Comprehensive Outsourcing Decisions

[Kelsey Jones]

The strategic human resource management practices include the specific practices that are developed to act as a link to the strategies of the company. The term strategic human resource management states that, all the employees are usually strategic resources, which means that they are human capital that should be managed and leveraged when implementing the corporate strategy. The initial efforts of developing the strategic human resource management(SHRM) standards were predicted on the notions that the specific human resource practices were necessary for the promotion of behaviors that were designed to deliver the firms strategies and that were focused on the mutual relationships that existed between the employee behavior and the strategies of the company (Ijose, 2010). Their first hub was on the strategic framework that influenced the individuals and then progressed to technical systems of human resources management practices. It was the duty of the managers to employ the system of personnel practices that would best suit the strategies that had been set for the firm that would draw out and strengthen the behaviors necessary, which were to conform to the external threats and opportunities and also the internal resources and capabilities.

            In operation, the SHRM usually means the reinforced allay of the traditional human resource management practices that includes recruitments, selection, training, development and rewarding to the company's strategic plan. This also means that, it is an instituting policy and procedures that enable for proper strategic execution when using groups or teams to influence the cross-functional knowledge and competencies of the company and also the development of skills and knowledge of management capabilities that help in the facilitation of the execution of the best practices and the efficient and most effective capturing of economic scope opportunities. It also includes the development of learning organizations that enable for the facilitation, of the adoption, utilization, owning and the internal distribution of the accurate practices that help in the execution of change in the management approaches that will contribute to the development and the maintenance of strategic supportive culture in the cooperation (Saxena, & Bharadwaj, 2009). The SHRM also includes practices that use the structured interviews recording of bio-data, assessment centers and the cognitive ability tests.

            Human resource is used in the creation of value which is by increasing the performance and the alertness of the human capital and the organizational capabilities. The delivering of this value describes the essential skills, competencies that a HR professional is expected to possess. They should fully understand and have a wholesome knowledge of how to translate external business trends and make them internal actions and formidable decisions (Medlin, 2009).  They fully understand the business conditions that may affect their business either in the industry or the geographical surroundings. They keep targets and their key customers are served by the practioners identifying the segmentation of the customer base, having knowledge about their expectations and putting in place the necessary actions that meet the needs of the customers. When a company is planning to outsource, it should first carry out a very comprehensive cost-beneficial analysis that includes both the internal costs that could be incurred and also the costs that will be incurred when outsourcing. The firm should also put into consideration the miscellaneous costs that could also be incurred during the changing period, for example, the employees’ turnover, and the costs and requirements for training for better understanding of the transition (Ulrich, 2012).

 

            The costs that are incurred internally include factors such as the anticipated resources that are needed for the sustainability of the infrastructure, training of the employees and the management of the firm internally. Some internal organizations are competent in their operations and they should be given the opportunity to try and compete in the outsourcing business to try and cut out the costs and time that could be wasted while outsourcing (Ijose, 2010). With this the organization may be able to reduce their operations and prioritize on effectively providing good services to their customers. When outsourcing, the organization should make sure they rule out high and unrealistic expectations that may make them enter into a contract without having done proper research and preparation thus end up losing on their costs. Organizations should put into consideration that outsourcing is not just for assets and people but it is contracting for results.

            Outsourcing allows organizations have the maximum returns on investments within their internal resources and it also gives them the benefits that are gained from the specialized capabilities of the vendors. This is important to organization, since they cannot be able to develop the tasks and gain the capabilities within them. Many human resource departments usually outsource their functions because their processing within the firm may be time consuming and the delivery may interfere with the operations because they maybe be slow. With outsourcing, the organizations can now be able to channel their energies to the larger strategic functions and can reduce their time in the administrative tasks or use the help of any of the essay writing service. If an organization risks limiting the uncertainties for outsourcing, they can channel their risks from a single firm to another and this may bring about losses or fail for a business (Medlin, 2009). When a vendor is responsible for the management aspects of the business, there can be a huge risk for the cash culture between the contracting parties. Before contracting, the firm should ensure that their supplier will comply to their guidelines and support their corporate values, standards and beliefs and if they are not ready then the firm should seize operations with them. The firm should ensure that they do not outsource the whole function because they may lose their grip on operations and the firm’s cultures and values.