Strategic Human Resource Management

Section Four

Managing Vendors of Outsourced Functions

As noted earlier, many human resource management functions
have been outsourced. When such functions are outsourced,
the human resource executive or manager’s role changes from
super-vision of employees who perform these functions to
managers of a vendor relationship. The skills required for
managing such relationships are different than those of direct
supervision and involve the negotiation of contracts, sensitivity
to the more strategic issues such as the importance of avoiding
dependency on one vendor, and the need to maintain service
levels through a contractual relationship.

„ SELECTION OF EMPLOYEES

Excellent selection procedures are essential for obtaining a
workforce that can become a source of competitive advantage.
While training and employee development also are critical, it is
very difficult to overcome the built-in headwind of poorly
qualified or mismatched employees. Furthermore, while some
skill deficiencies can be overcome by training, the additional
financial outlays required to make up for poor selection can
place a firm at a disadvantage to its customers. High-
performing companies are very selective in their staffing
decisions.