Expert answer:Need business and finance help for summarizing an
Answer & Explanation:My dearsGreetings,,I am looking for some one who can summarize the attached literature review in presentation (power point file). This file requested before end of Tuesday 24 November 2015.Regards,,1-Introduction.docx 2-Literature Review.docx
1_introduction.docx
2_literature_review.docx
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Introduction (400 words)
The increase in the competition and the globalization enforced the companies to search
and adopt new strategies to improve the company way in doing the business and to help them in
obtaining a better profitable position and market share.
This case study will discuss the outsourcing not in term of the company perspective or
whither it’s profitable (financial aspects) or not but we will discuss the outsourcing impact on the
employee behavior (human aspects) and how this strategy will be preserved from employee point
view. Also, how the employee fees about their company before and after the decision of
outsourcing. The study will also discuss the employee behavior and whither this decision impacts
their company image in their mind and whither this will impact the employee loyalty, trust,
moral, productivity, satisfaction, motivation and security.
The situation faced by the employee of the telecommunication companies in the kingdom
of Saudi Arabia was somehow unique. Because the company’s strategy was done by splitting
their existing employee based on function into local employee and outsource employee. That is
why we will discuss the personal and the feeling of the employee against their company rather
than discussing the financial part of the strategy and whither it’s profitable to company or not.
The research question is “if an organization decided to outsource their existing
employees” what is the impact of outsourcing on them from motivation, satisfaction, and loyalty
point view?
The literature review will discuss in brief the outsourcing in general and why the
companies go for it and then the expected gain from the outsourcing.
After that the literature review will focus on three main topics related to employee
perception of outsourcing and wither its impacting their motivation, satisfaction and loyalty.
The research methodology section will explain the sampling technique used and the way
the questionnaire were distributed and collected in scientific way. The section wills discuss also
the expected rate to the questioner.
After that, the findings will be explained and interpreted based on the questions results
and will be followed by the recommendation and limitation section which will explain the
conditions and the circumstances limited the research and the recommendation that will impove
the research result if it’s considered in further research. Finally, the conclusion will review the
research and summaries the research result.
Literature Review
It’s very important to understand the reason behind the companies’ strategic decision to
go for outsourcing. In this regard Elmuti (2003) discussed that outsourcing is a strategic decision
to utilize outside resources for activities that were previously accomplished using the company
internal employees and resources. The purpose of outsourcing decision is most often to reduce
cost and give the management in the organization more time to commit to the core activities of
the firms and this was supported by the work of Logan et al (2004).
Also, Walsh and Deery (2006) mentioned that outsourcing has the potential to improve
productivity, increase focus, decrease costs, improve the flexibility and allow more time for
innovation. Cheaper labor resulted from having outsource is helping the organizations to
decrease its costs and improve the financial performance and also will increase the profitability
and the operation income and this was supported by Barthelemy (2003).
Innovation and organization flexibility can be increased by doing the outsourcing and this
accomplished by having access to new skills, increase in competitiveness and ability to gain
markets that otherwise be inaccessible or uneconomical (Elmuti, 2003).
Moreover, through downsizing and focusing on number of key personnel or the personnel
which the company need most, Walsh & Deery (2006) argue that outsourcing can save time,
energy, and resources spent toward personnel management in such areas as recruitment,
screening and selection, training, managing, and even employment benefits and pensions. Based
on what we have discussed so far, there is evidence clearly support a strong business case for the
use of outsourcing to achieve a variety of positive results.
Outsourcing, however, is very challenges. Barthelemy (2003) stated that 75% of U.S.
managers confirmed that “outsourcing initiatives do not necessarily fulfill all their expectations”
also, about 55% of outsourcing was failed in the first few years of its implementation and 12 %
of the remaining were not satisfied of the result as stated by Elmuti (2003). Outsourcing is
growing, thousands of employees have become subject to drastic organizational change.
However, management researchers have nearly ignored the employees’ perspective on the
outsourcing (Logan et al., 2004). The attitudes, perceptions, and behaviors of employees
influenced in outsourcing initiatives are considered important aspects that should be considered
when outsourcing.
In this case study we will more reveal the importance of employee perspective as stated in the
introduction and highlight the possible risks associated with employee behavior that might lead to
negative outcomes. It make it worse and more challenging when the employee remain within the
organization that has reduced it’s workforce and it’s the case we are discussing. This challenge if it’s
not highlighted and considered during the planning of the outsourcing and addressed properly it
might increase the possibility of unsatisfying outsourcing result. As an example, Cameron (1994)
discussed that 74% of senior managers recognize and observed a decrease in employee morale,
productivity and trust and he continued discussing that workers may also experience other issues like
stress, burnout, security, commitment, satisfaction, motivation, loyalty, and attitudes and this
supported in the work of Brooks (2006). Employee will resists the change, will have low morale,
their efficiency will be reduced, and there will be a malfunctions in the corporate culture (Bruce &
Martz, 2007).
Kennedy, et al. (2002) viewed outsourcing in general, as a negative strategy that creates
dissatisfaction within the employee which highly resulted in leaving the employee their
positions. in another hand Walsh and Deery (2006) conducted a study to check the situation
normally take place after outsourcing decision on the new employee who joint the company as a
result of the outsourcing decision. The result were showing dissatisfying employee because the
contract become less interested as there is no job security, limited training, limited promotions,
and limited period.
Another very important thing to be considered when doing outsourcing is the
psychological contract, which is according to Sahdev (2004), “the unwritten agreement between
the employer and the employee in which the employer offer job security and stability at the
exchange for loyalty and commitment”. The psychological contract if it’s not considered and
addressed properly it will result in less satisfied employee and then it will result in less
productivity and stress (Sahdev, 2004).
Job insecurity is always leaded to what called occupational stress, and it’s occur as a
result of any negative changes in the organization like downsizing and outsource (Storseth,
2006). The normal reaction for occupational stress is decreases in job satisfaction and employee
productivity and that’s only in the short term. In the long term, occupational stress could lead to
mental or physical symptoms which eventually lead to less enthusiasm and friendliness which
will result in impacting customer perceptions. Moreover, the outsourcing and downsizing often
lead to burnout and stress for the employee as it’s not only decreasing their trust but also it will
add more responsibly and work load (Eatough et al., 2011)
The trust is considered one of the important factors when doing outsourcing and it’s
defined as exchange of confidence of the employee who belief that the organization will not put
them in risk or harm while deciding their strategies (Tan & Lim, 2009). Tan and Lim (2009)
stated that trust can be recognized in the organization as stability, less turnover, transparent
communication, information sharing, satisfaction and organization performance and success.
When the employee trusts an organization he will relive the worries of unfair treatment or
withdraw the basic need which is the job. The outsource decision will impact the level to which
employee trust his company and eventually he will start questioning wither the company will
continue loyal to their employees (Logan et al., 2004).
The distrust and demotivation normally started from the very beginning of the
outsourcing process since the employee will feel that they are not part of the decision
(Brooks,2006).
The motivation is one of the key factors for better performance and productivity and it’s
achieved through employee satisfaction and when the changes happened a lot of implications
will affect the organization structure. Seo et al. (2004) stated that “the motivation is a goal
directed behavior that takes place with respect to an individual’s self-regulatory function”. Also,
according to Ellemers et al. (2004) the motivation is one of the main factor contributes to the
achievement of both individual and collective goals. For this motivation is a very important
factor that should be considered when a company decided to adopt the outsourcing.
As individuals perceive risk or challenges to their jobs, especially when the risks are
associated with their continuance in a particular role, motivations change. It has been shown that
change resulting from downsizing can impact the worker’s motivation, which in turn impacts the
productivity of the organization. (Brooks, 2006)
…
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