Designing and Planning the Operation

Part A Describe at least four (4) ways to create and manage human resources (personnel) when beginning an entrepreneurial venture.

Part B Explain at least four (4) reasons why outsourcing should be considered as a viable alternative.

Activity 4: Designing and Planning the Operation

This Activity is comprised of two (2) parts.  Your Activity responses should be both grammatically and mechanically correct, and formatted in the same fashion as the Activity itself.  If there is a Part A, your response should identify a Part A, etc.  In addition, you must appropriately cite all resources used in your response and document in a bibliography using APA style.  (A 3-page response is required for the combination of Parts A and B.)

Part A             Describe at least four (4) ways to create and manage human resources (personnel) when beginning an entrepreneurial venture.

Part B              Explain at least four (4) reasons why outsourcing should be considered as a viable alternative.

Grading Rubric

Please refer to the rubric below for the grading criteria for this assignment.

 ANSWER

Designing and Planning the Operation

Part A: Ways to Create and Manage Human Resources (Personnel)

The performance of each business is dependent on the capability of its personnel (human resources). The skills and knowledge of employees are the sources of business’ competitive advantage. Organizations have had the HRM whose function focuses on the creation and management of personnel. The HRM has created and managed personnel in various ways, including recruitment and selection, Orientation, training, development, and motivation. An effective human resource leads to increased job satisfaction and better work culture.

Recruitment and Selection

Recruitment and selection is the process of acquiring the right person in the right place and at the right time. Recruitment and selection are the most essential in maximizing the personnel’s strength to meet the organization’s strategic objectives and goals (Chowhan, Pries & Mann, 2017). This process of screening, sourcing, and selecting the right employees attracts candidates qualified for the required roles within the organization. Ineffective recruitment and selection can lead to reduced productivity, enormous disruption, and interrupted operations. The greatest deal for consideration is required to hire, attract and retain an experienced, well-motivated and committed workforce

Orientation

Orientation is the strategic introduction of employees to their new jobs. The main aim of Orientation is to educate employees and help them understand the organization’s expectations and goals (Chowhan, Pries & Mann, 2017). Orientation incorporates a sensitive awareness of uncertainties, anxieties, and needs of each employee.  Additionally, it answers the new employees’ concerns and questions and makes them aware of the company expectations and policies and makes them comfortable in the new positions. Effective orientation program lowers the anxiety of the employees by offering them within the job environment, introducing them to their colleagues, and creating the utmost awareness.

Training and Development

Training and development are responsible for equipping employees with more skills and knowledge. Further learning reduced the frustration levels among employees. Training and development are aimed at fostering the performance of human resources in organizational settings. Considerably, this attempts to improve the performance of employees by increasing the ability to perform by learning. This imparts new abilities, knowledge, and skills which change the employee attitude and performance. Training programs boost the satisfaction of employees and help in retaining employees. This is because the personnel appreciates being valued and learn new skills, evolve towards greater roles, and boost their job performance.

Motivation

Motivation is one of the essential ways of maintaining human resources. Motivation brings the drive and desire that individual demands complete the tasks effectively. Ideally, motivation has been a technique of strengthening people, making them choose specific work, work hard, and stay in the given position (Chowhan, Pries & Mann, 2017). The value of motivating is essential at all levels of human resources beginning with the manager to the subordinate staff to perform well.  For instance, promotions, incentives, and compensations have been the main tools for motivation. Organizations have been able to maintain and retain employees through approaches that show full appreciation and motivate employees.

Part B: Outsourcing Alternatives

Low Labor and Operational Costs

Low labor and operational costs are among the major reasons why an organization can choose to outsource. When executed properly, it has a defining influence on the organization’s revenue and can deliver great savings to the organization. The most visible and obvious reason for outsourcing is cost saving. Considerably, a job can be done at a lower cost as well as better quality. Outsourcing reduces operation costs on training, recruitment, and development of infrastructure (Doval, 2016). For instance, training and hiring staff can be expensive, especially for temporary employees and short projects. The company can take the service of highly trained and experienced experts that work in a quick and efficient form.

Specialized Skills

External service can offer specialized technologies due to their competence in the areas of expertise. Outsourcing a particular process can lead to gaining different competencies. Outsources come with expertise, specialized knowledge, and experience that an organization may not afford to hire. Therefore, a business can purchase particular competencies during the time of need, which can help solve problems more conveniently. Additionally, when a company outsources processes, it passes the tasks to effective specialists, which allows the employees to concentrate on their actual tasks.

Save on infrastructure and technology.

Considerably, a company can decide to outsource to save resources that will enable them to continue focusing on the major business processes while allowing less time to minor projects. Outsourcing disregards the need for investment in technology and infrastructure since the outsourcing partner takes is given the responsibility of business processes and thus develops a similar infrastructure (Doval, 2016). For instance, smaller businesses lack essential infrastructure and technology, which forces the company to consider outsourcing.

Risk management

Outsourcing may be done to save the company from risks and mitigate risks for business operations that may be difficult to control. For instance, in new market areas, companies can outsource various business processes to efficiently access and expand to the new market. Therefore, a business can decide to outsource to benefit from continuity and risk management, thus effectively running business operations.

References

Chowhan, J., Pries, F., & Mann, S. (2017). Persistent innovation and the role of human resource management practices, work organization, and strategy. Journal of Management & Organization, 23(3), 456-471.

Doval, E. (2016). Is outsourcing a strategic tool to enhance the competitive advantage?. Review of General Management, (23 (1)), 78-87.