Research On HR Outsourcing Decision Model And Outsourcing Risk Rank

Outsourcing was a new management method adopted by many companies and organizations through developed countries since 1990. This new concept brings efficiency improvement for many companies across the world. Each coin has two sides, and there are also many risks during the time of outsourcing. To make the right outsourcing decision is the precondition of outsourcing success, so the textual research manages the further research of the HR management outsourcing have the certain theories meaning to the local human resource.Firstly, this paper analyses the concept, reason and principle of HR management outsourcing, and than review the three basic theories of HR management outsourcing decision making, which are Transaction Cost Theory, Core Competence Theory and Resource Based Theory. Through the analysis of the principle cause of HR outsourcing, we get a two-dimension outsourcing decision-making model based on core competence and resource uniqueness, especially use Analytic Hierarchy Process (AHP) to discuss the resources which are considered as high core competence and with low uniqueness in the model. Finally, we compared three decision-making methods. Fuzzy Comprehensive Evaluation is an easy way to make a decision and cost-benefit method is suit for the company which considers outsourcing in economic aspect, and AHP method is often used by large or middle companies consider outsourcing in strategic aspect.This dissertation also summarizes the risks in HR management outsourcing. In order to build an effective risk management system, this paper got the risk management system through Risk Ranks. That method including analysis the Risk Identity, Risk Probability and the Loss of Risk, through a Rank method called Borda rank method, and than get the core risks that companies confront in the different period of outsourcing, and also a countermeasure was set for each risk occurred in HR outsourcing. We link the causes of outsourcing failure and the outsourcing risks to get the rank of risk loss. Compared with traditional method, Borda rank method has less risk knot and subjectivity.