As a top human resource executive in a large, privately held company, you are re

Question

As a top human resource executive in a large, privately held company, you are responsible for compensation and benefits. The firm’s owners are satisfied with financial performance. Your boss takes little interest in specific human resource issues, as long as things are going well. The high quality of management in your firm is recognized. You have been researching outsourcing opportunities and have found that the company could achieve modest savings by outsourcing compensation and benefits. You feel an obligation to consider this action, although fifteen employees may lose their jobs and your position would be diminished in importance as a result of the action. What do you do?

Explanation / Answer

Since company management is satisfied with the current financial performance and the immediate boss is not keen on specific human resource issues. Even though, there is an opportunity to improve HR practices through outsourcing and can save modest savings. Without management support and boss approval, we should not take up HR outsourcing project. Management not interested, not supported by HR head and employees are laid off. Initiating this outsourcing is not worth because it is going to threaten your position in the organization. We can’t impose our own personal goals on company management and we may not get approval to outsource. The best decision is to not to initiative outsourcing of HR function without managment support..   

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