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The Research On The Risk Of Human Resources Management Outsourcing Services Quality And Avoidance

Posted on:2012-08-15Degree:MasterType:Thesis
Country:ChinaCandidate:W B AnFull Text:PDF
GTID:2189330335956775Subject:Business management
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As the knowledge has become the essential factor of production and been involved in the profit distribution through the transference to capita, the human resources management has started an era in which human resources capital has been emphasized strongly. Because of the various environments of enterprises and the more and more independent employees, the outsourcing of human resources management has been acknowledged as the important strategic method for enterprises to exist in the era of knowledge economy, hold the competitive advantages and boost the reforms. The outsourcing of human resources management is one form of the outsourcing of human resources, which means the enterprises outsource the entire or part of the responsibilities of human resources management to the external professional institutes, so that the enterprises are able to focus on the core competitiveness, save the costs and attain the professional services of human resources management. Unlike the usual human resources dispatch, this outsourcing provides the competitive advantages for the enterprises accompanied by the risks. Majority of the researchers took the outsourcing of human resources responsibilities, analysed the possible factors of risks and brought forth the methods for avoidance. But due to the lack of systematic analyses on the risks of outsourcing of human resources management and the specific analyses on the categories of risks, the factors of risks are extremely complicated and make the managers in enterprises confused to catch the crucial points efficiently. It is necessary for enterprises to clarify the risks in the new-born managerial mechanism of outsourcing of human resources management, holding the key factors of risks in order to guarantee the successful performance of outsourcing of human resources management. The essence of this operation is one kind of transactions, which means the enterprises purchase the merchandise (professional services of human resources management provided by the service providers) with a specific price on the base of the use value, which is recognised as the feature of commodities. The quality of the outsourcing is decided by the service providers'capacity to burden the responsibilities of human resources management, and the quality is the fundamental factor for enterprises to attain the services, no matter what the targets to perform the outsourcing are. According to the survey on the outsourcing of human resources management in China, more than 50% of the enterprises considered the quality of services is the main risk in outsourcing, therefore, this risk is crucial in the outsourcing of human resources management. The reasons why the risk of service quality occurs are complicated, which have been shown in three aspects. The first one is the incorrect choice on service providers. The research proved that the main reason of failure is the providers'inadequacy of key professional skills and the enterprise-oriented spirit of service, so that whether an enterprise could find a suitable service provider is directly related to the quality of the outsourcing services. But in reality, the enterprises are difficult to identify the providers'qualifications of professions and quality of services because of the asymmetric information between service providers and enterprises, the variety of providers' quality of service and the incorrect methods chosen to assess the providers. The second reason lies on the inadequacy of enterprises' roles. The enterprises hold a vague recognition on the roles they have to play in the relationship of the outsourcing and cooperation, only defining themselves as the witnesses and keeping outside of the whole process of outsourcing. The last reason comes from the difficulties in controlling the providers, because of the principal-agent relationship, incompleteness of deals and the services providers' opportunism.Based on the analysis about the reasons, the enterprises are able to take the correspond measures to avoid the risks. On one hand, the three-rank-index system and Analysis Hieratical Process (AHP) could be applied to choose service providers. The three-rank-index system is concluded by accurate analysis on the scientific deduction and a large amount of empirical investigation, and AHP is a systematic method for analysis, which needs less quantitative information than the others, especially when the results of decision-making process cannot be computed easily or directly. The application of the index system and AHP is able to clarify the different factors for assessment on the providers' services quality, and improve the reasonability and reliability. On the other hand, enterprises are required to make clear their own responsibilities to serve for the providers, manage and inspect the providers, and participate in the outsourcing process persistently. They need to define the providers'responsibilities by signing the agreements of outsourcing, protected and constrained by laws, making up the incompleteness of contracts by the psychological contract, including encouragement, communication and inspecting mechanisms.
Keywords/Search Tags:Outsourcing of Human Resources Management, Quality of Service, Analysis Hieratical Process (AHP)
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