Category: MBA Dissertations

The topic of this research proposal is the importance of employees understanding the company’s strategies. The study is based on AMT COFFEE LTD. The main research question is how managers can explain and make use of company strategies to reach the roots of the organisation and how in doing so they improve employees job satisfaction and company performance.

The research will be conducted in AMT COFFEE LTD where the author has been employed for four years as a store manager. For the literature review the author has analysed more than 50 definitions which relates to the importance of strategy implementation, strategic alignment of the employees and the connections are made where possible with the definitions and different research paths are developed and incorporated. By analyzing books and articles related to importance of strategies, strategic alignment and communicating strategies to the employees a literature review has been prepared. In the literature review the quality has been maintained by using most clear definitions that are most relevant to the research.

Initially permission was denied when the author contacted the Area Manager of AMT COFFEE LTD. Later when the author met the Human Resource manager and explained that the conduct of the research will bring no interruption in daily routines of the employees, then permission was granted.

The research design used in this research is both exploratory and descriptive. The author has chosen a mixture of questionnaires and interviews to collect primary data. Interviews will be conducted with one Operational Manager, Area Managers, General Managers and Assistant Managers. A questionnaire will then be given to 40 front line employees. The author has explained in detail why this methodology has been chosen in the section Proposed Research Design and Proposed Research Methodology. The key outcomes of the research are to explain why employees need to know companies strategies, the best and the easiest way managers can explain strategies to the employees and how does it affect employee’s job performance and satisfaction. More outcomes expected are explained in conclusion.

MBA General; Banking; Finance; HRM; Marketing
Student No	Surname		Forenames				Date submitted:
Title of Dissertation							Supervisor:
FIRST MARKER’S NAME:		Mark	SECOND MARKER’S  NAME		Mark		Agreed Mark
Bases of Assessment		Comments						Marks
Abstract  (Summary of Study) The Focus of the study How data was collected Methodology used to analyse data Main Conclusion & major Recommendation Relationship of findings to the literature								(5%)
Chapter 1: Introduction Structure of the study a)      Research problem identification. b)      Research objective(s). c)      Logical layout of the study; outline of each chapter								(10%)
Chapter 2: Literature Reviewa)      Up-to-date acquaintance with literature in the field. b)      Knowledge of theoretical issues and discussion/debate in the field. c)      Comparing, contrasting, and linking theoretical concepts. d)      Consistent, appropriate and effective use of text references.								(25%)
Chapter 3: Research Methodology & Methodsa)      Awareness of various methods of research. b)      Justification of research methods adopted in the study. c)      Appropriateness of quantitative d)      and qualitative data analysis techniques proposed. e)      Consideration of ethical and professional issues.								(10%)
Chapter 4: Data Presentation and Analysisa)      Proposed research methods employed effectively. b)      Clear, informative data presentation. c)      Application of proposed data analysis techniques, with description of process appropriate to the techniques adopted. d)      Comprehensive, convincing analysis.								(25%)
Chapter 5: Conclusions and Recommendationsa)      Conclusions consistent with research results? b)      An appreciation of problems encountered in the study or the need for further research? c)      Specific business-focused recommendations related to conclusions, with clear action plans for implementation? d)      Implementation issues (cost, resources, timing, etc) considered?								(15%
Overall Presentation & Referencesa)      Clarity, coherence, appearance. b)      Ability to discuss, analyse and present arguments in straightforward and good English. c)      Appropriateness of appendices. d)      Presentation of references at the end of the study, corresponding exactly to those cited in text.								(10%)
First marker (signed):				Date		TOTAL

 

 

 

Name of student:				2nd Marker
Bases of Assessment		Comments					Marks
Abstract  (Summary of Study) The Focus of the study How data was collected Methodology used to analyse data Main Conclusion & major Recommendation Relationship of findings to the literature							(5%)
Chapter 1: Introduction Structure of the study a)      Research problem identification. b)      Research objective(s). c)      Logical layout of the study; outline of each chapter							(10%)
Chapter 2: Literature Reviewa)      Up-to-date acquaintance with literature in the field. b)      Knowledge of theoretical issues and discussion/debate in the field. c)      Comparing, contrasting, and linking theoretical concepts. d)      Consistent, appropriate and effective use of text references.							(25%)
Chapter 3: Research Methodology & Methodsa)      Awareness of various methods of research. b)      Justification of research methods adopted in the study. c)      Appropriateness of quantitative d)      and qualitative data analysis techniques proposed. e)      Consideration of ethical and professional issues.							(10%)
Chapter 4: Data Presentation and Analysisa)      Proposed research methods employed effectively. b)      Clear, informative data presentation. c)      Application of proposed data analysis techniques, with description of process appropriate to the techniques adopted. d)      Comprehensive, convincing analysis.							(25%)
Chapter 5: Conclusions and Recommendationsa)      Conclusions consistent with research results? b)      An appreciation of problems encountered in the study or the need for further research? c)      Specific business-focused recommendations related to conclusions, with clear action plans for implementation? d)      Implementation issues (cost, resources, timing, etc) considered?							(15%
Overall Presentation & Referencesa)      Clarity, coherence, appearance. b)      Ability to discuss, analyse and present arguments in straightforward and good English. c)      Appropriateness of appendices. d)      Presentation of references at the end of the study, corresponding exactly to those cited in text.							(10%)
Second Marker (signed):			Date			TOTAL

 

Data collection techniques 

Data collection has the significant role to play across the research methodology irrespective of the type of research chosen or nature of research chosen and it can be considered as the important step in the research methodology. In general the data collected for the research can be either of two types like primary sources or secondary sources or both. Primary source of information is gathered from the direct sources related to the research problem and the secondary source of information deals with the indirect sources of information that is helpful in evaluating the research. The actual primary source of information and secondary source of information used in this research as given as below

Primary source of information

Primary source of information can be considered as the direct source of information and in general it is gathered in different varieties as discussed in the previous section. The level of accuracy is more with the primary source of information as the data is gathered from the source or related source of the problem and thus the chances to gain the unnecessary data is very less.

When the primary source of data is gathered from different sources it is analyzed and reviewed to check the accuracy of the findings derived from the primary data and thus it can be considered as the key aspect across the total research. The most common tools used to gather the primary source of data include questionnaires and interviews and with this implementation the data is gathered from the respondents who all are involved in the research. The required primary source of information is gathered from semi structured interview process and the key respondents involved in this research are provided in the research sample size section of this chapter.

All the respondents are interviewed using some questionnaires and the questions are prepared in a manner that the key information related to the RBS HR outsourcing strategies is gathered from the interview process. Based on the behavior and nature of the respondents who all are involved in the research, the primary data is gathered and analyzed further to evaluate the research against HR outsourcing and this primary source of information is compared with the secondary source of information to evaluate the accuracy of the research done.

Secondary source of information

Secondary source of information also plays an important role in estimating the quality and accuracy of the research done. In general this secondary source of data is gathered from different sources like internet, articles, journals and books and the information is reviewed against the key findings from the primary source of information. Few websites and articles are used as the secondary source of information in this project and these articles are related to the HR outsourcing and the strategies followed by RBS and they are listed in appendix section. The information reviewed form these articles is compared against the primary source of information to evaluate the quality and accuracy of the research done.

Research Sample size

Research sample size is the actual size of the respondents involved in the research and in general the sample size can be chosen in three different manners like probability sampling, random sampling and non probability sampling. In this project a non-zero probability sampling is adopted such that each and every respondent involved in the research will get an equal opportunity to involve in the research. As mentioned semi structured interviews are used in gathering the primary source of data the key respondents involved in this research are two HR managers, one business development manager and 10 employees. HR managers are interviewed with the core aim to understand the key HR activities being outsourced and the level of benefits they see with this practice. Business development manager is interviewed to gather the information related to cost benefits and Return on Investment aspects while outsourcing the HR. Employees are interviewed to understand their opinion on the HR outsourcing aspects implemented by the bank and gain the knowledge related to their performance and welfare with respect to the HR outsourcing practices implemented by the RBS.

Validity of the research

Any research in general should be valid and the validity of the research should be checked before making some interpretations. In this research the validity of the research is done by comparing the key findings from the interview process with the respondents involved against the review done in the literature survey section. All the research questions identified in the introduction chapter are answered against the findings and the analysis derived is compared with the author’s opinion as given in the literature review chapter.

Findings

Findings from the interview process are included in this chapter and all the responses and views of the respondents involved in the interview are collected and given a structure in this chapter. The key respondents involved in this research are HR managers, business development managers and employees. Human resource managers are interviewed to gather the key information related to the HR activities being outsourced and their benefits in outsourcing, business development managers are interviewed in the perspective to understand the business value of the bank against the HR outsourcing and the employees are interviewed to gather their opinion towards HR outsourcing pros and corns against their performance. All the corresponding findings are listed in to different sections and a set of questions are discussed and presented as below

Different research strategies 

In general any research involves both the primary and secondary source of information and in this context the actual strategies followed to gather the primary source of information can considered as the research strategies. There are different types of research strategies and they are as explained below 

Experimental approach 

A perfect scientific and systematic approach is followed to gather the required information is adopted across the experimental approach of research. In general the researchers are provide an ample freedom to change the attributes of the experiments research and also has scope to change the variable that were affected with the change in the core attributes of the experimental research approach. A wide range of experiments are conducted across this approach and the key findings are furnished for the analysis of the results and also few aspects like what and how are covered in detail across the experimental research. Actual predictions are extracted from the experimental results and these predications are compared with the basic assumptions made and the accuracy of the results and also the predications is estimated using the experimental research approach and when the considered research phenomenon is achieved all the experiments are closed and the detailed conclusion to the experiments is given across this research approach. In general a sampling technique is required to refine the experiments and these include the major sampling techniques like probability sampling, random sampling and non-experimental sampling and all these sampling techniques can be used to define the inputs for the experiments conducted across the experimental research approach and based on the results of the experiments will lead to the solution to the research problem considered and thus this approach will give accurate results against the solution for the research problem considered(Lanir,2007). This approach is not followed in this project as there is no freedom to change to attributes of the experiment and also there is no scope of experimental research in this project as well. The sample size is considered is also small and due to all these aspects this approach is not well suited in this research.  

Survey approach 

A survey based research is more popular across many research areas and this type of approach is followed when the sample size is more than around 30. Quantitative research methodology is followed in this context and the surveys are conducted on a large sample and the data gathered is analyzed using the empirical analysis. Few statistical tools are used to analyze the data and the gatherings are categorized in to different sections for the analysis purpose. A questionnaire is prepared and the same is distributed to the large sample and based on the answers provided by the sample the required analysis to the problem considered is done using the survey based approach. In general there are different types of surveys and these include oral survey, written survey, electronic survey and manual survey and type of survey depends on the nature of research problem considered (Ross, 2009). As the aim of this project is to understand the impact of HR outsourcing a very small sample size is considered and thus the qualitative methodolgy is suited and this approach where conducting the surveys is not suited and thus this approach is not considered in this research. 

Grounded theory 

A detailed research data is required for this research and based on this data the grounded theory is developed. An iterative based methodology is implemented across the grounded theory and the research patterns are repeated till the accurate results of the research are achieved. Few general questions are prepared across the grounded theory and the desired linking is done to the actual research problem and the data collected using the grounded theory. In general the grounded theory is less used across the research philosophies due to the complex nature and it is mainly implemented across the scientific research strategies (Albert, 2002). In this research there is no scope of repeating the research based on few iterations and thus this theory is not suited for this research and thus not considered at this level.

Case study 

If the research sample is less and the research problem considered need a close attentions towards a specific area this case study approach is implemented. Source of the problem is directly visited with this case study approach and thus it is easy to measure the accuracy of the research done with the case study approach. Direct source of data is provided with the case study approach and all the respondents involved across the case study approach can be interviewed and the impact of the research problem at their site can be easily understood in this context. In general the qualitative research methodology is the best one to apply while going for the case study research approach and the information gathered from the case considered can be evaluated and analyzed against the key assumption and the actual findings from the case chosen. A detailed level of investigation can be done in this context such that the secondary and primary source of information can be compared to understand the actual hidden facts behind the reality considered while implementing the case study approach. The information gathered with the case study can be considered as the trusted one and also accurate when compared to the other sources of information and thus in many researched where the sample size is less than 20, this case study approach is chosen. 

Action research approach 

Action research has the significant role to play across gathering the required data for the research. In general the actions of a particular group or team is observed and based on their attitude towards the research problem considered this action research is built. The best example site where this action research is done is at the organizations, universities, colleges and schools where the actions of a particular group are observed and from this the basic analysis to the research problem is constructed. 

Ethnography 

Behavioral aspects of the human involved in the research are considered as the main input for the ethnography based research approach. Cultural aspects of the humans involved in the research are considered for this type of research approach and in general this is purely based on the observations and assumptions. In general this research approach involves lot of time and the researcher should be patience enough to collect the data in the form of interviews, document analysis and observations done against a group of humans and their cultural behavior. Few aspects like traditions and customs that drive the complete cultural aspects of the humans are studied at a detailed level in this type of research approach and in general a lot of assumptions are considered in this context.

Research strategy followed in this project

A normal case study approach is chosen as the research approach for this project, as the information gathered mainly should deal with the pros and corns of HR outsourcing. In this context if a case study is chosen then the level of reliability in gathering the information is increased and thus Royal Bank of Scotland (RBS) is chosen as the case study. It is proved that RBS is the most reputed bank in Europe and has almost 1, 00,000 employees and even they are outsourcing the key HR activities like payroll, recruitments, training and development and thus I have chosen RBS as the required case study. I have interviewed the key respondents from the bank to understand their strategy and logic in outsourcing the HR activities and all the findings and analysis are provided in this research in the next chapters.

Inductive research approach is followed in this context, where the actual theory of the research is derived from the observations with respect to the research problem considered. Importance of HR outsourcing and the key pros and corns of it are studied at this research level and the solution to the research problem identified requires proper observations without any assumptions and thus always the inductive research approach is suited for this project.

As a case study level research is required in the inductive research, Royal Bank of Scotland (RBS) is considered as the case and in this context few roles in the bank are chosen as the respondents and based on the inductive approach the research findings are derived in the form of a theory and this theory is purely derived from the observations against the interview process with the official of RBS.

Research methodology and Findings

Methodology 

The main methodology chosen to conduct the required research is explained in detail in this chapter with reference to the actual source of information from the corresponding primary sources and secondary sources. The research methodology main includes few aspects like the research philosophy implemented and the range of usage done against the primary source of information and secondary source of information and all the aspects followed in this context are given in this chapter. Different ways followed to gather the required source of information and the tools used to analyze this information are discussed in detail in this section. Different research approaches chosen are analyzed in this chapter along with the required reasoning to choose a particular philosophy or approach is also given in this chapter. Research strategies are play an important role in understanding the key strategy implemented to gather the primary source of information and the actual strategy implemented in this context is explained in detail in this chapter as below. 

Research philosophy

Research philosophy can be defined as the process followed to understand or gain the required knowledge on a particular problem area considered. All the required steps implemented to gain the knowledge and understand the nature of knowledge are well covered across the research philosophy aspects. Research philosophy main deals with the assumption based approach and it purely depends on the view of the researcher against the key research problem considered. The basic inputs to the research philosophy are not dependent on any published content or class room trainings and the main input to develop the required research philosophy is the nature and behavior of the researcher and the way he or she looks in to the problem considered and ends up with few assumptions against the research process.

Always the researcher will choose the best way to understand the problem considered and then the required analysis on the research problem is done as per the assumptions and few facts that were gathered from different sources and there is no clear and accurate structure to the philosophy in most of the cases. All the required data is gathered based on the beliefs and assumptions and the corresponding analysis is done against the data gathered. Doxology and Epistemology are the basic types of research philosophy and one can chose these types based on the nature of the data being gathered against the research process. The basic difference in this context is that doxology deals with the data that is believed to be true, where Epistemology has the logic in analyzing the data that was gathered by knowing what is true(Bolt,2011). Apart from these two types there are few other important categorizes that fall under research philosophy and they are explained as below. 

Positivism 

As discussed in the previous section research philosophy is all about the assumptions and beliefs and in this context positivism deals with the data which is believed to be real and accurate. Few important aspects like the stability of the reality is also considered across positivism and also it is assumed the reality considered is stable across the process of the research. There is a major assumption considered in this context and it is that the researcher always believe that the observations gained from the research is constant and they are repeated till the end of the research and they remain for a long time. Based on the research objectives identified there could be some modifications to the reality across the positivism and these modifications are done against the key aim and objective of the research and they are not met then the corresponding manipulations to the reality are encouraged through the desired assumptions.

Always a cross verification to the observations is done against the reality based on few aspects like sense and general knowledge of the researcher. All the predictions considered should be explained against the reality and for this purpose a detailed level of subject inquiry is done across the positivism research philosophy. True results should be achieved against the positivism assumptions all the time and this type of philosophy is well suited for natural and physical sciences. 

Interpretivism 

Interpretivism is also another important type of research philosophy and this concept can be considered to be quite opposite to the positivism. It can be considered as the critic to the positivism and the complete implementation procedure is different from the positivism. In general the solutions to the complex business problems can be derived using the interpretivism and deals with the facts behind the reality and proposed the simple solution across the research problem considered. Different interpretations are imposed by different people involved in the research and thus based on these interpretations the corresponding solution is derived using the interpretivism.

There is no scope for the assumptions across this type of research philosophy and interpretivism has no defined history across the research and this purely depends on the maximum interpretations done towards the research problem considered and places quite opposite interpretations that were derived using the positivism. Based on the maximum interpretations derived from the different people involved in the research the core objectives and aim of the research can be modified where it is quite opposite with the case with the positivism and to derive the basic aim of the research interpretivism holds two other important aspects like phenomenology and hermeneutics. Thus across most of the researches proposals interpretivism is implemented and proved to a successful research philosophy.

Realism 

Realism differs with the positivism and interpretivism in terms of the logic implemented to solve the research problem and in general realism should follow the core rules of sociology. All the hidden facts behind research problem are considered as major inputs for the realism and this deal with only the real and proved facts and these facts are considered across realism. Realistic analysis to the research problem explored across this research philosophy and this analysis will lead to the accurate and optimal solutions to the research problem and the main disadvantage with this approach is that will all the real facts sometimes the research is paused forever and in most of the cases this is not preferred except the proved phenomenon’s .

Research philosophy implemented in this research

Interpretivism is used as the research philosophy in this project as it is always required to interpret the things rather than the simple assumptions. As the main aim of this research is to evaluate the importance of HR outsourcing, few managers and employees should be interviewed and also their interpretations on the research area are considered to derive the solution.

In general the HR outsourcing will include different tasks and all the tasks should be critically evaluated where the scope for assumptions like in the case of positivism and realism is not possible and thus always interpretative is the best suited research philosophy in this context. Different areas of HR outsourcing like staffing, employee welfare and payroll should be analyzed and these aspects are gathered from the different managers and employees and their opinion towards the HR outsourcing should be interpreted to proceed with this research. 

Different research approaches 

In general research approaches are used to proceed with the research and the approach implemented in this context plays an important role in estimating the quality of the research done. There are different types of research and key among them are inductive and deductive and they are explained as below 

Inductive research approach 

A set of observations are used for the inductive research and these observations plays the role of input for the inductive research and in general a bottom up approach is followed in this context. This inductive approach is composed of four important steps and these steps when implemented in a sequence it will form the basic structure to the inductive research and they are as listed below 

• Observation
• Pattern
• Tentative hypothesis
• Theory

These four steps should be followed to form the inductive research approach and in general each and every step has a significant role in proceeding with the research. The core foundations to the inductive approach are formed with the qualitative research methodology and all the important aspects involved in the qualitative approach are covered across this inductive research approach.

A simple case study can be chosen to derive the hypothesis for the inductive research approach and thus the qualitative methodology issues are well dealt with the inductive research approach. The required information is gathered from different sources like interviews, questionnaires and semi structure interviews with the inductive approach and this information is analyzed further to derive the facts that resembles the solution for the research problem considered.

Few observations are derived from the data gathered from different sources and based on these observations the required research patterns are obtained which in turn acts as the input for tentative hypothesis and finally the desired theory is proposed based on the analysis done from the considered hypothesis and with this the inductive research approach can be concluded. 

Deductive research approach 

The basis of the deductive research approach depends on the theory which is quite opposite to the inductive research approach. A specific research point is considered and it is proved against the theory considered and this approach involves lot of theoretical content and a simple top down approach is implemented across the deductive research approach. If the research process involves a large sample size then this deductive research approach is chosen and this is similar to the quantitative research methodology and the required source of information is collected from conducting the surveys against the large sample size.

If a general theory required some testing aspects then the deductive research is implemented and based on the large set of data gathered the required empirical investigation is done to prove the theory considered. A complete reverse direction is followed in terms of the four stages of the inductive approach where the first step in the deductive research is theory and the last step is observations based on the theory.

Required hypothesis is done once the theory is built and later the required research patterns are developed and from these patterns the observations are concluded across the deductive approach. Few statistical analysis is done to prove the theory considered against the observations and thus in all the cases the deductive approaches is not suited expect the theoretical sciences. 

Questionnaire to HR managers

• What are the main reasons to opt the HR outsourcing for your bank?
• What make you outsource the HR activities when you have a separate HR division in your bank?
• Does your employee turnover ever affected with HR outsourcing and if so does it in positive or negative aspect?
• What is your vision in outsourcing the HR across the bank?
• What are the key HR activities you outsource in your bank?
• How the HR outsourcing does help in improving the skills of employees at your bank?
• What level of training and development services are offered by the HR outsourcing vendor to your employees?
• What is the impact of HR outsourcing on your overall payroll system and have you observed any benefits in this regard?
• What are the different employee assistance programs offered by the HR outsourcing partner?
• How do you track the employee performance against the training and development given by the HR outsourcing partner?
• Have you observed any changes in the quality of service provided by the HR outsourcing partner during the contract period and if so what are those changes?
• How do you manage the relationship with the HR outsourcing vendor during the contract period?
• What is the overall impact on the human capital management due to outsourcing the HR activities?
• What other HR activities you are planning to outsource down the two years?
• How the overall organization performance does depends on HR outsourcing and what level of positive or negative results you have observed in this context?

Questionnaire to Business development manager

• What is the impact of HR outsourcing on the overall business value of your organization?
• How do the direct and indirect costs are reduced with outsourcing the HR activities?
• To what level the capital costs are reduced with outsourcing the HR activities?
• What are the key HR activities that will save the operational costs at your bank?
• Does HR outsourcing have ever created any new business opportunities in your bank?
• How do you gain the market access and business shares against the HR outsourcing practices?
• What are the important financial operations outsourced along with HR activities?
• What level of return on investment (ROI) is achieved against HR outsourcing in the bank?
• How do you track the financial benefits with HR outsourcing?
• What are your future cost saving measures with respect to HR outsourcing?

Questionnaire to Employees

• What level of knowledge you have regarding HR operations in your bank?
• How do you feel when a third party like HR outsourcing vendor takes the control over your issues?
• Are you satisfied with the training and development program conducted by HR outsourcing vendor?
• What unique benefits you observe with outsourcing the HR activities of your bank?
• What level of freedom you have with your HR outsourcing vendor while sharing your personal and workplace issues?
• Are you satisfied with the employee welfare activities offered by the HR outsourcing vendor?
• Does your HR outsourcing vendor consider your pay related issues?
• Are you provided with flexible working hours by your HR outsourcing vendor?
• Do you feel HR outsourcing can improve your career graph?
• Could you please share your feedback with respect to HR outsourcing practices implemented in your organization. 

Limitations and Future work 

A detailed analysis on the HR outsourcing is done in this research and apart from the work done there is some scope to improve the research in future and there are few limitations across this research and they are as listed below 

• More concentration is given towards noncore HR administration tasks in this research and in future the idea of outsourcing the core HR administration tasks can also be explored
• Only the managers and employees of RBS are interviewed to understand the impact of HR outsourcing on cost reduction and improving the efficiency of the organization and in future the vendor side research can also be done to understand the detailed level of pros and corns of HR outsourcing
• More number of employees and managers can be interviewed using a survey based research approach and empirical investigation can be done in future.

Recommendations 

There are few recommendations to be considered in this research and they are as listed below 

• Royal Bank of Scotland (RBS) has implemented the noncore HR administration activities towards HR outsourcing and among these personal management is not given the top priority and if it could manage this issue as well in future to achieve optimal results in HR outsourcing
• Employee issues are solved to the maximum extent across the HR outsourcing and RBS need to consider the individual level issues of the employee to accomplish the HR outsourcing in a successful way.
• HR outsourcing activities like leave management and document management are not outsourced across the bank as of now and it can be implemented in future to reduce the cost and time.

Conclusion and Recommendations

With the increase in core competition across the markets all the organizations are striving a lot to gain the competitive advantage. In general an organization is composed of different departments and sections where each and every department has its own roles and responsibilities and in this context each and every department should deliver the desired outputs to make the performance of the organization enhanced. Among all the departments Human resource management has the top priority and in this context the HR department has the key role to play in enhancing the human resource capital and solves all the issues such that the organization performance is enhanced. The business conditions are ever changing and also the requirements to concentrate on the core business value has enhanced a lot these days and for this purpose most of the organizations are implementing the strategy of outsourcing the noncore administration activities to the third parties and thus they are getting some breathing time to concentrate on the core business values.

Among the noncore administration activities that were outsourced HR tasks has a special attention and most of the organizations are outsourcing all the noncore HR administration tasks and also few core HR administration tasks. With outsourcing the HR, now the organizations are free enough to concentrate on their core business value and thus the overall business and organization performance is improved a lot. Among the noncore HR administration tasks that were outsourced payroll, leave management, training and development, staffing, recruitment, employee benefit schemes and employee welfare activities has the major share and most of the organizations prefer to outsource these activities to the Hr outsourcing vendors.

If a perfect HR outsourcing there are many advantages which include reduction in cost in terms of both direct and indirect cost and also the overall efficiency of the organization is enhanced as there is scope to improve the business operations leaving the HR issues to the vendor. In this context few research questions are identified in this research and quantitative research methodology is followed to gather the required information. Interpretivism is used as the research philosophy as few interpretations need to be done in gathering the primary source of information and Inductive research approach is followed in this context, where the actual theory of the research is derived from the observations with respect to the research problem considered.

Importance of HR outsourcing and the key pros and corns of it are studied at this research level and the solution to the research problem identified requires proper observations without any assumptions and thus always the inductive research approach is suited for this project. Two HR managers, one business development manager and 10 employees are interviewed to gather the required primary source of information using the questionnaires as attached in the appendix section. From the findings and analysis after the interview process the key observations are given as below based on the opinions and observations from interviewing the respondents involved in the research. 

From the findings it can be observed that when the HR activities like training and development, staffing and payroll are outsourced to a third party the bank can concentrate on the core operations like finance and business activities and also they will get ample time to open new business areas. From the findings it can be observed that when the HR activities like training and development, staffing and payroll are outsourced to a third party the bank can concentrate on the core operations like finance and business activities and also they will get ample time to open new business areas.

The direct and indirect costs are reduced when it comes to the employee welfare programs and also training and developed. As per the findings it can be analyzed that when the HR activities are outsourced to the vendor the cost of operations on the bank side are reduced and even the risk of handling the issues like staffing and training are also reduced and when these risks are reduced the management can now concentrate on their other important business aspects and thus the overall organizational efficiency is also improved.

Organizations are really benefited with HR outsourcing as they can lead to their core business growth by avoiding the HR risks at their sided and in this context the HR outsourcing can be considered as the best option as all the issue raising aspects can be diverted to vendors and the vendor can handle them easily and thus the overall operational costs are reduced. If the organizations outsource the payroll to a vendor, all the related issues are reduced and even the process is defined with a clear structure.

In general employees will always come up with payroll issues and in this context the HR outsourcing vendor can handle them meanwhile reducing the core burden on the organization and if the organizations can outsource the non core HR administrations tasks then they can meet up the expectations of the customers and also set the annual and quarterly targets to the business team as they don’t have the HR risk and thus in this manner both the costs are reduced and also the overall organization performance is enhanced. 

The HR professionals can get ample time to develop the new strategies at their bank as they have already outsourced the HR activities to the vendor and in this context they can pay more attention towards the strategic functions and thus the overall performance of the organization is also improved. In general there are many HR activities that were outsourced and among them the key functions are personal administration, payroll management  employee counseling and assistance, training and management of employees and employee relocation. If these functions are outsourced almost 80% of the HR professional’s job is reduced and thus they can focus more on the key strategic functions of the bank and thus they can introduce new HR strategies and functions across the organization to enhance the employee turnover and also achieve the organizational objectives.

In general the HR professionals are always with the employee issues related to taxes, payroll, salary hikes, relocation and work flexibility and in this context a lot of time and mind power is consumed and they can’t be involved in the core organizational and business activities and thus if these activities are outsourced to the right HR outsourcing vendor all the risks associated with the employee issues are reduced. Once these risks are reduced now the HR professionals can be involved in the core strategic functions of the organizations and they are provided ample freedom to concentrate on the core business and administration issues and thus the overall output and turnover of the organization is improved.

The most common negative aspect identified in this research is that most of the employees are not willing to share their problems with a third party and if this is the case the required employee satisfaction is not achieved and even their performance is affected and thus the overall HR outsourcing is wasted and cost savings is the main reasons considered by the organizations and thus they outsource their key aspects like payroll and training and if they are not handled well by the vendor then the negative impact would be more on the organization and leads to low performance of the organization as well.

There are some chances where the employees are degraded against the job satisfaction and job guarantee where the employees may not feel comfortable in sharing all the issues to the outsourcing vendor and this may lead to confusions among the organizations and the HR outsourcing vendors. Apart from these negative aspects of HR outsourcing the overall organizational performance is improved and cost is reduced a lot with HR outsourcing and even the key issues like personal management and employee welfare are also well executed with outsourcing the HR and thus always HR outsourcing can be considered as the best option to improve the overall efficiency of the organization.