Human Resources Management: Utilization of Manpower

Part 1: Promoting Employee's Health and Safety

Part 2: Human Resource Planning

Part 3: Career Management and Development


PART 1: PROMOTING EMPLOYEES HEALTH AND SAFETY

Reasonable Working Conditions

Humane acceptable working environment that promotes,  and satisfies the physical, economic, psyco-social,and spiritual well being of the employees, promotes harmonious relationship between employees and management to enhance their dignity, provides motivation and recognition, and harness their potentials towards increased productivity and efficiency in the attainment of the goals and objectives of the employees as well as the organization for a more responsible public service.

Cause of work Connected Accidents and Work Related Illness

1.Unsafe Working Conditions such as defective machinery and equipment, hazardous procedures in handling machinery and equipment, unsafe storage and wrong piling, congestion, overloading, lack of protective device or equipment, and presence of dangerous chemicals or gases.

The basic remedy to all these causes of work connected accidents and illness is to eliminate or minimize the unsafe conditions.

2.Other Work-related accident factors like job itself (dangerous jobs) and work schedules (night shift, excess overtime)

3. Unsafe acts or the undesirable attitudes of some employees which can lead to accidents, such as throwing materials, improper use of equipment, not complying with the right procedure in loading, piling, mixing, and other production process, horseplay, and failing to wear PPE

Reducing unsafe acts can be done through propaganda, such as safety poster and the like. Safety training can also be done to reduce accidents.

The major categories of occupational illness

1.Occupational skin disease

2.Respiratory conditions due to toxic agents

3.Poisoning

4.Disorder due to physical agents

5.Disorder associated with repeated trauma

Cost of accidents

Direct cost- medical and hospital expense, sum of lost wages, insurance, administrative cost, rehabilitation of the injured employee, damage to equipment and the like.

Indirect cost- include the value of time lost by workers who were involved in giving first aid to injured workers, cost associated with investigating accidents, selection and training of replacement, attending to legal matters in serious cases, and others.

Human cost- this include physical lost of self esteem like being unable to live a normal life, heartache of losing a loved one, heartache of losing a family when the breadwinner is killed, and the like.

Accident prevention Strategies

Employee selection- selecting of individual with certain personality characteristics are more likely than others to be involved in industrial accidents.

Employee training- employers who provide all new employees with training on safe and proper job procedures experience fewer accidents

Safety incentive programs- this aim is to motivate safe behavior by providing workers with incentives for avoiding accidents.

OSAHS

(The Occupational Safety and Health Standards)

Passed on July 1, 1997 by the then secretary of labor,

Blas F. Ople was promulgated in accordance with the mandate of Labor Code.

Provides rules and regulations in the enforcement of health and safety in all establishments as provided in Labor Code.

Employees Compensations

Benefits under EC Program based on 1995 SSS and EC manual for members.

1.Medical services, appliances, and supplies provided to the afflicted member beginning on the first day of injury or sickness, during the subsequent period of his disability and as the progress of his recovery may require.

2.Rehabilitation services consisting of medical, surgical, and hospital treatment.

Physical rehabilitation therapy, artificial arms and limbs, crutches, wheelchairs, etc.

Vocational services: 2 year vocational course in an ECC accredited school; P 1,000 monthly transportation allowance and free project materials.

3.Income cash benefit for:

Temporary total disability or sickness. An income cash benefit equivalent to 90% of the average daily salary credit. It is payable for a period not longer than 120-240 consecutive days. If it persists after this period, the injury will be considered as a permanent total disability.

Permanent total disability. This benefit is monthly pension paid for as long as the injured lives plus 10% for each of the five dependent children beginning with the youngest and without substitution. Beginning Jan 1, 1991, the disability pensioner is also a given a supplemental allowance in addition to his monthly pension. Upon the death of an EC permanent total disability pensioner, the SSS will pay to the primary beneficiaries 100% of the monthly pension. In addition, his dependents will be paid the dependents pension.

Permanent partial disability, such as the loss of one thumb, finger, leg. A monthly pension is provided to the member, equivalent to the pension for permanent total disability but limited to the number of months designated by law for a particular disability.

Death. A monthly pension is provided to the deceased member primary beneficiaries plus 10% of such benefit for each of five dependent children, subject to some limitations. A funeral benefit will also be paid to any person who actually shouldered the burial expenses of the deceased member.

Career allowance of P575 monthly for permanent disabilities.

Lifetime pension to primary beneficiaries in case of death and five-year pension but not less than P 15,000 to the secondary beneficiaries.

Funeral Benefit of P10,000 effective May 1, 1994 for the private sector and P3,000 for the public sector.

Temporary total disability- is a disability which prevents an employee from performing his work for a continuous period not exceeding 120 days except when such disability requires medical attendance beyond 120 days, but not exceed 240 days.

Permanent Partial Disability-is a disability, which causes the harmful loss, permanently of the use of any part of an employee’s body.

Permanent total disability

A disability that lasts for more than the period prescribed for temporary disability and prevents an employee from pursuing his usual work and earning, complete lost of both eyesight, loss of two limbs at or above the ankle o wrists, permanent complete paralysis of two limbs, brain injury resulting in incurable imbecility or insanity, and such cases as determined by the system and approved by EEC.

Conditions where injury, sickness, or death can be compensable under employee’s compensation program

1.The employee is injure at the place where his work requires him to be

2.The employee is performing his official function

3.The injury is sustained elsewhere and the employee is executing an order for the employer

The injury, sickness, or death is not compensable if due to employee’s drunkenness, his wilful intension to injure or kill himself or another; and his notorious negligence.

Safety Programs

OSAHS encourages every organization to maintain an ongoing safety program. TO stimulate interest in safety and health programs, managers should demonstrate a sincere interest in them by means of preparing a policy statement that declares management’s concern about safety and health. Management leadership should also review all inspection and accident reports and check to make certain that hazards are eliminated.

The responsibility for safety and health activities needs to be shared by everyone since avoiding accidents requires the cooperation of everyone. All employee should know that careless and wilful disregard for safe practices might result in discipline and termination.

The program should also identify what hazards exist in the workplace and the need to develop a checklist of safety practices.

For the program to be effective, all employees and supervisors must receive adequate safety training. Employees should never perform a job until they have received adequate job instruction. A good safety program must also be prepared to handle injuries and illness, hence, being able to provide first aid and medical assistance at the first instance.

Another way to promote safety is through the use of protective clothing and devices for employees working in hazardous job situations. Some of these are helmets, goggles, face shields, filter respirators and gas masks, gloves, aprons and jackets.


PART 2: Human Resource Planning

HR Planning is both a process and a set of plans. It is how the organizations assess the future supply and demand for human resources. In addition, an effective HR plan also provides mechanisms to eliminate any gap that exists between supply and demand. Thus, HR Planning determines the numbers and type of employees to be recruited into the organizations or phased out of it.

HR Planning also involves linking a firm’s HRM practices to its strategic business needs, which have been identified by the strategic planning process. It may be done on both a short and long term basis. Its aim is to ensure that people will be available with the appropriate characteristics and skills when and where the organization needs them.

It is a process by which a company ensures that it has the right number and kind of people, in the right time, doing the things for which they are economically most useful. It is a method for determining future human resource requirements and developing action plans to meet them.

Why Conduct HR Planning?

1.For more effective and efficient use of human resource. HR planning helps in scheduling recruitment and selecting effectively by providing information that determine how many people are needed and kinds of people needed for job openings

2.For more satisfied and better developed employees. Employees who work for organizations that use good human resource planning systems have a better chance to participate in planning their own careers and to share in training and development experiences.

3.Through a systematic planning of human resource, a company can be better assisted in attaining its goals and objectives.

4.It can be an effective means of planning the development and growth of its employees.

Human Resource Planning Process

Six Distinct Phases or Stages

1.Situation Analysis and Environmental Scanning / Analysis of the current situation /   Forecastingsupply of manpower

The strategic plan must adapt to environmental circumstances, and HRM is one of the primary mechanisms that an organization can use during the adaptation process. For example, rapid technological changes in the environment can force an organization to quickly identify and hire employees with new skills that previously were not needed by the organization. This stage will reveal data of the current HR situation and its position of the national economy.

Objectives that may be used as gauge in identifying problems:

Optimum use of HR- provision of high – level manpower for critical occupations, provision of highly trained or skilled manpower, and channelling of manpower to more productive uses.

Conservation of HR

2.Forecasting Demand for Employees

Forecasting yields advanced estimates or calculations of the organization’s staffing requirements. Although many quantitative tools can help with forecasting, it involves a great deal of human judgement. It is necessary to have an indication of future development in order to plan out necessary steps. There are two considerations:

Whatis the manpower demand for specific types of manpower at any given point of time to perform various roles?

What is the best employment profile to be used for future trends?

The most important step in forecasting HR requirements is to identify what is forecasted. This requires the drawing of a forecasting model which would attempt to the three things:

1.Define categories of skills in terms of kind or amount.

2.Identify each type and level of job.

3.Identify those self-contained units which request separate quantitative HR forecasts.

There should be definitions of skill categories:

Managerial, Technical, Professional and Administrative, Manual/Operative supervisory, Clerical and office

3.Analyzing the Current Supply of Employees / Inventory of Manpower

This is to determine how many and what kinds of employees the company currently have in terms of the skills and training necessary for the future.

Useful tools in analyzing current HR situation in company:

HR Inventory– stock taking of firm’s employees, headcount of employees.

Skills Inventory – analyzing the individual skills and abilities of all kinds of employees at all levels.

Human resource audit– seeks to answer the question “what has been and is happening to our human resources?”

4.Forecasting HR Supply

The total stock of HR at any given time is the population count. Past trends, patterns, and expected developments give us a picture of future manpower supply.            An important element in the forecasting of labor supply concerns how many will leave. The length of service is an important indicator of leaving.

5.Reconciling HR requirements and supply forecasts

Both HR requirements and supply forecasts may reveal gaps which exist between employment and labor force; between occupations employed and occupations not employed; between employee educated and//or trained and those not educated and/or trained.

The main process include:

Assessment of performance of present work force.

Identification of possible discrepancies and imbalances compared with production targets.

Identification of possible causes for such imbalances and deviations.

6.Action plan development

After analyzing both the supply of and demand for future workers, these two forecasts are compared to determine what, if any action should be taken. Whenever there is a discrepancy between the demand and supply for future workers, the organization needs to choose a course of action to eliminate the gap:

Action decisions with a shortage of employees / Planning for growth

Recruitment – when HR plans indicate an undersupply of employees, firms can recruit personnel to staff jobs with anticipated vacancies.

Training and promotion – instead of hiring new workers to meet increasing demands, an organization may decide to improve productivity of the existing workforce through additional training.

Other options would be the use of overtime, additional shifts, job re-assignments, or temporary workers.

Action decisions in surplus condition / Planning for reductions

The current trend toward organization restructuring usually results in a smaller workforce. Therefore, when an organization’s strategic plan calls for restructuring, the HRM response is usually one of downsizing. Because of the negative outcomes that are often associated with lay-offs, employers are encouraged to seek alternatives such as: Attrition, Early retirement, Demotion, Freeze hiring, Termination, Restricted overtime

Evaluating the HR Planning Program

An ideal HR Planning Process would enable an organization to always hire exactly the right number of people at exactly the right time. Of course, such perfection is seldom achieved if ever, however, the planning process can be assessed in terms of relative accuracy and ability to provide the right mix of HR. That is, if the organization is usually able to hire the right kind of employees at around the time they are needed and the organization seldom has a surprise or a shortage of qualified workers, then its planning process may be deemed to be working effectively.

Human Resource Information System (HRIS)

A computer information package provides management with increasing capacity to record, store, manipulate, and communicate information to users and controlling the flow of information throughout the organization. It is an integrated and increasingly automated system for maintaining a database regarding the employees in an organization. For example, a properly developed HRIS should have details on every employee’s date of hire, job history in the organization, education, performance ratings, compensation history, training and development profile, and various special skills and abilities.

HRIS is very sophisticated computerized system that allows organizations to successfully cope with these information demands. Highly developed HRIS can be useful in nearly all HRM function.

Importance of an HRIS

1.An HRIS can handle most of the record keeping done by HR professionals, making it easier for these individuals to track compensation, payroll, benefits, insurance policies, career paths, and employed history

2.An HRIS can reduce paperwork and cut administrative costs.

3. Organization members outside the HRM department can more easily access the information they need.

4. HRIS files can be essential for filling vacant positions. It can track external candidates since it can retrieve a range of highly detailed information about applicants and their employment needs.

5. Make budget-related calculations since HRIS can be used to calculate overtime pay and pension benefits at different retirement ages.

6. The HRIS provides employees the capability to view their personnel and training information. Supervisors have the added capability of viewing information related to all employees that are assigned to their organization.

Information Provided by HRIS

1.Reports for all employees.

Current Status – information related to employee’s current job classification, pay level, service times, promotions / awards, and education.

Personnel History – information related to employee’s past personnel actions such as awards, promotions, and pay raises received.

Training History – information related to employee’s training classes attended while employed at the company.

2.Reports for Supervisor – it includes promotion review, information concerning employee’s awards and promotions, personnel roster, employee job title and grade information listed by organization code, number of employees by department, head counts of employees by department, employees’ training, listing of employees who did not attend a specific training course, and other information as requested by the company

HRIS and the Internet

Intranet– are internet networks, accessible only to employees within the company, where a great deal of HR information can be stored such as employee handbooks, benefits information, phone directories and job postings. Intranets enable companies to save money by eliminating printing and distribution costs.

Extranet– link a firm’s Intranet to a variety of outside organizations and vendors. It gives employee’s secure access to information and services from outside parties. In here, they can conduct online transactions including reallocation of funds.

Alignment of Business Planning and HR Planning

HR planning involves every phase of the company. It must translate company plans into HR requirements and evaluate the current performance levels of individuals and predict their potential. It provides career management or charting; and provides systems, forms, guides, and charts for matching job requirements with skills available. It encompasses everything that concern people – its cost, morale, leadership, productivity, forms of compensation, and conservation of the resource,,

Long Range Planning– to survive more than the next year or two, organizations must engage in long range strategic plans.  Top executives need to formulate a corporate philosophy that identifies what an organization is about, what it expects to do, and why it exists. The mission needs to be examined to determine what useful products or services the organization should produce.

Middle Range Planning– these may be stated in terms of sales, number of units produced, or some other index of business activity. It involves forecasting how many employees will be needed within each job category to achieve the business goals.

Short Range Planning– often overlooks the HR requirements. Budgets and economic forecasts are frequently developed without a careful analysis of whether the HR will be available to achieve them. Supervisors and managers should anticipate the number of employees and the kinds of skills and training needed to achieve the business objective.


PART 3:Career Management and Development

Before, individuals join an organization and often stay with it for their entire working careers. To recognize employee’s loyalty, organizations provide gold necklace, watch, service pins, and others to reward and recognize employees who have stayed with the company for years. From the organization’s viewpoint, career development can reduce costs due to employee’s turnover. Taking an interest in an employee’s careers can also improve morale, boost productivity, and help the organization become more efficient.

Recent data from different source reveal that although most employees remain happy in their work, they are growing increasingly concerned about their career prospect at their present companies (Peter James. Replacing the Ladders. People Management, May 31, 1995)

From the organization’s viewpoint, career development can reduce costs due to employee’s turnover. Taking an interest in an employee’s careers can also improve morale, boost productivity, and help the organization become more efficient.

Definition of Terms

Career development – prepares a person for progression along a designated career        path. This is the organization’s formal approach to ensuring that people with the proper qualifications and experiences are available when needed.

Career management – the process through which employees become aware of their interests, values, strengths, and weaknesses.

Career – a general course that a person chooses to pursue throughout his working life.     It is an individually perceived sequence of position occupied by an individual during the           course of one’s lifetime.

Career planning – a process whereby an individual sets career goals and identifies the    means to achieve them.

Organization’s career pathing – is that phase of HRM that sets up paths along which    the individual moves and progresses over time in the organization.

Career path – a flexible line of progression through which an employee typically moves   during employment with a company.

Career anchor - self-concept based on differing work motives and abilities / guides; stabilizes and integrates a person’s work experiences.

Career plateau – likelihood of additional hierarchical promotion or further job        advancement is low or permanently or temporarily blocked.

Career pathing – process by which an employee and his supervisor plan a career progression that takes into account present experiences and skills.

Objectives of Career Development

1.To meet the immediate and future HR needs of the organization on a timely basis.

2.To inform the organization and the individual about potential career path within the organization.

3.To utilize existing HR programs to the fullest by integrating the activities that select, assign, develop, and manage individual careers with the organization’s plans.

Career and the Individual

The following are key information about career development from the perspective of the individual taking the initiative to plan his own career.

Finding a Suitable Field

Find a field that holds the promise of bringing one personal satisfaction and material rewards.  Among the more frequent ways in which people find a field or occupation within the field to pursue are the following:

1.Influence of parent, relative, or friend

2.Reading and study / colleges’ course catalog

3.Through counselling or testing

4.Professors, including academic adviser

5.Natural and forced opportunity

It is also important to seek valid information about career fields so that one can find a good fit between oneself and existing opportunities.  Finding a suitable field also involves self- assessment. This refers to the use of information by employees to determine their career interests, values, aptitudes, and behavioural tendencies.

The following is very ideal for those who are planning to pursue their tertiary education:

Examination or self-assessment of your interests. What type of things excites you? What type of jobs or careers appeal to you?

Examination of your abilities.This is identifying your strengths, weaknesses, and the skills that you have.

Examining what you value in work. Examples of values include: helping society, working under pressure and group affiliation.

Career exploration. Explore a general list of occupations or search for a specific occupation that you are interested in.

Reality check. This is the need to honestly evaluate your options.

Narrowing your choices and focusing on choosing a major. Based on all your research and self-assessment of the first five stops on your journey, you should now have a better idea of the careers that do interest you.

Conducting a Job Campaign

Some people who have identified the field do not have to look for a job. Others have to conduct a job campaign upon graduation and perhaps at various times in their career. The three major aspects of the job campaign are job hunting tactics, preparing a resume, and performing well in an interview.

Establishing Career Goals

Career planning in the form of goal setting and establishing a career path ideally precedes finding a job. These goals usually relate to desired positions, level of skill application, or skill acquisition.

Establishing a Career Path

This pertains to a series of positions in one or more organizations leading to a long term goal. Developing career paths involves analyzing work and information flows, the type of tasks performed across jobs, similarities and differences in working environments, and the historical movement patterns of employees into and out of the jobs.

Career Advancement Strategies and Tactics

This may involve enrolling in training courses and seminars, networking or establishing linkages, and the like. This can be interpreted as ways of advancing one’s career because most of them help one acquire more.

Career Switching

This refers to changing from one career to another. People switch careers for such reasons as boredom with the present career, being forced into early retirement, or being laid-off and unable to find a job in one’s present field. In some cases, employees decide to switch career because of skills obsolescence.

Making Career Changes

Career change or career switching is a natural life progression as most studies show that the average jobseeker will change careers several times over the course of his lifetime. Here is a 7-step plan to help and lead you on a path toward career change success:

Assessment of likes and dislikes.- This is determining what excites you and energizes you by using the self – assessment exercise.

Researching new careers – Research the types of careers that center around your passion.

Transferable skills – Leverage some of your current skills and experience to your new career like communications skills, leadership, planning, and the like.

Training and education – You may find necessary to update your skills and broaden your knowledge. Take it slowly.

Changing In or Out – Some people change careers but never change employers.  Remember not to start asking about a job switch until you are completely ready to do so.

Job-Hunting Basics – Consider spending some time in retooling. There are web sites which provides guide to researching companies, preparing resume, cover letter, interviewing, and the art of salary negotiation.

Be flexible – Set positive goals for yourself, but expect setbacks and change – and do not let these things dampen your spirit.

Retirement Planning

This completes the career cycle. People should adequately plan for retirement both psychologically and financially. This includes planning a new lifestyle that would bring rewards similar to those they received during their working years.

Career Stages

1.Growth stage – the period from birth to age 14 during which a person develops a self-concept by identifying with and interacting with other people.

2.Exploration stage – the period during which a person seriously explores various occupational alternatives, attempting to match these alternatives with his interests and abilities. Two factor in this stage appear to be initial job assignment and characteristics of the first supervisor or mentor

3.Establishment stage – the period roughly from ages 26 to 44, that is the heart of the most people’s work lives.

4.Maintenance stage – between the ages of 45-60 during which the person receives his place in the world of work and most efforts are now directed at maintaining that place.

5.Decline or disengagement stage – the period during many people are faced with the prospect of having to accept reduced levels of power and responsibility.

Career Planning

Career Management for New Employees

New employees usually encounter a number of potential problems including their initial job and its accompanying challenges. Disappointments with initial job assignments frequently spills over into their attitudes and job satisfaction. Possible solutions to this concern are realistic job preview, challenging job assignment.

Career Management for Mid-career Employees

Some mid-career problems include mid-career plateau and job loss. Most employees after progressing through two or three levels in the organization and receiving commensurate promotions are likely to encounter a plateau when further advancement is less.

Late Career Stage

This is the final stage in an employee’s career where he has already reached an age of adulthood and should eventually prepare himself, either for a bigger responsibility or for retirement. The aging work force and the use of early retirement programs to shrink companies’ work forces have three implications.

1.Companies must meet the needs of older employees.

2.Companies must take steps to prepare employees for retirement.

3.Companies must be careful that early retirement programs do not unfairly discriminate against older employees.

Developmental Needs during Late Career

1.Senior Leadership roles

2.Productivity

3.Effective retirement

Organizational Action during Late Career

1.Understanding older employees

2.Performance standards and feedback

3.Education and job restructuring

4.Establishment of flexible work patterns

5.Development of retirement planning programs

6.Early Retirement

Career Plateau

This is defined as the point in a career where the likelihood of additional hierarchical promotion is very low. Plateauing means unanticipated and unwanted levelling of career due to the elimination of layers of management through corporate restructuring.

Employees can have career plateau for several reasons such as lack of ability and training, low need for achievement, confusion about job responsibilities and slow company growth resulting in reduced development opportunities.

Management Career States

Learners of Comers– these individuals considered to have advancement potential.

Stars– these individuals are seen as doing high quality work.

Solid citizens– these managers, seen as doing good or even outstanding work, have for one reason or another little, if any, chance for further advancement.

Deadwood– these individuals are seen as having little or no chance for advancement, and their current performance is seen as marginal or inadequate.

Causes of Plateaus are the following: Changing skill requirements, Flattening organizations, Boomer bulge, Increased automation, Contingent workers, and Shifting career expectations

Three actions that can aid in managing the plateauing process:

1.Prevent plateauees from becoming ineffective

2.Integrate the relevant career – related information systems

3.Manage ineffective plateauees and frustrated managers more effectively.

Rehabilitating Ineffective Plateaus:

1.Provide alternate means of recognition

2.Develop new ways to make their current jobs more satisfying

3.Effect revitalization through reassignment.

Identifying Occupational Orientation

Career counselling expert John Holland says that a person’s personality is another determinant of career choices.

Identifying Career Anchor

A career anchor is a self-concept based on differing work motives and abilities. This self-concept guides, stabilizes and integrates a person’s work experiences. There are five career anchors:          

Managerial competence – The primary orientation of people in this group is to develop managerial abilities of interpersonal competence, analytical competence, and emotional competence required at the high levels of management.

Technical / Functional Competence – the primary orientation of these people is the actual work they do and their wish to continue using and developing their skills.

Security – the orientation of this group of people is primarily to search for security. This type of person will accept with little question the organizational prescriptions for his career

Creativity – orientation of these people is toward creating something that is entirely their own, whether it be a product, a company, a work of art, or a personal fortune.

Autonomy – independence – an orientation to avoid working under the constraints of organization life, and looking for freedom and independence.

Career Management Responsibility of the Manager, the Human Resource Manager, the Company, and the Employee

Nothing can absolve the manager and the employer from their key role in career development. Guidelines here include the following:

1.Avoid reality shock

2.Provide challenging initial jobs

3.Be demanding

4.Provide periodic job rotation and job pathing

5.Provide opportunities for mentoring

Human Resource Manager’s Role

The human resource manager should provide information or advice about training and development opportunities or provide specialized services such as testing to determine employee’s values, interest and skills.

Company’s Role.

Companies are responsible for providing employees with the resources needed to be successful in career planning. These include the following:

1.Career Workshops

2.Information on career and job opportunities

3.Career planning workbooks – printed guides that direct employees through a series of exercises, discussions, and guidelines related to career planning.

4.Career counselling – advise from a professionally  trained counsellor who specializes in working with employees seeking assistance with career issues.

5.Career paths – planning job sequences, identifying skills needed for advancement within and across families such as moving from technical jobs  to management jobs.

Employee’s Role.

Regardless of how sophisticated the company’s career planning system is, employees should take several career management actions:

1.Take initiative to ask for feedback from supervisors and peers regarding their skill strength and weaknesses.

2.Identify their stage of career development and development needs.

3.Gain exposure to a range of learning opportunities.

4. Interact with employees from different work groups inside and outside the company.

SHORT CASE for Discussion

Write your aswer on the "comment"  below.

Title: Outsourcing some HR function

Meynard Punzalan is the new HR Manager of Cafco, inc. which was once the finance and treasury division of Caffdeco, Inc. Cafco, Inc. became a separate business entity after Caffdeco Board decided that Cacfco can now stand on its own and operate with a separate book of accounts. Meynard was the former assistant to the Vice President of HR for Caffdeco so he believed he was well prepared to deal with his new responsibilities as HR Manager. However, the new company does not have the unlimited resources of the older one, therefore reducing operating costs is a necessity. Although Meynard was not totally enthusiastic about the idea, outsourcing of certain HR functions such as recruitment, initial screening of applicants, and the like appeared to be a solution. Even though he had no previous experience with outsourcing, he believed it would be a way of relieving some of the burden on his rather a small staff.

Question: Discuss the pros and cons of outsourcing. Justify the decision made by Mr. Punzalan

 

Try this quiz! Please print screen the result and submit in hard copy. 

About the Author:

Rebecca Mauhay Nunesca is a Professional Industrial Engineer, and an ASEAN Engineer currently connected at Batangas State University as Faculty Staff in the IE department. She is presently enrolled in MS Engineering Education, major in Industrial Engineering at Rizal Technological University.

 

Reference:

Corpuz, Cristina Rafol, Ph.D, Human Resources Management (Revised Edition) 2006, Rex Book Store 

Subjects:

Comments

Outsourcing can be a a very helpful corporate tactic especially when there are core functions that an enterprise must lay more focus on. I believe the advantages of outsourcing are: 1. Cost Savings (in the long-run); 2. Quality Services (as the third party is usually an expert in such services); and 3. Risk Mitigation (as the risk of failure is passed onto the third party). However, I see one disadvantage: the Lack of Company Knowledge. The third party is not part of the enterprise, thus, does not share the same core values and missions. Mr. Punzalan's decision would be WELL-JUDGED if indeed he is under-staffed for the workload which his department is expected to do. It would have been WRONGLY JUDGED if his staff could have been re-briefed and his management re-systematized so as to meet more objectives more efficiently.

The key is to understand your business and its goals and decide how outsourcing might help you attain them. The biggest benefit of outsourcing is its ability to save you money. One disadvantage to outsourcing is that you are putting part of your company in someone else's hands. You have to ask yourself if you can trust them, if you think they'll stay in business and if they can adapt to your growing and changing needs.For Mr.Punzalan it is to carefully think through each function in your business and figure out which tasks make sense to outsource.then just try it! In most cases, common sense will see you through.

In business, outsourcing is the contracting out of a business process to a third party. It is also used to describe the practice of handling over control of public services to for-profit corporation. The advantages of the outsourcing for the company is to avoid certain cost such as business expenses, high taxes, high energy costs, excessive government regulation/mandates, production and/or labor costs. On the other side, outsourcing also has disadvantages. Risk of exposing confidential data, when an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party. I think Mr. Punzalan’s decision was not right to have an outsourcing in their company because the company wants to reduce their operating cost and Mr. Punzalan does not have any experience with outsourcing.

Outsourcing brings in a lot Of flexibility and financial freedom but it also has its pitfalls. One of the biggest advantages of outsourcing is cost savings. The lower cost of operation and labor makes it attractive to outsource. A company's cash-flow can be streamlined. The disadvantage is that problems with quality can arise if the outsourcing provider doesn't have proper processess and/or inexperienced in working in an outsourcing relationship. I think Mr. Punzalan should have atleast undergo first in training since the companys future depends on his hand.

Outsourcing is a very good business strategy and there are so many reasons why this is the case, including the fact that you are allowing important processes in your company to be handled by experts in the field. For me the pros of outsourcing are: 1. Employing people- to carry out the same operations in-house would require quite a considerable chunk of time to train the staff 2. Diminishing Returns- individuals who obtain lift-out opportunities benefit by their early mover status 3. Eliminate staffing issues- External service providers typically handle all of the hiring, training, scheduling, and managing this can save your company time, money and headache. and the cons of outsourcing are: 1. Linguistic and cultural barriers- Agents located overseas may lack the cultural knowledge, fluency and communication skills necessary to provide excellent support. 2. Hidden costs- Costs associated with unforeseen legal issues, 3. Security and privacy concerns- confidential or sensitive information may be less secure than with local agents who have undergone a strict background check. Meanwhile, human resources is an area of business which is filled with core duties that must be handled on a daily basis, but can prove a huge burden if an employee is trying to juggle these tasks with their other work commitments. and for the decision made by Mr. Punzalan should be 100% sure of what he is doing because the company is at sake and if there is enough money to substantiate outsourcing then it will pay off in the scheme of things.

Outsourcing can be very beneficial to a company in terms of having new ideas that can be used for new development. Also they can strengthen their process with their new ideas. The disadvantage of outsourcing is that the applicant that will be hired don't have enough knowledge when it comes to the operations inside the company. Also, additional cost will be occur because of seminars and trainings. Another disadvantage is that it will take time for the employee to learn and with this he can't fully operate well. The decision of Mr. Punzalan is not right because he don't have enough knowledge in outsourcing. He should ask for help because without help and knowledge it may cause problems in the future.

In today's business environment, strategies are more important. One strategy that Mr. Punzalan choose is outsourcing. There pros on outsourcing: 1. REDUCE THE RISK AND CUT COSTS. With these resources are used in the most effective way, letting the business anticipate the market requirements. Mr. Punzalan was right, even he don't have the experience with outsourcing, he take the risk just to limit there resources. 2. FLEXIBILITY- their management must be flexible enough to adapt to a business environment. 3.JOB SECURITY FOR REGULAR EMPLOYEES- third pros can also be cons because, hey can more easily drop or add people to the workforce without jeopardizing the companys reputation as a stable employer. But the advantage of there, the outsourced employees can build stronger relationships with others. Cons of Outsourcing 1. BUSINESS IS HARD TO OUTSOURCE. 2. LOSS OF CONTROL- With outsourcing, they can know how match the responsiveness and service levels to the same management direction and control to employees. 4. BAD FOR EMPLOYEE MORALE-Outsourcing often results in layoffs or the transfer of existing employees. Mr. Punzalan decision was right. Take a risk, outsourced and target their goals. Don't let his experience conquer your decisions.

Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. But there are some advantages and disadvantages at outsourcing. Some advantages of outsourcing. • Financial benefits – through this balance sheet can be clean up by eliminating assets, and have a more stable cash flow • Strategic optimization – consider your company's core mission and whether it is relevant to continue certain operations • Better management of the outsourced activity – you can choose a supplier that is a leader in the field • Market discipline – You can align your costs with those of suppliers in the field • Technology – In theory, you gain access to state-of-the-art technologies • Flexibility – The resources no longer used in one area can be redirected to the company's core operations Some risks of outsourcing. • Loss of expertise – You lose know-how and skills that may prove critical to your long-term competitiveness. • Dependence on the supplier – If you resume carrying out the outsourced activity yourself, it can take years to reach the level of performance you used to enjoy. • Loss of control over costs – Improved production facilities may generate larger gains than outsourcing. For me, Mr. Punzalan decision in outsourcing is right, because he don't have knowledge in recruitment and initial screening of applicants that's why he outsourced or asked a third-party company to work for him on a contractual basis to avoid recruiting failures.

Outsourcing is a business tool that uses the best combination of low cost but high quality local and global resources in order to deliver the best service or product to customers. Advantages:  It avoids certain cost such as high taxes, high energy costs, excessive government regulation/mandates, and production and/or labor costs.  Increase in productivity. Outsourcing is a very useful intervention that enables companies’ employees to work round the clock without adding to employee turnover and loss of productivity.  Top and middle management can focus more on strategizing on adopting outsourcing. Disadvantages:  Loss of control can occur due to outsourcing. Involvement of an intermediary can always pose problems if they are not well selected or the outsourcing services agreement they have signed with the client is not a proper one.  Loss of customers is possible due to outsourcing. If a company decides to outsource a function that used to be done on-site, some customers may feel disconnected as the company no longer performs this function itself.  Security issues and outsourcing.  Lower quality work can result due to outsourcing. If outsourcing vendors are not chosen well, or if user of outsourcing services doesn’t manage the outsourcing vendor properly, then it can result in low quality of work. Because of their company limited resources, for me the decision of Mr. Punzalan is just right. Because of his decision he can reduce the cost that their company that will be incurred. Mr. Punzalan doesn’t have knowledge on recruiting or selecting of a new employee for the job so that it would be better for them to outsource to their third party a person’s that have a experience in that work.

Pros of Outsourcing • Outsourcing can make the organization more flexible to change, save capital and it can help to cut its operational costs. • The organization can experience increased efficiency and productivity in non-core business processes. • It can make the company more flexible to change. • To have a fresh and new idea regarding the problem of the company. Cons of Outsourcing • Through cost effective, outsourcing might have hidden costs, such as the legal costs incurred while signing a contract between companies. You might also have to spend a lot of time and effort in getting the contract signed. • There can be a several advantages like lack of communication, poor quality and delayed services amongst others. • The company might also have to spend a lot of time and effort in getting the contract signed. For me, the decision made by Mr. Meynard Punzalan was right, because it can help the organization to reduce the costs and because of like what he believe - it would be a way of relieving some of the burden on his rather a small staff. They will have unlimited resources for the new and better one (employee). Even though he didn’t have enough knowledge in recruiting and screening new applicant, outsourcing of the person who enough knowledge regarding to that position was good. It will get the team work effectively together.

Pros of Outsourcing • Outsourcing can make the organization more flexible to change, save capital and it can help to cut its operational costs. • The organization can experience increased efficiency and productivity in non-core business processes. • It can make the company more flexible to change. • To have a fresh and new idea regarding the problem of the company. Cons of Outsourcing • Through cost effective, outsourcing might have hidden costs, such as the legal costs incurred while signing a contract between companies. You might also have to spend a lot of time and effort in getting the contract signed. • There can be a several advantages like lack of communication, poor quality and delayed services amongst others. • The company might also have to spend a lot of time and effort in getting the contract signed. For me, the decision made by Mr. Meynard Punzalan was right, because it can help the organization to reduce the costs and because of like what he believe - it would be a way of relieving some of the burden on his rather a small staff. They will have unlimited resources for the new and better one (employee). Even though he didn’t have enough knowledge in recruiting and screening new applicant, outsourcing of the person who enough knowledge regarding to that position was good. It will get the team work effectively together.

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. The pros and cons of outsourcing of HR department is, they enables their company to concentrate on their core competencies, ultimately resulting in better productivity and results for the company. They can also utilize their resources more effectively, as their department is taking care of their company. It is important to the company to make this outsourcing for them to increase their cost savings and to meet the quality of their product. And with regards to the decision made by Mr. Punzalan for me he is wrong because he has a lack of knowledge and backgrounds with regards to this outsourcing. He need to have a training first about this before he made a decision because the future of the company is based on his decisions.

Outsourcing allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, which might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. I think the advantages of outsourcing are: • Swiftness and Expertise • Concentrating on core process rather than the supporting. • Risk-sharing • Reduced Operational and Recruitment costs On the other hand, the disadvantages of outsourcing are risk of exposing confidential data, synchronizing the deliverable, hidden costs and lack of customer focus. For me, Mr. Punzalan's decision is right because he don't have enough knowledge in recruitment process that's why he outsourced on a third party company to help them and by that he can lessen the cost incurred of the company.

Outsourcing is the process by which a company contracts another company to provide particular services. There could be several reasons why companies outsource work.The most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers and have fewer overhead expenses to worry about. Outsourcing has also a disadvantages. One of these is that it often eliminates direct communication between a company and its clients. This may prevent a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. There is also the danger of not being able to control some aspects of the company, as outsourcing may lead to delayed communications and project implementation. The decision made by Mr. Punzalan is not right because at the first place he doesn’t have enough knowledge and idea to deal with outsourcing of certain HR functions. I think the first thing that Mr. Punzalan do is to have a training and experience about outsourcing so that he will know on how to apply it correctly.

Outsourcing is often undertaken to provide enterprises a competitive advantage by delegating business process to external agencies and realizing the benefits of low labor, better quality and improved innovation. While this provides a good picture of the fair side of the coin, most managers however need to grope with the possible shortcoming of the process and the corresponding impact on the company’s core processes. I think Mr. Punzalan should study the situation very carefully and discuss the problems to the top management first.

Outsourcing is often undertaken to provide enterprises a competitive advantage by delegating business process to external agencies and realizing the benefits of low labor, better quality and improved innovation. While this provides a good picture of the fair side of the coin, most managers however need to grope with the possible shortcoming of the process and the corresponding impact on the company’s core processes. I think Mr. Punzalan should study the situation very carefully and discuss the problems to the top management first.

Outsourcing can really be beneficial for a number of reasons. Some companies enjoy benefits such as reduced labor costs, larger workforces, access to industry experts and increased flexibility through outsourcing. Although there are pros, it is important to look at both the pros and cons of outsourcing because it might affect the whole firm once you failed to do it right. With regards to the decision of Mr. Punzalan, I think doing an outsourcing without a broad knowledge and experience about it might be unsuccessful for the reason that it is better to make a decision if you already had encountered it from your past experiences for you to know the possible effects it might bring to your company.

Outsourcing can increase productivity and efficiency; a business can be more successful and better-prepared for market challenges. But outsourcing had a disadvantage, like if important functions are being outsourced; an organization is mightily dependent on the outsourcing provider. Risks such as bankruptcy and financial loss cannot be controlled. And also, since the outsourcing provider may work with other customers, they might not give 100% time and attention to a single company. This may result in delays and inaccuracies in the work output. Maybe, Mr. Punzalan must undertake training about Outsourcing.

One of the trends in the corporate world today is outsourcing different functions to other companies that specialize in those functions in order to allow the main company to focus on its core competencies. Pro's • Cost Savings • Enables the business to focus on their core competencies • Utilize more their resources more effectively • Streamlined business process • Save the company from trial and error when it comes to building HR Policy Con's • Create an environment of "US AGAINST THEM" within the company • Limit the company's in-house expertise when it comes to employee training and relationships. thus difficult for an outsider to understand how a process impact a workforce. • Question of Control • Hidden Cost Mr. Punzalan decision is "right" if his workforce are not competent enough to do their assigned jobs, and if the company's is under-staffed. A "wrong" decision if he don't consider his existing workforce.

The pros of outsourcing may include better revenue realization, lower labor cost incurred by the organization. It also enables the company to focus on their core competencies and can increases speed and the quality of delivery of outsourced activities. While the cons of outsourcing includes possible loss of control over a company’s business processes so the problems related to quality may arise. I think Mr. Punzalan’s decision was right, if his goal is to reduce the operating cost of the company. To add, his business is just new and lack of employees who will do the recruitment or hiring process.

Outsourcing is one of the tools that helps business in their operation. Its advantages are: a.) The business could focus on its core activities which enables them to improve their processes to achieve quality; b.)The business would have a flexibility in staffing that will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you're done. On the other hand, outsourcing have also its disadvantages. There would be a risk in exposing some confidential data. Another is the lack of customer focus since an outsourced vendor may be catering to the expertise-needs of multiple organizations at a time. In such situations vendors may lack complete focus on your organization’s tasks. Mr. Punzalan's decision is wrong because those activities that he omitted are essential parts of recruiting potential applicants.

Outsourcing has advantages and disadvantages. Pros. • Cost Reduction- lower cost of operation • Flexibility- easily adopt growth in demand and changing needs • Focus- they can focus on own products Cons. • Less control- they will depend on other companies on their operations. • Less security- some data will be exposed to other companies. I think Mr. Punzalan was right on his decision, because as an starting company with less resources it would be helpful to seek help with other companies for survival.

Outsourcing has advantages and disadvantages. Pros. • Cost Reduction- lower cost of operation • Flexibility- easily adopt growth in demand and changing needs • Focus- they can focus on own products Cons. • Less control- they will depend on other companies on their operations. • Less security- some data will be exposed to other companies. I think Mr. Punzalan was right on his decision, because as an starting company with less resources it would be helpful to seek help with other companies for survival.

by Rachelle Joy B. Vasquez There are many prime drivers that could encourage organizations to outsource their HR functions. All companies aim to reduce their cost and increased efficiency, and management believe that outsourcing could help achieve these goals. In the situation of Mr. Meynard Punzalan, there are pros and cons. First and foremost, the decision made by Mr. Punzalan can reduce cost associated in their HR functions. It will also enable the company to concentrate on their core competencies, ultimately resulting in better productivity for the company. On the other hand, outsourcing decision made by the manager involves certain disadvantages. Outsourcing could lead to the question of control. For instance, it may be difficult to control employees in certain cases of outsourcing agreements. I think, Mr. Punzalan’s decision about outsourcing is not right since he has no experience regarding the subject matter. Since the success of the organization depends on him, he should at least undergo training.

The positive effect of outsourcing can consist of better inflow of revenue, and the cost that will be incurred in the activity can be minimized. It also allows the organization to focus on their main function in each department and can improve the production and quality of the product. On the other hand, the cons that this activity may bring could be less management of the company over the processes and this may lead problems related to quality and other related production problems. Mr. Punzalan’s decision was just proper if he is aiming to reduce the operating cost of the company. Furthermore, it has been stated that there is deficiency of employees to take part in hiring and recruitment activities.

The pros of outsourcing includes cost and efficiency savings, reduced overhead, and continuity and risk management. Based from this, outsourcing was used by many of the companies to remove or minimize some of the burdens within the company and generally, for them to reduced r cut costs associated in the operation of the company. On the other hand, cons of outsourcing is that the company itself do loss the managerial control, it has hidden costs,threat to security and confidentiality, and quality problems. Since outsourcing is a contract between the third party, there is a really a tendency that the company who do outsourcing will be exposed in the aforementioned factors. On the side of Mr. Punzalan, he has the point of doing outsourcing because all he want is to maximize the operation of the company at the same time lowering the costs associated with it since it seems they are on their first stage of operation and they do not have enough resources to start with. Although he had no previous experienced in outsourcing, it's not an excuse for him to commit to the third party because I think he still have an idea about this activity.

A lot of human resource management techniques have been formulated from which outsourcing has took form as one. Outsourcing may have both advantages and disadvantages. It has positive impact on businesses in the sense that it is cost-effective - efforts, time and of course incremental expenses would no longer be issues since the recruitment proceedings would be loaded to the third party. Another thing is that the management could focus on its core business processes since there will be no longer workload for such. This will then increase the productivity and efficiency of the company. More applicants can also be established since the third company has greater exposure to the public compared with the company. And lastly, failure in undertaking the recruitment can be avoided since the third party will be in-charge. However, potential problems could elicit including the inefficiency of the recruitment process since the third party has no enough knowledge on the preference of the management on its workforce. And of course, there would still be costs to be incurred. In the case of Mr. Punzalan, he could have weigh things out before deciding which path to take. He must have intimate knowledge in outsourcing, including the potential third parties. Training could be one consideration.

The pros of outsourcing often positively reflected by enterprises across industries include: 1.Better revenue realization and enhanced returns on investment 2.Lower labor cost and increased realization of economics of scale 3.Tapping in to a knowledge base for better innovation 4.Frees management time, enabling companies to focus on core competencies while not being concerned about outsourced routine activities 4.Increases speed and the quality of delivery of outsourced activities 5.Reduces cash outflow and optimizes resource utilization. Often weighed with the advantages before any decision on outsourcing is undertaken, the following represents some of the possible disadvantages often d welled upon: 1.Possible loss of control over a company’s business processes 2.Problems related to quality and turnaround time 3.Sluggish response times coupled with slow issue resolutions 4.Shortcomings in performance vis-à-vis expectations 5.Lower than expected realization of benefits and results 6.Issues pertaining to lingual accent variation 7.An irate customer base coupled with enraged employee unions

The pros of outsourcing includes cost and efficiency savings, reduced overhead, and continuity and risk management. Based from this, outsourcing was used by many of the companies to remove or minimize some of the burdens within the company and generally, for them to reduced r cut costs associated in the operation of the company.More applicants can also be established since the third company has greater exposure to the public compared with the company.More applicants can also be established since the third company has greater exposure to the public compared with the company. And lastly, failure in undertaking the recruitment can be avoided since the third party will be in-charge. However, potential problems could elicit including the inefficiency of the recruitment process since the third party has no enough knowledge on the preference of the management on its workforce. And of course, there would still be costs to be incurred.

Outsourcing is really help enterprises a lot by delegating the business process to the others. It may brought some advantages and disadvantages in a business. Through outsourcing, the business will have the opportunity to increase speed and quality of outsourced activites, a low labor cost, and it can lessen managament business. on the other hand, outsourcing may loss the management's control over the business process,and if not monitored may lead to poor quality services. With regards to Mr. Punzalan in their outsourcing, I think he is not right in taking risks in outsourcing because he has no experience in it and since he is only starting he must be hands on on it so he can monitor the company businesses especially recruitng manpower.

The biggest benefit of outsourcing is its ability to save money. This will depend on the size of the company and what specific tasks to outsource if the company think that they can save money.Outsourcing also reduces overhead costs that usually come with running back-end operations.This also frees an organization from investments in technology, infrastructure and people that make up their product. One disadvantage to outsourcing is that we are putting part of the company in someone else's hands. We have to ask the third party if we can trust them, if we can think they'll stay in business and if they can adapt to the growing and changing needs.The outsourcing is the risk of losing sensitive data and the loss of confidentiality also.Problems with quality can also arise if the outsourcing provider doesn't have proper processes or the worker is inexperienced in working in an outsourcing relationship within the company.

In the case of Mr. Punzalan, the pros and cons of outsourcing needs further analization based on the capability of the company. The pros of outsourcing are (a)tapping in to a new additional knowledge base for better innovation, (b) easier to fire or replace. While the cons of outsourcing might probably be about (a) lack of knowledge in the process of an operation, (b) additional cost to be incurred due to trainings to be provided for the employee, (c) possible loss of control to an employee, (d) shortcomings in expected performance. For Mr. Punzalan, he must not have an outsource since hiring outside is time consuming. Likewise, it is also an additional cost for the company.

Outsourcing is the contracting out of a business process to a third-party. This is the technique used by some of the organizations who aim is to reduce cost. But outsourcing may bought advantages and disadvantages to the organizations. Advantages: 1. the organization can outsourced to those have the expertise that may result to the tasks completed faster and with better quality output 2. Outsourcing the supporting processes gives the organization more time to strengthen their core business process. 3. Outsourcing helps the organization to shift certain responsibilities to the outsourced vendor. 4. Reduced Operational and Recruitment costs. Disadvantages: 1. With outsourcing, your organization might suffer from a lack of customer focus. 2. Outsourcing, though cost-effective, might have hidden costs. 3. Lack of customer focus In my opinion, Mr. Punzalan has his own reason why he choose to outsource, it's okay to take some risk hoping that it will come up with the good result.

For me in the Business outsourcing basically means asking a third-party vendor to work for you on a contractual basis. The advantages of outsourcing are primarily to cut costs. But today, it is not only about cutting cost but also about reaping the benefits of strategic outsourcing such as accessing skilled expertise, reducing overhead, flexible staffing, and increasing efficiency, reducing turnaround time and eventually generating more profit. The disadvantage of outsourcing is you have to be careful with the kinds of projects you outsource. Because there will be a possibility that the data of one company can be exposed. Mr. Punzalan is not right in his decision because he has not enough experience in this matter so he needs to undergo training.

Based on the case of Mr. Punzalan as the new HR manager, the pros that may be involved with the decision he has made on outsourcing is that it can reduce cost and can save time in the process of selection of employees. On the other hand, the cons of the decision is that Mr. Punzalan may has a less control over the selection of employees. I think Mr. punzalan's decision about outsourcing can be justified. Because since he is not that knowledgeable about outsourcing, it still be considered as the best option to cope with his problem.

Outsourcing is an allocation of specific business processes to a specialist external service provider you save time, effort, manpower, operating costs and training costs. Thus, it involves pros and cons in applying outsource in the company. The pros of outsourcing often positively reflected to increase efficiency and productivity in the system, save in investing in the latest technology, software and infrastructure and most importantly to save on capital expenditures. While the cons of outsourcing are the service provider can see the confidential files, lack of customer focus and might occurred hidden costs. Mr. Punzalan should conduct benchmark to have an idea in how to manage and administer in case of outsource is happen to their company.

Outsourcing is extremely beneficial to the world at large, especially as compared to the services provided by the in-house staff in all aspects such as cost and working hours. It has several positive effects. Of course, every coin has two sides, so does outsourcing. It has both positive as well as negative effects. The positive effects of outsourcing is growth. This means that tremendous growth is expected in the outsourcing services market as demands for services grow. Next is minimizing their risks. Then, it can also help them to fortify their core competencies and focus more on strategic management. Another one of the advantages of outsourcing is that it ensures proper resource utilization. In fact, skilled man power, advanced technology and excellent infrastructure are utilized productively. Then flexibility, it makes an organization becomes more receptive to change and flexible. Next is outsourcing helps an organization to share its risks rather than carry the entire responsibility alone. This also ensures that management problems are minimized. And lastly fast turnaround time with outsourcing solutions. This means deadlines need not be worried and fretted over. The outsourcing team can handle that bit on its own. The initial cost-saving benefits of outsourcing can be misleading, as it often takes some time for the negative impacts to make themselves known. The negative effects of outsourcing are shrinking talent pool, confidentiality issues, decline in customer satisfaction and hidden cost. For me, Mr. Punzalan is right in his decision to outsource since he is in the business, it’s not wrong to take a risk. Whether the result would be good or bad, at least he may learn from what he decides.

Outsourcing is a technique adapted by some of organizations who is finding ways on reducing their costs. It is a process of contracting out third-party institutions for a certain purposed inside a company. Outsourcing has its own advantages and disadvantages in the company. Advantages: 1. The Company could choose and evaluate those institution who have expertise that could probably do the job fast and quick. 2. Outsourcing could support the company process with can strengthen their core sorceresses. 3. Outsourcing helps the organization because they could shift the job on its vendor. 4. Reduced Operational and Recruitment costs. Disadvantages: 1. Lack of Customer Focus. 2. Outsourcing, though cost-effective, might have hidden costs.

Outsourcing is a business strategy that moves some of an organization's functions, activities and decision responsibility from within the organization to outside providers. There can be a significant cost savings when outsourcing is done because employee compensation cost are eliminated and free up resources for other purposes. It also allows the organization to focus on their expertise and core business and it also gives an opportunity to have a more qualified employee for the position. However, outsourcing can bring negative perceptions from the public opinion. There will also be an instances that outsourced employee doesn't have the same understanding and passion for an organization as a regular employee.There will also be a threat to the security and confidentiality of the organization's data because the outsourced employee will have chance to access it. As for Mr. Punzalan's decision to outsource, I think he made the right choice because he is honest that he doesn't have the experience of the recruitment/hiring process and the company is understaffed also. He should also be attending some seminars and training to have enough knowledge on his new position.

We know that outsourcing refers to the process wherein a business contracts with a third party service provider to provide services that might otherwise be performed by in-house employees of the business. For me, it is an effective cost saving strategy when it used properly by someone who has the ability to use it. The pros of outsourcing is that it reduced the cost, time and effort of the company because they can focus much on their task or jobs. And the cons of the outsourcing is that you have to deal with a good contractor or third party to avoid frequent delays in deliveries. Another is that you might be in lack of focus in your projects, you need to ensure if your outsource company is giving attention to your projects as much and there can be a personal conflict with you and the third party. Mr. Punzalan must take the risk of outsourcing, not only it can save cost but also it can help them focus on its internal operations. As said he must used outsourcing wisely in order to become effective.

Outsourcing HR Functions has its own advantages and disadvantages. Some its advantages is that outsourcing is less costly compared to hiring new HR staff. Moreover, the third party has more skills in fitting the right worker for the job and can offer better benefits that can attract employees. The disadvantages of outsourcing is that the worker hired by the third party might not give his full loyalty to the company,and unlike the in-house HR,the availability of the outsource third party is not always sure. I guess Mr. Punzalan made the right decision on outsourcing since they don't have unlimited resources. They can hire the right employee in an inexpensive manner.

There are many positive effects of outsourcing, the most obvious of which is getting cheap labor and saving money in the process. If you are a business person then you know how important it is to make every dollar count,especially if you are just starting out. One of the best ways to save money is to outsource some of the task required in your business to individuals. Now companies are outsourcing to minimize their risks. They can thus maximize the competitive spirit. This helps them to fortify their core competencies and focus more on strategic management. Outsourcing is also said to be for people who have little patience and a lot of money. There may be people who think that looking at the disadvantages of outsourcing amounts to thinking negatively; however, it is always better to consider all the disadvantages in advance to avoid any future surprises (or should we say “shocks?”).The potential for a communication gap is said to be one of the demerits of outsourcing, where the person who the work is outsourced to may not be familiar with a particular culture and that lack of understanding could reflect in the work performed.When confidential data is outsourced, it raises the question of data protection, as data protection policies differ. Many countries may not even have proper controls in place.When work is outsourced, the need for Internet access is essential, and if there happens to be a problem or an outage at the place where some emergency work is outsourced, that could lead to losses for the person outsourcing. For me, Mr. Punzalan should balance the positive effects and negative effects of outsourcing so that he justified if the company is capable on doing big changes. If he secure the positive effects of the outsourcing then he must follow his decision.

Outsourcing HR Functions has its own advantages and disadvantages. Some its advantages is that outsourcing is less costly compared to hiring new HR staff. Moreover, the third party has more skills in fitting the right worker for the job and can offer better benefits that can attract employees. The disadvantages of outsourcing is that the worker hired by the third party might not give his full loyalty to the company,and unlike the in-house HR,the availability of the outsource third party is not always sure. I guess Mr. Punzalan made the right decision on outsourcing since they don't have unlimited resources. They can hire the right employee in an inexpensive manner.

An organization's human resources department is responsible for a variety of functions. Human resources also manage legal compliance, maintain files and records, and oversee training and development. For many businesses, the various functions of the HR department are too comprehensive and complex to maintain in-house. Advantages of Outsourcing 1. Risk Management Outsourcing firms employ HR professionals whose purpose is to stay intact on a variety of federal and state employment laws. HR staff helps businesses comply with these laws to avoid costly lawsuits brought on by employees. 2. Efficiency Outsourcing HR functions create greater efficiency within human resources systems. Advanced human resources technology utilized by outsourcing providers help streamline important HR functions, such as payroll, benefit administration and compliance management. 3. Employee Development Outsourcing firms periodically monitor employee performance and report findings to management. This reduces the workload of managers by minimizing the amount of administrative responsibilities they must focus on. Disadvantages of Outsourcing 1. Recruitment Problems In some cases, outsourced employees lack the understanding of the company culture that a regular employee has. As the human resource department recruits employees, this lack of understanding may transfer to new employees during the recruitment process. The outsourced provider may also recruit employees who do not fit with the overall culture of the company. 2. Information Leaks Outsourcing human resources functions may lead to the release of sensitive company information. Often, for an outsourced company to provide adequate service, some sensitive information about the company’s organizational structure, product information or other inner workings is necessary for the vendor to perform unhindered. 3. Dependency and Loss of Control After outsourcing to a provider, executives may give up too much control over the company’s human resource functions or the company may become too dependent on the outsourced provider. Dependency and loss of control create the risk of the business not being able to operate successfully if outsourcing is no longer an option for the company or if the provider changes the terms of the contract. For me, the outsourcing of HR functions of Mr. Punzalan is justifiable. He is not that equipped with all of the skills needed in order to manage the whole HR Department. However, he should train himself in the process because outsourcing in the Long run is not cost effective. It is also not always reliable since the employees recruited are not ensured with quality and skills needed.

outsourcing surely saves money and reduces costs to some firms. it is usually defined as the involvement of third party industries which conducts services for other firms to perform a specific function or task. In this case, Mr. Punzalan must be aware of the risk that may occur in misusing outsourcing activities. Outsourcing may reduce costs, time and effort and definitely increases focus on a company's internal operations. On the other hand, when the task is entrusted to a unworthy service provider, larger costs may occur and its positive effect may turn on its reverse. I suggest to Mr. Punzalan is to take the risk of doing outsourcing but with proper conduct of research on whom the task will be entrusted.

Outsourcing is the process of assigning a company’s business processes to an external agency. It possesses good and bad effect on the business. The pros of outsourcing includes:better revenue realization and enhanced returns on investment; lower labor cost and increased realization of economics of scale; frees management time, enabling companies to focus on core competencies and; reduces cash outflow and optimizes resource utilization. On the other hand, the cons of outsourcing includes: possible loss of control over a company’s business processes; problems related to quality and turnaround time; sluggish response times coupled with slow issue resolutions and; lower than expected realization of benefits and results issues pertaining to lingual accent variation. Mr. Meynard Punzalan had outsourced certain HR functions such as recruitment, initial screening of applicants, and the like because the new company does not have the unlimited resources of the older one.

Outsourcing is undertaken to provide enterprises a competitive advantage by delegating business process to external agencies and realizing the benefits of low labor, better quality and improved innovation. To best analyze the opportunities presented it is essential to reflect upon the advantages and the disadvantages of outsourcing. The pros of outsourcing often positively reflected by enterprises across industries include better revenue realization and enhanced returns on investment and lower labor cost and increased realization of economics of scale. Often weighed with the advantages before any decision on outsourcing is undertaken, the following represents some of the possible disadvantages often dwelled upon. Possible loss of control over a company’s business processes and problems related to quality and turnaround time. Mr. Punzalan is made a good decision not to outsource employee.

Outsourcing is undertaken to provide enterprises a competitive advantage by delegating business process to external agencies and realizing the benefits of low labor, better quality and improved innovation. To best analyze the opportunities presented it is essential to reflect upon the advantages and the disadvantages of outsourcing. The pros of outsourcing often positively reflected by enterprises across industries include better revenue realization and enhanced returns on investment and lower labor cost and increased realization of economics of scale. Often weighed with the advantages before any decision on outsourcing is undertaken, the following represents some of the possible disadvantages often dwelled upon. Possible loss of control over a company’s business processes and problems related to quality and turnaround time. Mr. Punzalan is made a good decision not to outsource employee.

Outsourcing is undertaken to provide enterprises a competitive advantage by delegating business process to external agencies and realizing the benefits of low labor, better quality and improved innovation. To best analyze the opportunities presented it is essential to reflect upon the advantages and the disadvantages of outsourcing. The pros of outsourcing often positively reflected by enterprises across industries include better revenue realization and enhanced returns on investment and lower labor cost and increased realization of economics of scale. Often weighed with the advantages before any decision on outsourcing is undertaken, the following represents some of the possible disadvantages often dwelled upon. Possible loss of control over a company’s business processes and problems related to quality and turnaround time. Mr. Punzalan is made a good decision not to outsource employee.

Before a company start outsourcing some needed functions, they must first consider its pros and cons. Often outsourcing is a way to save money, but there can be unexpected costs as well. There are many good reasons to consider outsourcing. A few of the most significant advantages of outsourcing include: 1. Cheaper Labor 2. Cut Operating Costs 3. Lower Labor Training Costs 4. Access to Better Technology 5. Increase Productivity 6. Focus on Core Business Even though there are many reasons to consider outsourcing, there are also some negative aspects that need to be considered. Some of the disadvatages of outsourcing include: 1. Employees Feel Threatened 2. Loss of Control 3. Lose Customers 4. Security Issues 5. Lower Quality Work For me, the decision made by Mr. Punzalan puts him into risk because it takes time and some sort of analysis before considering outsourcing. He makes his decision very fast in a way that he did not think first the necessary technique and knowledge as well as how outsourcing procedures goes.

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