HR Outsourcing – WalMart.
There are very few companies that complete all the processes within the company itself, prevalent practices within a number of companies is to buy a number of their products and services from outside companies (Aalders, 2001). …
In the case of WalMart, although the company does deal with manufacturing as well, the main business deals with retailing. Hence here it is not advisable to outsource the human resources process. The company requires keeping complete records and all decision making within the same locations. This allows better and faster response time to any human resource problem. Although outsourcing will prove to be beneficial for the company and will provide the company with reduced duties to be carried out directly, the strategic decision making will not be in complete sync with the main objectives of the company.
Strategic HRM can be more powerful and success when it is carried out within the organization. In making strategic decisions it is crucial that the objectives and other strategic decisions made by other teams are also considered (Brown and Wilson). By outsourcing the HRM functions and the processes to different locations, the company can clearly be faced with issues of keeping complete records and also maintaining the staff effectively. ...
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