The Research On Human Resource Management Outsourcing And Risk Management Of Small And Medium Enterprises

With the development of technology and globalization of the economy, thecompetition between enterprises is fiercer and fiercer, which changes totally theway how the enterprise runs. The rise of business outsourcing is one of the resultsof the change. Among all types of business outsourcing, the human resourcemanagement outsourcing is one of the fastest growing areas. Because of theconstraint of SME funding and size, their human resource management is limited.Human resource management outsourcing can solve this problem well, so theresearch on human resource management outsourcing and risk management ofsmall and medium enterprises has some relevance.First and foremost, the paper analyzes whether different businesses of humanresource is suitable for outsourcing from two perspectives of the uniqueness andvalue, and explains human resource management outsourcing based on corecompetence theory, transaction cost theory and game theory. The paper also pointsout that the risk characteristics of different SMEs human resource managementoutsourcing businesses. Secondly, by analyzing concretely the situations of SMEshuman resource management in China, the paper sums up the external andintrinsic motivations, and the advantages to implement human resourcemanagement outsourcing for SMEs. Thirdly, the paper points out that there areunavoidable risks in the process of SMEs human resource managementoutsourcing, the whole process of risk management is necessary. Specific practiceis to recognize the risk of SEMs human resource management outsourcing basedon the risk effect chain, then with the help of risk matrix and fuzzy comprehensiveevaluation to estimate and evaluate the risks of SMEs human resourcemanagement outsourcing. The paper also offers a case of enterprise named M as atest for the analysis above. In the case, the risk rate of SMEs human resourcemanagement outsourcing is given, which is the basis for the managers to decidewhether to outsource or not. Last but not the least, the paper gives measures to guard against the risks of SMEs human resource management outsourcing fromthe angle of outsourcing service providers, SMEs and employees in SMEs. Thepaper also notes that the establishment of the whole process and dynamic of riskmonitoring system for SEMs human resource management is significant. Themeasures and the analysis above together will definitely be a guide for riskmanagement of SMEs human resource management outsourcing in China both intheory and in practice.