An exploratory study on human resource outsourcing

Malaysia is a developing country with a competitive environment. Hence, there is an in full potential to grow in the market. In the era of rapid economic growth, HR department plays an important role in company. HR function outsourcing is important as it helps companies to be more efficient and deemed to cut cost. Outsourcing is defined as a delegation of non-core tasks by company to the outsourcing company due to the substantial amount of time and resource required by employee management. This research is aimed to explore current issue and challenge of HR, factors affecting HRO and the benefits of HRO in manufacturing industries, Malaysia. In this qualitative study, data were collected from six manufacturing companies by using multiple case study method. Purposive sampling had been chosen and semi-structured interview was used to collect the relevant data. In this research, it was found that the HR decision for adopting HRO is to improve manpower effectiveness, and not only to reduce cost, which is one of the most cited reason in the previous studies. Manpower management is very important because it can generate many benefits in many areas of the company, such as production and administration are managed properly. The productivity of the operation and the quality of the products are determined by the effectiveness of manpower management through outsourcing. Outsourcing produces benefits in financial terms. Therefore, if a company channels the resources to the right places and maximises their function, it will help the company to achieve high returns with low cost in the upcoming years. As for outsourcing training, once the company experienced the transformation of the employees’ mindset, the positive mindset will then increase their motivation at work.

Name dc:type.qualificationname

mphil

Level dc:type.qualificationlevel

masters

Grantor dc:publisher.institution

Universiti Tun Hussein Onn Malaysia

Year dc:date.issued

2016

Author dc:creator

• Choong, Pui Ying

• HF5001-6182 Business

Language dc:language

en