Journal of Human Resource Management

Journal of Human Resource Management

Identify Strategic Reference Points for Outsourcing Human Resource Subsystems in the Domestic Air Transportation Industry: A Case Study of “Homa” Airlines

Document Type : Original Article

Authors
1 Associate Prof., Department of Business Management, Faculty of Management & Accounting, Allameh Tabataba’i University, Tehran, Iran.
2 PhD. Candidate, Department of Business Management, Faculty of Management & Accounting, Allameh Tabataba’i University, Tehran, Iran.
Abstract
Background & Purpose: Outsourcing of human resources with the aim of strengthening competitive advantage is one of the important approaches of organizations to maintain survival. However, domestic airlines, such as "Homa" Company, have not welcomed this approach. The purpose of this research is to identify the strategic reference points of human resources outsourcing in order to strengthen the competitive advantage of “Homa” Company.
Methodology: The current research is of a mixed type and was conducted in two qualitative and quantitative stages. The qualitative stage was conducted by thematic analysis and data was collected through semi-structured interviews and theoretical saturation method. In the quantitative stage, data were collected through a researcher-made questionnaire.
Findings: In the qualitative phase, the strategic reference points of human resources sub-system outsourcing were determined. The research findings in the quantitative phase indicated that increasing the quality of services has the most importance in the outsourcing of human resource subsystems, and the executive managers of the outsourcing process of “Homa” Company should emphasize this factor more in their plans.
Conclusion: The research findings enable “Homa” Company to evaluate the results of human resources outsourcing based on strategic reference points and if necessary, take corrective action and guarantee the success of outsourcing. Besides, the results of the research will help to focus on the strategic activities of “Homa” human resources. In addition, these results can be used for other domestic airlines.
Keywords

Abedi jafari, H., Taslimi, M., Fagheihi, A. & Sheikhzade, M. (2012). Theme analysis and thematic network: a simple and efficient method to determine patterns in qualitative data. Strategic management thought, 5(2), 151-198. (in Persian)
Afkhamiardakani, M., Dehghanan, H., Mehrabanfar, E. & Varmazyar, M.(2015). Presenting the “Ten-Step Model” of Codifing Human Resources Strategy Based on Strategic Refrence Points. Quarterly Journal of Strategy, 24(77), 5-32. (in Persian)  
Alewell, D., Hauff, S., Thomas, K. & Weiland, K. (2009). Triggers of HR outsourcing decisions - an empirical analysis of German firms. The International Journal of Human Resource Management, 20(7), 1599-1617.
Arias-Aranda, D., Bustinzab, O.F. & Barrates - Molinna, V. (2011). Operations flexibility and outsourcing benefits: An empirical study in service firm. The Service Industries Journal, 31(11), 1849-1867.
Awe, A.O., Kulangara, N. & Handerson, D.F. (2018). Outsourcing and firm performance: a meta-analysis. Journal of strategy and management, 11(3), 371- 386.
Baharadwaj, S.S. & Saxena, K.B.C. (2010). Service providrs’ competences in Business process outsourcing for delivering successful outcome: An exploratory study. Vikapla, 35(3), 37-53.
Barney, J. & Hesterly, W. (2010). Strategic management and competitive advantage: Concept and cases. Massachusetts: Prentice Hall.
Bhushan, U., Gujarathi, R., Kaur, J & Seetharaman, A. (2018). Analysis of human resource outsourcing with regards to Competitiveness of organization. Journal of Science, 2(4), 265-272. DOI: 10.15406/oajs.2018.02.00085
Boer, J.D. (2007). Human Resource Outsourcing: Change the people or change the people. Amesterdam: University of Amesterdam.
Braun, V. & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77-101.
Cappelli, P. (2011). HR sourcing decisions and risk management. Organizational Dynamics, 40(4), 310-316.
Chiang, Y.H. & Shih, H.A. (2011). Exploring the effectiveness of outsourcing recruiting and training activities, and the prospector strategy’s moderating effect. The International Journal of Human Resource Management, 22, 163-180.
De loe, R. C., Melnychuk, N., Murray, D. & Plummer, R. (2016). Advancing the state of Policy Delphi Practice: A systematic review evaluation methodological evolution, innovation and opportunities. Technological Forecasting and Social change, 104, 78-88.
Delmotte, J. & Sels, L. (2007). HR Outsourcing: threat or opportunity? Faculty of Business and Economics, Research Center for Organization Studies, Katholieke University Leuven, Belgium, p 543.
Ee, E., Abul Halim, H. & Ramayah, T. (2013). HR outsourcing success: does partnership quality variable matter? Journal of Business Economics and Management, 14(4), 664-676.
Galanaki, E., Bourantas, D. & Papalexandris, N. (2008). A decision model for outsourcing training functions: distinguishing between generic and firm -job- training content. The International journal of Human resourc Management, 19(12), 2332-2351.
 Gilley, K.M., Greer, C.R. & Rasheed, A.A. (2004). Human resource outsourcing and organizational performance in manufacturing firms. Journal of Business Research, 57(3), 232- 240.
 Glaister, A. J. (2014). HR Outsourcing: The impact on HR role, competency development and relation. Human Resource Management Journal, 24(2), 211-226.
 Gospel, H. & Sako, M. (2010). The unbundling of corporate functions: the evolution of shared services and outsourcing in human resource management. Industrial and corporate change, 19(5), 1367-1396.
 Gray, J., Tomlin, B. & Roth, A. (2009). Outsourcing to powerful contract manufacturer: The effect of learning-by-doing. Production and operation Management Journal,18, 487-505.
Hajalian, F. (2011). Designing a decision-making model for determining activities that can be outsourced in the human resource management department of the oil industry. Public administration doctoral thesis, Faculty of Management and Accounting, Allameh Tabatabai University, Tehran. (in Persian)
Hajalian, F., Jahangirfard, M. & Sadeghian, M.(2012). The effect of human resource outsourcing on productivity. Quarterly Journal of Cooperative and Village, 10, 173-190. (in Persian)
Hemti, A., Moradi, H. & Torabi, H. (2012). Identifying obstacles to outsourcing human resources training in universities. Monthly social, economic, scientific and cultural work and society, (149), 26-33. (in Persian)
Irwin, K.C, Landay, K.M., Aaron, J.R., McDowell, W.C., Marino, L.D., & Geho, P.R. (2018). Entrepreneurial Orientation (EO) and human resources outsourcing (HRO): A ‘‘HERO” Combination for SME performance, Journal of Business Research, 90, 134-140.
Keynes, G. (2009). Characteristics of the airline industry. Journal on Airline Industry,1,13-44.
Khaki, G. (2013). Grounded research method in management. Fujan Publishing, Tehran.
(in Persian)
Khodami, S. & Neishaburi, A. (2007). Human resources planning during outsourcing. Quarterly Journal of Organizational Knowledge Management, 26, 5.(in Persian)
Kim-Soon, N., Ying, CP. & Ahmad, AR. (2016). Outsourcing of Human Resource Functions: An Exploratory case study. Advance Science Letter, 22(12), 4548-4551.
Klass Szierbowski. S, & Ruediger. K. (2018). The impact of HR outsourcing and strategic HR integration on the HR-to-employee ratio: An empirical evaluation of the HR function over the last decade. International journal of Manpower, 39(2).
Klass, B. S. (2008). Outsourcing and the HR function: an examination of trends and development within North American firms. International Journal of Human Resource Management, 19(8), 1500-1514.
 Kock, H., Wallo, A., Nilson, B. & Hoglund, C. (2012). Outsourcing HR Services: the role of human source intermediaries. European Journal of Training Development, 36(8), 772-790.
Leggett, R. (2007). How to decide if recruitment outsourcing is right for you. Strategic HR Review, 7(1), 32-41.
Lepak, D. p., Bartol, K.M., & Erhardt, N.L. (2005). A Contingency framework for the delivery of HR practices. Human Resource Management Review, 15(2), 139-159.
Lilly, J.D., Gray, D.A. & Virick, M. (2005). Outsourcing the human resource function: Environmental and organizational characteristics that affect HR performance. Journal of Business Strategies, 22(1), 55-73.
Mishra, D., Kumar, S., Sharma, R.R.K. & Dubey, R. (2018). Outsourcing decision: do strategy and structure really matter? Journal of organizational change Management, 3(1).
Momme, J. (2002). A Practical Framework for understanding the outsourcing process – supply chain management. International Journal, 5, 22-36.
Mousavi, S. & Feali, R.(2019). Interpretive-Structural Modeling of Human Resource Outsourcing in Marun Petrochemical Company. Journal of strategic studies in the oil and energy industry. 11(42), 179-210.(in Persian)  
Mukherjee, D., Gaur, A.S. & Datta, A. (2013). Creating value through offshore outsourcing: an integrative framework, Journal of International Management, 19, 377-389.
Nargesian, A., Pourezzat, A. & Rasouliporshokouh, A.(2017). Study of the Advantages and Disadvantages of Recrutment Process Outsourcing in Mobile Telecommunication Company of Iran. Qurterly Journal of Public Organizations Management, 5, (2), 79-90.(in Persian)   
Ordanini, G., & Silvestri, G. (2008). Recruitment and selection services: efficiency and competitive reasons in the outsourcing of HR practices. The International Journal of Human Resource Management, 19, 372-391.
Patel, C., Budhwar, P., Witzemann, A. & Katou, A. (2019). HR Outsourcing: The Impact On HR’ strategic role and remaining in-house HR function. Journal of Business Research, 103, 397-406.
Peeyush, p. (2020). Human resource outsourcing: the impact on organizational learning. Development and learning in organizations, 35(3), 7-9.
Pereira, V. & Anderson, V. (2012). A longitudinal examination of HRM in a human resource offshoring (HRO) Organization operating from India. Journal of World Business. 47(2), 223-231.
Potkany, M. (2011). Outsourcing in Woodworking industry in Slovakia. TU zvolen,79, 22(1), 55-73.
Rajabpour, E., Shahbandzadeh, H. & Shahabi, F.(2021). Optimizing the Outsourcing of Training and Human Resources Development with the Marcus Technique (Research example: Saba Electricity and EnergyCompany). Quarterly Journal of Human Resource Studies, 11(4), 74-96. (in Persian)
Reilly, P. (2004). Job Families: An integration approach to reward and development? Institute for employment studies, Brighton: U k.
Ruth, D., Brush, T.H. & Ryu, w. (2015). The use of information technology in the provision of HR Compensation Services and its effect on outsourcing and centralization. Journal of Purchasing & Supply Management, 52(6), 923-946.
Saha, S. (2019). HR Outsourcing for a Competitive edge, The Daily Star, June, 17, Human Resource Outsourcing in Bangladesh: An Empirical Study.
Saldana, J. (2016). A Coding Guide for Qualitative Researchers. (Abdolah Givyan, Trans.). Katiba Scientific and Cultural Publications. Tehran. (in Persian)
Savino, D.M. (2016). Assessing the Effectiveness of outsourcing Human Resources Recruiting, Ohio Northern University. American Journal of Management, 16(2), 17-22.
Shariful Islam, M. & Rahman, L. (2019). Human Resource Outsourcing in Bangladesh: An Empirical Study. Journal of Business Studies, 42(2), 21-44.
Shih, H.A. & Chiang, Y.H. (2011). Exploring the effectiveness of outsourcing recruiting and training activities, and the prospector strategy’s moderating effect. International Journal of Human Resource Management, 22(01), 163-180.
Sim, C.S. (2012). Strategic human resource outsourcing: An experience of an MNC in Malaysia in 2nd International Conference on Management, Langkawi, Malaysia. 11-12June, pp.710-722.
Soita, S. & Gichinga, L. (2016). Factors Influencing Strategic Outsourcing Practice in Airlines Industry: A Case Study of Kenya Airways”, The International Journal of Business & Management, 4(3), 307- 333.
Stefano, S., Zampier, M., & Macaneiro, M. (2006). Satisfaca no trabalbo e indicadores de clima organizational: Um estado de multi-cases na regiao central do parana.
Toolaei, R. & Mohammadzadeh Alamdari, M. (2017). Techniques and tools of research method in management. Academic Jihad of Amir Kabir Industrial Unit, Tehran. (in Persian)
Tremblay, M., Party, M. & Lanoie, P. (2008). Human resource outsourcing in canadian organizations: An empirical analysis of the role of organizational characteristics, transaction costs and risks. The International Journal of Human Resources Management, 19(4), 683-715.
Ulrich, D. & Brockbank, W. (2009). The HR business-partner model: past learning and future challenge. People and strategy, 32(2), 5-7.
Ulrich, D., Younger, J. & Brockbank, W. (2008). The twenty-first century HR organization. Human Resource Management, 47(4), 829-850.
Vagadia, B. (2012). Strategic Outsourcing: The Alchemy to Business Transformation in a Globally Converged world. Springer. London.
Whelan, E. & Carcary, M. (2011). Integrating talent and knowledge management: where are the benefits? Journal of Knowledge Management, 15(5), 675-687.
Williamson, O.E. (2007). Transaction cost economies: An introduction discussion paper. www.ecomices/discussion papers.
 X u, R. & Koskinen, O. (2015). Human Resource outsourcing in China. Case company: Wisco, University of Applied Science.
Yadav, A. & Rothak, BMU. (2022). Human Resource Outsourcing: Issues and challenges. International Journal of Creative Research Thought, 10, 2320- 2882.
Yazdani, H., Zarea, H. & Hadpoureseraj, M. (2021). Presenting a Framework for Managing the Outsourcing of Human Resource Processes: Meta-Combination Research. Quarterly Journal of Human Resource Studies,11(1), 26-53. (in Persian)
Volume 13, Issue 2
Spring 2023
Pages 73-99

  • Receive Date 21 November 2022
  • Revise Date 31 May 2023
  • Accept Date 21 June 2023