Free Essay on HRM

Free HRM essay:

The process of outsourcing exists in the world for a long time. As the world start to have hunters who hunted and gatherers who gathered, the term which is now called outsourcing started to exist. People couldn’t do the whole kinds of work simultaneously and couldn’t be the good professionals in everything. That’s why in the primitive society the work started to be divided among people who performed it well. The process which is now called specialization took place. People “outsourced” certain functions to those people who exceeded them in the knowledge and abilities of performing these functions. If we will consider economic terms it means that these people performed certain tasks more efficiently then others. As time passed the concept of specialization begin to progress and develop. People had moved to the homestead economy, which assumed performance of many tasks by the owner. The owner of the “home and land” performed such tasks as planting and harvesting, herding and feeding, butchering and preserving, weaving and sewing, logging and building. To perform all of them took a lot of time and didn’t lead to the efficiency of work. In fact, it takes a lot of time for one person to do all this work. That’s why at that time there was a need for the communities which would divide the responsibilities among themselves and would provide the good work. The emergency of such communities plus communications and markets allowed people to specialize and make their trades even bigger. This lead to the increase in the productivity and improved the livelihoods of people. The different professions started to appear which corresponded to the each task. Thus in the society appeared the farmers, builders, bakers, traders, smiths, butchers, fishermen, foresters, etc. As time passed more and more subdivisions appeared and more and more professions and specializations followed them.

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Nowadays more specific terms started to be used. You should not be confused and equate the specialization with outsourcing, they are different concepts. Specialization, in other words the division of labor, is the concept that is used in the economics. It explains how the market forces provide the need for and drive “the division of labor”. Then it explains how this “division of labor” is structured and how it leads to social wealth. Outsourcing, instead, is the concept that is used in business and accounting. From the accounting perspective it is defined as the “transfer of an internal service function to vendor.” Outsourcing is also the act of obtaining service from the external firm that will then control and manage the selected processes. As the result of the specialization is the lower costs, the outsourcing also provides this feature. Due to it outsourcing is widely used in business and everyday life. One of the examples of the outsourcing in business is the manufacturing of the parts in auto industry, or producing paper to print books. In every day life all people interact with the concept of outsourcing. For example the average consumer is both the user and provider of outsourcing services and products. They don’t make products that they buy (candies, clothes, water, computers) they just consume them. The production of them outsourced to different people or companies who know how to make qualitative and efficient work. Now outsourcing is the widely used concept in business, you can find it everywhere. Businesses have historically outsourced numerous support functions. They can be the gathering of the harvest, supplementary work, maintenance, repair and operational functions. As time passed and new studies developed the tasks became more complicated and professional. Now companies also use more complex outsourced support functions such as legal, accounting, financial audits, communications, transportation, advertising, etc. With the emergence of the computer technologies the outsourcing got further development. In order to be more effective and efficient providers turned for the help of networks and computers to automate many of their functions. There was also one more service that occurred at that time and continues to perform one of the major functions today. It is Information Technology (IT) service. The new forms of outsourcing started to offer IT services with potential economic advantages and became the IT services utilities. These new outsourcers also assumed the responsibilities, on behalf of their customers, the delivery of the new service. Timesharing was one of the first types of IT outsourcing that was introduced in the 1950s due to expensiveness of computers. In 1980s the new types were introduced – remote management services and Business Process Outsourcing. Finally in 1990s, IT outsourcing emerged as the offering. (Factor, 2001)

Job-sharing is the type of part-time working where two people chose to share responsibilities, salary and benefits of one full-time job. The practice of job-sharing has the beginning in America in early 1980s. At that time the economy of the U.S. experienced the great growth in service sector employment. A lot of people were employed in this sector as well as in the manufacturing. But the payment on the service jobs wasn’t very high and didn’t carry many benefits as the manufacturing job did. The result was the financial squeeze on many families which made a lot of women to enter the work force. During this time many employers developed new ways to organize their work forces. In some companies the employees were gathered in small groups and were given the specific task that they should have to accomplish. Managers set goals for the team and monitored its performance and the members of the team decided by themselves how to do their work. As the problems of the race, gender, and age discrimination appeared, the companies started to have problem and conflicts with employees. In edition the employers started to fell the shortage of skilled workers they tried to attract new employees and to prevent the loss of employees they already had. That’s why they started to search for new solutions for reduction of the conflicts and keeping employees as well as finding new ones. Employers tried to respond to worker’s desires to reduce the conflict between the demands of their jobs and their personal lives. Therefore the new type of the work appeared – part-time.

As women occupied the big part of the labor force they had a big influence on the development of the new type of the part-time jobs. Job-sharing was introduced in response to the demands from working mothers and others interested in working less then full time. Immediately the job-sharing became popular in the early 1980s. Even nowadays the most part of the job-sharing workers are women. This happens because the not only want to earn money but also they need to bring up their children. (IIP, 2004)

As the Human Resource Management refers to the management of people in the organization, it is tightly connected to the labor force. The changes in labor history should have influenced HRM performance. The outsourcing helped HR managers to solve the problems of the temporary labor needs. To make a person for the short-term work a part of the stuff members would be great cost for the company and would not lead to the efficiency. Outsourcing allows the organization to focus on their main competencies and increases an organization’s flexibility. Due to outsourcing, HR department moved from the role of provider of services to the role of the contractor, coordinator, and steering to a network of external suppliers. Outsourcing made the work easier to HR manager, it helped to reduce the number of the stuff members, to introduce new skills and working practices, and to modify individual incentives, employment terms, and attitude to the work place. By outsourcing the qualified employee the HR manager can improve the productivity and reduce costs to the company. As the goal of the HRM to maximize employee’s contributions and simultaneously attain individual objectives, the job-sharing type of job made it easier to the HR manager to perform this goal. It reduced the employee’s work pay and week, and therefore leads to greater satisfaction of the work. By working fewer hours the employee didn’t become much tiered from the tasks and performed the work more efficiently and productively. HR managers in this case accomplished their goal and provided the company with grater benefits. (Schultz, 2004)

So as we see the development of new types of the labor activities helped not only to reach greater efficiency but also provided greater satisfaction to the employees. Historical events made its necessary adjustments in the way the HRM works now, and provided this type of management with appropriate benefits. Who knows what developments and improvement we will have in the relationships between employees and employers in the future. In any case we have already analyzed the past experience and now can make conclusions.

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