The phases of controling process

There are mainly three phase of control process.
(a) Establishment of standards of performance.
Standards of performance for organizational activities are set in advance. When the activities are actually carried out the actual performance is compared with the set standards. Standards are derived from the objective & goals of the organization. In setting up the standards, the desired performance level in attaining the goals is first determined. Then the desired performance is translated in to measurable units. The standards may be qualitative or quantitative depending upon the type of activity to be controlled. Standards should be set critical activity areas; standards should be attainable, understandable and acceptable.
(b) Monitoring measuring and evaluating
During this phase the actual performance of the activity is measurable and compares with the set performance standards. The objective has to find the deviations of actual performance from the planned performance. There are two important principles are to be followed during this phase of control. The first principle is to concentrate on monitoring & measurement of activity is to be choosy and narrow. This will save time and effort. The second principle is the principle of exception. Only exceptional or significant deviations are to be reported to managers. The control reports are prepared on the basis of measurement techniques. It is necessary to identify and isolate the exact cause of deviation and rectify it.
(c) Correction of deviations.
During this phase of the control process, the corrective actions are taken in accordance with the deviations found before system is damaged. Deviations may occur due to improper standard. In such cases the standards are revised. Deviations may occur due to resource deficiency, process defects, and environmental forces and improper measurement techniques. It is necessary to identify and cut off the exact cause of deviation and cure it.

Functions of HR Outsourcing

Most commonly outsourced HR functions are:

(i) Recruitment:

Innovative strategies have to be put in operation to place the right person on the job.

(ii) Training and Development:

Training must foster newer, interactive and customized training packages.  Training is no longer ‘employee-driven’, instead, it has become business or customer driven.

(iii) Industrial Relations:

As the businesses are marching towards downsizing, right-sizing and launching better productive measures, there is a need for close collaboration between the managements and the unions, if need for close collaboration between the managements and the unions, if need be by constituting joint task forces to tackle issues as and when they emerge.

 HR Outsourcing Factors

As mentioned earlier, outsourcing has become one of the basic requirement of an business organization.  While outsource the HR function every organization have to keep certain components in to serious consideration so that appropriate functioning of the organization can continue.  Every organization have to take the view from pros and cons of the outsourcing.  The some of the positive and negative factors influencing the HR outsourcing activities in the organization has been discussed below.

Reasons To Outsource

(i)Organizationally Driven reasons

 

Ø  Enhance effectiveness by focusing on what you do best

Ø  Increase flexibility to meet changing business conditions, demand for products and services and technologies

Ø  Transform the organization

Ø  Increase product and service value, customer satisfaction, and share-holder value

 

(ii)Improvement-driven reasons

 

Ø  Improve operating performance

Ø  Obtain expertise, skills, and technologies that would not otherwise be available

Ø  Improve management and control

Ø  Improve risk management

Ø  Acquire innovative ideas

Ø  Improve credibility and image by associating with superior providers

 

(iii)Financially Driven Reasons

 

Ø  Reduce investments in assets and fee up these resources for other purposes

Ø  Generate cash by transferring assets to the provider

 

(iv)Revenue-driven reasons

 

Ø  Gain market access and business opportunities through the provider’s network

Ø  Accelerate expansion by tapping into the provider’s developed capacity, processes, and systems

Ø  Expand sales and production capacity during periods when such expansion could not be financed

Ø  Commercially exploit the existing skills

 

(v)Cost-Driven reasons

 

Ø  Reduce costs through superior provider performance and the provider’s lower cost structure

Ø  Turn fixed costs into variable costs

 

(vi)Employee-driven reasons

 

Ø  Give employees a stronger career path

Ø  Increase commitment and energy in non core areas

 

Don’t For Hr Outsourcing

 

Ø  Don’t outsource strategic, customer, or financial management

Ø  Don’t let the goal of cost savings dominate everything else

Ø  Don’t think that outsourcing is the answer to every problem

 

Excuses Not To Outsource

 

(i)Uncertainty

 

Ø  Significant uncertainties exist

Ø  Existing costs are not well understood

Ø  Anticipated savings will never materialize

Ø  Providers’ excellent reputations are undeserved

Ø  Superior providers to the existing internal unit do not exist

 

(ii)Loss of control

 

Ø  Will lose control over provider

Ø  Will become dependent on providers

Ø  Will lose cross-functional skills, informal networks, and corporate learning

 

(iii)Conflict

 

Ø  Will lose core competencies

Ø  Will lose confidentiality

Ø  The conflicting interests between the parties will never work

Ø  Providers could expand into our business

 

(iv)Employee unhappiness

 

Ø  Will fail to fulfill corporate responsibility to preserve jobs

Ø  May undermine employee loyalty (what kind of message will this send to the rest of the employees?)

Ø  Will lessen commitment to our community

Ø  Will damage morale of all employees, not just those outsourced

 

 

 

Factors hampering HR Outsourcing are:

Ø  The fear of losing jobs

Ø  Loss of sensitive and important information to public/competition

Ø  Ethics and quality of outsourcing vendors

Ø  Possibility of security breaches at both ends

Ø  Cost-benefit equation is still not clear

Ø  Lack of psychological acceptance

Pre-requisites of HR Outsourcing:

Pre-outsourcing Preparations:

These involve evaluation of experiences of the other procurers with same vendor, assessing the culture of the vendor company, critically reviewing vendor proposals, evaluation of a potential strategic partnership, and anticipating staff management problems.

Screen the Prospect's Antecedents: 
The outsourcing firm must perform with due diligence to ensure that the outsourcing firm is visible, reputed, dependable and reliable.

Making Outsourcing Really do its Job: 
Managing the negotiation for contract and managing the contract with by embedding with certainty and flexibility.

Insure the Likely Risks: 
This includes assessing the risk of outsourcing by including liability management in the contract and ensuring proper insurance against the same, proper communication with the employees regarding the unexpected costs and possibility of low quality services and the contingency plan against counter party risk.

Sensitize Employees on Returns to Outsourcing: 
Communicating the plan of outsourcing to all those who are likely to be affected, directly or indirectly, by the proposed outsourcing along with benefits thereof, and its impact on pay and career mobility, preferably through employee forums to minimize it well.

Managers to Become 'Alchemists': Alchemists are people who create something out of nothing, who make their dreams come true. They are passionate about what they do, believing it to be important for the world. To manage and work with people who lack long-term vision, the manager needs to build into organizations a culture of trust and control via 'outcomes' rather than by checks on the process. The manager needs to give more space to employees to make a difference, rather than follow the custom. Managers need maturity and grit to manage outsourcing activities.