Research On Human Resource Management Outsourcing Of Commercial Banks

With the rapid economic development and increasing market competition, many organizations become aware that they have to focus on core resources and main business, and establish their own competitive advantages in order to seek survival and development in the fierce competition. More and more enterprises accept the idea of outsourcing, outsource non-core businesses or those not doing good enough to achieve greater profits and more competitive advantages.In recent years, human resource management outsourcing develops quite rapidly and becomes an important part of outsourcing. Human resource management outsourcing (HRMO) means an organization give part or all of the non-core human resource managerial functions to professional service providers, definite rights and obligations of both sides and programs needed to be outsourced through contract. To achieve cost savings and strategic goals, an increasing number of commercial banks have also joined the HRMO ranks. Nature of no difference and high competition in HR makes commercial banks'HRMO strategy possible. Meanwhile, changing concept, means and needs in HRM accelerate their outsourcing pace. Through outsourcing, commercial banks can use outsourcing providers'professional skills and scale effect, let the HR department be free from the details and better participate in strategic planning and management.In developed countries, HRMO of financial institutions has been developed quite well. Many commercial banks have managed to reduce their costs, enhance their core competitiveness, distribute transaction risks and gain advanced techniques through HRMO. While in China, HRMO is still an emerging thing, having a lot of problems in the area of business content, service quality, supervision mechanisms and management awareness. Therefore, research on HRMO of commercial banks has a great practical significance.Firstly, this article sorts all the related HRMO references, deeply discusses HRMO theories and summarizes HRMO functions based on transaction costs theory, core competitiveness theory and other theories. Secondly, through the research on HRM changing trend and HRMO practice, this article which functions are appropriate to be outsourced. Thirdly, Combined with HRM features and its status quo of China's commercial banks, it further discusses the advantages and disadvantages of outsourcing projects, uses SWOT method to evaluate HRMO strategy and introduces some successful outsourcing experience of commercial banks in foreign countries. Finally, the article uses Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation to establish HRMO decision-making model with survey data, gives suggestions for commercial banks'HRMO by analyzing the results.