Copyright2文档格式.docx
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Copyright2文档格式.docx
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DavidW.Conklin
RisksandRewardsinHRBusinessProcessOutsourcing
Managershaveexpresseddifferencesofopinionabouttherisksandrewardsof
outsourcing
companies'
humanresource
activities,includingtheentire
businessprocess.
Thispaperreviewstheliteraturetodateandstudiestheexampleofoneoftheearliestcasesof
anHR
businessprocess,
whenEDStookontheresponsibilityforCanadianImperialBankofCommerce.Withtheoffloadingoffunctionssuchaspayrollandrecruitment,acompany'
sHRdepartmentcanthereforeconcentrateonstrategyandbecomeafacilitatorforchange.Thepaperconcludeswithlessonsthatmanagerscanapplywhenconsideringthe
ofHRfunctions.
ArticleOutline
Introduction
HowtochooseHRactivitiesaspotentialcandidatesforoutsourcing
HowtoanalysepotentialHRcandidatesforoutsourcing
Howtoachievesuccessfulinter-companygovernance
Futureissues
Conclusion
References
Introduction
Authorshaveadvocatedavarietyofcriteriaformakingoutsourcingdecisions.Inthestrategyliteratureconcerning“makeorbuy”,afocusonthecoreversusnon-coredichotomyhasledtotherecommendationthatactivitiesessentialtoacompany'
scompetitiveadvantageshouldnotbeoutsourced,whileallotheractivitiesshouldbecandidatesforoutsourcing.Somecommentatorshaveemphasisedcertaincharacteristicsofthecompanyitself,leadingtotheconclusionthattheappropriatedecisionmaydifferamongcompaniesandovertime.Forexample,companiesthatneedtocopequicklywithimpedimentstothedevelopmentofnewHumanResource(HR)processesmayoutsourcetogainmanagementexpertise.Someauthorshavealsoemphasisedcosts,assetspecificityandthedegreeofprecisionincontracts.TotheextentthatHRactivitiesdifferinregardtothesefeatures,appropriateoutsourcingdecisionsmayalsodiffer.Forexample,ifanactivitysuchaspayrollcanbequantifiedwithcertainty,thenthecontractmaybepreciseenoughtominimiserisks.Attheotherextreme,itmaybeparticularlydifficulttoquantifyHRbusinessprocessoutsourcing(HR-BPO)intermsofdeliverablesovertime.Heretheriskofuncertainoutcomesmayargueagainstoutsourcing,unlessthevendorandbuyercandevelopwaystomitigatethisrisk.
Productdevelopmentnecessarilyentailsincompletecontractswithuncertaintyandrisk,andsoauthorsexaminingtheoutsourcingofproductdevelopmentrecommendcreationofastrategicallianceandemphasisetheneedfortrust.Relatedconcernsincludehowbesttostimulateinnovation,andhowbesttodirectit.OngoinginnovationhasbeenparticularlyimportantwithIT,andsoanextensiveliteratureonIToutsourcinghasanalysedthispartnershipperspectiveandtheneedfor“trust”.ProductdevelopmentandITliteraturehavepointedtothenatureoftheinter-corporategovernancestructureasacrucialdeterminantofoutsourcingsuccess.ThisarticleappliesinsightsandlessonsfromthisliteraturetothesubjectofHRoutsourcing.InHRO-BPO,forexample,bothbuyerandvendorexpectthatongoinginnovationwillimproveIT-HRtechnologiesandHRpractices.Consequently,riskmitigationinHR-BPOfocuseslargelyontheinter-companyprocessesandstructuresfordecision-makinganddisputeresolution,andtheculturesandcapabilitiesthatarenecessaryforasuccessfulstrategicalliance.
Overtheperiod2001–2004,thenumberofmultinationalcorporationsthatoutsourcedtheirHRbusinessprocessrosefromapproximatelysixto40,andseveralvendorsnowofferedglobalHR-BPO,includingExult,AccentureandIBM.1HoweversurveysofdecisionsconcerningHRoutsourcinghaverevealedawiderangeofmanagerialopinions.ThecomplexityofissueshasledtothecreationofHRconsultingfirmsthatspecialiseinprovidingadviceonwhethertooutsource,howtodesignacontractandwhatgovernancestructurestoestablish.
•ManycompaniesfailedtostudytherisksandrewardsofHRoutsourcingcarefullyenough,andmanyunderestimatedtheburdenofmanagingrelationshipswiththevendor.
SurveysofdecisionsconcerningHRoutsourcinghaverevealedawiderangeofmanagerialopinions
HowtochooseHRactivitiesaspotentialcandidatesforoutsourcing
PrahaladandHamelsayacompany'
scorecompetenceshouldbeamajordeterminantinthemakeorbuydecision,andthisviewplaysacentralroleintheHRoutsourcingdebate.2StrohandTreehuboffexpresstheopinionthat“Whenconsideringoutsourcingthefocusshouldbeonkeepingcoreactivitiesin-houseandoutsourcingnon-coreactivitiesonly.”3Theybelievethattheactivitiesthatdefineacompany'
scompetitiveadvantagemaybetooimportanttooutsource.Thisviewislinkedtotheresource-basedtheoryofthefirmwhicharguesthatthecapabilitiesofacompanyaredependentonresourceswithinit,andsotooutsourcecertainresourcesmightlimitanycapabilitiesthatdependonthem.
Forsomeauthors,corecompetencemeansmorethanauniquetechnologyorproductdesign.ForJavidan,acompany'
scapabilitiesrelatetoitsabilitytoexploititsresources,whileacompetencyisacross-functionalintegrationandco-ordinationofcapabilities;
andacorecompetencyisacollectionofcompetenciesthatarewidespreadinthecorporation.4Hamiltonetal.alsorecommendthatthecompanyretainthosecapabilitiesthatencompasstheentirevaluechain.5Theseperspectivessuggestthatthecross-functionalattributesofsomeHRactivities,withtheirimpactsontheentirevaluechain,mayformacorecompetencyandcompetitiveadvantage,providingawarningagainstHR-BPO.
However,newrolesfortheHRdepartment,particularlyasanagentofchange,complicatetheserecommendations.Postdemonstratesthatacompany“canstretchtobuildnewcompetences”,therebyalteringthecompetitiveenvironmentinitsfavourandofferingnewstrategicopportunities.6Today,ascompaniesfacepressuretoautomate,downsize,becomemoreinternational,adopte-businessproceduresetc,theHRdepartmenthasnewresponsibilitiesasanagentofchange.7Theabilitytofulfiltheseresponsibilitiesisbecomingapotentialcorecapability,andtooutsourceHR-BPOmayenabletheHRdepartmenttofocusonthisnewcorecapability.Gilleyetal.haveanalysedrelationshipsbetweenHRoutsourcingandorganisationalperformanceinmanufacturingcompanies.TheyconcludethatoutsourcingofcertainHRactivitieshasapositiveimpactonoverallinnovationwithinthecompany.8BoselieandPaauwehaveexaminedHRcompetenciesinEuropeancompaniesandconclude:
“weforeseeadevelopmentbywhichthetimespentonthetraditionaltransactionalHRactivitieswilldecrease,whileatthesametimetheHRprofessionalisrequiredtospendmoretimeasachangefacilitator.”9Paauweetal.havepointedtothe“knowledgeeconomy”asanotherfactorincreasingtheimportanceofHR.HereHRhascometoplayfouradditionalroles,eachofwhichinvolvesnewandcomplexresponsibilities:
humancapitalsteward,knowledgefacilitator,relationshipbuilder(bothinternallyandexternally)andrapiddeploymentspecialist.10ThesedevelopmentssupporttheoutsourcingoftraditionaltransactionalHRactivities,includingHR-BPOifpossible,sothatHRmanagementwillthenbefreetofocusonwhathasbecomeanewcorecapabilityofthecompany,playingakeyroleinmanagingchangeandimprovingtheflexibilityandadaptabilityoftheorganisation.
ManyanalystsoftheHRoutsourcingdecisionsupporttheviewthatthiscore/non-coredichotomyisnotadequatebyitself,andpointtootherfeaturesofimportance.11LepakandSnellextendthecore/non-corefocustoincludeuniqueness.12HRactivitiesshouldbecategorisedinaccordancewiththeircontributiontothecompany'
scorecompetenciesandcompetitiveadvantages,andalsoinaccordancewiththeextenttowhichtheyarerareintheexternalmarket.Allactivitiesarecandidatesforoutsourcingexceptforthosepossessingbothcorecompetenceanduniqueness.OtherauthorsfocusonthedegreetowhichHRactivitiesentailaninteractiverelationshipwithemployeesandotherbusinessunits.Activitieswithbothhighstrategicvalueandhighrelationshipfeaturesshouldbekeptin-house,whilealltherestarecandidatesforoutsourcing.13
Klaasetal.haveintroducedadditionaldeterminants.Theyrelateacompany'
sorganisationalcharacteristicstoitsoutsourcingsuccessinfourcategoriesofHR:
generalistactivities(e.g.performanceappraisal),transactionalactivities(e.g.payroll),humancapitalactivities(e.g.training),andrecruitingandselection.14Theyconcludethatdistinctiveoridiosyncraticpracticesrequiringtacitknowledgemaysufferifoutsourced.Companiesoperatinginuncertainenvironmentsmaygaingreaterbenefitsfromoutsourcingthanothercompanies.CompanieswhereHRisexpectedtoparticipateincorporatestrategymayprefertoretainstrategic-orientatedgeneralistactivities,asmaycompaniesthatrelyonpromotionstoimproveefficienciesinbureaucraticorganisations.Ingeneral,theyconcludethat“organisationalcharacteristicshavedifferenteffectsonvarioustypesofHRactivitiesoutsourced”.15TheresearchbyBoselie,Paauwe,KlaasandotherssuggeststhatthemakeorbuydecisionwilldiffernotonlyamongHRactivities,butalsoamongcompaniesovertime.“Classifyinganactivityas‘non-core’mayleadtoseriousoversimplificationofthecomplexityoftherealbusinesssituation.”16
OfparticularimportanceforHR-BPOiswhethermanagementwantstoachievesubstantialandrapidchangeinitsHRbusinessprocesses.Astrategyliteratureon“transformationaloutsourcing”suggeststhat:
“Thekeyi
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