Business Research for Decision Making IP 2
Tonja A. Brooks
This paper attempts to develop a framework for interrelationships among human resources information systems (HRIS), outsourcing, and corporate culture. This research investigates impacts of outsourcing HRIS on corporate culture. In this paper, we hypothesize that
Outsourcing corporate HRIS is less desirable (1) if the quality of product and customer service matters for a firm, (2) if an organization is concerned with a loss of intellectual property, and (3) if an organization requires maintenance of a distinctive, human resource utility activity that is capable of meeting the challenges of fast ...view middle of the document...
The trend toward moving HR functions to the digital world is speeding the pace of deploying solutions and clarifying business results and strategic goals. From HR’s position, technology development affects the entire workforce and delivers significant financial returns, which are an essential part of HR’s success as a strategic and value-adding intended to the business. Another growing trend in today’s global economy is the emphasis on an company’s core competences, which are useful, rare, expensive to duplicate, and organizational
specific. As a result, the outsourcing of non-core activities to reduce costs and to increase productivity and attention has become widespread among corporations. However, from the labor’s position, outsourcing represents a new threat contributing to job insecurity. The impact of outsourcing on employee morale and performance, as well as corporate culture could be significant. Other key concerns about corporate outsourcing include variety of services, privacy and security, and the future neglect of intellectual properties.
The purposes of this research are 1) to assess the current trend of applying technology to transform the traditional HR function and 2) to examine the impacts of outsourcing HR function or procedure on employee and corporate culture. Several hypotheses were developed to establish the foundation for further company executives in making the outsourcing recommendation on HR system.
Main issues associated with quality and outsourcing include the agreement on quality standards and practices, information sharing, and policies and procedures governing service delivery. It can be difficult for outsource service companies to understand your expectations for quality at a
low cost and reliable performance. This is much less likely to occur with an in-house HR manager. If an agreement between a company and the outsource service enterprise cannot be met, it may be worth keeping HR in-house. “If you want an outsourcing provider to meet specific customer service goals, you first have to establish benchmarks and determine which goals are reasonable.” Overall, the main purpose of excellence is cutting costs while still maintaining a quality product and/or service. When it comes to outsourcing, recent surveys show that improving customer service excellence has supplanted cost-cutting as a driver of outsourcing . Therefore, we hypothesize that If quality is a critical factor in companies
mission, then outsourcing will be less desirable.
HR outsourcing continues to be a popular business strategy. Although companies are now gaining more experience with the realities of outsourcing, however many are confronting
unrealistic expectations. For instance, the cost savings and service level they hoped for may not materialize. Major reasons are Lack of planning and implementation, not including vendor accountability, and the lack of opportunity to measure results are key factors in...