Reading review problem. Information technology and computer networks have changed nearly every aspect of business in the last decade. Consider the following comments about human resource (HR) management:
Large U.S. employers continue to take a selective approach to outsourcing their benefits administration, recruiting, payroll and other HR functions rather than relying exclusively on a single provider, according to research by consultancy Watson Wyatt. Selective outsourcing is popular because it can be tailored to meet an organization’s exact needs. The key to successful outsourcing is finding the solutions that fit the organization’s needs and culture, Hubbard notes. Watson Wyatt’s Changing Strategies in HR Technology and Outsourcing survey of 182 U.S. companies found that many expect to do more outsourcing in areas such as health and welfare programs. However, few companies, 21%, direct their HR function to outsource programs automatically. The majority, 63%, look to use their internal or enterprise resource planning systems whenever possible to deliver HR services.
Source: Stephen Miller, “Companies Continue to Selectively Outsource HR Programs,” HRMagazine: SHRM’s 2009 HR Trend Book, January 2009, pp. 76–78, from ABI/ INFORM Global database (Document ID: 1607406711; accessed January 4, 2009).
a. How might an HR outsourcing company use e-business to attract new clients? To accomplish its goals for existing clients?
b. How would an HR outsourcing firm use the four ERP modules discussed in the chapter?
c. Would an HR outsourcing firm be considered an application service provider? Why, or why not?
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