Discuss the role of outsourcing in IHRM. Identify the threats and opportunities that outsourcing offers for organizations in general and HRM in particular.
• Define IHRM and context
• Define outsourcing
• Explain role of Outsourcing and apply it in context of IHRM.
• Opportunities and threat of hr OUTSOURCING.
With the advent of free market and rapid change in technology and communication , the world different domestic markets is becoming more competitive and the trends is towards more globalization. As more and more firms move outside their domestic borders, the globalization of world markets appears to be gaining momentum . In that respect, the HRM need to adapt to these changes and shall move towards a global or international HRM (IHRM) perspective. Also, since the domestic HRM is increasingly dealing more and more with a multi-cultural workforce, the HR role is managing workforce diversity is moving towards an international approach.
Definition of HRM and IHRM
HRM, typically refers to those activities undertaken by an organization to utilize effectively its human resource , the activities of which would involve HRP,Resourcing (Recruitment and selection),Performance management,Training and development,Rewards and benefits andLabour relations
IHRM will involve the same activities of the domestic HRM practices but differ mainly in terms of the complexity involved in operating in different countries and employing different national categories of employees
Indeed, IHRM is the process of employing, developing and rewarding people in international or global organization. It involves the worldwide management of people, not just the management of expatriates (Armstrong 2006).
As Hr takes a more international and strategic path, outsourcing is a tempting way to offload the more traditional and transactional aspects of the HR department. Outsourcing basically involves subcontracting to external specialist providers internal activities and...