Government's Commitment To The Functions Of Sme Human Resource Management Outsourcing

Small and medium sized enterprises (SMEs) play an important role in national economical development. In China, SME faces many problems, such as short development history, lack of management experience and assets, small scale and limited resource. At the same time, facing fierce competition, many SMEs don't have specialized human resource department. Due to immature of personnel system, they can't provide employee with fringe benefits and training opportunities, not saying strategic human resource planning, which cause dissatisfactions and high wastage of employees. Among so many restricted factors, human resource management is the bottle neck.Through construction and development in nearly half century, Baotou, the largest industry city of Inner Mongolia, has become an important industrial base with a complete range covering metallurgy, tombarthite, heavy-duty car, machine building, energy resources, chemical industry, light and textile industries, green food and so on. Currently, Baotou's economic aggregate has occupies more and one quarter of the whole autonomous region. In recent years, with strategy of Economic Powered City, Baotou sets economical focus on guiding and culturing SMEs development. In order to service SMEs better, especially those nonlocal company unfamiliar with local circumstance, it needs local government services extend to administrative service on the basis of public service, help enterprises solve problems encountered in operations and businesses grow, foster new taxes and create a good investment soft environment and cultural environment, ensuring economic to develop further.At present, human resources outsourcing business is corporate in nature, and in Baotou, the less developed west regions, human resources outsourcing market for SMEs is basically blank. In this paper, based on analysis and research of outsource human resource management theory and human resource management of SMEs in China, according to core competence theory, transaction cost theory, principal agent theory in human resource management outsourcing and the characteristics of SMEs, it demonstrates the need and feasibility of human resource management outsourcing for SMEs, from its internal and external environment analysis.Meanwhile, it proposes forms and. procedures of human resource outsourcing management of SMEs, primarily to determine the content of the core business and outsourcing, the choice of outsourcer, outsourcing relationship management; according to human resource management outsourcing process, it analyzes may-be existing risk in implementation of human resource management outsourcing for SMEs, mainly including the income loss risk in core business and outsourcing selection phase, matching risk in outsourcing business matching stage and risk in outsourcing relationship management phase. Against these risks, it proposes solution accordingly.It analyzes that taking the Government as outsourcing providers can better hedge their business risks in the outsourcing advantages. Taking Qingshan District (one district of Baotou City) as an example, and combining with actual situation of local SMEs economic development, it analyzes the advantage of Government's commitment in the recruitment of human resource management outsourcing, training, performance pay and labor insurance functions. At last, comes a final result:along with particular context that Baotou focus on economic development and the Government's efforts to service-oriented transformation of government functions, with an extend of government services functions, you can take advantage of its unmatched human, financial and material advantages to integrate with available community resources and provide more effective and better human resource management services to SMEs to break through the bottleneck.