ROHRM - Interdependance and outsourcing of HRM Flashcards
Interdependance
Remember the most effective response to any question about the interdependence of one function such as HR with other key business functions is to consider the influence both ways
The HR function is interdependent with the other functions as it is the link between the people in the business
o It will impact other functions through
The quality of staff it provides
The level of staff motivation it encourages
The prevalence of industrial disputes
Finance and how it impacts hr
Determines the resources that are available to attract, reward and develop staff
operations and how it impacts HR
Determines the number of staff required, their skills and working conditions
marketing and how it impacts HR
Determines the resources number of staff required and the skills needed
managing the HR function
o HRM is a significant function that is usually managed by both Specialist managers/departments and Line managers:
Specialist managers/departments:
these managers create and implement HR policies for the whole business
Line managers:
these managers deal with issues related to staff in their area only.
outsourcing and hrm
Significant trend within HRM is outsourcing or hiring an external person/business to perform a particular function or activity.
We are familiar with outsourcing with operations but this can include the outsourcing of HRM activities to
outsourcing is becoming more popular as?
many SMEs lack the resources to support the complex and dynamic HR function and look towards being more flexible and competitive
outsourcing and hr functions: Outsourcing of HRM may include:
o The function or activity: e.g.8 recruitment, mediation, training
o Policy development: e.g. succession planning, performance management systems, EEO.
Advantages of outsourcing HRM
Your business can gain efficiencies due to specialisation in core activities
HRM firm has expert knowledge in the area
Disadvantages of outsourcing HRM
HRM firm may hold different values, goals and standards to employees
Limits the business ability to learn
what about other outsouricng
HR managers also have to deal with decisions within other functions to outsource too.
Businesses will often use contractors, who are temporary employees:
Location of contractor:
Type of contractor
Domestic
Labour hire companies
Independent contractors
