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29. EXERCISE: OUTSOURCING HUMAN RESOURCE MANAGEMENT FUNCTIONS
I. OBJECTIVES:
1. To familiarize the student with the potential costs and benefit of human resource
management outsourcing.
2. To familiarize the student with this degree to which various human resource
management function are being successfully outsourced.
II. OUT OF CLASS PREPARATION TIME: 50 minutes
III. IN CLASS TIME SUGGESTED: 30 minutes
IV. INSTRUCTIONS:
In groups of three to -ve students, read the “Situa*on” given in the book, as well as Forms 2.1
and 2.2.
Each group will complete Forms 2.1 and 2.2, as well as question 1. List as many outsourcing
benefit and costs for both employers and employees as you can on Form 2.1 using information gathered
from various human resources websites listed throughout the book. Put an X beside your group’s
assessment of the corporate benefit (Form 2.2) of outsourcing each HR func*on based on your
research.
One person in each team will report the group’s assessment and recommendation (question 1)
to the class.
Select one of three outsourcing strategies (i.e., no HR outsourcing, outsource certain HR
function, or outsource all HR function) and be prepared to explain your reasons based on Forms 2.1
and 2.2.
FORM 2.1
benefit and Costs Associated With Outsourcing of Human Resources function
Employer
benefit Allows focus on core HR competencies
Increases Aexibility
Lowers overhead costs
Decisions can be reversed and func*on
brought back “in-house”
Costs Downsizing of HR staC reduces internal HR
skills
potential lower HR staC morale
potential lower HR productivity
Must dedicate resources to coordina*ng
internal and external HR function
Employee
benefit May receive beDer service from outside
vendor which focus on their particular HR
func*on(s)
Costs May experience coordination problems
between internal HR staC and outside vendors
External vendors may be unaware of and not
reinforce the corporate culture and staC values
Convenient access to outside vendors may be
lacking
StaC satisfaction may decline
FORM 2.2
The potential Expected Corporate benefit Associated With Outsourcing of specific Human Resource
function
potential Expected benefit
0 1 2 3
HR function Uncertain Very Low Moderate Very High
Payroll and benefit X
Recruitment X
selection X
information technology X
Training X
Performance management X
All HR function X
NOTE: benefit depend on how the outsourcing is managed and the initial organiza*onal core
competencies in each of the HR functional areas. Top management and HR staC should work together to
de-ne and communicate transi*on plans, minimize the number of unknowns, and help displaced HR
staC iden*fy employment option.
30. EXERCISE: JOB ANALYSIS: WRITING JOB DESCRIPTIONS
I. OBJECTIVES:
1. To familiarize students with the job analysis process and with job description.
2. To give students practice in writing job description.
II. OUT-OF-CLASS PREPARATION TIME: 30 minutes
III. IN CLASS-TIME SUGGESTED: 45 minutes
IV. PROCEDURES: See text
V. SOLUTIONS:
This exercise is preDy straighHorward. In the past I have found that students may have to
complete the job descrip*on as a homework assignment and bring it to the next class. The resultant job
description can be used for other class ac*vi*es during the semester (e.g. developing selection criteria,
designing training and development ac*vi*es). Students may also be able to use their job description
for the task analysis skill builder in part 8 of the text. This class exercise provides an excellent forum for
discussing the uses and alternative methods of collecting job information. Instructors might want to go
over the advantages and disadvantages of the interview method for collecting job information and
present an overview of other popular job analysis methods. Discussion could terminate with the uses of
job analysis information and the importance of valid and reliable job description.
Advantages of the interview method: can acquire detailed information; well-trained interviewer
can elicit accurate data, and it is suitable to a wide variety of jobs. Disadvantages include: quality is
largely determined by the skill of the interviewer; slow and *me consuming if a large number of jobs are
involved; interviewer must separate idiosyncra*c facets of employee's performance of the job from basic
job responsibilities; and job incumbents may not be knowledgeable about the full content of the job.
Some of these limitation can be overcome by having the incumbent's supervisor review the completed
job descrip*on; interview more than one job holder for each job; and supplement the interview with
observation or other methods.
The major uses of job description include: providing information on KSAO's needed for jobs;
useful in establishing job performance standards for performance appraisal; used in job evaluation to
determine the rela*ve worth of jobs for pay purposes; providing information on the type of worker
needed for human resource planning; to validate selection instruments; and to iden*fy training needs
and objective. The instructor should stress that the information gathered from job analysis is an
essential building block for carrying out all the other personnel function in organization.
31. EXERCISE: WORK AND FAMILY ISSUES
I. OBJECTIVES:
1. To understand the conAicts that sometimes arise between the individual's work and
family responsibilities.
2. To analyze the advantages and disadvantages of alternative policies and programs
which aDempt to reconcile the sometimes conAic*ng demands of work and family.
II. OUT-OF-CLASS PREPARATION TIME: 2 hours
III. IN-CLASS TIME SUGGESTED: 45 minutes
IV. PROCEDURES: See Text
V. POSSIBLE SOLUTION/DISCUSSION:
Students should read the entire exercise and conduct research on the topic prior to class. On
the basis of this research, they should come to class prepared to discuss and present to their group
possible policies and programs for this company to beDer reconcile work and family life. possibilities
include Aex*me, job sharing, telecommuting, part-*me career tracks, child care/elder care, referral
services, on-site day care, on-site sick child health services, developing a family centered culture,
advisory commiDee on work and family issues, Aexible benefit, more extensive family benefit, linkage
of executive bonuses or merit increases to recruitment/ reten*on of women, formalized mentoring
programs, extended family leave for men and women, consciousness raising workshops, appointment of
women to the board of trustees, career planning programs, and revised career paths.
Form 2.3 provides some possible option for beDer reconciling work and family responsibilities
including some details in a *meline for implementation. In addition to these option, however, students
should be encourage to draw upon their own work experience, family experience, and crea*vity to
develop additional option.
When the student groups present their recommendation, the instructor should ask each
subsequent group reporting what other option they recommend beyond those already identified by
earlier groups. They might also be asked the criteria used to determine the priority and *me frames for
various option.
FORM 2.3 Recommendations for Reconciling Work and Family Life at Sunshine Health Services
Policy or Program
Policy or Program Speci"c Details Time Frame for
Implementation*
1. Flexible work hours 4/40; 3/36; 0exible
hours for both part
time and full time
Short-Term
2. Childcare/Eldercare Subsidized by
company
Intermediate-Term
2. Extended Family Leave Related to births and
other major family
changes
Intermediate-Term
3. Part Time Career Paths Provide promotion
opportunities to part
timers
Intermediate-Term
4. Job Sharing Allow partners to
choose one another
Short-Term
5. Pregnancy Leave Predetermined time
allowance for leave
Short-Term
6. Family Leave Predetermined leave
time for speci"c
family emergencies
Long-Term
7. Assistance for Family Problems Counseling for
family/marital
problems
Short-Term
8. Telecommuting for Some Positions Non-patient care Short-Term
9. Alternative Career Paths Career development
opportunities for
those lacking
continuous service
Long-Term
10. Sick Child Services Onsite basic health
services
Long-Term
11. “Take Your Child to Work Day” Children ages 5-15
are exposed to a
variety of careers
Short-Term
*short-term within the next year; intermediate term one to two years; long-term more than two years.
32. SKILL BUILDER: HUMAN RESOURCE FORECASTING ASSIGNMENT
I. OBJECTIVES:
1. To give students practice in forecasting an organiza*on's human resource needs.
2. To familiarize students with some of the factors which aCect an organiza*on's future
human resource needs (growth, automa*on, and turnover).
3. To familiarize students with the complexi*es involved in making human resource
forecasts.
4. To point out to students that all human resource forecasting is based on
assumption and that these assumption are critical to the accuracy of the forecast.
Incorrect assumption lead to erroneous forecasts.
II. TIME REQUIRED TO COMPLETE ASSIGNMENT: One to two hours
III. INSTRUCTIONS: See text
IV. POSSIBLE SOLUTION:
One possible solution to the assignment is given below. It is based on the assumption provided. Other
assumption will result in diCerent answers.
MAIN OFFICE
400 Employees
Turnover for Year = 10%
Year1 Year 2 Year 3
Number of Employees
Who Must Be Hired Each Year
Year 1 Year 2 Year 3
Number of Employees
Working at Main OQce at Year End
Year 1 Year 2 Year 3
Old Branches
700 Employees
(200 Supervisors and 500 Tellers/Clerical Employees)
Turnover Year 1 Year 2 Year 3
Supervisors
Tellers/Clerical
Employees replaced by
machines x 30% = 141
Number of Employees
Who Must Be Hired Each Year for Old Branches
Year 1 Year 2 Year 3
Tellers/Clerical
Number of Employees
Working For Old Branches at Year End
Now Year 1 Year 2 Year 3
assumption for Old Branches
1. 50 branches employ 4 supervisors and 10 clerical/tellers each.
2. 30 teller machines are placed in operation on December 31 (one year hence) and
replace 30 tellers.
3. The bank does not terminate any employees because of the new teller machines.
Rather, as tellers quit throughout the year, 30 are not replaced.
4. Turnover is 30% for tellers/clerical and 20% for supervisors.
New Branches
Turnover Year 1 Year 2 Year 3
Supervisors
10 branches plus 50% x
22 branches plus 50% x
Tellers/Clerical
10 branches plus 50% x
22 branches plus 50% x
Number of Employees
Who Must Be Hired Each Year for New Branches
Year 1 Year 2 Year 3
branch = 100 plus
turnover of 15 = 115
= 168
Number of Employees
Working at New Branches at Year End
Year 1 Year 2 Year 3
(10 branches) (22 branches) (38 branches)
Supervisors
TOTALS
Turnover for Old Branches, New Branches, and Main OQce Combined
Year 1 Year 2 Year 3
Old Branches
TOTALS
Number of Employees Who Must Be Hired Each Year
For Old Branches, New Branches, and Main OQce
Year 1 Year 2 Year 3
Old Branches
TOTALS
Number of Employees Working at Bank at Year End
Year 1 Year 2 Year 3
Old Branches
Table 2.2
Turnover
Employee Category Year 1 Year 2 Year 3
Table 2.3
Number of Employees To Be Hired
Employee Category Year 1 Year 2 Year 3
Table 2.4
Year End Employment
Employee Category Year 1 Year 2 Year 3
