Application: How Organizational Size Affects HR Outsourcing

In the business world, expanding the size of your organization usually seems to be a worthy goal. Of course, it does not take much research to find examples that disprove the rule. Whether bigger is better for a particular organization may be open to consideration, the Required Resources for this week support the idea that the size of an organization plays an important role in decision making processes, particularly in regards to outsourcing.

Articles, such as "The Influence of Business Strategy on the Decision to Outsource Human Resource Activities," by Abdul-Halim and Geare (2009), in your Required Resources for this week, delve into the issues considered when deciding whether to outsource HR and other organizational functions, and HR's role in the process. The Woodall, et al., article referenced in this week's Discussion compares drivers that lead large versus small organizations to consider outsourcing their HR. Why are larger organizations usually more cost conscious, as the authors noted? Based on your research, is that the best approach?

From your research into organizational influences on outsourcing HR functions, what ramifications are there for HR executives in organizations that outsource HR functions? Is there a difference in the way larger organizations tend to make outsourcing decisions compared to smaller organizations?

To complete this Assignment, respond to the following in a 3- to 4-page paper:

• Analyze organizational influences on outsourcing HR functions.
  • Describe influences that lead organizations to outsource.
    • How does the outsourcing of HR functions address organizational issues?
  • What are the positive and negative ramifications for HR professionals in organizations that outsource some HR functions?
    • What implications are there for the career paths of HR professionals in this situation?
    • How can HR professionals maintain viability in this situation?
    • Might some HR professionals thrive in this situation? Explain how that could happen.
• Evaluate the impact of company size on organizational outsourcing decisions.
  • Is there a clear pattern to how large organizations handle HR functions compared to small organizations related to outsourcing HR functions?
  • How does the size of an organization factor into how these decisions are made?
    • From your research, what factor do you think is the most influential? Support your reasoning.