MGT 511 Adv. Topics in Human Res. Mgmt. HR OUTSOURCING CASE 2 Essay - 1

MGT 511 Adv. Topics in Human Res. Mgmt. HR OUTSOURCING CASE 2 - Essay Example e in order to ensure that the employees are satisfied and productive it is crucial to develop a special department which can lead to high costs (Friedman). Hence in order to meet these needs as well as to ensure that the company can find a less expensive solution for the same, it is best to outsource the human resources functions so that a third party manages all the human resource functions. There is a wide range of services that human resource outsourcing firms provide, however there are a number of firms which also specialize in recruitment and pay rolls alone (Ulrich, Brockbank and Younger). The need for outsourcing of human resource for a business is mainly dependent on the size of the business and also the level of control that the firm wishes to maintain. It is important to note here that outsourcing of human resource activities can prove to be very beneficial to companies as outsourcing allows companies to send out both time consuming as well as expensive processes like training, recruitment, and also benefits administrations (What Is HR Outsourcing?). There are a number of benefits of using outsourcing of the human resource functions as well. Companies tend to benefit in terms of the costs as human resource functions generally involve very high profile and complex functions like recruitment, training and development, retention and also database management which involves not only high variable costs but also high fixed costs. Hence when a company outsources the human resource tasks to other companies, there is a major cut in costs for the company (Stopper). Human resource outsourcing plays a major role in the overall satisfaction of the employees as well as allows companies to cut costs more effectively. With the intense competition that companies now tend to face, strategies like human resource outsourcing are major cost cutting moves and also prove to be beneficial in bettered productivity as well. There are several non value adding processes in human