Human Resource Management Outsourcing Decision-Making

This paper studies financial human resources outsourcing and includes five aspects:1. The basic theory of human resource management outsourcing. There are five main areas of outsourcing theory including organizational development, performance evaluation, decision-making, contract management and relationship. We introduced the traditional outsourcing theory from a strategic management perspective and economic perspective. The current new theories of human resources outsourcing were discussed, including that risk management of human resources outsourcing based on asymmetric information, decision-making based on incomplete contract theory, decision-making of human resources outsourcing management based on supply chain management, as well as risk management of human resources outsourcing based on the system engineering.2. Research on the decision of human resource management outsourcing project based on the model of GRA with combination weight. Qualitative methods provides a good theoretical basis and reference for decision-making of human resource management outsourcing project, but these methods lack sophisticated judgement and and analysis as to the decision-making of possibility and priority of human resource management outsourcing. Therefore, based on qualitative analysis using the combination weighting GRA model, we attempt to make decision-making analysis, using of subjective weighting method and objective weighting method. In this paper, the evaluation index system of human resource management outsourcing was build which based on the related influence factors. The indexes''weight was decided by the AHP and Entropy-weight method. The human resource management outsourcing projects was evaluated and classified with the gray relation analysis method. This model and result gave great support to the related decision.3. Evaluation of provider efficiency of the human resource management outsourcing. It is important means for reducing the risk of human resources outsourcing to evaluate the outsourcing provider performance. We set up the model of evaluation of provider efficiency using Malmquist index and AHP/SFA method. Compare to the traditional method, the Malmquist index and AHP/SFA method can assess the change trend of organization's efficiency and its impact factors from dynamic view without the influence of man-made. The empirical results showed the efficiency of the industry of human resource management outsourcing has great differences in the level of these firms and the result is correct and concise. These data can give more support to the decision making for human resource management outsourcing forms.4. Systematic simulation research on the risk of human resource management outsourcing based on system dynamics. To analyze the risk factors and character of the risk of human resource management outsourcing, we established and simulated system dynamics model of the risk of human resource management outsourcing. The analysis on the simulation shows that quality risk can be reduced by human resource management outsourcing, which can also reduce cost risk with delay. The cultural conflict results in volatility of cultural differences because of non-cooperation between outsourcing enterprise and outsourcer. Information disclosure decrease management capacity and increase risk of out of control.5. Strategy study of Chinese enterprises human resource management outsourcing. The restricting factors of our human resource management outsourcing was analyzed, including the impact of enterprise ownership, absence of modern human resources management system.We analyzed the risk-control mode of human resource management outsourcing and basic processes including the exploratory stage, the negotiation phase, transition phase and assessment phase. Furthermore, the risks mechanism of human resource management outsourcing was discussed.