How Can You Determine Which HR Activities Are Amenable to Outsourcing

Question

Examlex · Accepted Answer

The Answer is Activities most likely to be outsourced are:
∙ Rule based
∙ Repetitive
∙ Frequently undertaken
∙ Predictable
∙ Able to be fully or partly automated by technology
∙ Able to be delivered by remote sites
Another way to determine if any HR activities are amenable to outsourcing is to consider their strategic importance. Research suggests that HR activities can be grouped into seven hierarchical activities, according to strategic importance (levels below). HR activities in the first few levels are suitable for outsourcing; those at the higher levels are not.
Level 1: Ancillary activities—food service, grounds maintenance
Level 2: Routine activities—benefits administration
Level 3: Economics of scale—administering personnel tests
Level 4: Specialized knowledge—conducting HR surveys, delivering a training course
Level 5: Specific organizational knowledge—succession management
Level 6: Highly confidential activities—layoffs, restructuring
Level 7: Management decision activities—HR strategy, structure

How Can You Determine Which HR Activities Are Amenable to Outsourcing

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