BKP2014 [CHAPTER 1] Review Questions by simplyww https://padlet.com/huda_mohd/RqC1_6 6. What disadvantages might result from outsourcing HRM practices? en-us 2016-06-24 17:58:36 UTC 2025-10-26 16:12:03 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Alarmclock.png 1171302988 1171302988 https://padlet.com/huda_mohd/RqC1_6/wish/370706266 Some disadvantages that might result from outsourcing HRM practices is that another company is less likely to have a close working relationship with the employees they are dealing with. If the HRM department is outsourced depending on location it may be difficult for an employee to talk directly to HR than it would be if they were in the same building. If the outsourcing takes place in another country or even another region there is likely to be cultural difference and communication between the two is likely to break down. A possible disadvantage of self-service is that employees may become less likely to review the information as opposed to having to go to a meeting and learn about changes. As for increased line manager involvement in designing and using HR practices a likely disadvantage is that the quality of HR practice may decrease. If the manager is more involve and a qualified HR person is less involved in designing then some important details may be over looked the managers training is also likely to be less and they may not be consistent in getting HR issues across to all their employees. 



]]> 2019-07-10 04:20:02 UTC https://padlet.com/huda_mohd/RqC1_6/wish/370706266 1171302701 https://padlet.com/huda_mohd/RqC1_6/wish/370707820 1.Recruitment Problem
Outsourced employees lack of understanding of the company culture that a regular employee has.  They might be recruiting employees that does not fit, it will result in suffering of the success of the company.
2.Risk of Information Leaks
Outsourcing employees may lead to the release of sensitive company information.
3.Performance as downside
Many companies outsource to limit costs. However, decreased costs often result in decreased quality of performance by outsourced provider. ]]> 2019-07-10 04:40:36 UTC https://padlet.com/huda_mohd/RqC1_6/wish/370707820 1171302568 - HENG REN XUN renxun98 https://padlet.com/huda_mohd/RqC1_6/wish/370708107  
1. Performance as Downside of Outsourcing

Many companies outsource to limit costs; however, decreased costs often result in decreased quality of performance by the outsourced provider. The human resources department is responsible for the day-to-day operation of the company and any poor performance from the outsourced provider causes an overall negative impact on the company as a whole.

2. Distance from Employees

Outsourcing human resources functions to an offsite location often leads to a sense of distance between the employees and the company. When the human resources department is not instantly accessible, employees experience delays in communication, leading the employees to feel frustrated and unimportant to the company.

3. Recruitment Problems from Outsourcing

In some cases, outsourced employees lack the understanding of the company culture that a regular employee has. As the human resource department recruits employees, this lack of understanding may transfer to new employees during the recruitment process. The outsourced provider may also recruit employees who do not fit with the overall culture of the company. The success of a business heavily relies on the performance of its employees, if the employees are not the right fit; the success of the company suffers.

4. Risks of Information Leaks

Outsourcing human resources functions may lead to the release of sensitive company information. Often, for an outsourced company to provide adequate service, some sensitive information about the company’s organizational structure, product information or other inner workings is necessary for the vendor to perform unhindered. Whether deliberate or not, when providing an outside company with sensitive information, there is always a possibility for an information leak.


If sensitive employee or customer data, such as bank account numbers, medical information or Social Security numbers, ends up exposed by a contractor, it can lead to liability for the company that chose to outsource its HR functions and leave a sour taste in the mouths of those affected.


It's important to make sure protections for sensitive data and trade secrets are spelled out in any outsourcing contracts.

5. Dependency and Loss of Control

After outsourcing to a provider, executives may give up too much control over the company’s human resource functions or the company may become too dependent on the outsourced provider. Dependency and loss of control create the risk of the business not being able to operate successfully if outsourcing is no longer an option for the company or if the provider changes the terms of the contract.
]]> 2019-07-10 04:44:26 UTC https://padlet.com/huda_mohd/RqC1_6/wish/370708107 Tan Zhi Qian 1181300155 1181300155 https://padlet.com/huda_mohd/RqC1_6/wish/370708341 Once company outsourcing HRM practices, it may consume a lots of time and money for a company.]]> 2019-07-10 04:47:22 UTC https://padlet.com/huda_mohd/RqC1_6/wish/370708341