DOI: 10.5176/2251-2349_HRM&PD24
Authors: Hasliza Abdul Halim, Noor Hazlina Ahmad and T Ramayah
Abstract:
This paper aims at defining a specific model on the decision to engage HR outsourcing. There has been much talk (or deliberations) that HR outsourcing as an organizational strategy has increased considerably over the last decade. Nevertheless, this trend has attracted little academic attention regarding the factors that influence the reliance on HR outsourcing. In this article, we provide a critical review on the contextual variables such as environmental dynamism, organizational size, strategic orientation, and managers’ characteristics as primary determinants of the decision to outsource HR functions. This study adds to present literature by explaining conceptually on the linkages between these variables by applying both the resource-based view and transaction cost economics when making outsourcing decisions.
Keywords: HR, Outsourcing, Organisational Size, Environmental Dynamism
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