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the effect of training & development on employees
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What is it our company can do for yours? This is the motto of an organization devoted to outsourcing. These days no good company has done without some amount of outsourcing. Outsourcing is a cost saving method that companies employ by utilizing less labor and overhead in house. Instead companies pay much less to an outside firm to handle some of the duties that are more menial in nature, but important enough for management to consider necessary. To that end, just about any task can be outsourced, including the Human Resources Department. Through the use of Human Resources outsourcing firms save money on things such as: benefits administration, total absence management, defined benefits, 401k, etc. There are firms who outsource the entire Human Resources Department through programs called Direct HR or Total HR Management. Epson, in an online article for allbusiness.com states, “Some HR outsourcing firms are generalists, offering a wide variety of services, while others are specialists, focusing on specific areas such as payroll or recruiting. Depending on the size of your business and how much control you want to maintain over HR functions, you can either outsource all your HR tasks or contract for services a la carte (www.allbusiness.com).” Internal HR Consultants advise management as to whether or not HR outsourcing is necessary and beneficial for the firm. External HR consultants from these outsourcing firms demonstrate the benefits of HR outsourcing and why they should choose the organization the consultant is promoting.
These consultants need training and development throughout the life of their career. The impacts of training and developing employees to enhance the individual and organizational human capital will be discu...
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...ssay would be the myriad impacts of developing employees in general. Those impacts are: greater buy in by the employee due to their renewed desire to learn about the company, greater performance based on employee buy in, and impetus for the employee to drive company progress forward.
Works Cited:
1. What is HR Outsourcing. (2004, October), www.allbusiness.com.
Epson.http://www.allbusiness.com/human-resources/workforce-management-hiring/380-1.html
2. HR Consultant at Mercer HR Services, Extranet, http://www.mercer.com/servicestopic.htm?topicId=140200016&siteLanguage=100
3. Hewitt Associates; Mid- and Large-Size Companies Adopting Full Range of Hewitt's Outsourcing Solutions to Increase Efficiency and Lower Costs. (2010, January). Technology & Business Journal,116. Retrieved February 21, 2011, from Career and Technical Education. (Document ID: 1944383891).
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Usually the firms to which the activities are outsourced are specialized in their area of work and so the parent firm gets the advantage of getting the work done through competent employees. Therefore, outsourcing gives competitive advantage to the companies which can be easily sustained by them without much effort.
The significant level of outsourcing programs used across all business sectors is well documented in the literature (Bender 1999; Quinn 2000; Dun and Bradstreet 2000; Klaas, McClendon and Gainey 2001). Past research has progressed along several paths. First, some researchers have focused on motivations and reasons for outsourcing activities (Conner and Prahalad 1996; Greer et al. 1999; Sinderman 1995; Mullin 1996; Grant 1996; Frayer Scannell and Thomas 2000). According to this perspective, the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries or third party nationals (Greer et al. 1999). Most corporations believe that in order to compete globally, they have to look at efficiency and cost containment rather than relying strictly on revenue increases (Conner and Prahalad 1996). As companies seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core businesses (Mullin 1996; Grant 1996).
Taylor, Timothy. “In Defense of Outsourcing.” CATO Journal. Vol. 25.2. (Spring 2005): 367-377. EBSCOhost. Web. 14 Mar. 2014.
As everyone knows, that Outsourcing is an arrangement in which one company provide services for another company that missing or don’t have a specialty on certain area of expertise. Outsourcing is a trend that is becoming more common on information technology and other industries for services that have usually been regarded as intrinsic to managing a business.
HR outsourcing is not to be taken lightly, as while it can have beneficial consequences, it can also have harmful and irreversible ones as well. The outsourced areas are important, they provide the basis of the conditions of work, day-to-day management, and business climate. As such they require expertise and experience. According to Patrick Bouvard in his book 'HR outsourcing ', unloading technical tasks or high risk operations allows a company to reposition the resources of HRD on creative topics of values.
Outsourcing has been utilized by companies in sundry industries for many decades as a key business strategy (Ghodeswar and Vaidyanathan, 2008). Harmancioglu (2009) argue that several successful companies depend on outsourcing to continue being responsive in coping with market changes as well as to expand their operations globally. He also stated that outsourcing was primarily perceived and employed to reduce costs, however recently it has become a prevalent and essential tool to gain competitive advantage. There are various reasons that lead companies to outsource some of their functions, these include: cost cutting, entrance to new markets, and to concentrate on main activities (Ghodeswar and Vaidyanathan, 2008). Wright (2004) mentions a number of functions that a company can outsource, these include: human resources, customer care service, and information technology functions.
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
The word outsourcing could be described as the contractual relationship with a specialised outside service provider for work traditionally done in-house. Outsourcing could also be defined as the use of external agents to perform one or more organisational activities. In the last decade or so there has been a trend, particular among large scale companies, to hand over the whole or part of the distribution function to the external agents.
Outsourcing is the hiring out of work by a company to a separate existing unit or company with more specialization that can do them more efficiently and less expensively. This helps the company outsourcing work increase profit while shedding work. Over the years businesses have adopted the strategy ...
Training and development are important factors to the success of any organization. Each employee is a valuable asset that can either add to the success a company or contribute to its failure. Training supports and makes possible the development of new skills and knowledge. Offering training for employees at various levels within an organization assist employees develop the necessary skills and proficiency to be successful in their careers as well as prepare for new responsibilities.
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the
Nowadays, outsourcing is a viable expense sparing technique when used legitimately. It is now and again more affordable to buy an exceptional from organizations with comparative advantage than it is to prepare the great inside. As example of an assembling organization outsourcing might be Dell purchasing some of its components from an alternate producer to spare on handling expenses. Then again, organizations might choose to outsource book keeping duties to autonomous bookkeeping firms, as it may be cheaper than holding an in-house accountant.
Outsourcing is the process of subcontracting operations and support to an organization outside the company to replace performance of the task with an organization’s internal operations. (www.hjventure.com) Simply stated, outsourcing takes place when an organization transfers the ownership of a business process to a supplier. What makes this process so important is the fact that no matter what the product, there is a continuing effort to ship it outside of America to make it cheaper. This is the number one single reason for outsourcing, reducing or at least, control operating costs. It has been reported that on average, companies have seen approximately a 40% reduction in costs through outsourcing. (www.intozone.com) Because of this large reduction, it makes it almost impossible for similar companies to stay competitive unless they to begin to outsource.