Outsourcing HR: The Impact of Organizational Characteristics

Published on Jan 22, 2001in Human Resource Management
· DOI :10.1002/hrm.1003
Brian S. Klaas18
Estimated H-index: 18
(USC: University of South Carolina),
John A. McClendon10
Estimated H-index: 10
(TU: Temple University),
Thomas W. Gainey5
Estimated H-index: 5
(University of West Georgia)
This study investigates the relationship between a number of organizational characteristics and the decision to outsource HR. Determinants of the outsourcing of four categories of HR are examined: HR generalists activities (e.g., performance appraisal), transactional activities (e.g., payroll), human capital activities (e.g., training), and recruiting and selection. HR executives in 432 organizations provided data on outsourcing levels and organizational characteristics. Reliance on HR outsourcing was associated with idiosyncratic HR practices, strategic HR involvement, positive HR outcomes, promotional opportunities, demand uncertainty, and pay level. As predicted, however, the impact of organizational characteristics varied among the different types of HR activities outsourced. © 2001 John Wiley & Sons, Inc.
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