7. Outsourcing: pros & corns

Outsourcing is the process of contracting an existing business function or process of an organization to an independent organization, and ceasing to perform that function or process internally, instead purchasing it as a service. Though this practice of purchasing a business function--instead of providing it internally - is a common feature of any modern economy, the term outsourcing became popular in America near the turn of the 21st century. An outsourcing deal may also involve transfer of the employees involved to the outsourcing business partner.

The most common reasons why companies decide to outsource include cost reduction and cost savings, the ability to focus its core business, access to more knowledge, talent and experience, and increased profits.

Companies are able to focus their money and resources more towards improving the core aspects of its business when outsourced.

When companies offshore services, even though it may not be the core parts of the business, those jobs leave the home country for foreign countries. Risk of leakage, reduced confidentiality, privacy and security concerns are other risks of outsourcing.

Companies are able to provide services and products to consumers at a cheaper price while still having a large margin for profit. This profit margin benefits both the company as well as the consumer. The cheaper prices lead to an increase a company’s economy. Although losing jobs hurts the economy because more citizens become unemployed, the cheaper prices allows customers to purchase more products and services which helps to rebuild an economy.

8. Companies that falsity their financial reports

The falsification of financial reports is very popular among modern companies, but it’s a big problem for world economy. Some of the famous economists tell us that it’s a reason of crisis. This phenomenon is not only in poor countries but also present in a big economies. USA also has this problem.

The Securities and Exchange Commission (SEC) reported that falsifying corporate data, especially on financial statements, increased in the 1990s. The falsified reports included statements inflating sales, hiding ownership of the corporation, and embezzlement. In July 2003 President George W. Bush created the Corporate Fraud Task Force to oversee investigation and prosecution of crimes involving corporate fraud. Question: Why do the companies do this? The answer is very easy: they don’t want to pay taxes, they do not want pay money to the government, because they think that this is hard task in period of crisis.

To my mind world economy can solve this problem, but we need a time to do this. It will be hard but realy.

9. Methods of recruiting

Recruitment refers to the process of attracting, screening, and selecting a qualified person for a job. All companies in any industry can benefit from contingency or retain professional recruiters or outsourcing the process to recruitment agencies.

The stages in recruitment include sourcing candidates by networking, advertising or other methods. Utilizing professional interviewing techniques to understand the candidate’s skills but motivations to make a move, screening potential candidates using testing (skills or personality) is also a popular part of the process. The process is meant to not only evaluate the candidate but also evaluate how the candidate will fit into the organization. The recruiter will meet with the hiring manager to obtain specific position and type information before beginning the process. After the recruiter understands the type of person the company needs, they begin the process of informing their network of the opportunity. Recruiters play an important role by preparing the candidate and company for the interview, providing feedback to both parties and handling salary/benefits negotiations.

Nowadays recruitmentcan be conducted by 10 methods, as follows:

• Recruitment by Campus method.Campus is the location of a university, college, or school’s main buildings. This method is based on recruitment at university, colleges etc.

• Recruitment by Job centers.Job centers often specialize in recruitment for specific sectors. They usually provide a shortlist of candidates based on the people registered with the agency. They also supply temporary or interim employees.

• Head hunting.Head hunting are recruitment agents who provide a more specialized approach to the recruitment of key employees and/or senior management.

• Recruitment by Advertisements.They can be found in many places such as:

• Newspaper

• Job posting on job sites

• Ads on websites related to positions recruited.

• Database search on job sites.Company can buy data from job websites for a week or a month to search candidates.

• Employee referral. This method often refers to as ‘word of mouth’ and can be a recommendation from a colleague at work.

• Contract staffing.Company can buy staffing contract from HR outsourcing.

• Word-of-mouth recruitment

• Free online ads.You can post your recruitment ads at free websites such as forums, blogs…

• Internal recruitmentInternal recruitment can conduct by types of:

• Present permanent employees (based on programs of career development).

• Present temporary / casual employees.

• Retired employees.

• Dependents of deceased disabled, retired and present employees.

Related documents to recruitment methods

• External recruitment

• Internal recruitment

• Recruitment process

• HR career ebooks (you can download free and ref all ebooks related HR career…)