Strategic Decision-Making Business Functional Outsourcing Model: A Multiple-Case Study on Human Resource Management Outsourcing of a Chinese Car Dealer

Abstract

The research seeks to develop a strategic decision-making model of a functional outsourcing business processes. With the rapid development of economic globalization and information communication, human resource (HR) management plays an important role in the competitiveness of firms. In an effort to meet developmental the needs of organizations, HR departments need to be innovative in the way they manage. Being a part of the firm's strategic development, human resource outsourcing has become an important strategic tool in recent years. However, with the imperfection of China's market economy, this considerably high-risk management grew to be prominent. This in turns make decision-making extremely difficult. Therefore, there is a need for a mathematical analysis model of the risks and benefits of outsource HR management and explores the decision-making mechanism of HR outsourcing in China. Through reviewing and evaluating the research literature, this paper has deduced the strategic decision-making model between the valuation of in-sourced and outsourced knowledge. The findings provide useful suggestions in a systematic way that would help to minimize the risks of outsourcing in HR management.