Exam 13: Outsourcing
How can you determine which HR activities are amenable to outsourcing?
Activities most likely to be outsourced are:
∙ Rule based
∙ Repetitive
∙ Frequently undertaken
∙ Predictable
∙ Able to be fully or partly automated by technology
∙ Able to be delivered by remote sites
Another way to determine if any HR activities are amenable to outsourcing is to consider their strategic importance. Research suggests that HR activities can be grouped into seven hierarchical activities, according to strategic importance (levels below). HR activities in the first few levels are suitable for outsourcing; those at the higher levels are not.
Level 1: Ancillary activities—food service, grounds maintenance
Level 2: Routine activities—benefits administration
Level 3: Economics of scale—administering personnel tests
Level 4: Specialized knowledge—conducting HR surveys, delivering a training course
Level 5: Specific organizational knowledge—succession management
Level 6: Highly confidential activities—layoffs, restructuring
Level 7: Management decision activities—HR strategy, structure
Which of the following HR activities is NOT suitable for outsourcing?
B
An organization decided to focus on its core competencies,such as customer service,and contract out its secondary functions,such as benefits administration.Which of the following defined its core competencies?
C
Which of the following HR the functions is NOT likely to be outsourced?
Which of the following HR activities is NOT suitable for outsourcing?
Technology has been an important driver of the outsourcing trend.
Two core functions that should be outsourced are employee relations and performance management.
Which of the following HR the functions is NOT likely to be outsourced?
There is a new trend for organizations to outsource absence management because claims are complex,confidential,and medically oriented.
Which company reduced the headcount in its head office from 40 employees in 1994 to 12 employees today due to outsourcing?
In an outsourcing arrangement,what typically happens to the employees who currently do the outsourced function in-house?
An organization found that outsourcing its employees' skills limited their ability to learn and exploit changes.What risks did this organization carry as a result of outsourcing?
In HR,the functions most likely to be outsourced are temporary staffing,payroll,training,recruiting,and benefits administration.
Outsourcing can result in an organization's employees losing some of its KSAOs.
When rumours of potential outsourcing plans surface in an organization,what might managers expect next?
An organization decided to focus on its core competencies,such as innovation,and contract out its secondary functions,such as payroll administration.Which of the following defined its core competencies?
The real sources of competitive advantage are not products but management's ability to consolidate skills and technologies into competencies to adapt to changing circumstances.
Three reasons that organizations outsource are financial savings,strategic focus,and access to advanced technology.
Discuss the quote "The best advice is to outsource transactions and insource transformations."
Which of the following activities is NOT likely to be outsourced?
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