Assessment of Perceptions of Human Resource Outsourcing on Organizational Performance in Selected Multinationals in Nairobi
Keywords:
Business Process Outsourcing, Human Resource, Human Resources OutsourcingAbstract
Purpose: This study sought to assess the perceptions of Human Resource (HR) outsourcing on Organizational performance on multinational companies in Nairobi. The study was to be guided by the following research objectives; to establish what functions are most outsourced by multinationals in Nairobi Kenya and to investigate the role of Human Resource Outsourcing on organizational performance in multinational companies.
Methodology: The study used descriptive statistics research design. The descriptive study targeted 15 multinational companies in Nairobi. Stratified sampling technique was used to select 60 employees from the multinational companies in Nairobi and structured questionnaires administered. Descriptive statistical analysis was conducted: frequencies, percentages, mean and standard deviation. Further, inferential analysis was conducted on variables of interest at 95% confidence level
Results: The study’s findings revealed that the most outsourced functions were recruitment and selection, training and development, HR policy writing, and payroll and benefits. Outsourcing temporary staff is more economical than handling them in house. Outsourcing HR functions did give time for the HR department to concentrate on their core activities and improved overall organizational performance.
Unique contribution to theory, practice and policy: The study recommended that companies should outsource as it makes them flexible in meeting varied customers’ and organizational needs.
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