Outsourcing

Services HR is Outsourcing

Human Resources (HR) is the most crucial asset of an organization. The success of human resources depends on the management of the organizations HR department. Ensuring the fulfillment of workers requires a skilled human resources department which can be costly for many organizations, and due to this many companies are making the choice of outsourcing their human resources management functions. In this process of outsourcing the organization utilizes the professional services of a third party for handling its HR functions. Outsourcing certain task can definitely be a way to save time and money for a company.  HR outsourcing provides multiple services to companies. Many companies choose to outsource to save money and for efficiency. Services that are likely to be outsourced are pre-employment testing, payroll, training, counseling, employee assistance, and call center services. 

Outsourcing Effects on Organized Labor within Companies

Unions exist within many organizations because there are employees who are unsatisfied with the way in which management treats them and because they believe that the union can improve their workplace conditions. Employees join the union with the hope that they will have job security, protection, and economic gains. In an economic decline many organizations run their business with minimal budgets and want labor that is cheap for their products and services. There is often a huge conflict between what the unions want and the organizations budget goals. To reach new strategic goals, several organizations consider outsourcing to increase negotiation power and decrease company cost. Outsourcing will have strong effect on employees as well as organized unions within the organization. According to Skaksen (2004), “As unions continue to gain interest within organizations,...