The paper “ Outsourcing - a Growing Trend and a Preferred Means of Procuring Services for Organizations” is an exciting example of the literature review on human resources. This paper presents an annotation of research articles on Human Resource (HR) outsourcing. This refers to the activity and process of transferring an organization’ s HR functions to external entities. It entails an organization making use of external support for internal HR management processes. It is a growing trend in management as one of the considerations organizations may have in the endeavor to manage human resource factors optimally.
Essentially, organizational HR priorities and needs form the basis for HR outsourcing determination. In Jeroen and Luc, the article seeks to demonstrate whether HR outsourcing is for strategic HR management or a cost-cutting measure of both. It reports a positive relationship between HR management (HRM) and outsourcing citing that the latter is more a strategy than just cost-cutting in organizations with a focus on HRM. HR devolution and outsourcing are reported as enabling the internal HR function to participate efficiently in strategic management. For strategic management, outsourcing has several implications.
It is a way of empowering HR function for strategic contribution. It also presents an alternative mechanism of efficiently managing the labour factor that managers have to weigh relative to others. Finally, the mechanism is among the plethora of many used to enhance management. The cost-cutting aspect is not an out-ruled benefit. It is among the benefits accrued. This article emphasizes that strategic management should be the main focus. To the growing literature on organization benefits from outsourcing, it is more emphatic on the strategic function than on the cost function. Irene et al focus on HR aspects of motivation and incentives in determining the relationship between outsourcing and service quality.
Using a game-theoretic procurement model on German firms the quality of HR output is evaluated comparatively for insourcing and outsourcing mechanisms. Analyses results indicate that HR output is higher when outsourced than when insourced.
Brian, K., John, M., and Thomas G., "Outsourcing HR: The impact of organizational characteristics ." Human Resource Management, Vol. 40, No.2 (2001): 125-138.
Ian, K., Jackie, C., and John P., "Outsourcing and the employee perspective." Human resource management journal, vol.9, no. 2 (1999): 5-20.
Institute of Management Services. Business process outsourcing. United Kingdom: Institute of Management Services , 2003.
Irene, B., et al. "HR Outsourcing and service quality: theoretical framework and empirical evidence ." Personnel Review, Vol. 40, No. 3 (2011): 364-382.
Jean, W., et al. "Making the decision to outsource human resources." Personnel Review, vol. 38, no. 3 (2009): 236-252.
Jeroen, D., and Luc, J., "HR Outsourcing: threat or opportunity." Personnel Review, Vol 37, No. 4 (2008): 543-563.
Kotabe, M, M Mol and J Murray. "Outsourcing, Performance, and the Role of E-Commerce: A Dynamic Perspective." Industrial marketing management, vol.37, no.1 (2007): 37-45. Availabe at http://wrap.warwick.ac.uk/4410/1/WRAP_MOL_imm-outsourcing_performance_and_the_role_of_e-commerce_-_final_2007.pdf
Lankford, W., and Parsa F., "Outsourcing: a primer." Management Decision, Vol.37, no.4 (1999): 310-316.
Linda, S., and Deborah, T., "Outsourcing HR Functions: When-and when not-to go outside." Journal of leadership & organizational studies, vol. 10, no. 1 (2003): 1-11.
Schlosser, F., Templer, A., and Ghanam D., "How human resource oursourcing affects organizational learning in the knowledge economy." Journal of Labor Research, vol. 27, no. (2006): 291-303.