Strategic Human Resource Management is an organized and responsibility structured approach towards the direction and administration of the any institution’s most valued asset which is its employees. The functions of Strategic human Resource Management involves the recruitment, management and direction of the people in the institution for high potential realization, provision of job opportunities to the most qualified staff and achievement of the institutional objectives (Cathy Monks and John McMackin (2001).
Even though every country has the most valuable asset in business, human resources, several small and big companies still rely on outsourcing as a form of employing labor. Outsourcing is the purchasing of products and valuable services from a third party from another company or country. It mostly involves the use of labor of the outsourced resources. Top U.S companies have invested heavily in Human Resource Outsourcing and the management of the institutions and resourceful use of this outsourced human labor has been very profitable in this institution due to the comparative and strategic business reorganization by engaging qualified outsourced labor and makes sure it takes care of its most valued asset which is its employees (Article Posted, 2008).
Its functions involve the recruitment, management and direction of the people in that institution for maximum potential realization and achievement of the institutional objectives and especially in profit making. It is a practice involving recruitment and firing of employees, pay roll administration including provision of check, payment of taxes, vacations and dealing with insurance of employees, employee benefits, risk management safety inspection and many other responsibilities (Charles J, Fornbrun, Noel M.Tichy, Mercy N.Devanna, 1984).
Human Resource outsourcing is the employment of staff from foreign states and countries or other companies’ labor to make the organization focus on key competencies and to provide reasonable relief from many employers related responsibilities so as to concentrate on competitive strategic advantage. Outsourcing is also a strategic solution to utilize the readily available qualified staff at comparatively manageable costs (Frank J.Casale, 2008).
The U.S being a world economy has a huge responsibility in ensuring that it plays a pivotal role in the lead world economic indicators and the different factors of operation of a given economy including reports on income per capita, economic reports like employment patterns, global housing trends, consumer price index against rate of inflation, Gross Domestic Product, industrial production, retail supply /sales, stock/money market prices and flow of money in the market (Schumpeter, Joseph Alois, 1954). These impetus have been the key to engage outsourced Human labor to ensure that it does not compromise its National policy and Foreign Affairs Policies (Moore, Michael L, 2007).
The U.S has used human resource outsourcing from many of the companies and even U.S companies as a smart strategic solution to time management, risk reduction, saving money by automatic pay roll, increased satisfaction and retention of foreign or outsourced labour.Strategically the U.S companies engages more human resource outsourcing especially in on contract basis since most of the U.S citizen employees value holiday vacations (HROA, 2008).
The U.S companies have managed to retain qualified staff from foreign countries that either went to study or job search ventures besides national lottery promises of the country making one of the most sought after states for outsourcing. The U.S strategically outsourcers to maintain its large market demand of about 300 million people (CAPITOLA, 2008).
In my perception, the human resources department in these organizations has been well organized with commendable strategic result and profit making orientation besides the appraisal of the employees. This is because the U.S companies are working hard to keep up with the word capitalism, economic challenges of the millennium bedsides fighting off competition from the Asian markets by use of outsourced labor due to management involvement and profitability indices The role played by the Strategic Human Resource Management in the U.S companies has improved the outcome of the U.S market capitalist driven policies without doubt and that it is very possible to outsourced and still make huge profits (John W.Boudreau, 2003).
The company must make sure outsourcing is the best option, and on the basis of ethical considerations to avoid leakage of confidential information. The company also remains committed to the accuracy and completeness of the services of the third party is quality and necessary. The company should provide reasonable and adequate supervision of the professional services. The code of ethics for outsourcing does not insist on provision of advise to the outsourced labor and it can be done to the company’s discretion and unless the outsourced labor requests for the same services from the employer (Leader’s Edge, Ethical Considerations of Outsourcing, 2008).
Corporate social responsibility is also considered as corporate responsibility or corporate citizenship and principally involves the responsibility and roles of business and corporate organizations and institutions to consider the social, economic progress of the communities and the employees in which they operate by taking care of the of the impact of the activities and operations on all the stake holders including clients, suppliers, employees, share holders and very importantly the environmental impacts (Garry Crystal, 2008).
Corporate social responsibility is necessary since it ensures the protection of human rights through regulated labor laws and corporate development of employees and their environment for the purpose of profit maximization. It is also a business promotional tool by which a company’s credibility and responsiveness is identified and measured. In this regard most U.S companies have embraced human rights protection and environmental impact control as key in their service delivery (John W.Boudreau, 2003).
Compensation management has been well executed including salary, incentive and equity compensation within the agreed terms of service but most importantly on the performance context. Better compensation management ensures that the companies reduce on unnecessary costs and maximize on its profits (Fidelity, 2008).
Benefits management has been successfully incorporated in the work and development policies of most U.S companies with the employee personalized support, insurance and career prospects interfacing among many other forms of profit management (HR XCEL, 2007).
There are several benefits of outsourcing including reduction in expenditure, minimal time wastage on the labor and the company can concentrate over key competencies, reduces dependency on internal resourses,increases chances of flexibility on meeting the changing business and commercial environment, climate and conditions (Mike,2008).
Even though outsourcing has several benefits to the organiozations,several key factors have been neglected including loss of managerial control over the outsourced labor, potential hidden costs like law suits against the company, threat to confidentiality of the business entity, may as well lead to loss of flexibility in terms of sudden economic changes within the company, it also deprives the company’s staff from key experiences and challenges by passing the same responsibilities to an outsider, loss of jobs to outsiders, leads to shifting of production and employment to low cost countries hence a threat to the National economy through massive layoffs, unfavorably lengthy contract periods, loss of competitive edge in the market, contract renewal problems and misunderstandings arising from the contracts (Software Projects, 2007).
- “Leader’s Edge, Ethical Considerations of Outsourcing” 2008.
- Boudreau John W, “Sustainability and the Talentship Paradigm: Strategic Human Resource Management beyond the Bottom line”. 2003.
- (HR XCEL, 2007). Human Resource Outsourcing.
- Charles J, Fornbrun, Noel M.Tichy, Mercy N.Devanna. “Strategic Human Resource Management”. 1984. Web.
- Fidelity. “Talent Management”. 2008. Web.
- Software Projects, “Disadvantages of outsourcing”. 2007.
- Mike. “Advantages and Disadvantages of outsourcing”. 2008.
- Article Posted, 2008. “Outsourcing: The advantages and disadvantages of outsourcing”. Web.