Question

The chapter notes that some firms choose to outsource their human resource management systems.  If a firm has a core value of respecting its employees and rewarding top performance with training, raises, and promotions, does outsourcing HR management show a lack of commitment by the firm?  HR management systems are software applications that typically manage payroll, benefits, hiring , and performance appraisal. What are the advantages and disadvantages of this decision? Think of ways that a firm can continue to show its commitment to treat employees with respect.  

Answer 1

If a firm claims to have a respecting their employees in its core values then outsourcing the HR management show lack of performance. The main behind it is that outsourcing the HR manager will not helo the employees and would not give employees reject and high value but only acts as an HR function for the business. Therefore, it would not focus on the satisfaction of employees.

The main advantage of outsourcing the HR management would be that the HR function would become smooth and streamline. Since the Hr management system is software then it would increase the efficiency and effectiveness of the HR management.

However, there are many disadvantages of outsourcing HR management if the company claims to respect the employees as its core value.

HR management system would not focus on the employees and it would not be able to resolve their issues and satisfy them. The main purpose of HR management is to hire, selection of candidates. Employee conversation, performance assistance, compliance with labor law, career development, etc.

Company that claims to have respect for their employee in its core values should not outsource the HR management and try to hire human HR management team.

If the company really wants to outsource the HR management system then it would consider including the human HR management team along with the software in order to meet the expectation of the employees.