This assignment is divided into TWO different parts and should be handled as such, with each part with its abstract main body, conclusion and reference.
Readings:
Abdul-Halim, H., Che-Ha, N., & Geare, A. (2009). The influence of business strategy on the decision to outsource human resource activities: A study of Malaysian manufacturing organisations. Journal of Human Resource Costing and Accounting, 13(4), 274–293
Foogooa, R. (2008). IS outsourcing: A strategic perspective. Business Process Management Journal, 14(6), 858–864.
Krell, E. (2011). Focus in to farm out. HRMagazine, 56(7), 47–49
Thompson, P. (2008). Will HR be about strategic partnership or operational support in 2028? Personnel Today, 12.
Woodhall, J., Scott-Jackson, W., Newham T., & Gurney, M. (2009). Making the decision to outsource human resources. Personnel Review, 38(3), 236–252
Different organizations in the same industry often end up in different locations along the outsourcing continuum. It is logical to assume that the running shoe industry, for example, would converge to one model and level of outsourcing. Since this logical conclusion is erroneous, think about the differential roles played by the HR departments in different athletic shoe companies.
Nike pioneered the use of outsourcing in the shoe industry, moving most of its production work to Asia. Adidas likewise once handled its own manufacturing, but also adopted the use of outsourcing in the 1990s. Consider why Adidas made the transition to this business model.
In contrast to Nike and Adidas, New Balance continues to maintain a manufacturing presence in the U.S. and the U.K. One consequence is that New Balance shoes tend to be more expensive, but the cost is addressed in marketing strategies. Consider why three major retailers in the athletic shoe industry would differ significantly in the ways that they view partnering or outsourcing.
The Krell article in your Required Resources argues that, in terms of human resource outsourcing, saving time is now generally more important than saving money. Based on your research, does this indeed appear to be the trend? Using information from articles, such as Woodhall, et al., “Making the Decision to Outsource Human Resources,” (2009), in your Required Resources, explain how decisions to outsource HR functions are typically made.
PART 1
WITH THESE THOUGHTS IN MIND:
Using the shoe industry scenario presented above as a point of reference, conduct additional research on the consequences of outsourcing HR functions. How are decisions to outsource HR functions typically made? Describe the positive and negative consequences associated with outsourcing HR functions. Are there factors other than cost or time savings that are important to consider in making these decisions? Who is usually involved in outsourcing decisions? What role should HR executives play in outsourcing decision making?
Part 2
Application: How Organizational Size Affects HR Outsourcing
In the business world, expanding the size of your organization usually seems to be a worthy goal. Of course, it does not take much research to find examples that disprove the rule. Whether bigger is better for a particular organization may be open to consideration, the Required Resources for this week support the idea that the size of an organization plays an important role in decision making processes, particularly in regards to outsourcing.
Articles, such as “The Influence of Business Strategy on the Decision to Outsource Human Resource Activities,” by Abdul-Halim and Geare (2009), in your Required Resources for this week, delve into the issues considered when deciding whether to outsource HR and other organizational functions, and HR’s role in the process. The Woodall, et al., article referenced in this week’s Discussion compares drivers that lead large versus small organizations to consider outsourcing their HR. Why are larger organizations usually more cost conscious, as the authors noted? Based on your research, is that the best approach?
From your research into organizational influences on outsourcing HR functions, what ramifications are there for HR executives in organizations that outsource HR functions? Is there a difference in the way larger organizations tend to make outsourcing decisions compared to smaller organizations?
To complete this Assignment, respond to the following in a 3- to 4-page paper:
• Analyze organizational influences on outsourcing HR functions.
o Describe influences that lead organizations to outsource.
? How does the outsourcing of HR functions address organizational issues?
o What are the positive and negative ramifications for HR professionals in organizations that outsource some HR functions?
? What implications are there for the career paths of HR professionals in this situation?
? How can HR professionals maintain viability in this situation?
? Might some HR professionals thrive in this situation? Explain how that could happen.
• Evaluate the impact of company size on organizational outsourcing decisions.
o Is there a clear pattern to how large organizations handle HR functions compared to small organizations related to outsourcing HR functions?
o How does the size of an organization factor into how these decisions are made?
? From your research, what factor do you think is the most influential? Support your reasoning.
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