INTERNAL CONTEXT: OUTSOURCING, RECRUITMENT

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ORGANISATIONAL CONTEXT
INTERNAL CONTEXT OUTSOURCING, RECRUITMENT
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ORGANISATIONAL CONTEXT

• Lawler et al. (2004) Outsourcing
• From paper-based HR administration to
  self-service web-based HR
• In-house or outsourced? Mixture?
• SAP, Oracle (inclusive of PeopleSoft)

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ORGANISATIONAL CONTEXT

• In-house Model
• Service centre (call centre and service centre)
• Buy a system, outsource some processes (payroll,
  benefits)
• Positive aspects control, custom solution
• Negative aspects relatively expensive, need
  for HR and IT expertise

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ORGANISATIONAL CONTEXT

• Outsourced Model
• Positive aspects economies of scale (cost
  saving), domain expertise, improved processes
• Negative aspects loss of control, expertise to
  manage outsourcing

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ORGANISATIONAL CONTEXT

• Outsourced Model Potential risk areas
• Poor choice of vendor
• Poor contract
• Poor change management for transition
• No exit strategy
• Lack of preparation

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ORGANISATIONAL CONTEXT

• Outsourced Model Crucial Questions
• Does the contract attend to relationship
  building?
• Is there a proper plan for transfer of services?
• Are HR employees well prepared for the change?
• Is the relationship a partnership?
• Has enough time been allowed for the transition?
• Which HR processes provide you with a
  competitive advantage? Should these be
  outsourced?
• Does HR have the competencies to manage the
  outsourcing?

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ORGANISATIONAL CONTEXT

• E-Recruitment
• Designing a sticky website to attract passive
  job seekers
• In SA it is illegal to put registered
  psychometric tests on the web and administer
  these electronically. The HPCSA requires that a
  registered psychologist be present when a person
  completes a test.