ABSTRACT
The study examines personnel outsourcing and performance. The objectives of the study are to examine the relationship between Training/Development and performance, to examine the relationship between Recruiting Process Outsourcing and performance, to examine the relationship between Compensation/Salary and performance, to examine the relationship between reward strategies and performance. The descriptive research method was employed since the study was to ascertain personnel outsourcing and performance. Based on this, the case study approach was adopted. The study was designed to focus on some selected multinational firms in Rivers State which include Agip Oil Company, Mobil and Total in Port Harcourt, Rivers State, where primary data, via questionnaires were collected. The population of the study was made to be one hundred (100), the reason for this choice is that concrete and adequate information relating to the study under investigation resides among the people randomly selected. The Taro Yemen’s formulae were used to determine the sample size 80. Findings revealed that there is a significant relationship between personnel outsourcing and performance. Based on the findings of the study, summary, conclusion and recommendation were made that large organizational size is no longer a competitive standard, product and service cycle times have reduce dramatically, and time based competition demands quicker response, investor and analysts demand a focused management that delivers.
TABLE OF CONTENT
TITLE PAGE i
ABSTRACT iii
DECLARATION………………………………………………………………………………………iv
CERTIFICATION………………………………………………………………………………………v
DEDICATION………………………………………………………………………………………….vi
ACKNOWELDGEMENT……………………………………………………………………………vii
TABLE OF CONTENT……………………………………………………………………………….vii
CHAPTER 1 1
INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 Statement of Problems 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Research Hypothesis 5
1.6 Significance of the Study 5
1.7scope/Limitation of the Study 6
1.8 Definition of Terms 6
CHAPTER 2 8
LITERATURE REVIEW 8
2.1 Conceptual Framework 8
2.1.1 Concept of Personnel Outsourcing 9
2.1.2 Dimensions of Personnel Outsourcing 10
2.1.3 Organizational Performance 11
2.1.4 Measures of Organizational Performance 12
2.1.5 Human Resources Outsourcing 14
CHAPTER 3 21
RESEARCH METHODOLOGY 21
3.1 Research Design 21
3.2 Population Of The Study 22
3.3 Questionnaire Design 22
3.4source And Method Of Data Collection 22
3.5 Sample And Sampling Techniques 23
3.6 Data Analytical Techniques 25
3.7 Reliability And Validity 26
CHAPTER 4 27
DATA PRESENTATION AND ANALYSIS 27
4.1data Collection And Presentation 27
4.2 Data Analysis 28
4.3 Testing of Hypothesis 35
Research Hypothesis 35
CHAPTER 5 39
DISCUSSION OF FINDINGS 39
CHAPTER 6 41
SUMMARY, CONCLUSION AND RECOMMENDATIONS 41
6.1 Summary 41
6.2 Conclusion 41
6.3 Recommendations 42
References…………………………………………………………………………………………….43
APPENDIX I 47
APPENDIX II 48
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 immobile 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 performance.
1.2 STATEMENT OF PROBLEMS
The debate on human resource outsourcing is polarized. Human resources outsourcing is seen as an opportunity for the human resources function by some and as a threat by others. 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).
Problems identified are as follows:
i. Poor Training and Development.
ii. weak Recruiting Process.
iii. Poor Compensation/Salary system.
iv. Inadequate reward strategies.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to examine the relationship between personnel outsourcing and performance. The specific objectives are as follows:
i. To examine the relationship between Training/Development and performance.
ii. To examine the relationship between Recruiting Process Outsourcing and performance.
iii. To examine the relationship between Compensation/Salary and performance.
iv. To examine the relationship between reward strategies and performance.
1.4 RESEARCH QUESTIONS
i. What is the relationship between Training/Development and performance.
ii. What is the relationship between Recruiting Process Outsourcing and performance.
iii. What is the relationship between Compensation/Salary performance.
iv. What is the relationship between reward strategies and performance.
1.5 RESEARCH HYPOTHESIS
HO1: There is no significant relationship between Training/Development and performance.
HO2: There is no significant relationship between Recruiting Process Outsourcing and performance.
HO3: There is no significant relationship between Compensation/Salary performance.
HO4: There is no significant relationship between reward strategies and performance.
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 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/LIMITATION OF THE STUDY
The study covers personnel outsourcing and organizational growth. The study limits scope to some selected to some selected multinational firms in Port Harcourt Metropolis, Rivers State which include Agip Oil Company, Mobile and Total.
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.
1.8 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.
Management: Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling and directing an organization’s resources to achieve the objectives of that policy.
Organizational: Is a combination of people or individual’s efforts working together in purse of common goals. They are made of people, purpose, structure; they utilize technology, common values systems operate in the context of internal and external environment, leadership styles.
Performance: Is an act of performing carrying into executive or action, achievement accomplishment representation by action.
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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