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Human Resource Management Outsourcing: The Make or Buy Decision
Charles R. Greer, Stuart A. Youngblood and David A. Gray
The Academy of Management Executive (1993-2005)
Vol. 13, No. 3, Themes: Teams and New Product Development (Aug., 1999), pp. 85-96
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/4165567
Page Count: 12
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Just-in-time human resource (HR) management, sell and lease-back human resource programs, and do-it-yourself HR--all of these phrases characterize how companies manage outsourced HR functions. This article reports results of interviews conducted with senior HR executives and professionals in 25 organizations to identify outsourcing rationales and consequences. Companies were found to use HR outsourcing for both operational and strategic reasons. Based on these findings, we present guidelines for selecting vendors, managing the outsourcing transition, managing vendor relations, and monitoring vendor performance. HR outsourcing is not a fad, and it can enhance the HR value chain as well as support the development of HR as a business partner and strategic contributor to the organization's goals.
The Academy of Management Executive (1993-2005) © 1999 Academy of Management