ABSTRACTS
The study examines the relationship between personnel outsourcing and organizational effectiveness. The objectives of the study are to examine the relationship between Training/Development and organizational effectiveness, to examine the relationship between Recruiting Process of Outsourcing and organizational effectiveness, to examine the relationship between reward strategies and organizational effectiveness. The study was designed to focus on some selected multinational firms in Port Harcourt metropolis which includes Indoroma Petrochemicals, Mobil Nig LTD and Total PLC all in Port Harcourt, Rivers State, where primary data, via questionnaires were collected. The population of the study was made to be one hundred (100). Self-designed questionnaires on personnel outsourcing and organizational growth was used and administered for the collection of data from the respondents. The Taro Yemen’s formula was used to determine the sample size of 80. The Chi-Square (X2) statistical tool was used to test the hypothesis. Findings reveal that there is a significant relationship between personnel outsourcing and organizational effectiveness in some selected multinational firms in Port Harcourt metropolis. Based on the findings summary, conclusion and recommendations were made that Multinational firms in Port Harcourt should conduct Training/Development for new employees to enhance organizational effectiveness, Multinational firms should improve on their Recruiting Process Outsourcing and organizational effectiveness, Multinational firms should make plan for Compensation/Salary and salary scheme for their employee’s organizational effectiveness and there should be reward strategies put in place in the organization so as to enhance organizational effectiveness.
TABLE OF CONTENTS
Title Page i
Abstracts ii
Declaration iii
Certification iv
Acknowledgements vi
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problems 3
1.3 Objectives of the Study 3
1.4 Research Questions 4
1.5 Research Hypothesis 4
1.6 Significance of the Study 4
1.7 Scope of the Study 5
1.8 Limitation of the study ………………………………………………………………………………………………………………….. 5
1.9 Definition of Terms 5
CHAPTER 2 7
LITERATURE REVIEW 7
2.1 Conceptual Framework 7
2.1.1 Concept Of Personnel Outsourcing 8
2.1.2 Dimensions Of Personnel Outsourcing 9
2.1.3 Concept Of Organizational Effectiveness 10
2.1.4 Measures Of Organizational Effectiveness 11
2.1.5 Human Resources Outsourcing 13
2.1.6 Implications Of Outsourcing 15
2.7 Policy-Making Strategy For Of Outsourcing 20
2.1.7 Personnel Outsourcing Basics 26
2.1.8 Human Resources Functions Outsourced 26
2.1.9 Employees’ Attitudes Towards Outsourcing 28
2.1.6 Relationship Between Organizational Culture And Organizational Growth 30
2.2 Theoretical Framework 31
2.3 Empirical Framework 33
CHAPTER 3 35
RESEARCH METHODOLOGY 35
3.1 Research Design 35
3.2 Population Of The Study 35
3.3 Questionnaire Design 36
3.4 Source And Method Of Data Collection 36
3.5 Sample And Sampling Techniques 37
3.6 Data Analytical Techniques 38
3.7 Reliability And Validity 39
CHAPTER 4 40
DATA PRESENTATION AND ANALYSIS 40
4.1 Data Collection And Presentation 40
4.2 Data Analysis 41
4.3 Testing Of Hypothesis 45
Research Hypothesis 45
CHAPTER 5 49
DISCUSSION OF FINDINGS 49
CHAPTER 6 51
SUMMARY, CONCLUSION AND RECOMMENDATIONS 51
6.1 Summary 51
6.2 Conclusion 51
6.3 Recommendations 52
References 53
Appendix I 58
Appendix Ii 59
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The strategic value of an activity determines its capability as a source of competitive advantage. Barney (1991) states that sustainable competitive advantage is a result of possessing permanent resources that permit clear product or service differentiation. however, not all resources have the potential to be a source of sustainable competitive advantage for the firm. Barney (1991) also affirms that for a resource to have that potential, it must satisfy four conditions: be valuable, rare, imperfectly imitable and non-substitutable. The resources that satisfy the conditions for being sources of competitive advantage are superior assets and capabilities and distinctive core competences (day & Wensley, 1988; Prahalad & Hamel, 1990). Distinctive core capabilities are those processes that involve a combination of physical and human resources and which are later responsible for the organization’s tacit and explicit knowledge. (Espino- Rodriguez, pardon-Robaina, 2005).
The debate on personnel outsourcing is polarized. Personnel outsourcing is seen as an opportunity for the human resources function by some and as a human resource threat by others. The first view suggests that personnel outsourcing is an instrument creating time for human resources to become a strategic partner. the second view considers personnel outsourcing as a cost- cutting instrument gradually reducing human resources staff. (Delmotte, Sels, 2008).
Outsourcing has been defined as work done for a company by people other than the company’s full-time employees. In the modern setting, outsourcing turns out to be highly complex and organizations use outsourcing vendors for a variety of reasons. According to analysts, companies usually cite cost reduction as the most crucial reason for human resources outsourcing. As companies were discussing how to cut costs in the face of an economic downturn, many look at outsourcing for some of their human resources processes. As the managing director of capita human resources solutions, Wayne story, rightly puts it, “human resources outsourcing is on every human resources director’s list of things to do. It has to be driven by the business case though the right partner at the right time, for the right reasons.” However, some analysts argue that by outsourcing major human resources activities, the number of human resources jobs is decreasing, others feel that on the contrary by outsourcing these kinds of repetitive and administrative jobs, higher-level human resources professionals get the time they need to tackle strategic workforce challenges. With more and more companies looking to rationalize employees on their payroll, manpower outsourcing is slowly becoming the new buzz in India. And the trend seems to have hit not just big multinational companies but the public sector and government undertakings as well, though on a very low key yet in the latter.
Human resources services are among the key elements in the enlarging outsourcing game. Recognizing the fact that senior management needs to get out of mundane day-to-day processing work and focus instead on strategic planning, core competencies, customer satisfaction and decision making, a number of large companies, across globe have begun opting for outsourcing of their human resources services. Some of the functions most commonly handed over to outside providers include payroll, benefits administration, background checks, drug testing, recruiting and training. Even small companies that might not get noticed much in big studies of outsourcing trends, turn to outside services to help with such chores. From the foregoing therefore the study is intended to examine the relationship between personnel outsourcing and organizational effectiveness.
1.2 STATEMENT OF PROBLEMS
The debate on human resource outsourcing is polarized. The first view suggests that human resources outsourcing is an instrument creating time for human resources to become a strategic partner. The second view considers human resources outsourcing as a cost- cutting instrument gradually reducing human resources staff. (Delmotte, Sels, 2008). The problems that prompted this study are Poor Training and Development, weak Recruiting Process, Inadequate reward strategies in the organization. Therefore, the study is intended to examine the relationship between personnel outsourcing and organizational effectiveness.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to examine the relationship between personnel outsourcing and organizational effectiveness. The specific objectives are as follows:
i. To examine the relationship between Training/Development and organizational effectiveness.
ii. To examine the relationship between Recruiting Process of Outsourcing and organizational effectiveness.
iii. To examine the relationship between reward strategies and organizational effectiveness.
iv. To examine the extent to which organizational culture influence the relationship between personnel outsourcing and organizational effectiveness.
1.4 RESEARCH QUESTIONS
The following research questions are designed to help the researcher, achieve the objective of the study.
i. Is there any relationship between training / development and organizational effectiveness?
ii. Is there any relationship between outsourcing recruitment/selection and organizational effectiveness?
iii. Is there relationship between reward strategies and organizational effectiveness?
iv. To what extent does organizational culture influence the relationship between personnel sourcing and organizational effectiveness?
1.5 RESEARCH HYPOTHESIS
The following hypotheses were formulated for this study.
HO1: There is no significant relationship between training/development and organizational effectiveness.
HO2: There is no significant relationship between recruitment/development and organizational effectiveness.
HO3: There is no significant relationship between reward strategies and organizational effectiveness.
HO4: Organizational culture does not moderate the relationship between personnel outsourcing and organization effectiveness.
1.6 SIGNIFICANCE OF THE STUDY
This study is significant in the following ways;
Firstly, it will assist the organization to continually plan for the good of their employee’s and also make use of skilled manpower for the good of the organization.
Others who will benefit from this study include, managers, business organizations, higher institutions and the society in general.
1.7 SCOPE OF THE STUDY
The study covers personnel outsourcing and organizational effectiveness. The study limits scope to some selected multinational firms in Rivers State which include Indoroma Petrochemicals, Mobile and Total in Port Harcourt.
1.8 LIMITATION OF THE STUDY
The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.
Another limitation is the difficulties, encountered by the researcher in obtaining all needed information and materials from the right source and compilation of data for the project.
1.9 DEFINITION OF TERMS
Outsourcing: Obtain (goods or a service) by contract from an outside supplier.
Personnel outsourcing: Personnel outsourcing (HRO) occurs when a business instructs an external supplier to take responsibility (and risk) for HR functions and perform these tasks for the business.
Effectiveness: The degree to which something is successful in producing a desired result; success.
Organization: An organized group of people with a particular purpose, such as a business or government department.
Personnel: People employed in an organization or engaged in an organized undertaking such as military service.
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