OUTSOURCING AND STRATEGIC ROLE Flashcards
hr
what is the role of HRM
HRM focuses on acquiring, developing, and managing staff to achieve business goals. It values employees as key contributors to success, not just a cost to the business.
what is the strategic role oh HR
aligns the employer-employee relationship with business goals by ensuring employees have the skills and behaviours needed for success. It focuses on developing staff to improve productivity and adaptability.
what is the interdependence with other kbf’s
Marketing: Ensures employees align with brand and service expectations.
Operations: Provides skilled labour for efficient production.
Finance: Manages wages, benefits, and staffing costs to maintain financial health.
HRM contributes to profitability by recruiting, retaining top talent, ensuring compliance, and fostering a productive culture.
what is outsorucing
Outsourcing is the use of external providers to perform non core business activities.
outsourcing HRM function
Outsourcing HR Functions
Definition: Contracting parts of the HR process (e.g., recruitment, payroll, training) to external HR specialists.
HR Functions Often Outsourced in Australia
Recruitment: Finding and selecting employees.
Payroll: Paying employees and managing leave records.
Outplacement: Supporting employees leaving the business.
Mediation: Resolving disputes.
Training: Induction, company policies, and leadership development.
Why Businesses Outsource HR Functions
Focus on Core Activities: Allows businesses to focus on strategic goals.
Cost Savings: Reduces operational costs by using external specialists.
Access to Expertise: Ensures legal compliance and uses the latest HR practices.
Advantages of Outsourcing HR Functions
Cost Reduction: Saves money by leveraging external expertise.
Flexibility: Scalable solutions for changing business needs.
Expertise: Improved quality and compliance through specialized knowledge.
Disadvantages of Outsourcing HR Functions
Loss of Control: Less oversight on outsourced processes.
Security Concerns: Risks related to data privacy and confidentiality.
Cultural and Communication Issues: Time zones and language barriers may hinder effectiveness.
what is a contractor
independent workers or businesses which undertake the duties of an outsourced job as outlined in a contract.
A contractor is an external provider of services to a business.
- not employees
Domestic Contractors
contractors based within the same country as the business, simplifying outsourcing and managing operations locally.
advantages to domestic contractor
Lower Costs: Can reduce costs compared to hiring permanent staff for specific tasks.
Flexibility: Contractors can be hired on an as-needed basis, offering scalability.
Access to Specialized Skills: Businesses can tap into specific expertise without long-term commitments.
Disadvantages to domestic contractors
Less Control Over Quality: Businesses may have limited oversight of contractors’ work.
Potential Communication Issues: Challenges with coordination and timely communication may arise.
Legal and Tax Issues: Differences in legal obligations and tax responsibilities may create complexities.
Global Contractors
Contractors based overseas, often hired for cost reduction and to take advantage of time-zone differences to provide 24/7 operations.
advantages to global contracotrs
Lower Costs: Often cheaper than hiring domestic staff due to lower wages in some countries.
24/7 Operations: Time-zone differences enable continuous work around the clock, especially for customer support or technical services.
Specialized Skills: Access to global talent pools, which may offer expertise not available domestically.
disadvantages to global contractors
Communication Challenges: Language barriers and time zone differences can lead to misunderstandings.
Quality Control: Less direct supervision may result in inconsistent quality or missed deadlines.
Cultural Differences: Varying work ethics, cultural norms, and expectations may affect collaboration.
