HR Outsourcing
INTRODUCTION
Meaning of Human Resource - HR
As companies reorganize to gain competitive edge, human resources plays a key role in helping companies deal with a fast-changing competitive environment and the greater demand for quality employees. Research conducted by The Conference Board has found six key people-related activities that human resources completes to add value to a company:
1. effectively managing and utilizing people.
2. Trying performance appraisal and compensation to competencies.
3. Developing competencies that enhance individual and organizational performance.
4. Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.
5. Applying new approaches to work process design, succession planning, career development and inter-organizational mobility.
6. Managing the implementation and integration of technology through improved staffing, training and communication with employees.
Meaning of Outsourcing
Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally. An example of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs. Alternatively, businesses may decide to outsource book-keeping duties to independent accounting firms, as it may be cheaper than retaining an in-house accountant.
Meaning of Human Resource Outsourcing - HRO
Human Resource Outsourcing means that the HR function is outsourced to another company that specializes in HR and therefore the company that outsources HR does not have its own internal HR department. This can cut costs but a disadvantage is that the company it is outsourced to will not have intimate knowledge of the business and may therefore not be the best people to control HR practices.
Outsourcing, with a literal translation of
Meaning of Human Resource - HR
As companies reorganize to gain competitive edge, human resources plays a key role in helping companies deal with a fast-changing competitive environment and the greater demand for quality employees. Research conducted by The Conference Board has found six key people-related activities that human resources completes to add value to a company:
1. effectively managing and utilizing people.
2. Trying performance appraisal and compensation to competencies.
3. Developing competencies that enhance individual and organizational performance.
4. Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.
5. Applying new approaches to work process design, succession planning, career development and inter-organizational mobility.
6. Managing the implementation and integration of technology through improved staffing, training and communication with employees.
Meaning of Outsourcing
Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally. An example of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs. Alternatively, businesses may decide to outsource book-keeping duties to independent accounting firms, as it may be cheaper than retaining an in-house accountant.
Meaning of Human Resource Outsourcing - HRO
Human Resource Outsourcing means that the HR function is outsourced to another company that specializes in HR and therefore the company that outsources HR does not have its own internal HR department. This can cut costs but a disadvantage is that the company it is outsourced to will not have intimate knowledge of the business and may therefore not be the best people to control HR practices.
Outsourcing, with a literal translation of