Annotated Bibliography - Outsourcing Human Resource Management Essay

Annotated Bibliography - Outsourcing Human Resource Management - Essay Example Outsourcing, human resource is a strategic move by organizations to improve the flexibility and quality of their workforce, while at the same time improving on the company’s capability, to accommodate impending change and stay way ahead of market forces (Benson & Littler 2002). Currently, a lot of organizations are outsourcing their various human personnel functions. The need to outsource affects not only employees, but also owners, human resource managers and executives. It includes benefits to access top skilled professionals, cost savings, and also advanced technology. This in the long run leads to a competitive advantage. Moreover, according to the authors, HRO will go a long way in improving an employee’s productivity and ultimate dedication to the organization (Benson & Littler 2002). HRO helps in improving the worker’s satisfaction; a number of workers get tired of being under the constant watch of their employers, and they cannot wait to be able to take c harge of their lives. The workers want to create a balance between their life and work. Southwestairlines, 2011, 2011 Southwest Airlines Annual Report, Southwest Airlines, 64-70. In this annual report by southwest airlines, the airline was able to save costs running into millions of dollars from Human Resource Outsourcing. Not only has the firm been effective in its daily operations but has been fast in improving its activities. According to the statement by the Chief Executive Officer, Human Resource Outsourcing has been one of the primary areas that the company has been able to raise more money (Southwest Airlines 2011, p.68). The other benefit has managed to obtain through outsourcing, according to the author is an efficient HR system leading to soft cost savings. The Human Resource Outsourcing organization takes over a number of tiresome administrative duties relating to employment (Southwest Airlines 2011, p.68). According to the CEO, these duties include; responding to differe nt inquiries by the employees, tax filing and payments, unemployment claims administration, workers health and benefits administration, and streamlining the Human Resource activities for an employee’s entire life cycle. Relieved from these non productive processes, management can now focus their resources on other revenue generating activities. He also states that the management should be at all times aware of the continuously changing employment legislation in HR, tax laws and benefits. Effect of company size on HR outsourcing Gupta, U. G., & Gupta, A, 1992, Outsourcing the IS function, Information Systems Management, 9(3), 44-50. The article talks in detail on how the size of an organization plays a leading role in HR outsourcing. The size can influence the critical decision for a firm to embark on HR outsourcing. The authors in the researches they have undertaken argue that small companies have a higher need of external expertise because of their limited scale (Gupta & Gup ta 1992, p.44). True to that, small companies often lack the necessary economies of scale to create an effective Human Resource mechanism using its internal mechanisms. Unlike large companies that can afford to design, develop and implement complex HR process in the organization, smaller companies with minimal resources become faced with many costs if they follow suit. According to the authors, researchers argue that small companies will outsource their Human Resource functions for them to acquire the needed expertise (Gupta & Gupta 1992, p.50). Nevertheless, outsourcing is more common in large companies that would want to reduce their organizational costs to within their functional processes.