Question

Q2. A recent trend more and more companies are embracing is to outsource all or most of their human resource management activities. Do you agree or disagree with this trend? What risks is a company taking when it decides to outsource its entire set of human resource management activities? Try to describe a situation where it is most beneficial to retain most of the human resource management activities within a company so that HR is provided by the human resource management department.

( a maximum of one-half typed page for answer).

Answer 1

I am not agree with this trend. In this way , human resource activities will be heavily dependent upon the ability of a third party firm or company. It requires many sacrifice by the organization like loss of core competencies development, lack of competent workforce, fear to loose trade secrets etc.

When entire set of activities will be performed through outsourcing then chances are to fail at a time of crisis like Covid19 , at a time of recession it will lack of dedicated workforce , and lack of confidence among employees as they believe to be the part of their original organization or manpower consultant.

Companies having expertise in innovative technologies, defense system manufacturing and top level consulting business should hire people on its payroll. In this way, HR department can develop a talent and confidential pool of employees to deploy its secret products design, innovation mechanism and launching patented products & services. Strategy making consultants should also have its own employees.