Resolution Close down the HR Department ADVANTAGES 1 By outsourcing the HR department numerous savings will be made such as salaries as well as numerous fixed costs associated with the running of an extra department The savings can then be relocated to other departments or projects that would aid the company s aim and objectives This would in turn increase competitive advantage 2 Often the roles within a department as vital as human resources are carried out by individuals who may not possess the expertise or skill to fully implement factors i e employment laws or consultation through past experience training and education By outsourcing to a specialist the firm can assure they receive optimum value for their money that in turn will increase productivity as well as company value As a result this reduces the risk of mistakes occurring as experts are performing tasks 3 The appointment of outsourced labour can reduce some negative business factors such as workplace bias as those who are hired would deal with scenarios on a numerical basis rather than allowing external influences to impact decisions such as reliability in recruitment or equality of promotions 4 One of the most beneficial factors includes the diversity of minds obtained from outsourcing not only may there be a cultural difference depending on how far the action may take place but also in terms of training achieved past clients or cases dealt with methodology and corporate culture etc All these issues come hand in hand to bring different ideas and creativity to the centre 5 The outsourcing of the HR department can also allow internal workers to place their focus on other tasks that may require their special skills or corporate knowledge DISADVANTAGES 1 The company would not be required to train their own HR department though this would cut costs it also undermines the importance of trained and skilled employees who are part of the firm on a permanent basis as a result this means there is a decrease in skilled employees However training the employees of other companies would lead to an inability to retain labour investment 2 Communication through different buildings may put a strain on the ability to work as a team and thus decrease effectiveness of decisions and assumptions made In this particular case as a HR department personal relationships between different departments is highly advantageous to the company thus the absence of this can be extremely damaging to the internal processes 3 The implementation of change can be damaging to employee moral as well as motivation As a result staff may feel threatened by the transfer of job opportunities and worry about their own jobs This can be extremely damaging to the company as it may even cause resentment or lack of cooperation between the internal and external subordinates creating a negative effect on productivity 4 The variations in culture may bring about mistakes to occur simply due to lack of information often departments who deal with more numerical and financial aspects are easier to outsource than those who rely on human relations and the management of labour thus this could be a risky move for the company 5 The move may weaken the core of the company as outsourced employees look more at the quantitative aspects rather than paying attention to human relations 6 Whilst dealing with 7 Loss of control Conclusion 1 Based on company 2 It depends factor 3 Nature of the business clients company view on their employees assets V costs
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