Outsourcing Decision: Employee Resistance Case Study

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Outsourcing is an important aspect of organizational management in contemporary corporate context. It plays a key role in reducing costs and other related realities within organizational entities (Block, 2001). In most cases, corporations utilize outsourcing as an avenue to internal betterment and productivity. Outsourcing also enhances actualization of projects within stipulated timelines. Most companies have trouble making decisions on the essence and rationale for outsourcing. Most considerations revolve around inherent benefits that emanate from outsourcing (Block, 2001). It is evident that outsourcing portends numerous positive implications within organizational entities.

Various negative implications exist in terms of its manifestation and propagation within corporations. This reality necessitates adequate inquiry and consultation in order to guarantee appropriate decision with regard to outsourcing. For instance, corporations must audit their vision and strategic position in the market. This determines recurrent benefits of outsourcing (Block, 2001). It is not necessary for businesses to embark on outsourcing in situations where the undertaking does not precipitate economic benefits. Absence of expertise and technical skills necessitates outsourcing in organizations. Due to complex nature of some projects, organizations are forced to outsource services and skills that do not suffice within their rank (Block, 2001).

Another factor is the irregular demand for human resources during implementation of crucial undertakings in organizations. Some corporate projects require specialized personnel and skills. Organizations consider outsourcing as an appropriate avenue to realizing such objectives. Instead of hiring permanent staff, most companies outsource, because it is convenient.

One more important factor that influences outsourcing is the risk involved in undertaking certain projects (Block, 2001). Most companies outsource in order to complete such projects, because it reduces the risk involved in their actualization. It is not tenable for corporations to engage in projects that could ultimately undermine their productivity and success in the market. However, companies must understand the inherent dynamics that characterize outsourcing. This helps them to avoid the challenges that emanate from overreliance on it as the sole avenue with regard to the actualization of vital projects (Block, 2001). Most companies prefer outsourcing, because it presents an opportunity for exemplary performance of internal undertakings that require expertise and accuracy.

Corporate restructuring is another factor in regard to outsourcing in organizations. Most corporate entities outsource in order to facilitate internal restructuring and repositioning. This reality is pertinent for entities that desire success and profitability in the contemporary corporate environment (Block, 2001).

Issues Surrounding Sense of Control

Organizations are complex entities that present challenges for stakeholders and other interest groups. Organizational entities harbor specific identities that define the overall orientation and inclination in the market. It is important for organizational leaders to guarantee a sense of control, as it ensures effective actualization of basic ideals and aspirations within their jurisdiction. However, employees also harbor a sense of control with regard to operations existing in organizations (Block, 2001). Therefore, it is important for leaders to involve employees in all vital decisions that influence their wellbeing within the workplace.

In most cases, employees strive to retain their ability to influence pertinent decisions within organizations. This gives them an opportunity to participate in the development and implementation of policies that ultimately influence their welfare. Whenever employees encounter situations that undermine their positions within the workplace, they feel threatened and vulnerable. For instance, employees at IO Corporation feel threatened by the outsourcing decision. This prompts them to react in order to secure their welfare at the corporation (Block, 2001). Organizational leaders should formulate and implement policies that do not undermine the sense of control among employees. Sense of control is an important aspect with regard to productivity and performance within organizational entities. Employees cannot perform their duties in the absence of appropriate sense of control.

It reduces apathy and vulnerability among employees. They engage in diverse duties and responsibilities devoid of fear or trepidation. Therefore, it is important for organizational leaders to foster and facilitate a sense of control among employees. This bolsters pertinent operations with regard to organizational vision and mission in diverse areas of engagement (Block, 2001).

Steps Involved in Meeting Employee Resistance to Outsourcing

Due to technological advancements and globalization, there is high competition for jobs within organizations. It is common for corporations to outsource human resources from foreign countries. This has in turn led to high competition and likelihood of job scarcity. Such realities prompt employee resistance to outsourcing in corporations. In most cases, they are apprehensive of such plans, because they consider them as a threat to job security (Block, 2011).

For instance, companies do not find it necessary to retain permanent workforce for expertise that is available through outsourcing. Organizational leaders should endeavor to pre-empt such resistance by undertaking steps that guarantee rationalization of internal corporate undertakings. Leaders should enlighten employees on the essence and the rationale for outsourcing. They should educate them about positive outcomes of outsourcing. Lack of sufficient information affects the ability and willingness of employees to accept outsourcing as a management tool (Block, 2011). Employees should understand numerous benefits that emanate from outsourcing. For instance, it reduces the cost of operation with regard to important projects within the organization. On the other hand, outsourcing increases profitability and relevance in the market. This happens because it enables corporations perform tasks that would be impossible devoid of externalized thresholds of engagement (Block, 2011).

Another important step towards curbing resistance is for the management to demonstrate the necessity of outsourcing. According to experts, outsourcing is an acceptable tool that heralds numerous benefits for organizations. Therefore, organizational leaders should offer a rationale for their decision in order to reduce instances of resistance among employees. This is a vital step, because it offers an opportunity for leaders to motivate employees towards realization of core organizational ideals and aspirations (Block, 2011).

Justification for Protection of Jobs

Employees play an important role in facilitating growth and productivity in organizations. Their involvement in organizational undertakings creates impetus for the ultimate realization of goals. Under this premise, there is a need for leaders to institute measures and policies that protect the welfare of employees (Jellison, 2006). This can be achieved through retention of structural frameworks that support consultation between employees and leaders in specific organizations. For instance, IO Corporation should embark on consultative undertakings that seek to establish a balance between productivity and welfare of its employees. It is unreasonable for organizations to embark on policies that threaten the job security of their employees. Challenges within the workplace affect productivity among employees (Jellison, 2006).

Therefore, job security gives employees the courage to perform various duties and responsibilities devoid of apprehension or uncertainty. IO Corporation should secure the jobs of its employees because it would be difficult for them to succeed without their input. The company should appreciate the role of employees in sustaining and propagating performance with regard to diverse areas of engagement. Retention and protection of jobs guarantees positive action within organizations. As much as the corporation desires to outsource, it should consider the plight of its employees. They should be involved in making pertinent decisions that affect their wellbeing at the organization (Jellison, 2006).

References

Block, P. (2001). The Flawless Consulting Fieldbook and Companion: A Guide to Understanding your Expertise. San Francisco: Pfeiffer-Wiley. Web.

Block, P. (2011). Flawless Consulting: A Guide to Getting Your Expertise Used. (3rd ed.). San Francisco: Pfeiffer-Wiley. Web.

Jellison, J. (2006). Managing the Dynamics of Change: The Fastest Path to Creating an Engaged and Productive Workplace: A Memoir with Recipes. London: McGraw Hill. Web.

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