Factors affecting the decision to outsource the human resource management function
Abstract
This study aims at studying the practice of outsourcing Human Resource Management (HRM) Services in Greece. It focuses on identifying the factors that affect the decision of firms to outsource HRM services and the perceived benefits from doing so.
The study draws on several theories, such as the Theory of Transaction Cost Economics, the Theory of Core Competencies of the Firm, the Agency Theory, the Sunk Cost Effects Theory, the Administrative Innovation Theory and the Theory of Convergence of management practices internationally.
Data were gathered through face-to face interviews with 100 HR directors in Greece, during which, an original questionnaire was completed. Additionally, a set of interviews was also conducted with senior HR service providers.
Several methods for the description and analysis of the quantitative data were used. The main model-extracting methods for the way company- and service- specific factors affect the use of outsourcing in HRM services were discriminant ...
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