Why Do Large Organizations Rarely Outsource Their Entire HR Departments

question 62

Multiple Choice

Why do large organizations rarely outsource their entire HR departments?

• A)Outsourcers specialize in market niches and so no one company does all functions.
• B)Organizations do not wish to relinquish total control over all HR functions.
• C)Organizations have different cultures than their outsourcing vendors.
• D)Outsourcers need to be monitored,and this extra time has associated costs.

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Definitions:

Price Skimming

A pricing strategy where a high initial price is set for a new product, gradually lowered over time as the market saturates.

Reference Prices

The prices that consumers consider reasonable and fair for a product.

Break-Even Point

The point at which the costs of producing a product equal the revenue made from selling the product.

Variable Costs

Costs that vary depending on the number of units produced or sold.