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Outsourcing human resources services is a very versatile activity. There are a number of strategies that a firm like Hyundai, can employ when planning to outsource human resource services. Optimal human resource outsourcing strategies depend on a firm’s expertise and the internal resources available (Strategies for Effective Human Resource Outsourcing, 2002). One of the strategies that Hyundai should employ in outsourcing HR services is to; outsource high-level human resource functions (Strategies for Effective Human Resource Outsourcing, 2002). Recruitment, training, and development of employees, are some of the high-level HR functions. As earlier mentioned, Hyundai’s HR department has already decided to outsource both recruitment and selection, and training and development functions to a HR service provider. By fully outsourcing these functions, Hyundai will be able to take advantage of the adeptness of the selected HR service provider.
Another strategy that Hyundai should employ is to outsource all the administrative tasks, which are associated with recruitment and selection, and training and development of employees (Strategies for Effective Human Resource Outsourcing, 2002). Such a strategy will ensure that, the in-house human resource staff, focus on the core business activities, and hence contributing more towards achievement of the business’s goals. Moreover, Hyundai can engage the HR service provider as its consultant: in streamlining other human resource functions such as compensation management, and performance management (Strategies for Effective Human Resource Outsourcing, 2002). This strategy would assist Hyundai in increasing the value of its human resources, thus, increasing its productivity. In implementing these strategies, Hyundai’s action plan should involve allowing the HR service provider to design and deliver all the services and programs involved in the services outsourced. This will allow the service provider to utilize its expertise in delivery of the services, without getting inputs from the firm’s HR staffs. This way, the service provider will have the discretion to input all its expertise in the best possible manner.
Service Level Agreement
Hyundai’s HR department in liaison with the service provider should develop a clear outline of the duties and responsibilities of each player. Since outsourcing HR services is more like getting into partnership with the concerned service provider, it is advisable for Hyundai to assign the service provider the roles and responsibilities of a consultant. This means that, the HR service provider will assist Hyundai troubleshoot the outsourced HR functions, and/or overhaul faulty HR programs in the specified HR function (Strategies for Effective Human Resource Outsourcing, 2002). On the other hand, the HR manager and key HR personnel at Hyundai will be responsible for providing the necessary resources for undertaking the identified functions to the service provider. In-house HR staffs’ responsibility is to support the service provider through implementing the recommended changes as desired by the service provider.
Quality Assurance Process
To ensure that the service provider delivers quality services, it is important for the outsourcing firm to search for a provider who understands the broader goals of the business (HR Outsourcing, 2011). This means that, Hyundai should work with an experienced service provider in terms of technology, human capital, taxation, service delivery, and risk control (HR Outsourcing, 2011). In addition, Hyundai should also create an environment, which will allow the service provider work effectively with the firm’s employees. Therefore, before commencement of service delivery process, Hyundai should educate the service provider’s personnel about its HR policies, overall policies, and its goals and objectives. Moreover, both the service provider’s personnel and the firm’s personnel should undergo training on how to develop interpersonal skills, to allow smooth transition of the process.
In case an outsourcing firm feels that, the services provided are not satisfactory, it is advisable for the outsourcing firm to apply the provisions provided by the law, which regulate termination of employment or services. Commonly, the first procedure in termination of employment or services is to establish the validity of the reason for termination (Performance Management, 2002). For instance, in case of Hyundai, it should identify the specific areas where the service provider has not performed satisfactorily. The next procedure would be to notify the service provider or the personnel concerned. Then, the concerned individual is given a chance to respond to the issue, after which, the outsourcing firm decides on the fate of the service provider/concerned personnel. Here, the outsourcing firm’s decision may depend on the degree of impact the firm is likely to face after termination of the HR expert, and the degree of underperformance (Performance Management, 2002).
The best approach for gathering on-going client feedback regarding the level of service provision by the service provider is to develop open methods of communication between the two parties (HR Outsourcing, 2011). There should be no restrictions on when the service provider should communicate with the client or how to undertake communication. However, it is important for both parties to set specific timelines when they should meet, and have one-on-one discussion about the progress of the process. This could be done on monthly or bi-monthly basis. It is important for the service provider to meet with the client regularly, to enable effective tracking of the changing client’s needs. Otherwise, direct and/or indirect communication between the service provider and the client should be a routine activity.
Evaluation of the Consultancy
Evaluating consultants’ work is one of the difficult activities involved in outsourcing for services. However, evaluation is important since it assists the outsourcing firm/client, to determine if it is actually getting valuable services for its money. The first step in evaluation of consultant’s work is to determine the purpose of evaluation (Choosing a Human Resource Consultant, 2011). In this case, Hyundai should determine the goals it would like to achieve after the evaluation process. Then, Hyundai should determine the measure that will be used in the evaluation. For instance, Hyundai can use benchmarking as an evaluation method whereby, predetermined standards of performance are measured against actual performance (Choosing a Human Resource Consultant, 2011. It is important for Hyundai to notify the service provider about evaluation, its objectives, timing, and results. Open and honest evaluation of consultancy work results into increased learning, not only for the client, but also for the service provider (Choosing a Human Resource Consultant, 2011).