Outsourcing HRM Functions Enhance Service Delivery Efficiency and Effectiveness

  • Uncategorized

OutsourcingHRM Functions Enhance Service Delivery Efficiency and Effectiveness

HRMinvolves managing the human resources to maximize their performanceto achieve the strategic objective of the business. Equally,Outsourcing entails getting external workers to do some of HRMactivities (Greer et al., 2012). The outsourced activities mayinclude low-rewarding and high risked activities which do not addgreat value to the business (Greer et al., 2012). The outsourcingwill enhance service delivery efficiency and effectiveness throughcost cutback, quality enhancement and allows more focus on corecompetencies.

Throughoutsourcing clerical tasks, the company can decrease the expenses ofproduct delivery and manage its cost efficiently (Harrison, 2013).Many organizations that have outsourced such activities have proventhat specialized providers deliver products at low prices due to theachievement of economies of scale (Greer et al., 2012). Otherwise,developing these functions would be costly to the organization andconsume unnecessary time that would be dedicated to the strategicactivities. Consequently, outsourcing tasks separate from thestrategic ones will successfully and efficiently save costs involvedin service delivery.

Outsourcingalso allows the companies to improve the quality of serviceprovision. The outsourced functions mainly come from greatspecialized vendors whose strategic focus rest on those functions(Harrison, 2013). Therefore, the external providers will ensuredelivering excellent services to the customers which in turnsatisfies the customers’ needs. Contrary, if the organization optsto provide these services, it will increase the employee’s workloadand hence compromise on the quality delivered.

Lastly,outsourcing allows focusing more on the main strategic function whichis critical to creating a competitive advantage in the business(Harrison, 2013). Outsourcing the HRM activities which are necessarybut not core to the strategic focus will enhance effectiveness byfocusing only on the activities that one is best at and thereforebecoming more flexible to addressing the changing business conditionsto remain in the market (Greer et al., 2012). Staying in the market,in turn, will efficiently transform the organization through accessto market opportunities to improve service delivery and customersatisfaction.

References

Greer,C. R., Youngblood, S. A., &amp Gray, D. A. (2012). Human resourcemanagement outsourcing: The make or buy decision. Academy ofManagement Perspectives, 13(3), 85–96. Doi: 10.5465

Harrison,S. (2013). Outsourcing and the “new” human resource management.Kingston, Ont.: IRC Press.

Close Menu