An investigation into the optimization of core HR administrative activities through outsourcing


Organization performance depends on many aspects and the key among them is the Human resource management. In general there are two important types of administrations task across the HR and they are core and noncore HR administration tasks. HR outsourcing is the widely used practice these days and this implementation has shown success across most of the organizations in the context of reduced costs and also improved organizational performance. Both the direct and indirect cost incurred on the organization are reduced a lot with the perfect implementation of the HR outsourcing and in this context a research problem is constructed and the details are as given below 

To understand the impact of the HR outsourcing on the organization performance with respect to cost reduction and improved efficiency this research is conducted at Royal Bank of Scotland (RBS). Interpretivism is implemented as the research philosophy and inductive research approach is followed as the required solution to the problem considered is derived from the observations which were gathered from the interview with the respondents like two HR managers, one business development manager and 10 employees. All the respondents are interviewed with an intention to understand the impact of HR outsourcing on few aspects like cost reduction, organization performance and employee performance.

From the analysis and findings done after the interview it is clear that HR outsourcing has shown lot of benefits to the organization and the overall efficiency of the organization is improved and also the cost reduction attempts made were successful. The key findings are similar to the critical analysis done in the literature review and the important aspects like training and development, payroll and staffing are successfully implemented across the HJR outsourcing. There are few recommendations in this context like the employee satisfaction against HR outsourcing and their feedback in executing the noncore HR administration should be considered. 

Project background and Thesis Organization

Project background of the research is discussed against the importance of HR outsourcing and a problem is identified with the required aims, objectives and research questions and given in the introduction chapter. A detailed review on HR outsourcing and its impact on the organization performance against the business value and cost reduction aspects are discussed in detail in the Literature Review along with the required author references. The methodology followed to proceed with the research is discussed in this chapter. Different research philosophies, strategies and approaches followed to gather the primary source of information are presented in the Research methodology chapter and also a questionnaire is prepared and attached in the appendix section.

Based on the semi structured interviews taken from the respondents like HR managers, business development manager and employees all the findings from the interviews are presented in this chapter under different sections. All the research questions identified in the introduction chapter are answered against the findings and the required analysis is given in the research analysis chapter. A detailed conclusion to the overall research done is given in the conclusion chapter covering all the key findings and analysis and the future scope to improve the research is also given in this chapter.

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