The paper "Outsourcing at Yarra Bank" is a good example of a business case study. One of the core areas of strategic management is the issue of Human resource planning whose aim is to ensure that there is the effective management of human resources. In this regard, effective management of human resource would involve management ensuring that the quality and quantity of employees is well regulated at any given time. This also involves the company taking up strategic change decisions to ensure that they minimize costs without compromising on output, thus increasing the efficiency of the organization.
In this case, Yarra Bank which is in a situation to cut costs and maximize efficiency should pursue a number of staffing strategies to ensure that they achieve this objective (Noe, 2006). Outsourcing at Yarra Bank Internal sources from Yarra Bank’ s Managing Director, Kerry Brien indicates his belief that the best way to realize efficiency is through reducing the cost is through outsourcing employees. This sentiment has also been supported by various human resource experts. The experts have argued that outsourcing personnel comes with many cost benefits to the company while improving the quality of output of the organization (Gary, 2004). The Bank’ s CFO, Cecelia Vida agrees with the opinion that outsourcing is very beneficial to organizations which look forward to increasing their efficiency while minimizing their costs.
However, she has put forth that Yarra Bank’ s back-office staff are somehow opposed to the issue of outsourcing and other fundamental managerial reform strategies. This is because they have served for a relatively long period of time and are used to tightly defined jobs, which are performed at a standard rate of payment and accompanied buy sufficient job security.
This certainly would have an impact on how they would embrace change, and thus it would affect the success of change management in the human resource unit. The top management of the Bank has seen the need to increase the flexibility of its HR operations and to reduce costs of maintaining staff. This comes as they acknowledge that they can be effective in reducing the costs if the staff working at the back office would get to be much more flexible. This is because such kind of staff cannot just be sacked based on the fact that they are not reformists, yet most of them have served for periods exceeding two decades. The argument of the management directors just like any other top manager emphasizes on the need to avoiding the company running bankrupt as compared to keeping a good image.
This implies that much effort would be given to what the employees perform now as opposed to what they did in the past. This is because the Bank has to survive amidst the harsh economic climate that is subjected to it. The suggestion to improve staffing by unionizing the staff often also doesn’ t work well since the Bank union Staff would not be pro-work restructuring that may lead them to lose most of the members.
In addition, they also stand out to loose with regard to their incomes in the event that the restructures makes some people lose jobs. This would make them oppose the move to make staffing structures that may lead some members losing some jobs.
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