Resolution: Close down the Human Resource Department

Resolution: Close down the Human Resource Department

Introduction

It is hard for the company to achieve its set goals such as increasing market share, innovation, and increase presence globally without effective human resource management. A specific way HRM contributes to business strategy is by helping to build high-performance work practices. Companies started outsourcing their non-core support functions and other business processes to outside, third-party service providers to reap the benefits of cost-effectiveness and efficiency. In this way, these companies were able to concentrate on their own core competencies which enabled them to achieve the competitive advantage in their businesses. Human resources (HR) have long been the support function in any organization. However, it is not possible to entirely and wholly outsource the complete HR function as it is vital to the organization for the purposes of retaining some control. This case study emphasizes immensely on the importance of outsourcing of the HR functions in the organization.

Discussion

In the case study, Stewart goes beyond the Corporate Leadership Council regarding the outsourcing of HR functions in the company. He stated that pay-for performance, performance management, and personnel testing can also be outsourced by the company to reduce the cost and extra functions. Outsourcing is becoming a significant move in any organization where many organizations outsource whole or some part of different functions to complete its business operation.

Outsourcing Human Resource

Outsourcing in Human Resource has turned into a most used way in organizations. Any choice is recognized as a profitable one provided that it minimizes the expense, increments the quality and satisfies the key goals of the company. Along these lines, an association might outsource provided that it tasks that potential cost partnered to the general capacities of that specific division might diminish then it is achievable for the association to outsource. The major variable that influences outsource choice is expense. It is apparent that it comes to be hard for small and medium size companies to accomplish economy of scale by hiring exceptionally expert staff in Human Resource functions and satisfying related programs to Human Resource and exercises inside the company. In this manner, external suppliers are more expert in supplying required Human resource functions then it is reasonable to outsource. The choice of outsource likewise relies on company's proficiency to supervise certain capacities of Human Resource in-house. On the off chance that, outside suppliers are more capable in supplying needed Human Resource administrations then it is possible to outsource. This idea of additionally connected to new and most recent strategies advanced in the field of Human Resource that is out of scope of in-house Human resource work force because of absence of predominance and learning. It likewise hinges on the way of human resource action to be outsourced keeping in mind the end goal to give careful consideration to other vital objectives of company, for example recruitment and selection procedure are normally outsourced as contrast with payroll and regulatory work (MacVaugh, 2008).

Corbett (2004) highlights that outsourcing is based ...