Challenges Facing Hr Service Providers in Outsourcing Recruitment and Selection

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CHALLENGES FACING HR SERVICE PROVIDERS IN OUTSOURCING RECRUITMENT AND SELECTION A CASE STUDY OF

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TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
ABSTRACT
ABBREVIATIONS
1. INTRODUCTION………………………………………………………………….11 1.1 Background of study………………………………………………………………..14 1.2 Research Problem………………….……………………………………………….16 1.3 Research Questions……………..…………………………………………………..16 1.4 Scope of the Study………………………………………………………………...17 1.5 Structure of Study…………………………………………………………………..18 2. LITERATURE REVIEW……………………………............................................19 2.1 Definitions, Trends and HR Outsourcing…………………………………………..22 2.2 Types of Outsourcing……………………...……………………………………….22 2.2.1 Primary and Secondary Value Chain Outsourcing………………………….23 2.2.2 Tactical and Strategic Outsourcing………………………………………….23 2.2.3 Selective and Full Outsourcing………………………………………….......24 2.2.4 Business Process Outsourcing……………………………………………….25 2.2.5 Off –shoring, near - shoring and On-shoring……..…………………………26 2.3 HR Outsourcing Process………………………………………………...................29 2.4 Motivation for Firms HRO Decisions...…………………………….…...................30 2.4.1 Overview of TCT……………………………………………………………33 2.4.2 Limitations of TCT…….……………………………………………………34 2.4.3 Relating TCT to HRO…………..……………………………………...........37 2.4.4 Overview of RBV……………………………………………………..…......38 2.4.5 Limitations of RBV……………………………………………………..…...40 2.4.6 Relating RBV to HRO………………………………………………...……..43 2

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2.5 Other Arguments for HR Outsourcing....................................................…………44 2.6 Arguments against HR Outsourcing………………………………………………47 2.7 Summary…………………………………………………………………………..48 3. RESEARCH METHODS…………………………………………………………49 3.1Introduction………………………………………………………………………....49 3.2 Research Design….………………………………………………………………...52 3.3 Data collection …………………………………………………………..................55 3.4 Development of Interview Questions………………………………………………56 3.5 Choice of respondents……………………………………………………………...57 3.6 Data Analysis……………………………………………………………………… 59 3.7 Validity and Reliability of study…………………………………………...............62 3.8 Overview of Ghana's Business Environment and HRO……………………………64 4. EMPIRICAL FINDINGS….………………………….………………………......65 4.1 Operations of HRO firms in Ghana………………………………………….…....65 4.2 Expectations of MNCs from TCT and RBV Perspectives………………………..70 4.3 Challenges facing HR Vendors in Ghana………………………………………....74 5. DISCUSSION AND CONCLUSIONS ...……………………………………......76 5.1 Discussion……………………………………………………………………........83 5.2 Limitations………………………………………………………………………...84 5.3 Managerial Implications…………………………………………………………...85 5.4 Future Research …………………..……………………………………………….86 REFERENCES……………………………………………………………………….94 APPENDICES………………………………………………………………………..95 4

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LIST OF TABLES
Table 1. Theoretical Construct of TCT……………………………………………..34 Table 2. Motivation for firms HRO Activities..........................................................43 Table 3. Demographics of Participants…………………………………………….54 Table 4. General Characteristics of Participants' Companies………..……………...55 Table 5. Summary of Expectations & Challenges facing HR vendors in Ghana…..74 LIST OF FIGURES

Figure 1. Distinction between Primary & Secondary outsourcing ………………..23 Figure 2. Continuum Describing Selective and Full outsourcing...………………..24 Figure 3. Traditional outsourcing changes to BP Outsourcing...…………………..25 Figure 4. Composite Outsourcing Decision Framework…………………………..28 Figure 5. Frameworks decision to outsource or not…………...…………………..37 Figure 6. Key risks in HRO………………………………………………………..47 Figure 7. Map of Ghana……...……….…………………………………………...64 6

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ABBREVIATIONS
HRM: Human Resource Management
HR: Human Resource
HRO: Human Resource Outsourcing
HRM: Human Resource Management
HRIMS: Human Resource Information Management Systems
BPO: Business Process Outsourcing
RPO: Recruitment Process Outsourcing
KPO: Knowledge Process Outsourcing
MNCs: Multinational Companies
ADRM: Alternative Dispute Resolution Mechanism...
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