Hro

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Hro

  1. 1. HRO BY AJITHAA HASAN
  2. 2. Evolving Role of HR <ul><ul><ul><li>Strategic management decisions </li></ul></ul></ul><ul><ul><ul><li>Value-added services </li></ul></ul></ul><ul><ul><ul><li>Achieve a competitive edge </li></ul></ul></ul><ul><ul><ul><li>Primary functions are based on frameworks: competency-based </li></ul></ul></ul><ul><ul><ul><li>structural </li></ul></ul></ul><ul><ul><ul><li>process-oriented </li></ul></ul></ul><ul><ul><ul><li>profit centers </li></ul></ul></ul>
  3. 3. HRO? <ul><li>Any activity in which a company lacks internal expertise and confidentiality and requires an unbiased opinion on human resources, can be outsourced. </li></ul><ul><li>HR outsourcing services: </li></ul><ul><li>PEOs, BPOs, ASPs, or e-services. </li></ul>
  4. 4. Professional employer organization (PEO) <ul><li>Assumes full responsibility of company's HR administration </li></ul><ul><li>Takes full legal responsibility of your employees </li></ul>
  5. 5. Business process outsourcing (BPO) <ul><li>Referring to outsourcing in all fields, not just HR </li></ul><ul><li>Putting in new technology or applying existing technology in a new way to improve a process </li></ul><ul><li>Self-access and HR data warehousing </li></ul>
  6. 6. Application service providers (ASPs) <ul><li>host software on the Web and rent it to users </li></ul><ul><li>packaged applications (People Soft) or customized HR software </li></ul>
  7. 7. E-services <ul><li>HR services that are Web-based </li></ul><ul><li>Includes BPOs & ASPs </li></ul><ul><li>HR outsouring categories: </li></ul><ul><li>Transaction & Administration outsourcing and HR consultancy </li></ul>
  8. 8. Why are organizations outsourcing?
  9. 9. Preference for HRO <ul><li>Outsourcing of BOP instead of BPO </li></ul><ul><li>Saves key people’s time </li></ul><ul><li>Concentration on core competency </li></ul><ul><li>Enhancing profitability </li></ul><ul><li>Mid-sized cos - >87% of funds towards routine processing transactions </li></ul><ul><li>Best systems, most experienced minds </li></ul>
  10. 10. Some Statistics <ul><li>U.S. - >2/3rds of the corporations have outsourced 5 or more HR functions </li></ul><ul><li>98% are ready to further outsource </li></ul><ul><li>HR personnel shrunk by 16% </li></ul><ul><li>Survey on “Outsourcing in the Asia-Pacific” confirms lack of momentum(5%) </li></ul><ul><li>Outsourcing market in APAC region - $1.14 billion in 1999 to $2.56 billion in 2004 </li></ul>
  11. 11. Advantages of HRO <ul><ul><ul><li>Reducing or eliminating fines and penalties by keeping pace with changing government regulations. </li></ul></ul></ul><ul><ul><ul><li>Achieving measurable, bottom-line results by increasing efficiency and leveraging outsourcee’s economies of scale. </li></ul></ul></ul><ul><ul><ul><li>Lowering infrastructure and facility costs by having the HR function administered off-site. </li></ul></ul></ul><ul><ul><ul><li>Sharpening your business focus by eliminating interruptions caused by employer obligations, risks and liability. </li></ul></ul></ul><ul><ul><ul><li>Improving employee retention and morale by providing timely answers to payroll and benefits questions. </li></ul></ul></ul>
  12. 12. Advantages (contd..) <ul><ul><ul><li>Expanding scope and level of service. Your HR department can’t be subject experts in all areas – our staff of more than 65 HR professionals can. </li></ul></ul></ul><ul><ul><ul><li>Implementing organizational initiatives that link to your overall business plan: HR becomes strategic, not tactical. </li></ul></ul></ul><ul><ul><ul><li>Overall, companies tend to outsource to alleviate administrative burdens and focus on strategic areas </li></ul></ul></ul>
  13. 14. Factors hampering HRO <ul><li>Cost factor & Confidentiality </li></ul><ul><li>The fear of losing jobs </li></ul><ul><li>Loss of sensitive information to public/competition </li></ul><ul><li>Ethics and quality of outsourcing vendors </li></ul><ul><li>Possibility of security breaches </li></ul><ul><li>Cost-benefit equation not clear </li></ul><ul><li>Lack of psychological acceptance </li></ul>
  14. 15. Outsource activities that <ul><ul><ul><li>Have high volumes </li></ul></ul></ul><ul><ul><ul><li>Are repetitive and routine </li></ul></ul></ul><ul><ul><ul><li>Reflect consistent customer needs </li></ul></ul></ul><ul><ul><ul><li>Have opportunities to leverage </li></ul></ul></ul><ul><ul><ul><li>Are service and efficiency driven </li></ul></ul></ul><ul><ul><ul><li>Are easily measurable in terms of performance </li></ul></ul></ul><ul><ul><ul><li>Support key business processes </li></ul></ul></ul><ul><ul><ul><li>Get influenced by external forces </li></ul></ul></ul><ul><ul><ul><li>Require high content expertise </li></ul></ul></ul><ul><ul><ul><li>Are ad-hoc, periodic future oriented projects </li></ul></ul></ul><ul><ul><ul><li>Are difficult to measure </li></ul></ul></ul><ul><ul><ul><li>Have high impact on organization as a result of non performance, failure or mistake </li></ul></ul></ul>Retain activities that
  15. 16. Areas where HRO will work <ul><ul><ul><li>Relocation </li></ul></ul></ul><ul><ul><ul><li>Recruiting/Staffing </li></ul></ul></ul><ul><ul><ul><li>Competence Development </li></ul></ul></ul><ul><ul><ul><li>Salary Administration </li></ul></ul></ul><ul><ul><ul><li>Consulting and Training </li></ul></ul></ul><ul><ul><ul><li>HR Information Systems </li></ul></ul></ul><ul><ul><ul><li>Disciplinary Issues </li></ul></ul></ul><ul><ul><ul><li>HR Surveys </li></ul></ul></ul><ul><ul><ul><li>HR Research </li></ul></ul></ul><ul><ul><ul><li>Staff Loans and Perks </li></ul></ul></ul><ul><ul><ul><li>Manpower and Career Planning </li></ul></ul></ul>
  16. 17. THANK YOU

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