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What Is The Criterion In Deciding Core And Non-Core HR Administrative Functions?

October 4, 2012

In general there are two types of HR administration issues and they are core and non-core and the decision to outsource these functions depends on various factors. Ample research is done in this context and the required analysis is given in this section. The core and non core HR administration functions are divided based on the priority and importance and in general the noncore HR tasks are outsourced as the management can handle the risks even the noncore HR tasks are outsourced. The non-core HR administration tasks like staffing needs which includes resume screening and recruitment, leave management, payroll, training and development are mainly outsourced to the third party as they can be benefited in terms of cost and time and this analysis is similar to the opinion of Kaptein.

In general the outsourcing can be varied based on the organization requirements and the outsourcing can be of two types like selective outsourcing and complete outsourcing and the non core HR administration functions are outsourced completely and the core HR functions are outsourced selectively and the decision of outsourcing mainly depends on the specialization of the vendor who can handle the core and noncore HR administration issues and this analysis is similar to the opinion of Westerman.

In general the organizations will outsource the non core HR administration functions to save the cost and also reduce the risks, where the core administration tasks like taxing and costing are not outsourced as they involve lot of organizational risks and this is the main reason considered to separate the core and noncore administration issues and this analysis is similar to the opinion of Westerman.

All the administration tasks that create and enhance directly the business value of the organizations are considered as the core administrative tasks and which has indirect impact on the business value are considered as the non core HR administrative tasks. In general most of the organizations will pay more attention towards the core HR administration issues as they have direct impact on the organization performance and they outsource the noncore HR administration tasks which has indirect impact on the business value and this analysis is similar to the opinion of Murray. 

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