BibTex RIS Cite

THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE

Year 2011, Volume: 3 Issue: 2, 131 - 144, 01.12.2011

Abstract

The improvement that high organizational performance provides is becoming
more critical in today’s increasing conditions of competition. The effects of
human resource functions and organizational culture to perform a significant
organizational efficiency attracts both theoreticians’ and practitioners’ interest
much more. When outsourcing is considered as one of the methods that
organizations utilize for strengthening their core competencies to allocate their
resources efficiently, the question of the degree to which human resource
functions could be outsourced brings in mind the effect of organizational culture
enabling outsourcing on organizational performance.
Besides performing the administrative services such as catering, cleaning,
employee transportation, and security as outsourcing, operations of some human
resource practices like training and payroll via outsourcing contribute the desired
performance positively by means of only true strategy and organizational culture
shaping the strategy. The performance of human resource management and the
viewpoints of employees about outsourcing have critical importance to improve a
convenient strategy. In this literature research, what kind of human resource
practices can be outsourced and can add value to organizational performance
are discussed. The influence of workers’ changing attitudes about outsourcing
towards organization in detail and the effect of organizational culture in the
mentioned relationships are missing in the literature.

References

  • Abdul-Halim, H.; Che-Ha, N. (2009), ‘The influence of business strategy strategy on the decision to outsource human resource activities: A study of Malaysian manufacturing organizations’, Journal of Human Resource Costing & Accounting, Vol 13, No: 4, 2009
  • Abu-Jarad, Ismael Younis, Nor’Aini Yusof, Davoud Nikbin (2010), “A Review
  • Paper on Organizational Culture and Organizational Performance”, International Journal of Business and Social Science, Vol. 1, No. 3, pp. 26-46
  • Adler, P. (2003), ‘Making the HR Outsourcing Decision’, MIT Slogan
  • Management Review, Fall, Vol 45, No 1, 53-59
  • Applebaum, S., Simpson, R., Shapiro, B. (1987), ‘The Tough Test of
  • Downsizing’, Organizational Dynamics, 16, 2, 68-79
  • Belcourt, Monica (2006), “Outsourcing - The benefits and the risks”, Human
  • Resource Management Review, Vol. 16, pp.269-279
  • Bustinza, O. F. D. Arias-Aranda, L. Gutierrez-Gutierrez (2010), “Outsourcing, competitive capabilities and performance an empirical study in service firms”,
  • International Journal of Production Economics, Vol. 126, pp. 276–288 Cooke, F. L.; Shen, J., McBride, A: (2005), Outsourcing HR as a competitive strategy? A literature review and an assessment of implications’, Human
  • Resource Management, Vol 44, No: 4, 413-432
  • Cooper, C. L., (1999), ‘Can We Live With the Changing Nature of Work’,
  • Journal of Managerial Psychology, 14, 569-572
  • Corby, S. (1998), ‘Industrial Relations in Civil Service Agengies: Transition or Transformation’, Industrial Relations Journal, 29,3, 194-207
  • Daft, Richard L. (2000), Organization Theory and Design (7th ed.), South
  • Western College Publishing, Thomson Learning, U.S.A. Day, George S., Robin Wensly (1988) ‘Assassing Advantage: A Framework
  • Diagnosic Competitive Superiority’, Journal of Marketing, 52, 1-20
  • Delmotte, J., Sels, L. (2008), ‘HR Outsourcing: Threat or Opportunity?’,
  • Personnel Review, Vol 37, No: 5, 543-563
  • Dress, G; Gupta, A; Hennat, J., Hill, C. (1995), ‘Conducting and Integrating
  • Strategy Research at International, Corporate, and Business Level: Issues and Directions’, Journal of Management, 21, 3, 357-393
  • Elmuti, Dean (2004), “The Perceived Impact of Outsourcing on Organizational
  • Performance”, Mid-American Journal of Business, Vol. 18, No. 2, pp.33-42
  • Elmuti, Dean; Julian, Grunewald; Dereje, Abebe (2010), ‘Consequences of outsourcing strategies on employee quality of work life, attitudes, and performance’, Journal of Business Stratejies, 27, 2
  • Espino-Rodriguez, Tomas F., Victor Padron-Robaina (2004), “Outsourcing and its impact on operational objectives and performance: a study of hotels in the Canary
  • Islands”, Hospitality Management, Vol. 23, pp.287-306
  • Espino-Rodriquez, T. F., Padron-Robaina, V.(2005), ‘A resource- based view of outsourcing and its implications for organizational performance in the hotel sector’, Tourism Management, 26, 707-721
  • Gainey, T., Klass, B. (2003), ‘The Outsourging of Training and Development:
  • Factors Impacting Client Satisfaction’, Journal of Management, 29, 2, 207-229
  • Galanaki, E. , Papalexandris, N. (2007), ‘Internationalization as a determining factor of HRM outsourcing’, Int. Journal of Human Resource Management, 18, , 155
  • Giardini, A. , Kabst, R. (2008) ‘Recruitment Process Outsourcing: A scenario study on the acceptance of outsourcing in Peronel selection’, Zeitschrift für
  • Personnalforschung, 22, 4, 370-387
  • Gilley, K. Matthew, Charles R. Greer, Abdul A. Rasheed (2004), “Human resource outsourcing and organizational performance in manufacturing firms”,
  • Journal of Business Research, Vol. 57, pp.232-240
  • Gilley, K. Matthew, Abdul A. Rasheed (2000), “Making more by doing less: analysis of outsourcing and its effects on firm performance” Journal of
  • Management, Vol. 26, No. 4, pp.763–790 Greer, C. R., Youngblood, S. A., Gray, D. A. (1999), ‘ Human Resource
  • Management Outsourcing: The Make or buy decision’, The Academy of Management Executive, Aug, 13, 3, 85-96
  • Hamel, Gary, C.K. Prahalad (1994), Competing for the future, Boston: Harvard
  • Business School Press Hemmington, Nigel; Cristopher, King (2000), ‘Key Dimensions of Outsourcing
  • Hotel Food and Beverage Services’, International Journal of Contemporary Hospitality Management, 12, 4 Hendry, J: (1995), ‘Culture, Community and Networks: The Hidden Cost of
  • Outsourcing’, European Management Journal Vol 13, No 2, 193-200
  • Hofstede, Geert (1980). Culture’s Consequences: International Differences in
  • Work-related Values, Veverly Hills, California:Sage Jarvis, A., Mills, S., Desai, A., Subramony, M., Sridhar, B.S. (2006), ‘Employee
  • Reactions to Outsourcing: Development of Attitudes Toward Outsourcing (ATO) Scale’, Competition Forum, 4, 2, 405-413
  • Kessler, Ian and Coyle-Shapiro, Jacqueline A-M. and Purcell, John (1999)
  • ‘Outsourcing and the Employment Relationship: An Employee Perspective’, Human Resource Management Journal, 9 (2). pp. 5-19. Klaas, B. S., McClendon, J., Gainey, T. W. (2001), ‘Outsourcing HR: The Impact of Organizational Characteristics’, Human Resource Management, Summer, 40, , 125-137
  • Klass, B. S., McClendon, J., Gainey, T. W. (1999), ‘HR Outsourcing and Its
  • Impact: The Rple of Tranaction Cost’ , Personnel Psychology, Spring, 52, 1, 113- Kotabe, Masaaki, Michael J. Mol, Janet Y. Murray (2008), “Outsourcing, performance, and the role of e-commerce: A dynamic perspective”, Industrial
  • Marketing Management, Vol. 37, pp.37−45 Kshetri, N. (2007), ‘Institutional factors affecting offshore business process and information technology outspurcing’, Journal of İnternational Management , 13, 56
  • Lau, C. M., Ngo, H. M. (2004), ‘The HR System, Organizational Culture, and Product innovation’, International Business Review, 13, 685-703
  • Lee, Ruby P., Daekwan Kim (2010), “Implications of service processes outsourcing on firm value, Industrial Marketing Management”, Vol. 39, pp.853
  • Leimmbach, Michell P. (2005), ‘Invited Reaction: Outsouring Relationship
  • Between Firms and Their Training Providers: The Role Of Trust’, Human Resource Development Quarterly, Vol 16, Iss 1, 27-32
  • Lepak, D. P. , Snell, S. A. (1999), ‘The Human Resource Architecture: Toward a
  • Theory of Human Capital Allocation and Development’, Academy of Management Review, 24, 31-48
  • Lievens, F., Corte, W. (2008), ‘Development and Test ofa model external organizational commitment in human resource management outsourcing’, Human
  • Resource Management, Fall, Vol 47, No: 3, 559-579
  • Lim, Bernard (1995), “Examining the organizationalculture and organizational performance link”, Leadership & Organization Development Journal, Vol. 16 , No. 5, pp. 16-21
  • McIvor, Ronan (2008), “What is the right outsourcing strategy for your process?”,
  • European Management Journal, Vol. 26, pp.24-34
  • McIvor, Ronan (2005), The outsourcing process strategies for evaluation and management, New York, Cambridge University Press
  • Ndubisi, N. O. (2011) ‘ Conflict handling, trsut and commitment in outsourcing relationship: A Chinese and Indian Stduy’, Industrial Marketing Management, Vol 40, Issue 1, 109-117
  • Ngo, Hang-Yue, Raymond Loi (2008), “Human resource flexibility, organizational culture and firm performance:an investigation of multinational firms in Hong Kong”, The International Journal of Human Resource
  • Management, Vol. 19, No. 9, pg. 1654-1666
  • Norman, T. J. (2009), ‘Outsourcing Human Resource Activities: Measuring the Hidden Costs and Benefits’, Unpublished PhD Thesis, University of Minnesota
  • Ogbonna, Emmanuel, Lloyd C. Harris (2000), “Leadership style, organizational cultureand performance: empirical evidencefrom UK companies”, Int. J. of
  • Human Resource Management, Vol. 11, No. 4, pp.766-788
  • Prahalad, C. K., Gary Hamel (2003), ‘ The Core Competence of the Corporation’,
  • Harward Business School Publishing Copr, No 6528
  • Raiborn, Cecily A., Janet B. Butler, Marc F. Massoud (2009), “Outsourcing support functions: Identifying and managing the good, the bad, and the ugly”,
  • Business Horizons, Vol. 52, pp.347-356
  • Schouker, I. (2008), ‘ Making Outsourcing Work: From service agreement to partnership’, (Outsourcing and Human Resource Management, An International Survey, Ed. Ruth Taplin), Taylor- Francis
  • Yang, D. H., Seongcheol Kim, Changi Nam, Ja-Won Min (2007), “Developing a decision model for business process outsourcing”, Computers & Operations Research, Vol. 34, pp. 3769 – 3778
Year 2011, Volume: 3 Issue: 2, 131 - 144, 01.12.2011

Abstract

References

  • Abdul-Halim, H.; Che-Ha, N. (2009), ‘The influence of business strategy strategy on the decision to outsource human resource activities: A study of Malaysian manufacturing organizations’, Journal of Human Resource Costing & Accounting, Vol 13, No: 4, 2009
  • Abu-Jarad, Ismael Younis, Nor’Aini Yusof, Davoud Nikbin (2010), “A Review
  • Paper on Organizational Culture and Organizational Performance”, International Journal of Business and Social Science, Vol. 1, No. 3, pp. 26-46
  • Adler, P. (2003), ‘Making the HR Outsourcing Decision’, MIT Slogan
  • Management Review, Fall, Vol 45, No 1, 53-59
  • Applebaum, S., Simpson, R., Shapiro, B. (1987), ‘The Tough Test of
  • Downsizing’, Organizational Dynamics, 16, 2, 68-79
  • Belcourt, Monica (2006), “Outsourcing - The benefits and the risks”, Human
  • Resource Management Review, Vol. 16, pp.269-279
  • Bustinza, O. F. D. Arias-Aranda, L. Gutierrez-Gutierrez (2010), “Outsourcing, competitive capabilities and performance an empirical study in service firms”,
  • International Journal of Production Economics, Vol. 126, pp. 276–288 Cooke, F. L.; Shen, J., McBride, A: (2005), Outsourcing HR as a competitive strategy? A literature review and an assessment of implications’, Human
  • Resource Management, Vol 44, No: 4, 413-432
  • Cooper, C. L., (1999), ‘Can We Live With the Changing Nature of Work’,
  • Journal of Managerial Psychology, 14, 569-572
  • Corby, S. (1998), ‘Industrial Relations in Civil Service Agengies: Transition or Transformation’, Industrial Relations Journal, 29,3, 194-207
  • Daft, Richard L. (2000), Organization Theory and Design (7th ed.), South
  • Western College Publishing, Thomson Learning, U.S.A. Day, George S., Robin Wensly (1988) ‘Assassing Advantage: A Framework
  • Diagnosic Competitive Superiority’, Journal of Marketing, 52, 1-20
  • Delmotte, J., Sels, L. (2008), ‘HR Outsourcing: Threat or Opportunity?’,
  • Personnel Review, Vol 37, No: 5, 543-563
  • Dress, G; Gupta, A; Hennat, J., Hill, C. (1995), ‘Conducting and Integrating
  • Strategy Research at International, Corporate, and Business Level: Issues and Directions’, Journal of Management, 21, 3, 357-393
  • Elmuti, Dean (2004), “The Perceived Impact of Outsourcing on Organizational
  • Performance”, Mid-American Journal of Business, Vol. 18, No. 2, pp.33-42
  • Elmuti, Dean; Julian, Grunewald; Dereje, Abebe (2010), ‘Consequences of outsourcing strategies on employee quality of work life, attitudes, and performance’, Journal of Business Stratejies, 27, 2
  • Espino-Rodriguez, Tomas F., Victor Padron-Robaina (2004), “Outsourcing and its impact on operational objectives and performance: a study of hotels in the Canary
  • Islands”, Hospitality Management, Vol. 23, pp.287-306
  • Espino-Rodriquez, T. F., Padron-Robaina, V.(2005), ‘A resource- based view of outsourcing and its implications for organizational performance in the hotel sector’, Tourism Management, 26, 707-721
  • Gainey, T., Klass, B. (2003), ‘The Outsourging of Training and Development:
  • Factors Impacting Client Satisfaction’, Journal of Management, 29, 2, 207-229
  • Galanaki, E. , Papalexandris, N. (2007), ‘Internationalization as a determining factor of HRM outsourcing’, Int. Journal of Human Resource Management, 18, , 155
  • Giardini, A. , Kabst, R. (2008) ‘Recruitment Process Outsourcing: A scenario study on the acceptance of outsourcing in Peronel selection’, Zeitschrift für
  • Personnalforschung, 22, 4, 370-387
  • Gilley, K. Matthew, Charles R. Greer, Abdul A. Rasheed (2004), “Human resource outsourcing and organizational performance in manufacturing firms”,
  • Journal of Business Research, Vol. 57, pp.232-240
  • Gilley, K. Matthew, Abdul A. Rasheed (2000), “Making more by doing less: analysis of outsourcing and its effects on firm performance” Journal of
  • Management, Vol. 26, No. 4, pp.763–790 Greer, C. R., Youngblood, S. A., Gray, D. A. (1999), ‘ Human Resource
  • Management Outsourcing: The Make or buy decision’, The Academy of Management Executive, Aug, 13, 3, 85-96
  • Hamel, Gary, C.K. Prahalad (1994), Competing for the future, Boston: Harvard
  • Business School Press Hemmington, Nigel; Cristopher, King (2000), ‘Key Dimensions of Outsourcing
  • Hotel Food and Beverage Services’, International Journal of Contemporary Hospitality Management, 12, 4 Hendry, J: (1995), ‘Culture, Community and Networks: The Hidden Cost of
  • Outsourcing’, European Management Journal Vol 13, No 2, 193-200
  • Hofstede, Geert (1980). Culture’s Consequences: International Differences in
  • Work-related Values, Veverly Hills, California:Sage Jarvis, A., Mills, S., Desai, A., Subramony, M., Sridhar, B.S. (2006), ‘Employee
  • Reactions to Outsourcing: Development of Attitudes Toward Outsourcing (ATO) Scale’, Competition Forum, 4, 2, 405-413
  • Kessler, Ian and Coyle-Shapiro, Jacqueline A-M. and Purcell, John (1999)
  • ‘Outsourcing and the Employment Relationship: An Employee Perspective’, Human Resource Management Journal, 9 (2). pp. 5-19. Klaas, B. S., McClendon, J., Gainey, T. W. (2001), ‘Outsourcing HR: The Impact of Organizational Characteristics’, Human Resource Management, Summer, 40, , 125-137
  • Klass, B. S., McClendon, J., Gainey, T. W. (1999), ‘HR Outsourcing and Its
  • Impact: The Rple of Tranaction Cost’ , Personnel Psychology, Spring, 52, 1, 113- Kotabe, Masaaki, Michael J. Mol, Janet Y. Murray (2008), “Outsourcing, performance, and the role of e-commerce: A dynamic perspective”, Industrial
  • Marketing Management, Vol. 37, pp.37−45 Kshetri, N. (2007), ‘Institutional factors affecting offshore business process and information technology outspurcing’, Journal of İnternational Management , 13, 56
  • Lau, C. M., Ngo, H. M. (2004), ‘The HR System, Organizational Culture, and Product innovation’, International Business Review, 13, 685-703
  • Lee, Ruby P., Daekwan Kim (2010), “Implications of service processes outsourcing on firm value, Industrial Marketing Management”, Vol. 39, pp.853
  • Leimmbach, Michell P. (2005), ‘Invited Reaction: Outsouring Relationship
  • Between Firms and Their Training Providers: The Role Of Trust’, Human Resource Development Quarterly, Vol 16, Iss 1, 27-32
  • Lepak, D. P. , Snell, S. A. (1999), ‘The Human Resource Architecture: Toward a
  • Theory of Human Capital Allocation and Development’, Academy of Management Review, 24, 31-48
  • Lievens, F., Corte, W. (2008), ‘Development and Test ofa model external organizational commitment in human resource management outsourcing’, Human
  • Resource Management, Fall, Vol 47, No: 3, 559-579
  • Lim, Bernard (1995), “Examining the organizationalculture and organizational performance link”, Leadership & Organization Development Journal, Vol. 16 , No. 5, pp. 16-21
  • McIvor, Ronan (2008), “What is the right outsourcing strategy for your process?”,
  • European Management Journal, Vol. 26, pp.24-34
  • McIvor, Ronan (2005), The outsourcing process strategies for evaluation and management, New York, Cambridge University Press
  • Ndubisi, N. O. (2011) ‘ Conflict handling, trsut and commitment in outsourcing relationship: A Chinese and Indian Stduy’, Industrial Marketing Management, Vol 40, Issue 1, 109-117
  • Ngo, Hang-Yue, Raymond Loi (2008), “Human resource flexibility, organizational culture and firm performance:an investigation of multinational firms in Hong Kong”, The International Journal of Human Resource
  • Management, Vol. 19, No. 9, pg. 1654-1666
  • Norman, T. J. (2009), ‘Outsourcing Human Resource Activities: Measuring the Hidden Costs and Benefits’, Unpublished PhD Thesis, University of Minnesota
  • Ogbonna, Emmanuel, Lloyd C. Harris (2000), “Leadership style, organizational cultureand performance: empirical evidencefrom UK companies”, Int. J. of
  • Human Resource Management, Vol. 11, No. 4, pp.766-788
  • Prahalad, C. K., Gary Hamel (2003), ‘ The Core Competence of the Corporation’,
  • Harward Business School Publishing Copr, No 6528
  • Raiborn, Cecily A., Janet B. Butler, Marc F. Massoud (2009), “Outsourcing support functions: Identifying and managing the good, the bad, and the ugly”,
  • Business Horizons, Vol. 52, pp.347-356
  • Schouker, I. (2008), ‘ Making Outsourcing Work: From service agreement to partnership’, (Outsourcing and Human Resource Management, An International Survey, Ed. Ruth Taplin), Taylor- Francis
  • Yang, D. H., Seongcheol Kim, Changi Nam, Ja-Won Min (2007), “Developing a decision model for business process outsourcing”, Computers & Operations Research, Vol. 34, pp. 3769 – 3778
There are 74 citations in total.

Details

Other ID JA56ZF22AP
Journal Section Articles
Authors

İşık Çiçek This is me

Bilal Özer This is me

Publication Date December 1, 2011
Published in Issue Year 2011 Volume: 3 Issue: 2

Cite

APA Çiçek, İ., & Özer, B. (2011). THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE. International Journal of Business and Management Studies, 3(2), 131-144.
AMA Çiçek İ, Özer B. THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE. IJBMS. December 2011;3(2):131-144.
Chicago Çiçek, İşık, and Bilal Özer. “THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE”. International Journal of Business and Management Studies 3, no. 2 (December 2011): 131-44.
EndNote Çiçek İ, Özer B (December 1, 2011) THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE. International Journal of Business and Management Studies 3 2 131–144.
IEEE İ. Çiçek and B. Özer, “THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE”, IJBMS, vol. 3, no. 2, pp. 131–144, 2011.
ISNAD Çiçek, İşık - Özer, Bilal. “THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE”. International Journal of Business and Management Studies 3/2 (December 2011), 131-144.
JAMA Çiçek İ, Özer B. THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE. IJBMS. 2011;3:131–144.
MLA Çiçek, İşık and Bilal Özer. “THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE”. International Journal of Business and Management Studies, vol. 3, no. 2, 2011, pp. 131-44.
Vancouver Çiçek İ, Özer B. THE EFFECT OF OUTSOURCING HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL CULTURE. IJBMS. 2011;3(2):131-44.