HRM Guide publishes articles and news releases about HR surveys, employment law, human resource research, HR books and careers that bridge the gap between theory and practice.
Human Resource Management in a Business Context, 3rd edition by Alan Price
Human Resource Management in a Business Context provides an international focus on the theory and practice
of people management. A thorough and comprehensive overview of all the key aspects of HRM, including articles from HRM Guide and other sources,
key concepts, review questions and case studies for discussion and analysis.
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This section outlines the role of strategy and planning in the employee
resourcing process. Forecasting, information collection and decision-making
are considered in the context of flexibility.
Resourcing
Resourcing is a major issue for people managers. Not surprisingly, HRM
and other management literature puts great emphasis on the process of selecting
and socializing new recruits. The basis of people management lies in how
work gets done and who does it. Therefore, the rationale behind why
we should decide on one solution rather than another is fundamental to
HRM.
Environmental
constraints on resourcing
Even
in conditions of high unemployment there are shortages of people with skills
which are in demand. Countries such as Australia and Britain, for example,
have a long record of failure to provide their young people with appropriate
vocational training. If companies are unable to find staff or subcontractors
with appropriate skills, their growth prospects and competitiveness are
constrained.
Resourcing and the flexible organization
Many businesses have distanced non-core activities - such as catering and
cleaning - allocating them to external contractors. (...) A modern flexible
organization may adopt a structure along the lines of Handy's three-leaf
'shamrock' model:
* A professional core
made up of managers, technicians, and qualified specialists.
* Contractors providing
non-core activities and who are not direct employees of the organization.
* The flexible labour
force composed of part-timers, temporary staff, consultants and contract
staff performing tasks as and when required.
Greaver (1999:4) lists 20 reasons for outsourcing:
"Organizationally Driven Reasons
* Enhance effectiveness by focusing on what you do best.
* Increase flexibility to meet changing business conditions, demand for products and
services, and technologies.
* Transform the organization.
* Increase product and service value, customer satisfaction, and shareholder value.
"Improvement-Driven Reasons
* Improve operating performance.
* Obtain expertise, skills and technologies that would not otherwise be available.
* Improve management and control.
* Improve risk management.
* Acquire innovative ideas.
* Improve credibility and image by associating with superior providers.
"Financially Driven Reasons
* Reduce investments in assets and free up these resources for other purposes.
* Generate cash by transferring assets to the provider.
"Revenue-Driven Reasons
* Gain market access and business opportunities through the provider's network.
* Accelerate expansion by tapping into the provider's developed capacity, processes, and systems.
* Expand sales and production capacity during periods when such expansion could not be financed.
* Commercially exploit the existing skills.
"Cost-Driven Reasons
* Reduce costs through superior provider performance and the provider's lower cost structure.
* Turn fixed costs into variable costs.
"Employee-Driven Reasons
* Give employees a stronger career path.
* Increase energy and commitment in noncore areas."
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