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

The pros of outsourcing • Lower labor cost and increased realization of economics of scale • Tapping in to a knowledge base for better innovation • Increases speed and the quality of delivery of outsourced activities • Reduces cash outflow and optimizes resource utilization The cons of outsourcing • Lower than expected realization of benefits and results • Issues pertaining to lingual accent variation • An irate customer base coupled with enraged employee unions Mr. Punzalan should take risk of doing outsourcing since they dont have unlimited resources, so they can hire a right person for a right job

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 advantages of outsourcing are Risk Mitigation as the risk of failure is passed onto the third party. Cost savings, in the long of outsourcing to other company will be cost efficient. And last Quality Services, as the third party they are usually an expert in such services. Some disadvantages of this are Loss of Managerial Control; you have no control on the function of the third party. Hidden cost, anything not covered in the contract will be the basis for you to pay additional charges. And last Threat to Security and Confidentiality, the life-blood of any business is the information that keeps it running. For me, Mr. Punzalan's decision would be well-judge if indeed he is under-staffed for the workload which his department is expected to do. He should undergo training to have a good outcome especially on giving decision making because the future and the success of the company depends on him.

Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. But outsourcing has advantage and disadvantages.Some of its advantages are it cost and efficiency saving, reduced overhead, operational control and staffing flexibility. While the disadvantages are loss of managerial control,threat to security and confidentiality and quality problems. I think Mr. Punzalan has a right decision to take the risk of outsourcing because this can help their company in dealing with their new responsibilities. This may take for them as a challenge in order for them to learn new things and apply to the future. And also they should choose the write one in outsourcing to become successful.

Outsourcing is an allocation of specific business processes to a specialist external service provider. Outsourcing have its own advantage and disadvantage in an organization. Through outsourcing the business can focus on its core business rather that it non-core business. It can help the business to save on time, effort, manpower, operating costs and training costs, giving an overall cost advantage and through outsourcing the business can share the risk to its third party. Outsourcing have also its disadvantage such as outsourcing involves a risk in exposing confidential company information to a third-party,renewing contracts, misunderstanding of the contract, lack of communication, poor quality and delayed services amongst others. Before a business use outsourcing they should first weigh the pros and cons of it. Mr. Punzalan made a right decision in outsourcing other HR functions since the business have only limited resources and also through outsourcing they can reduce the burden to the employees.

Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. There are still bad and good effect of outsourcing to the company. The pros of outsourcing includes: -lower labor cost -reduces overhead cost -company's cash-flow can be streamlined -flexibility in staffing and manpower management the cons of outsourcing includes: - risk of losing sensitive data and the loss of confidentiality -Losing management control of business functions -lack focus on the project -bankruptcy and financial loss cannot be controlled I think, Mr. Punzalan was right on his decision to outsourced. He had used recruitement, initial screening of applicants. He may not have the skills to perform outsourcing but the fact that he is going to do it, he must have been trained himself for that. And also outsourcing has benefits too, there may be disadvantages but having a business, you should always put in mind that everything is at risk at any decision you make. So why hesitate take risk on outsourcing? There are future benefits you are to look forward to.

Advantages Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. It also allows companies to focus on other business issues while having the details taken care of by outside experts. Some of the advantages of outsourcing are: 1.It can save you money. 2.Can help you share risk. 3.Can help accommodate peak loads. 4.Can help you develop internal staff. Disadvantages There are some drawbacks to outsourcing as well. 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. Any sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly. The decision of Mr. Meynard Punzalan was right. It can help the business to lessen the cost. But he should study the situation first before he do any decision.

Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Outsourcing have advantages and disadvantages. The main advantages for business to opt for outsourcing are: 1. Cost Savings 2. Quality services 3. Access to specialized skills 4. Contractual Obligation 5. Staffing issues 6. Risk Mitigation 7. Capacity Management Those are some of the benefits associated with outsourcing. Let's now examine the flip side of outsourcing. 1.Rising Unemployment 2.Loss of Control 3.Security Is Compromised 4.Lagging In-house Talent For me,the decision made by Mr.Punzalan was not right because he is inexperienced in the field of outsourcing.

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. Some advantages of outsourcing are: 1. Cost Savings. 2. Quality services 3. Access to specialized skills 4. Contractual Obligation. 5. Staffing issues 6. Risk Mitigation 7. Capacity Management Some benefits associated to outsourcing are: 1. Linguistic barriers 2. Social Responsibility 3.Company Knowledge 4. Staff Turnover Some disadvantages of outsourcing are: 1. Risk of losing sensitive data and the loss of confidentiality. 2. Losing management control of business functions 3. Problems with quality can arise if the outsourcing provider doesn't have proper processes and/ or is inexperienced in working in an outsourcing relationship. 4. Delays and inaccuracies in the work output. 5. Hidden costs and legal problems may arise if the outsourcing terms and conditions are not clearly defined. 6. Organization is might be dependent on the outsourcing provider. 7. Not understanding the culture of the outsourcing provider and the location where you outsource to may lead to poor communication and lower productivity. Mr. Punzalan decision is not good one because one of the major function of HR is to recruit or find employees who is right for the job position. since HR functions such as recruitment initial screening of applicants are vital part of hiring applicants and if these processes are eliminated they could hire a unqualified employees for the vacant position.

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.Outsourcing has advantages and disadvantages. The pros of outsourcing are as follows: Cost-Savings, Quality Services, increasing Productivity and Efficiency, Flexibility and develop competencies and skill-sets that can be used as a competitive advantage. Outsourcing can be good to the company, it can help a lot, but the company should also consider all the resources and the disadvantages that it will bring to their company. The cons of outsourcing are as follows: losing sensitive data and the loss of confidentiality, Losing management control of business functions. For me the decision of Mr. Punzalan is right. Because of his decision he can reduce the cost that the company 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. 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. :D :)

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.Outsourcing has advantages and disadvantages. The pros of outsourcing are as follows: Cost-Savings, Quality Services, increasing Productivity and Efficiency, Flexibility and develop competencies and skill-sets that can be used as a competitive advantage. Outsourcing can be good to the company, it can help a lot, but the company should also consider all the resources and the disadvantages that it will bring to their company. The cons of outsourcing are as follows: losing sensitive data and the loss of confidentiality, Losing management control of business functions. For me the decision of Mr. Punzalan is right. Because of his decision he can reduce the cost that the company 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. 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. :D :)

Outsourcing is beneficial for companies especially to those that competing globally. Its advantages are cost savings, enable the business to focus on their core competencies. The business also enables to utilize their resources effectively, it also has better revenue realization and lower the cost of labor incurred in the organization. To function with flexibility is another pros of outsourcing which is its capability to adapt changes in economic aspects. The disadvantages of outsourcing are that there will be a loss of managerial control and lower the quality of work. Though cost-effective, it 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. I think Mr. Punzalan's decision to outsource is the right choice because he is honest that he doesn't have the experience of the recruitment/hiring process. He should attend some seminars and training to have enough knowledge and improve his skills and abilities on his new position.

Outsourcing is the contracting out of a business process to a third-party. One of the advantages of outsourcing is cost saving in terms of time, staff and cost. Also, managers enable to concentrate on their core competencies, ultimately resulting in better productivity and results for the company. Outsourcing has also disadvantages. One of the most significant concerns with outsourcing human resources is the chance of misplaced loyalty. Employees outsourced might not put in the similar kind of effort as hired staff or display such an interest in your company. Also, this inevitably leads to the question of control. It may be difficult to control employees in certain cases of outsourcing agreements where the employee is hired on contract and doesn’t need to report to anyone within the organization. Another, the availability of the HR Staff when there are needed information. In outsourcing, just because you have a question or problem doesn’t mean your HR consultant will drop what he is doing to help you but in in-house HR function, they give you immediate access to files, records and other documents. I think, Mr. Punzalan’s decision is justifiable since outsourcing is cost effective.

Outsourcing is the contracting out of a business process to a third-party. One of the advantages of outsourcing is cost saving in terms of time, staff and cost. Also, managers enable to concentrate on their core competencies, ultimately resulting in better productivity and results for the company. Outsourcing has also disadvantages. One of the most significant concerns with outsourcing human resources is the chance of misplaced loyalty. Employees outsourced might not put in the similar kind of effort as hired staff or display such an interest in your company. Also, this inevitably leads to the question of control. It may be difficult to control employees in certain cases of outsourcing agreements where the employee is hired on contract and doesn’t need to report to anyone within the organization. Another, the availability of the HR Staff when there are needed information. In outsourcing, just because you have a question or problem doesn’t mean your HR consultant will drop what he is doing to help you but in in-house HR function, they give you immediate access to files, records and other documents. I think, Mr. Punzalan’s decision is justifiable since outsourcing is cost effective.

Outsourcing is beneficial for companies especially to those that competing globally. Its advantages are cost savings, enable the business to focus on their core competencies. The business also enables to utilize their resources effectively, it also has better revenue realization and lower the cost of labor incurred in the organization. To function with flexibility is another pros of outsourcing which is its capability to adapt changes in economic aspects. The disadvantages of outsourcing are that there will be a loss of managerial control and lower the quality of work. Though cost-effective, it 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. I think Mr. Punzalan's decision to outsource is the right choice because he is honest that he doesn't have the experience of the recruitment/hiring process. He should attend some seminars and training to have enough knowledge and improve his skills and abilities on his new position.

Outsourcing can be a very helpful to the company especially when there are core functions that an enterprise must lay more focus on. I believe the advantages of outsourcing are cost savings, quality services and risk mitigation However, the disadvantage of outsourcing is the lack of company knowledge, third party is not part of the enterprise, thus, does not share the same core values and missions. Mr. Punzalan decision was right because outsourcing would be a great answer to his problem,his lack of expertise on recruiting employees can lead to the company loss of profit.Recruiting unfit employee to the job gives a company headache because once you accept the employee for the job you cannot easily terminate him or her without any valid reason.

Outsourcing can be useful to the company, in terms of : It allows HR to be more focused and strategic, it reduces Costs, more expertise and services, less burden on leaner staff, streamlines HR functions and o9ffers flexibility for HR. The main objective and function of outsourcing among those advantages is that, it allows the company to focus on those business activities that are important without sacrificing the quality and services. On the other hand, outsourcing can have disadvantages to the company, it includes: Unexpected cost impact, organizational conflict, reduced service levels and organizational worries. In this case, Mr. Punzalan’s decision about outsourcing is not right since he has no experience about this. Also the success of the organization depends on his supervision, he should at least undergo training and attend seminars.

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.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 •Risk-sharing •Reduced Operational and Recruitment costs 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.

One of the pros of outsourcing certain services is that it saves a considerable amount of money. Employee costs and availability is also a determining factor in many companies’ decision to partner with an outsourcing service. By outsourcing services instead of hiring employees, a company saves money that would have been spent on salary, paid leave, health insurance, etc. Additionally, outsourcing enables a small company located in a small town to hire a competent, experienced professional in another town. On the other hand, outsourcing solution providers have a vast number of clients, it is possible that thay may not be able to offer efficient service to all of them. Some of the cons of outsourcing include potential joblessness for the organization, lack of communication, delayed services, contract confusion, possibility of hidden costs, slow response time or delivery, loss of direct control over company management, and reduced sales owning to unsatisfied customers. Since Mr. Punzalan doesn’t have any knowledge in recruitment and screening new applicants, his decision of outsourcing of person who have enough knowledge regarding to it was right. One cannot have knowledge about a certain thing if he doesn’t take risk and gain experience from it. It can be a great help to the company.

Companies primary reason for outsourcing is to avoid certain cost. Outsourcing let an organization pay for only the services they need, when they need them. It also reduces the need to hire and train specialized staff, and reduces capital and operating expenses. In the case of Mr. Punzalan, Even though he had no previous experience with outsourcing, he believed it would be a way of relieving some of the burden on his small staff.

The advantage of outsourcing is that is typically cheaper. As what I have said in my comments in the article, “Supply Chain Management: Defining Supply Chain Opportunities”, the company may outsourced to gain different advantages. Outsourced organizations are more trusted since they are specialized in their field. Also have their technical expertise resulting to complete tasks faster and with better quality output. Through outsourcing, they can concentrate on the core of their process rather than the supporting ones because it was well manage by their outsourced company and since the outsourced vendor is a specialist, they are able to plan the risks better. Disadvantages are that employers don't have much control to manage and organize over performance. Employees (workers) and managers (executive) are off-site and corrections can take time.Furthermore, Outsourced employees are usually paid a lot less as well.

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. Some advantages of outsourcing are cost savings, quality services, access to specialized skills, contractual obligation, staffing issues, risk mitigation, and capacity management. Some benefits associated to outsourcing are linguistic barriers, social responsibility, company knowledge, and staff turnover. Some disadvantages of outsourcing are risk of losing sensitive data and the loss of confidentiality, losing management control of business functions, problems with quality can arise if the outsourcing provider doesn't have proper processes and/ or is inexperienced in working in an outsourcing relationship, delays and inaccuracies in the work output, hidden costs and legal problems may arise if the outsourcing terms and conditions are not clearly defined, organization is might be dependent on the outsourcing provider, and not understanding the culture of the outsourcing provider and the location where you outsource to may lead to poor communication and lower productivity. The decision of Mr. Punzalan is not a good one because one of the major function of human resource department is to recruit of hire employees who is qualified for the job. Recruitment is a vital part of hiring which applicants are evaluated and tested if they are qualified for the job being applied for.

Outsourcing is the contracting out of a business process to a third-party. It is sometimes involves transferring employees and assets from one firm to another and it is also used to describe the practice of handing over control of public services to for-profit corporations. PROS OF OUTSOURCING: 1.ncreases speed and the quality of delivery of outsourced activities 2.Reduces cash outflow and optimizes resource utilization 3.Better revenue realization and enhanced returns on investment 4.Lower labor cost and increased realization of economics of scale CONS OF OUTSOURCING: 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. Mr. Punzalan should not outsourced since he is a beginner in outsourcing and he doesn't have any experience in outsourcing. He should conduct research about outsourcing.

For businesses of all sizes, there are both pros and cons to outsourcing HR functions. Pros: • HR outsourcing enables businesses to concentrate on their core competencies, ultimately resulting in better productivity and results for the company. • With HR outsourcing, client companies can utilize their resources more effectively, as the human resources department is taken care of. It results in streamlined business processes. • HR outsourcing enables employees of client companies to enjoy benefits typically offered in larger companies, these being outsourced from the employee leasing organization. The comprehensive benefits package offered by them was increases the buying power of companies in the job market and facilitates greater retaining of employees. • New insight and ideas will the company gain. Cons: • One of the most significant concerns with outsourcing human resources is the chance of misplaced loyalty. Employees outsourced might not put in the similar kind of effort as hired staff or display such an interest in your company. • This inevitably leads to the question of control. It may be difficult to control employees in certain cases of outsourcing agreements where the employee is hired on contract and doesn’t need to report to anyone within the organization. • Clients must watch out for hidden costs or unexpected changes in the services offered, and other aspects that differ from the contract they signed. In the case of Mr. Punzalan, the outsourcing of HR functions is justifiable. Although he had no previous experience with outsourcing he believes that this process will be a big help to the company. And another thing is the new company does not have the unlimited resources of the older employee.

Outsourcing can be beneficial for companies due to the advantages it may bring. Through outsourcing, the company can reduce cost since contracted employees will be utilized as opposed to part-time or full-time employees. This cost reduction will allow the company to maintain or lower the price levels which can lead to increased sales. Another advantage is the flexibility that outsourcing can offer. Outsourcing provides flexibility because it can be used to accomplish a variety of task. On the other hand, reduced quality can be one of the disadvantages of outsourcing. If the company chose inappropriate outsourced service, the quality is reduced. Regarding to the decision made by Mr. Punzalan, it is right to outsource service since he's lack of knowledge about recruitment. But Mr. Punzalan must consider all aspects of outsourcing in order to achieve the desired results.

Outsourcing brings in a lot of flexibility and financial freedom but it also has its pitfalls. Any company looking to outsource must keep in mind the pros and cons of outsourcing before deciding to take the plunge. Take a look at this list of advantages and disadvantages of outsourcing. The pros of outsourcing often positively reflected by enterprises across industries include: • Better revenue realization and enhanced returns on investment • Lower labor cost and increased realization of economics of scale • Tapping in to a knowledge base for better innovation • Frees management time, enabling companies to focus on core competencies while not being concerned about outsourced routine activities • Increases speed and the quality of delivery of outsourced activities • 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 dwelled upon: • 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 • Shortcomings in performance vis-à-vis expectations • Lower than expected realization of benefits and results • Issues pertaining to lingual accent variation • An irate customer base coupled with enraged employee unions For me, the decision made by Mr. Punzalan is right because since he is not that knowledgeable about outsourcing, it still be considered as the best option to achieve his goal.

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. Pros 1. less cost 2. no need for trainings 3. Capture new ideas 4. Efficient and effective Cons 1. Some employees are not in control 2. Low quality 3. The security of a company is not safe,

Investopedia explains '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. Pros 1. less cost 2. no need for trainings 3. Capture new ideas 4. Efficient and effective Cons 1. Some employees are not in control 2. Low quality 3. The security of a company is not safe,

PROS 1. focus on their competencies, which resulting in better productivity and results for the company. 2. With outsourcing, client companies can USE their resources more effectively,. 3.enables customers and companies to enjoy benefits typically offered in larger companies. CON 1. Expensive/costs money - You also need materials for instruction and modules. This means your communication with them must be crystal clear. 2.Uncontrollable - The employee hired by your HR outsourcing company may not fit into the scheme of things when it comes to their personality. 3.Out of companies interest - Occasionally an HR outsourcing company can seem to be working 'for the employees', striving to get them things you cannot afford financially, such as benefits. For me the decision of maynard is not acceptable, as written in the case study he doesn't have enough experience in HR and Hiring. outsourcing will cost the company than they will expecting. i believe that outsourcing must be handled by expert or had experience with this kind of task for the company not to cost too much.

Outsourcing is the process of assigning a company’s business processes to an external agency to enhance service quality, driving innovation or deriving benefits of lower labor costs. Better revenue realization and enhanced returns on investment is another advantage of using outsourcing. While in the contrary shortcomings in performance and possible loss of control over a company’s business processes and problems regarding quality could occur.

outsourcing is one of the techniques that a company can have to run its business smoothly. the advantage of outsourcing HR can save money for it will not have many hr staffs needed and also the overhead costs for the hiring process. It will also avoid turnover troubles because the ensure that even if you lose an employee your company's core functions don't suffer. But one thing that the business might be at risk. it is that the outsourcing company do not know enough about the company. Mr. Punzalan's decision for me is right. the business needs help from an outsourcing company. it will also save money and burden for the company.

Outsourcing is contracting of one or more of a company’s business processes to an outside service provider to help increase shareholder value, by primarily reducing operating cost and focusing on core competencies. It 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. Unlike the popular belief that outsourcing is a recent phenomenon, it actually has been in existence as long as work specialization has existed. In fact, companies have been known to have used outsourcing in some form or the other since a long long time. Pros of outsourcing: 1. Save time 2. Save money 3. Experience and expertise 4. Can cater for short term or regular requirements 5. No fixed cost Cons of outsourcing: 1. Not having 100% control 2. Exposing data Mr. Punzalan 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 in short he had no previous experience with outsourcing, so he should undergo training first for the sake of him as well as for the sake of the company.

Human Resource Outsourcing refers to the practice of contracting other organization to perform Human Resource tasks and functions. The main advantages of HR Outsourcing are the benefits of cost and time efficiencies. The company can use the time and savings to other activities that are more important. Also, HR Outsourcing is done by an organization that is experts on a certain job like HR functions. This assures that the job given to other organization is handled well. On the other hand, it can be a disadvantage. HR Outsourcing can discourage the development of expertise inside the organization. It is because, organization relies to third parties in doing jobs that can develop and train an employee. In case of Mr. Punzalan, HR Outsourcing can be useful for the organization for now. But when the time comes that the business is earning more, he should invest to train employees for certain jobs to have experts inside the organization.

Outsourcing has its own perks. It can help to cut costs or save capital expenditure, time and effort. The management are no longer committed to invest on employee's training or to purchase expensive software or investing in latest technologies. Though, it also has certain disadvantages. Outsourcing can loss managerial control because the outsourced people are under the other company and also it can cause quality problems because employees will be motivated by profit alone.

Outsourcing refers to the way in which companies entrust the processes of their business functions to external vendors. Any business process that can be done from an outside location can be outsourced. this include functions like transaction processing, payroll and order and inventory management. There are many benefits of outsourcing and some of them are: Cost Advantage, which is the most obvious and visible benefit relates to the cost savings that outsourcing brings to it. It also increase in efficiency which a company can perform, improved and be more efficient. Outsourcing also focused on core areas, access to skilled resources and more faster and better service to the company. Outsourcing also provides a low cost expense into the company but not low in quality.

Outsourcing is the practice of one firm another to perform tasks that were originally performed in-house is often viewed a way of maintaining or increasing a firm’s competitiveness. With general goal of lowering costs and/ or streamlining workflow, a firm is able to concentrate on strengthening its core competencies. Outsourcing is very important to the industry because it look for suppliers who are credible in the field and compatible with you needs, it remain flexible as needs change, have the skills you need can save you money and offer the quality of service you need. Ms. Punzalan’s decision in having an outsourcing in not right because she doesn’t have an experience in outsourcing and it is not right to take risk for the company she should have a right choice to decide what is good for the company.

Outsourcing is an allocation of specific business processes to a specialist external service provider. Most of the times an organization cannot handle all aspects of a business process internally. Additionally some processes are temporary and the organization does not intend to hire in-house professionals to perform the tasks. Once the task is outsourced to the service provider, he will take the responsibility of carrying out the tasks and maintaining the organization’s assets. Although outsourcing may provide benefits to your organization it is important for us to be aware on pros and cons of it, because it may cause difficulties if it is outsourced to wrong third parties. PROS: Swiftness and Expertise: Most of the times tasks are outsourced to vendors who specialize in their field. Concentrating on core process rather than the supporting ones: Outsourcing the supporting processes gives the organization more time to strengthen their core business process. Risk-sharing: Outsourcing certain components of your business process helps the organization to shift certain responsibilities to the outsourced vendor. Reduced Operational and Recruitment costs: Outsourcing eludes the need to hire individuals in-house; hence recruitment and operational costs can be minimized to a great extent. CONS: Risk of exposing confidential data: When an organization outsources HR, , it involves a risk if exposing confidential company information to a third-party. Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat. Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple organizations at a time. In my point of view, Mr. Punzalan's decision on outsourcing is fine since he knows to himself that he has no talent in recruiting, but before making it a final decision, he must conduct first proper research and analysis on other reasons why he need to outsource aside from his lacking of capabilities.Although outsourcing the recruitment process cut cost, it may also cause other difficulties in the organization such as risk of exposing confidential data and lack of customer focus. One more thing is, make sure that the outsourcing vendor has the capabilities in handling your recruitment to the best that he can which will give benefits to your organization as well as to the outsourcing vendor.

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