HUMAN RESOURCES Flashcards
[Role] Outsourcing
OUTSOURCING
When a company takes a part of its business functions and gives it to another company to complete.
HUMAN RESOURCE FUNCTIONS
The human resource function is the second most frequently outsourced after information technology. The most commonly outsourced human resource functions include: recruitment, induction, leadership training, mediation, outplacement and payroll. However, businesses need to realise that outsourcing may not solve the problems that it was supposed to. There are a number of disadvantages involved in outsourcing HR including: cost savings are not always achieved, employee unrest, problems with outside HR provider, loss of control, and reasons for outsourcing the HR function are not clear.
USING CONTRACTORS
A contractor works for many employers as once the contract has been completed they are free to offer their services to any other business. Contractors have independence and are not subject to the regulations and directives of the business.
Domestic - domestic subcontracting is very common and avoids the need to employ additional ‘in-house’ staff, along with all the overhead expenses involved. Some risks include: loss of customer contact.
Global - using global contractors as an external provider of services allows the Australian business to access the use of labour without having to consider issues such as minimum labour requirements and WH&S.
[Influences] Stakeholders- Employers
The individual or organisation that pays others to work for them. They are often the owners and take responsibility in the organisation’s goals. They handle HR management on a daily basis. Employers responsibilities are increasing due to recent legislation requiring them to resolve disputes and negotiate agreements.
[Influence] Stakeholders- Employees
An individual who provides his or her skills to a business in return for a regular source of income. They are now considered in the decision making process and workers can now work from home to accommodate a work-life balance. Labour shortages are looming due to ageing populating.
[Influence] Stakeholders- Employer associations
organisations that aim to promote the interests of employers within the business environment. They lobby governments to develop policies that enhance the interests of the employer and consult with governments on changes to key policy issues. They provide advice, negotiate agreements and make submissions to safety net wage cases.
[Influences] Stakeholders- Unions
Are organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions for members. They provide representation in disputes, free or discounted legal services, superannuation schemes, cheap home loans
[Influences] Stakeholders- government organisations
Government departments oversee legislation relating to employment relations. They establish the legal framework by which employers, employees and trade unions coexist and operate within the employment relationship.
