Human Resource Outsourcing Success

Abstract

This paper examines the consequence of the organization internalization on the practice of human resource (HR) outsourcing among manufacturing organizations. The assumption is that HR outsourcing is perceived as an innovative practice and that multinational enterprise (MNEs) will employ this practice more than local organizations. The data was gathered from survey questionnaires of 232 manufacturing organizations. Of the sample, 113 organizations engaged with HR outsourcing, and 71 are MNEs that partially outsource their HR functions. The findings reveal that HR outsourcing among MNEs is used to a greater extent than local organizations. A significant difference is found in the extent of outsourcing payroll, benefits, training and recruitment between MNEs and in local organizations. ABSTRAK Tulisan ini memeriksa konsekuensi organisasi internasional dalam praktik bagian outsource sumber daya manusia (SDM) dalam organisasi manufaktur. Asumsi awal yaitu bahwa SDM outsource dianggap sebagai praktik inovatif and bahwa perusahaan multinasional akan mempekerjakan praktik ini lebih banyak daripada perusahaan lokal. Sebagai contoh, 113 organisasi mempekerjakan SDM oursource dan 71 di antaranya adalah perusahaan multinasional. Jumlah tersebut mengungkapkan bahwa SDM outsource diantara perusahaan multinasional menunjukan jumlah lebih besar daripada perusahaan lokal. Perbedaan signifikan ditemukan dalam perpanjangan gaji outsource, benefit, training, dan rekrutmen antara perusahaan multinasional dan lokal. Kata kunci: outsource, sumber daya manusia, perusahaan multinasional 2

What we know about the trends, prospects, and challenges of human resource outsourcing: A systematic literature review

“…Traditionally, outsourcing is considered a nonstrategic element where resources are left for significant strategic contribution [ 22 ]. In the past, outsourcing HR activities was based on a contractual agreement and trust between the vendor company and service receiver company, whereas today it is pursued as a means to gain a competitive advantage [ 13 ], with HRO influencing an organization's financial circumstances while also serving as a tool to drive innovation and enhance stakeholder performance [ 23 ]. Earlier scholars defined HRO that primarily focused on these key advantages.…”

“…Moreover, shared responsibility, understanding the client's expectations, and the organization's capability, benefits, and risks are essential elements of the HRO process and crucial for successful outsourcing. However, top management's role in pursuing HRO success is often not strongly emphasized, and the responsibility for HRO implementation is commonly delegated to other employees [ 13 ]. Additionally, the presence of trust and close supervision is a core issue, as the absence of trust can disrupt information flow, create coordination problems, and lead to conflicts between organisations Again, provider quality and knowledge sharing are crutial factors that can be evaluated based on the recommendation from in-house personnel of the receiving company [ 8 , 13 ].…”

“…Where the first paper emphasises the resource-based theory, while the second one acknowledges the significance of both resource-based theory and institutional theory in decision-making pertaining to the HRO concept. Furthermore, existing research also emphasises the strong connection between successful HR outsourcing and the quality of partnerships [ 13 ]. Considering only all the empirical studies of HRO, a study by Sim [ 14 ] employing a grounded coded technique, provides valuable insights into the field of HRO.…”

Entrepreneurship on Social Networking Sites: The Roles of Attitude and Perceived Usefulness

“…We found a much stronger association with the attitude in the case of perceived usefulness among users and nonusers. The reason is probably connected with entrepreneurs’ constant search for opportunities [ 78 , 79 ]. Those who see an opportunity in using SNSs for their business tend to have a more positive attitude towards the same tools.…”

Why Not Knowledge-Based HRM? Its Direct and Indirect Effect on Innovative Service Offerings

“…As technological capability has been found to increase operational efficiency and effectiveness, reduce potential errors, and the need to reworking on innovation (Abdul-Halim et al, 2014), it is likely that technological capability will lead to the creation of innovative service offerings and enhance performance (Chatterjee, 2017). It can thus be anticipated that technologically able firms will be able to come up with innovative services as desired by customers (Teece, 2018).…”