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Outsourcing Human Resources Management Functions: Essay

2988 words - 12 pages

Outsourcing Human Resources Management Functions:

Recruitment and Selection


Research Paper for HRM**** Section 1202


March 16, 2012

Outsourcing Human Resources Management Functions: Recruitment and Selection


In the recent past, the competitive environment for many organizations has changed, with the organizations having to operate in globally capitalized environments, rapid industrialization, and changing technology (Abraham, 1988); and just recently a global economic downturn which has had organizations to downsize their operations. As a result, these organizations are ...view middle of the document...

The use of external agencies also helps because they provide many benefits since they are specifically set up to handle the recruiting function.

However, outsourcing crucial human resource functions may not be a simple decision for an organization to make. The main problem that an organization can face is when the organization fails to differentiate between recruitment outsourcing as a strategic or tactical decision (Gilley and Rasheed, 2000). The outsourcing firm can view the recruitment process as a step in building a business relationship with the client company and recruited employees. This would help the recruitment provider in having the continued business services of the client organization.

With the current state of the economy and the need for cost-consciousness, outsourcing of employee recruitment is sometimes viewed as a tactical decision by the parent organization and the process can be potentially destructive to an organization’s culture, since the outsourcing firm is usually hinged on helping itself (Gilley and Rasheed, 2000). Organizationally differences, such as unique competitive environments, cultures, practices, and strategies are likely to affect the advantages and disadvantages associated with outsourcing of recruitment and selection (Klass, 2001) This means that the difference in organizational culture can be a potential drag in the culture of the recruited employees.

Recruitment Outsourcing

Organizations usually have to decide whether they will conduct the recruitment and selection process in-house or by buying the function from an external provider (Uttamkumar and Kinange, 2011). When a organization decides to outsource the business function of hiring, the process usually involves developing a relationship with another firm, taking into consideration the risk involved in hiring an outside agency to conduct recruitment activities for their organizations. In determining risk associates with outsourcing, it is important for an organization to distinguish between outsourcing the business process and contracting one aspect of the recruitment process. Since the outsourcing process is usually a long-term process, the parent organization usually enters into a long-term contract with the outsourcing specialist firm. Conversely, the process of contracting out the recruiting service is usually one-off, where the organization assigns individual business functions to an external firm, which can be done on a job-by-job basis (Ogburn, 1994). Organizations will need to determine how much of the Human Resources (HR) Recruiting Function that they want the external firm to handle given the amount of risk the organization is willing to occur.

Outsourcing the recruitment function has a number of benefits to the parent organization, but the main advocate of the process comes from the strategic and tactical advantage that the process offers to the organization (Alexander and Young, 1996). Strategic...

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