The paper 'Outsourcing and Human Resource Management' is a perfect example of a Management Case Study. Outsourcing is a situation where an external company provides a service that would be performed within the organization. This essay describes under which circumstance local organizations fail to develop their workers and end up obtaining cheap labor outside Australia. Strategic Human Resource Management ideas have been well described from the two cases (OZ Bank case and OZ Widget case). The two cases point out clearly managerial issues that lead to outsourcing. Internal and external environments influencing employee recruitment have been described stating structural and organization systems as the main internal influences while political, cultural, and technological as the main external influence.
In conclusion, the essay has considered offshore workers as gambling and most organizations fail in the long-run. Organizations that outsource workers are admitting failure-they take a huge gamble on unknown persons Employees’ importance to organizational success has made organizations concentrate much on Strategic Human Resource Management. Over the last decade, research on issues of Strategic Human Resource Management (SHRM) has developed exponentially (Boxall and Purcell, 2003).
These issues include how the organization approaches human resources and the challenges it faces during this approach with the objective of making employees engage in their responsibilities and make the organization more competitive in the market. As a result, most companies have outsourced employees thus failing in their managerial control. More so, a company that allows an offshore contract is most likely to incur hidden costs as well as being publicly wounded by the political environment. Strategic Human Resource Management and management focus on strategy, environment, and organization as a whole (Fombrun et al, 1984).
The HR manager needs to be an employee champion in order to reach the set goals effectively (using minimum resources to maximize output in the organization). He/she should be an administrative expert as well to successfully redesign organizational activities to suit the objectives. Approaches in Human Resource Management take different dimensions depending on organizational goals and objectives. However, the activities involved during these approaches are usually similar. Although different organizations may take several paths, they have the same end that is encouraging growth and affluence as well as retaining and advancing their competitive advantage.
This is reached by capitalizing on human resource management and management of the organization. Human Resource Management deals with people directly while management deals with planning, organizing, controlling, staffing, and coordinating organizational activities. Goss (1994) gives four characteristics that differentiate HRM from the management; HRM takes responsibility for people while management facilitates, HR planning is proactive and it is usually integrated into the corporate strategy of the organization, employees are viewed as the basis of potential growth and development and HRM integrates both management and non-management practices to a common interest of the organization.
Simply, HR management involves moving executives’ ideas into employees’ hands. There are four key roles of the HR manager. The HR manager is a strategic partner in the organization. He/she translate firm strategy into action by managing people. The HR manager is an administrative expert. He/she redesign activities to meet goals demand. He/she is a champion and a change initiator too whenever a change is needed. Therefore any organization that recruits offshore professionals is most likely to miss these corporate roles that create unique organization behavior.
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