Proposal. Human Resource Outsourcing – Implications on Performance Management and Motivation
Table of Contents
Background of the Main Issue: 4
Research Question and Objectives: 6
Key Deliverables: 8
Critical Analysis of Human Resource Outsourcing (HRO) and its Implications on Performance Management and Motivation
Background of the Main Issue:
Globalisation has become an accepted fact across the corporate world as it has been used as an expansion strategy to achieve economies of scale and scope by these firms. According to Arthur (1994), the nature of globalisation and international business has led to stiffening if competition and rivalry between players in the market place, which has therefore triggered trends towards low cost leadership, while also expecting broad focused differentiation. It has been highlighted that in response to these international business environment changes, companies have adopted the strategy to outsource peripheral activities and functionalities of the business to reduce the overall complexity of the business model, while concentrating at the core functionality, offerings and value adding activities (Turnbull, 2002). It has been highlighted that the use of outsourcing has led to the development of lean and agile business structures that have helped firms in not only reducing their overall costs but also keeping their differentiation in a state of flux. Drawing upon Barney (1991), it can be suggested that outsourcing has therefore become a source of competitive advantage for the firm, as it leads to valuable, rare and inimitable resources and competencies for the firm.
There have been number of definitions that have been brought up in management literature surrounding outsourcing, therefore suggesting that there is a tautological issue in its definition. Drawing upon Lawler et al (1995), it can however be highlighted that the core concept of all...