Different organizations in the same industry often end up in different locations along the outsourcing continuum. It is logical to assume that the running shoe industry, for example, would converge to one model and level of outsourcing. Since this logical conclusion is erroneous, think about the differential roles played by the HR departments in different athletic shoe companies.

Nike pioneered the use of outsourcing in the shoe industry, moving most of its production work to Asia. Adidas likewise once handled its own manufacturing, but also adopted the use of outsourcing in the 1990s. Consider why Adidas made the transition to this business model.

In contrast to Nike and Adidas, New Balance continues to maintain a manufacturing presence in the U.S. and the U.K. One consequence is that New Balance shoes tend to be more expensive, but the cost is addressed in marketing strategies. Consider why three major retailers in the athletic shoe industry would differ significantly in the ways that they view partnering or outsourcing.

The Krell article in your Required Resources argues that, in terms of human resource outsourcing, saving time is now generally more important than saving money. Based on your research, does this indeed appear to be the trend? Using information from articles, such as Woodhall, et al., “Making the Decision to Outsource Human Resources,” (2009), in your Required Resources, explain how decisions to outsource HR functions are typically made.

With these thoughts in mind:

Post by Day 3 a cohesive and scholarly response based on your readings and research this week that addresses the following:

Using the shoe industry scenario presented above as a point of reference, conduct additional research on the consequences of outsourcing HR functions.

How are decisions to outsource HR functions typically made? Describe the positive and negative consequences associated with outsourcing HR functions. Are there factors other than cost or time savings that are important to consider in making these decisions? Who is usually involved in outsourcing decisions? What role should HR executives play in outsourcing decision making?

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