for managing HR within and between organizations.

Research limitations/implications

The paper shows that future research should account for different HRSC models to address various dependent variables, especially distribution of power and HR competencies in managing HR supply chains and contribution to firm performance. Future studies on strategic alliances can benefit from building on the HRSC models in building different types of partnerships.

Practical implications

In this paper it is found that managers have a means for comparison of different HRSC models to make more fully informed strategic outsourcing decisions and to develop related HR competencies related to each one of the generic models.

Originality/value

This paper clarifies critical differences in five different generic HRSC models that must be accounted for in research on strategic HR and outsourcing. Without understanding the differences in HRSCs, managers often unwittingly relinquish power and control over critical HR functions to other organizational units or vendor organizations.

Details

Personnel Review, vol. 35 no. 6
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 5 January 2015

Ingi Rúnar Edvardsson and Unnur Dilja Teitsdóttir

– The purpose of this paper is to analyse the application of outsourcing within Icelandic service companies in the wake of the banking collapse.

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Abstract

Purpose

The purpose of this paper is to analyse the application of outsourcing within Icelandic service companies in the wake of the banking collapse.

Design/methodology/approach

Findings are based on comparing surveys conducted in early 2009 (381 answers) and in the summer of 2013 (212 answers).

Findings

In general outsourcing did not increase, but most SMEs had extended their outsourcing in almost every area of operation, such as human resource management (HRM), IT and peripheral tasks. Also, more SMEs gave cost-reduction as a reason for outsourcing in 2013, and more respondents in 2013 expressed a positive experience of outsourcing. It is uncommon for companies to outsource human resources or lay off staff. Instead, outsourcing mainly focuses on aspects of information technology as well as administrative and peripheral functions.

Research limitations/implications

The research highlights service firms in one country by survey methods. Further research is needed in other sectors and countries, and more varied research methods are recommended.

Originality/value

Research on outsourcing in SMEs in the wake of the financial crisis is rare, and very few studies have focused on the HRM implications of outsourcing in SMEs. This study can inform researchers and practitioners on critical aspects of outsourcing.

Article
Publication date: 1 November 1997

Records the increasing trend toward outsourcing some of the activities of human resource departments, and presents figures from the USA; discusses the reasons why outsourcing is…

518

Abstract

Records the increasing trend toward outsourcing some of the activities of human resource departments, and presents figures from the USA; discusses the reasons why outsourcing is considered in this area, and reviews the type of services that are outsourced most frequently. Maintains that each service considered for outsourcing should be evaluated on its strategic, operational and maintenance aspects, and suggests a five‐step decision making process.

Details

Facilities, vol. 15 no. 11
Type: Research Article
ISSN: 0263-2772

Keywords

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