Management Case Studies Of The Transaction From Dispatched Employees To Business Employees In SHCE Group

With the WTO accession, China has substantially opened its market to the outside world in various fields. The rapid development in economy has acceleratedthe reform of the state-owned enterprises and the strategy adjustment of operation modes, meanwhile, the structure and turnover of human resources are fully internationalized and the social structure as well as the enterprise mechanism has industrialized, urbanized and globalized rapidly. All these have resulted in the HR pattern driven byenterprises’independent employment, labor’s independent job-hunting and the third-party labor dispatching. Under this background, manpower-based companies such as personnel agencies, human resources outsourcing companies, labor dispatching companies are springing up, which enables the to-be-disciplined labor market toshow a trend of diversified development. To protect the labor’s rights in such complicated environment, in2008,"Labor Contract Law of People’s Republic of China" wascomprehensively enforced. Yet to achieve employment flexibility and to avoid the legal costs of employment, lots of enterprises transfer the employment relationship to the labor dispatching companies, making the relationship between enterprises no longer completely the relationship between Party A and Party B, but Party A and Party C, or even Party A and Party I) and Party B become the carrier of flexible employment and cheap labor. Thus, labor dispatching behavior has prospered due to the implementation of the "Labor Contract Law"The introduction of the labor dispatching mechanism in more and more enterprises intended to save manpower cost leading to the rapid growth of the enterprises’ demands for the dispatchinglabors. The labor dispatching is abused and the positions involved have begun to penetrate from the temporary, auxiliary positions to the long-term,key positions, increasingly becoming "high-end". With the implementation of the amendment to the " Labor Contract Law " in July2013and the and the government’enhanced regulation, the workers’wage and welfare level is growing year by year.and the advantage of cost saving from the labor dispatching disappears gradually, but the face of the fierce market competition, each enterprise to reduce the cost of competition in the short term, the same look again to the human capital structure of the enterprise adjustment. In face of the fiercely competitive market, these enterprises are eager to reduce the competition costs and once again they draw their focus on the human resource structure adjustment.Based on the factors above and taking the operability and practicability into consideration, this article researches into the conditions of dispatched employees of SHCE Group and the labor dispatching companies involved,analyses and gives opinion on the methods how to push the transaction from labor dispatching to the business process outsourcing through the transformation of production mode. Specifically, through the adjustment of human resource management mode. make the enterprises to take advantage of the external excellent prolessional team to undertake the business activities, enable them to reduce costs, improve efficiency, strengthen their core competitiveness and the ability to respond to the environmentto realize the overall control of the staff quantity and to help them avoid the risks caused by the labor dispatching.