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Please use this identifier to cite or link to this item: http://hdl.handle.net/1812/750

Title: Outsourcing the HR functions: The role of strategies and HR performance
Authors: Hasliza Abdul Halim
Keywords: Business strategies
Human resource
Management strategies
Outsourcing
HRM strategy
Issue Date: Apr-2009
Publisher: University of Malaya
Abstract: ABSTRACT The primary objective of this study is to examine how the business strategies and human resource management strategies are associated with the degree of outsourcing the human resource functions and their contribution towards human resource performance. In addition, the framework also examines the relationship between business strategies and human resource management strategies. Four types of business strategies are identified namely: quality-based, differentiation, breadth and low-cost. The six human resource management strategies used are namely expansion, quality conscious, cost minimisation, commitment, employee development and conventional. The mediator roles of human resource outsourcing and human resource management strategies are also examined. Using a self-administered questionnaire, a survey was conducted and the respondents were from the Malaysian manufacturing sector. The key informant was the head of human resource department. The original sample comprised of 232 organisations but only 113 engaged in some form of human resource outsourcing. Regression analysis (OLS) and structural equation modeling were conducted to test all the hypotheses of this study. The findings indicated that organisations outsourced only transactional and traditional functions. In general, business strategies influence the human resource outsourcing but specifically, only the differentiation business strategy has significant influence on the outsourcing of transactional and traditional human resource functions. Besides, human resource management strategies also influence human resource outsourcing but only quality conscious, commitment and employee development strategy are found to significantly influence the outsourcing of transactional functions, while cost minimisation strategy has an impact on outsourcing traditional functions. As for the relationship between business strategies and human resource management strategies, the following business/human resource management strategies correlations exhibited significant relationship: quality based strategy with expansion and quality conscious; differentiation strategy with expansion, quality conscious, cost minimisation, commitment and conventional; breadth strategy with expansion and low-cost strategy with cost minimisation. On the mediation test, the results showed that the model exhibited a fully mediated model whereby as a whole, human resource outsourcing mediated the relationship between business, human resource management strategies and human resource performance. Additionally, human resource management strategies also mediated the relationship between business strategies and human resource outsourcing. This study makes both theoretical and methodological contributions, especially in identifying the significant factors that influence the decision to outsource human resource functions and their impact on human resource performance as well as the research design and the measurement of constructs. In short, it provides useful pointers to human resource managers on the importance of business strategy and human resource management strategy in any human resource outsourcing exercise. ABSTRAK Objektif utama kajian ini adalah untuk mengkaji bagaimana strategi perniagaan dan strategi pengurusan sumber manusia dikaitkan dengan fungsi-fungsi sumber manusia yang mengguna khidmat sumber luar dan sumbangannya terhadap prestasi sumber manusia. Rangka ini juga meneliti hubungan antara strategi perniagaan dan strategi pengurusan sumber manusia. Empat jenis strategi perniagaan yang dikenalpasti adalah; dasar kualiti, perbezaan, kepelbagaian dan kos rendah. Enam jenis strategi pengurusan sumber manusia adalah perkembangan, kesedaran kualiti, kos pengurangan, komitmen, perkembangan pekerja dan konvensional. Peranan pengantaraan antara fungsi sumber manusia yang menggunakan khidmat sumber luar dan strategi pengurusan sumber manusia juga dikaji. Kajian dibuat menggunakan soal selidik terhadap responden dari sektor pengilangan di Malaysia. Sumber maklumat utama ialah ketua jabatan sumber manusia. Sampel asal terdiri daripada 232 organisasi tetapi hanya 113 terlibat dalam fungsi pengurusan sumber manusia yang mengguna khidmat sumber luar. Analisis regressi (OLS) dan “structural equation modeling” dijalankan untuk mengkaji semua hipotisis kajian ini. Hasil kajian menunjukkan organisasi hanya mengguna khidmat sumber luar untuk fungsi “transactional” dan “traditional” sahaja. Secara am, strategi perniagaan mempengaruhi khidmat sumber luar untuk fungsi-fungsi sumber manusia tetapi khususnya hanya strategi perbezaan mempunyai pengaruh penting terhadap fungsi “transactional” dan “traditional” dalam mengguna khidmat sumber luar. Strategi-strategi pengurusan sumber manusia seperti kesedaran kualiti, komitmen dan perkembangan pekerja didapati mempengaruhi fungsi operasi yang menggunakan khidmat sumber luar manakala kos pengurangan memberi impak pada fungsi “traditional” yang menggunakan khidmat sumber luar. Strategi perniagaan dan strategi pengurusan sumber manusia menunjukkan hubungkait seperti berikut: strategi kualiti dengan perkembangan pekerja dan kesedaran kualiti, strategi perbezaan dengan perkembangan pekerja kesedaran kualiti, kos pengurangan, komitmen dan konvensional, strategi kepelbagaian dengan perkembangan pekerja dan strategi kos rendah dengan strategi kos pengurangan. Kajian pengantaraan antara kedua-dua strategi ini membuktikan ia adalah model pengantaraan yang lengkap. Secara keseluruhan, mengguna khidmat sumber luar untuk fungsi-fungsi sumber manusia menunjukkan hubungan pengantaraan antara strategi perniagaan, strategi pengurusan sumber manusia dengan prestasi sumber manusia. Selain itu, strategi pengurusan sumber manusia juga menjadi perantaraan antara strategi pengurusan dan penggunaan khidmat sumber luar. Kajian ini memberi sumbangan teori dan metodologi terutama untuk mengenalpasti factor-faktor penting yang mempengaruhi keputusan untuk mengguna khidmat sumber luar bagi fungsi-fungsi sumber manusia dan impaknya terhadap prestasi sumber manusia serta rekabentuk penyelidikan dan pengukuran konstruk. Kesimpulannya ia memberi maklumat yang berguna kepada pengurus sumber manusia akan kepentingan-kepentingan strategi perniagaan dan pengurusan sumber manusia apabila mengambil keputusan untuk menggunakan khidmat sumber luar.
Description: Thesis (PhD) -- Faculty of Business and Accountancy, University of Malaya 2009.
URI: http://dspace.fsktm.um.edu.my/handle/1812/750
Appears in Collections:PhD Theses: Business & Accountancy

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Hasliza(CHA030008) Abstract and Table of Content.pdfAbstract and Table of Content52.65 kBAdobe PDFView/Open
Hasliza (CHA030008) Outsourcing the HR Functions, The Role of Strategies and HR Performance.pdfTitle Page338.84 kBAdobe PDFView/Open
Hasliza(CHA030008) Content of the thesis.pdfThesis Text1.12 MBAdobe PDFView/Open


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