Comprehensive Outsourcing Decisions

Comprehensive Outsourcing Decision

Abstract

In today’s business world, HR managers face numerous challenges in exceeding the expectations of their organizations. However, partnerships and alliances have become the strategic norm that many managers adopt. The idea is to allow firms to focus on their strategic advantages and acquire specific competencies from other companies. While such business strategies give organizations the competitiveness required, they come with a price. Notably, an outsourcing partnership process is an organizational change process subject to managerial competencies and skills. HR executives are bound to successfully meet the competency framework to initiate and implement this form of organizational change. Having the expertise is essential for assessing potential outsourcing partners, effectively managing outsourcing agreements, and advising the organization’s CEO regarding outsourcing decisions. The study found that competency skills better position HR managers to identify potential outsourcing partners that increase value to their companies.

Analyze HR executives’ outsourcing decisions.

Habitually, outsourcing has been considered an integral component of business strategy. Central to the strategy is outsourcing partnership, a concept that a proactive organization must embody to increase its efficiency. Even so, effective evaluation is central to a new alliance that secures a sustainable competitive advantage. Human resource (HR) managers are accountable for the measurable results and forecasted outcomes of any strategic collaboration. Usually, their competencies precede sustainable outsourcing partner selection and management. As mentioned before, essential HR manager skills and competencies include communication, analytical and critical thinking, leadership, and relationship-building. These are core competencies, that form the foundation on which factors regarding outsourcing partnerships are built. In this sense, this study looks at how the aforementioned managerial competencies play an essential role in evaluating and selecting outsourcing relationships that condition partnership quality.

How would the HR skills identified in the Human Resource Competency Study aid an HR executive in assessing potential outsourcing partners?

Managerial skills help HR managers maintain a cutting edge in assessing potential outsourcing alliances. Skills such as communication and relationship-building are essential in ensuring that HR executives learn to speak the language of experts and deal with unnecessary disagreements and conflicts. According to Zhang et al. (2013), culturally conscious communication capability is necessary for integrated alliances to convey information in necessary detail and prevent rumors and misleading information. Therefore, communication skills are vital when forging a strategic partnership as it helps keep the involved parties more satisfied.

Similarly, managerial skills are instrumental in understanding the contract details. The contract agreement is usually involved in partnership-based outsourcing (Ijose, 2021). HR executives should be better placed to understand the definition of relational content that they arrange and formalize with the outsourcee. Skills such as analytical and critical thinking come in handy and help executives outsource any part of a company’s business operations per its terms of services, sound business case, or set goals (Ijose, 2021). This understanding is particularly important to ensure that all potential risks are taken into account. In this regard, managerial competencies are important in strategic collaboration as they go a long way in understanding the contract’s content and meeting the preset conditions that are strategic to the primary company.

Accordingly, requisite skills for HR managers are key for quick decision-making. Successful outsourcing partnership encompasses. The partnership-building process is often plagued with the inherent conflict of interest as both sides seek to better their services, incur minimal costs, and make more profit (Gibbs & Humphries, 2009). Leadership skills are central to such a tense situation to ensure a successful outcome for both the vendor and the client. Adopting leadership and control mechanisms can accommodate different values and interests and ultimately make both parties identify with the common goals of the alliance.

How would the skills identified in the Human Resource Competency Study enable an HR executive to effectively manage outsourcing agreements?

Managing outsourcing agreements is based on behavioral values that are hard to put in the form of a process. Gibbs and Humphries (2009) put it succinctly that critical to a successful partnership is the ability to show commitment, trust, or satisfaction for both parties. At the same time, it also involves exploiting the knowledge gleaned from a partnership, the ability to leverage assets, and the ability to learn from the partnership. Consequently, the lessons acquired when allying are valuable to the newly formed strategic relationship. For instance, meaningful and frequent commendation, reporting the performance results to all parties, or adopting culturally to other partners can help deepen the alliance. Thus, competency in behavioral values can help HR managers maintain successful partnerships.

In the same vein, successful management of alliances requires expertise in encouraging social bonding and constantly monitoring the relationship. An atmosphere of trust and commitment, not to mention cultural adaptation, stems from strong social and personal bonds (Garg & Sharma, 2018). Such an environment is the bloodline of cultural adaptation and solving conflicts for mutual satisfaction. Additionally, personal and social are important for commitment in agreements thanks to the closeness between individuals. In the same breadth, constant monitoring can signal the nature of the relationship and identify areas that need redress. As a result, HR managers should be armed with bonding skills and the expertise to monitor the state of these alliances.

How would such skills enable an HR executive to effectively advise the CEO of the organization regarding outsourcing decisions?

Advising a company’s CEO calls for top-notch and demonstrable skills that are valuable to the business. Notably, HR managers are both the eyes of the CEOs and provide valuable insights concerning the company’s goals and organizational management. Good communication skills and analytical ability can position HR executives to communicate convincingly and interpret relevant details comprehensively in strategic partnership with the CEO (Espino-Rodríguez & Ramírez-Fierro, 2018). For example, mastery and synthesis of key strategic goals of an ideal outsourcing model, coupled with persuasive communication prowess, could earn such a planned alliance a go-ahead from the CEO. Therefore, strategic management and communication skills are guiding principles when it comes to advising a company’s CEO concerning an outsourcing agreement.

Similarly, certain skills and competencies can help HR managers inform the CEO of the strategic need for outsourcing partnerships. Quite often, managers bear the responsibility of evaluating, selecting, and implementing alliances geared toward their firm’s competitive advantage (Gibbs & Humphries, 2009). With strategic management skills, HR managers can flexibly allocate resources, access new markets for befitting outsourcing partnerships, and ultimately foster a competitive edge. In the end, the skills mentioned can help them identify and report to the CEO strategic group, significant determinants of competitive advantage, and how to manage the outsourcing partnership process. For this reason, exhibiting skills that make it possible to improve financial performance, productivity, customer services, and flexibility places HR professionals in a better position to advise CEOs regarding outsourcing decisions.

What has been left unaddressed in the Human Resource Competency Study? Explain your concern or rationale in thinking something might be missing.

In as much as the lessons have covered a considerable part of the competency requirement for HR professionals, some areas remain unaddressed. Particular to this regard are the challenges facing HR personnel in managing a multigenerational workforce in the 21st century. Multigenerational employees consist of traditionalists, baby boomers, generation X, and Generation Y/Millennials. An overwhelming number of studies have revealed that employers frequently face a multitude of challenges in managing their workers. Some of these challenges include negative stereotyping, loss of knowledge and experience, delivery issues, increased workload, and decreased department morale. While the course addressed how some of these issues can be alleviated, it did not cover how HR managers are bridging these general gaps. Organizations should manage these demographics and continue offering options that offer work-life balance.

HR managers are encouraged to adopt outsourcing strategies to add value to the business and earn competitiveness. Meeting an effective HR competency model is important for delivering the outsourcing objectives without much strain. The most generic skills and expertise are communication, analytical and critical thinking, strategic management, relationship-building, and leadership skills. Having such skills can help HR executives in evaluating, selecting, and managing outsourcing partnerships. In addition to these, managers can also assume the role of advising CEOs of their companies, under the guidance of such a body of knowledge. Therefore, awareness of competencies is essential in maintaining the functional HR roles.

References

Espino-Rodríguez, T., & Ramírez-Fierro, J. (2018). Outsourcing performance in hotels: Evaluating partnership quality. Sustainability, 10(8), 2766. https://doi.org/10.3390/su10082766

Garg, C., & Sharma, A. (2018). Sustainable outsourcing partner selection and evaluation using an integrated BWM–VIKOR framework. Environment, Development and Sustainability, 22(2), 1529-1557. https://doi.org/10.1007/s10668-018-0261-5

Gibbs, R., & Humphries, A. (2009). Strategic alliances& marketing partnerships Gaining competitive advantage through collaboration and partnering. Kogan Page.

Ijose, O. (2021). Strategic human resource management, small and medium sized enterprises and strategic partnership capability. Journal of Management and Marketing Research, 1-14. Retrieved 29 May 2021, from.

Zhang, M., S. Pawar, K., Shah, J., & Mehta, P. (2013). Evaluating outsourcing partners’ capability: A case study from the pharmaceutical supply chain. Journal of Manufacturing Technology Management, 24(8), 1080-1101. https://doi.org/10.1108/jmtm-02-2012-0023

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Comprehensive Outsourcing Decisions

Text: Gibbs, R., & Humphries, A. (2009). Strategic alliances and marketing partnerships: Gaining competitive advantage through collaboration and partnering. London, NI: Kogan Page Limited.

This needs to be APA style, abstract, 4-5 in-text citations, conclusion, and reference page. Please follow the guidelines for the page count.

Comprehensive Outsourcing Decisions

Application: Comprehensive Outsourcing Decisions

When a company successfully makes use of outsourcing agreements time and again, its decision-making process is probably worth emulating. Smiths Medical is one such company that assesses potential outsourcing partners with a checklist that communicates the basic traits required of candidates (Barbella, 2009). Company executives explain Smiths Medical’s role in the medical device market, and question potential suppliers to determine if there might be a mutually beneficial fit.

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

• Analyze HR executives’ outsourcing decisions.
  • How would the HR skills identified in the Human Resource Competency Study aid an HR executive in assessing potential outsourcing partners?
  • How would the skills identified in the Human Resource Competency Study enable an HR executive to effectively manage outsourcing agreements?
  • How would such skills enable an HR executive to effectively advise the CEO of the organization regarding outsourcing decisions?
  • What has been left unaddressed in the Human Resource Competency Study? Explain your concern or rationale in thinking something might be missing.

Keep paragraphs to 3-5 sentences and utilize effective transitions, in addition to limiting citations to 1-2 per page.