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HR Planning - Midterm > Chapter 13 - AN > Flashcards

Chapter 13 - AN Flashcards

Characteristics of functions that may be outsourced HR functions that are typically outsourced* Reasons for outsourcing Risks of outsourcing* Managing outsourcing*

1
Q

What is outsourcing?

A

A contractual relationship for the provision of business services by an external provider

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2
Q

HR Offshoring (HRO)?

A

When outsourcing is done in a foreign country

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3
Q

Characteristics of Potential Outsourcing functions

A 
Rule Based
Repetitive
Frequently Undertaken
Predictable
Able to fully or partly automated with technology
Able to be delivered by remote sites
See HR Planning
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4
Q

Potential Outsourced HR Functions

Mid-term short answer

A

Compensation
Recruitment and Selection
Training
Health and Safety

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5
Q

Aspects of Compensation for Outsourcing

related to mid-term short answer

A

Compensation: Payroll, benefits, compensation administration, pension

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6
Q

Aspects of Recruitment and Selection for Outsourcing

related to mid-term short answer

A

Recruitment and Selection: Advertisements, Screening and applications, Testing, Reference checking, Preliminary Interviews, Executive Salary Negotiations, Exit Interviews

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7
Q

Aspects of Training for Outsourcing

related to mid-term short answer

A

Program delivery, program design and development, training consulting, training needs analysis, program evaluation, strategic planning, administration, training policies

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8
Q

Aspects of Health and Safety for Outsourcing

related to mid-term short answer

A

Employee Assistance programs, wellness programs

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9
Q

What are the six major reasons for outsourcing?

A

1) Financial Savings
2) Strategic Focus
3) Access to advanced technology
4) Improved service levels
5) Access to specialized expertise
6) Organizational politics

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10
Q

Six major reasons for outsourcing: Financial Savings

A

Cost reduction is typically 10 to 20 percent

Economies of scale from specialized outsourcers who are more efficient

Cost control

decreased capital commitment

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11
Q

Six major reasons for outsourcing: Strategic Focus

A

Decision to focus on specific core competencies (i.e. customer service or innovation)

Core work is transformational and adds value to employees or customers

Move secondary functions (or non-core work), like benefits admin to firms that do these things well (core competencies for these organizations

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12
Q

Four meanings for core work

A

1) Activities traditionally performed internally
2) Activities critical to business success- core work contributes directly to the bottom line; non-core work doesn’t
3) Activities creating current or potential competitive advantage
4) Activities that will influence future growth or rejuvenation

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13
Q

Six major reasons for outsourcing: Advanced Technology

A

Technology has been a main driver of outsourcing
organizations want to improve technical service but cannot find the talent
Technology enables a company to reduce transaction time ( the time it takes to handle a request)

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14
Q

Six major reasons for outsourcing: Improved Service

A

Quality improvement

Outsource to those who are excellent performers

More flexibility in hiring and rewarding employees

Improved response time, performance and confidentiality

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15
Q

Six major reasons for outsourcing: Specialized expertise

A

Outsource to organizations that specialize in the service and can do it better than you (best practices), use of experts reduces risks and liabilities

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16
Q

Six major reasons for outsourcing: Organizational Politics

A

Outsourced function not as visable as an in-house department would be

Outsource to get rid of troublesome department (undeperformers)

Outsource to reduce headcount

17
Q

What are the 5 Risks and Limitations to Outsourcing

mid-term short answer

A 
Costs
Service Risks
Employee Morale
Security Risks
Reduced Value
18
Q

Risks and Limitations to Outsourcing: Costs

related to mid-term short answer

A

May not be as cost-effective as anticipated, may be duplication, about 30 percent of outsourcing contracts are not renewed

19
Q

Risks and Limitations to Outsourcing: Service Risks

related to mid-term short answer

A

contractual arrangements dictate provision of service, oess flexibility, potential labour relations problems, perceived decrease in customer service, less personal relationships

20
Q

Risks and Limitations to Outsourcing: Employee Morale

related to mid-term short answer

A

Outsourcing is a form of restructuring that can create displaced, resentful, alienated and anxious employees- resulting in backlash

21
Q

Risks and Limitations to Outsourcing: Security Risks

related to mid-term short answer

A

Increased potential for leaks (particularly for software development), and confidential employee info

22
Q

Risks and Limitations to Outsourcing: Reduced Value

related to mid-term short answer

A

Extreme levels of outsourcing hollow out a company, reduced capacity to generate profits or innovate

Up to 20 percent of outsourced HR functions are brought back in-house

23
Q

What are 3 aspects of managing outsourcing ?

mid-term short answer

A

1) Selecting the Vendor
2) Negotiating the Contract
3) Monitoring the arrangement

24
Q

Once outsourcing has been decided the organization needs to do the following activities associated with selecting the vendor):

(Managing outsourcing: Selecting the Vendor)

related to mid-term short answer

A

1) inform staff of affected function
2) Prepare a request for proposal
3) Invite internal and external bids
4) Establish a team to evaluate bids

25
Q

Managing outsourcing: Negotiating the contract

related to mid-term short answer

A

customize and negotiate the outsourcing contract

set performance standards or penalty clauses

establish benchmarks for service expectations (service standards)

26
Q

What are the two most frequent causes of outsourcing problems?
(Managing outsourcing: Monitoring the Arrangement)

related to mid-term short answer

A

Poor service definition

Weak management processes

27
Q

Managing outsourcing: How to Monitor the Arrangement

related to mid-term short answer

A

Establish a relationship to ensure the outsourcer acts in the best interests of the organization , hand has knowledge of the organization

Demand frequent and accurate reporting

Conduct client satisfaction surveys

HR Planning - Midterm (8 decks)

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