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What if HRM could focus on the HR activities that directly affect core business by delegating some tasks to an outside professional as HR department has a lot of responsibilities—from benefits, education and recruiting, to leadership development, change management and other things.These days, many company leaders are outsourcing responsibilities that could shift the focus for employees and are better left to experts
Agree with MR Fazlur Rahman and MR Tarig
The whole issue of HR outsourcing will depend on the type of organization and their functions. Generally, HR activities includes the following activities
A. Human Resources Planning
B. Preparation of Job description and Job Specification
C. Recruitment
D. Placement and on boarding
E. Training and Career Development
F. Management of HR records
Outsourcing could be done for “Recruitment” which includes advertising, screening of applications, shortlisting, written testing, group assessment, Interviewing and finally presenting the best three or four candidates to the prospective employer. No doubt, the recruitment is a big job but still the organization has a final say. The other issues as above are still in the hands of “HR department of the organization” in traditional organization.
For some organizations, which have a lot of blue color jobs like security guards, cleaners and messengers, probably they could outsource the full HR function related to this segment of workforce.
However, the office based positions and managerial positions may remain in the hands of HR department of the organization.
Another important issues is that with introduction of HR module in ERP, the field based or zonal based HR personnel could be reduced to a great extent and Head Office HR personnel could manage effectively with ERP module
When you outsource any task or service, it will only mean you are incapable of doing it. So, this is a gap or something lacking on you or your business but may not be a mistake and therefore, understood may not be your fault.
To my experience, recruitment can be outsourced since this is very time consuming in reading all thousand CVs or applicants without a system. So, in order to save time and start calling candidate, some companies outsource this type of task and pay private head hunters or company who can supply manpower need.
"You’re not where you work and your work is not you."
Howard Behar
Outsourcing is easy to be replicated by the competition; it leads to fragmentation and disintegration of the supply chain, inviting new competitors into the industry. It also nurtures corporate complacency; and it undermines a company’s relations with its labor, customers, and the domestic and local communities.
Top 6 Outsourcing Disadvantages Reasons That Outsourcing is Bad for Your Company
When you sign a contract to have another company perform the function of an entire department or single task, you are turning the management and control of that function over to another company. You will have a contract, but the managerial control will belong to another company. Your outsourcing company will not be driven by the same standards and mission that drives your company. They will be driven to make a profit from the services that they are providing to you and other businesses like yours.
You will sign a contract with the outsourcing company that will cover the details of the service that they will be providing. Anything not covered in the contract will be the basis for you to pay additional charges. Additionally, you will experience legal fees to retain a lawyer to review the contacts you will sign. Remember, this is outsourcing company business. They have done this before and they are the ones that write the contract. Therefore, you will be at a disadvantage when negotiations start.
The life-blood of any business is the information that keeps it running. If you have payroll, medical records or any other confidential information that will be transmitted to the outsourcing company, there is a risk that the confidentiality may be compromised. If the outsourced function involves sharing proprietary company data or knowledge (e.g. product drawings, formulas, etc.), this must be taken into account. Evaluate the outsourcing company carefully to make sure your data is protected and the contract has a penalty clause if an incident occurs.
The outsourcing company will be motivated by profit. Since the contract will fix the price, the only way for them to increase profit will be to decrease expenses. As long as they meet the conditions of the contract, you will pay. In addition, you will lose the ability to rapidly respond to changes in the business environment. The contract will be very specific and you will pay extra for changes.
Since you will be turning over part of the operations of your business to another company, you will now be tied to the financial well-being of that company. It wouldn't be the first time that an outsourcing company could go bankrupt and leave you holding-the-bag.
The word "outsourcing" brings to mind different things to different people. If you live in a community that has an outsourcing company and they employ your friends and neighbors, outsourcing is good. If your friends and neighbors lost their jobs because they were shipped across the state, across the country or across the world, outsourcing will bring bad publicity. If you outsource part of your operations, morale may suffer in the remaining work force.
Thanks
I am sorry dear , i have not enough experience in HR field , i will wait with you for more answers
Thanks for the invite ............................ waiting for an answer from the experts in order to get useful information
Thanks for invitation
I am apologies to answer this question because it's not my specialist field