THIS IS ONLY AN INTERPRETATION, FIVE SENTENCES AND A QUESTION IS ALL I NEED. TELL ME YOUR THOUGHTS, HAVE REFERENCES! ASK PROBING QUESTIONS AND MAKE STATEMENTS BASED OFF WHAT THEY WROTE
This article was extremely informative on what it means for an organization to go the route of outsourcing. Texas Health and Human Services outsourced many of its organizational HR services. Zitkiene & Blusyte (2015) would explain that at an operational level, organizations are used to solving short-term problems, whereas at a strategic level they expect to gain long-term benefits from outsourcing and maximize their capabilities. Texas Health and Human Services went down this route as they were facing all-time high budget costs.
Bardhan & Kroll (2003) identified a number of conditions needed for outsourcing of services:
- no requirement for face-to face servicing
- a high level of high information content
- work processes that are telecommutable and internet- enabled
- high wage differentials with similar occupations in the destination country
- low barriers to setting up
- low social-networking requirements.
They eventually made a contract with Convergys to begin the outsourcing efforts. They were essentially in charge of recruiting, developing, and training. Coggburn (2007) highlights that there was a consolidation of twelve agencies, development of an optimized service model, and also the implementation of an integrated service system. This may sound like a positive step in the right direction but in all actuality, employees lost their jobs. Furthermore, there were discrepancies when it came to accurate dollar and cents amounts and eventually savings. The overall oversight could have been much better. The quality of care and management for the employees was diminished when it came to outsourcing leaving up to debate, if organizations should proceed down this route at all and if so, when?
- Coggburn, J. D. (2007, December). Outsourcing Human Resources: The Case of the Texas Health and Human Services Commission. Review of Public Personnel Adminstration, 27, 315-335.
- Å½itkienÄ—, R., & BlusytÄ—, U. (2015). The management model for human-resource outsourcing among service companies. Intellectual Economics, 980-89. doi:10.1016/j.intele.2015.10.003