I would like to use the Value Chain Analysis to study the importance of the Human Resources function in the study of a firm's value chain. However, the latest trend has been the outsourcing of HR especially the transactional roles in HR as they are seen as non-value adding and a non-differentiator in the value chain.
Some of the areas of HR that are in the process of being outsourced are Recruitment, Payroll processing, Training, Benefits Management, etc. These areas are seen as transactional in nature and firms are able to derive cost benefits by outsourcing these activities to companies that are able to leverage economies of scale and domain expertise to provide superior value and cost benefit to the parent firm.
Some of the core areas that are still seen as possible differentiators in HR are policy making, performance management, compensation management, etc. These are seen as functions that can add value to the entire firm and help it derive competitive advantage over......
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