Abstract:

Outsourcing is promoted as one of the most powerful trends in human resources management.
The rationale for outsourcing HR functions includes financial savings, an increased ability to
focus on strategic issues, access to technology and specialized expertise, and an ability to
demand measurable and improved service levels. However, there may be a serious impact on
employee morale and a risk of transferring expertise and insider knowledge to vendors due to
outsourcing. It may lead to high level of stress among HR professionals at the workplace as it
may raise a question on their integrity and knowledge. Managing the outsourcing
arrangement is critical.

The research explores how to preserve HR's strategic role in facilitating organizational
learning in the new outsourcing con-text. The research suggests that managers can positively
influence the relationship between outsourcing and organizational learning through internal
marketing tactics and enriched psychological contracts.

**(Look down for the questionnaire)

Questionnaire:

1. Today, HR is considered as a:
a) Staff Function. (plays an administrative role)
b) Line Function. (is at the forefront shaping organizations strategic decisions)

2. Outsourcing of HR functions is predominantly undertaken in:

a) Private Limited Companies.
b) Public Limited Companies.
c) NGO’s. (voluntary and charitable organizations)

3. Is HRO a strategic enabler for the HR function?

a. Yes to a great extend.
b. Yes to a limited extend.
c. No.

4. What amongst the following is the major driver for HR outsourcing?

a) Enhance efficiency.
b) Access to skills and knowledge.
c) Pressure to enhance quality.
d) Cost reduction.
e) Increasing need to innovate.

5. Which amongst the following HR areas are mostly outsourced by organizations?

a) Legal Activity.
b) Payroll.
c) Recruitment.
d) Training and Development.
e) Employee Relations.
6. In your opinion what do you consider the disadvantages of outsourcing to be? Please
tick all the statements you agree with.

a) The company we could outsource to only undertakes the work for profit therefore the
quality is likely to be inferior
b) We no longer have full control of the business process – quality is likely to suffer
c) The company’s that could take on our outsourced work do not have a good
understanding of our business and this could cause problems .
d) It is not cost effective
e) We don’t know how to go about choosing the right provider and don't want to take on
the wrong provider who will not match our requirements
f) The risk of the outsourcing contract going wrong and being costly to reverse the
decision is too high.

7. In your opinion what do you consider the advantages of outsourcing to be?

Please tick all that apply.

a) It is more cost effective.

b) The quality of the business process increases as experts are undertaking the tasks.
c) The work is carried out quicker and more effectively.
d) We do not have to have our own employees for the tasks therefore it reduces other
costs e.g. payroll costs.
e) The management doesn’t have to oversee the day to day running of the business
process this then reduces the load on the management.
 8. Does outsourcing of strategic HR functions lead to stress? State reasons for your
answer.
a) Yes.

b) No.

9. What amongst the following attributes of HR outsourcing are the major reasons of
stress?
a) Loss of control over strategic functions.
b) Loss of career opportunities.
c) Insecurity due to interference of third party.
d) Loss of job.

10. Rate the following techniques in order of their effectiveness to cope with stress
resulted due to outsourcing of strategic HR functions:

TechniquesEffective
Highly Effective 1
Moderately 2 Barely Effective
3 4 Not Effective
5
Discontinue outsourcing Effective
1
Change management training2programs 3 4 5
Allot strategic roles to HR professionals
in the organization
Outsource to sister concern, thus,
accommodating the current HR staff
Involve the HR professionals at work
and at the outsourced agency equally
Other: (specify your suggestion):

Respondents Profile:
Name:

Designation:

Name of the organization:

Nature of the organization: