The extent of outsourcing of human resource management services in the University of Nairobi

Abstract

World over, organizations are increasingly considering outsourcing as a strategic management tool which can be leveraged to allow them to focus on their core competencies. Outsourcing of Human Resource Management services has taken centre stage as organizations grapple with the challenge of increasing their competitiveness in a very dynamic business environment. This study was designed to determine the extent of outsourcing ofHRM services in the University of Nairobi. In achieving this objective, the reasons motivating outsourcing and perceived risks were also investigated. To achieve the study objective, data were gathered using a semi-structured questionnaire targeting 59 heads of administrative departments across the various colleges of the University of Nairobi. Data were received from 33 respondents and analyzed descriptive statistics. Secondary data were obtained through review of relevant documents that were availed upon request. The study established that outsourcing of HRM services in the University of Nairobi has been adapted to a little extent. Out of the fourteen (14) HRM services presented to the respondents, only four (4) (training and development, security services, specialist legal advisory services, and performance appraisal and management) were outsourced to a fairly large extent. The findings imply that only non-core services were the only candidates for outsourcing. It was also established that most of the reasons that motivate outsourcing were not the major ones behind outsourcing of HRM services at the University of Nairobi. However, majority of the reasons for outsourcing has mean scores slightly above one (1), implying that the reasons motivated outsourcing of HRM services to some extent. The study further established that there are risks inherent in the outsourcing of HRM services. Key among them includes loss of jobs by employees, inflated costing by vendors, and unmet time frames/delays. Based on the study findings, conclusions were made and areas for further research pointed out.