Research Article Performance Evaluation of Human Resource Outsourcing in Food Processing Enterprises

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1 Advance Journal of Food Science and Technology 9(2): , 205 ISSN: ; e-issn: Maxwell Scientific Publication Corp. Subitted: August 0, 205 Accepted: Septeber 3, 205 Published: October 05, 205 Research Article Perforance Evaluation of Huan Resource Outsourcing in Food Processing Enterprises Yantao Wang and Yong Li School of Econoics and Manageent, Northeast Dianli University, Jilin, 3202, China Abstract: Huan resource outsourcing is not a siple cobination of the eaning of huan resource and the eaning of outsourcing; it has its specific eaning. It refers to the use of external resources, ore econoic, ore effective solution to the organization's internal huan resources activities involved in the study. In this study, we ake a coprehensive evaluation index syste of HRO odel and collect data fro food processing enterprises. Fro the result, it shows that there are 2 iportant factors that will affect the enterprise huan resources outsourcing decision, such as copetence, business risk, resources, allocation, counication, fixed cost, operating cost, tool, knowledge, service standards, service charge and service quality. It shows that in the food processing enterprises, huan resources outsourcing decision should be cobined with the enterprise strategic anageent. Keywords: Food processing enterprises, huan resource, outsourcing, perforance anageent INTRODUCTION China has becoe the center of the global econoy, whether it is for foreign investent or foreign investent, China's econoy has been involved in global copetition, including personnel and wherewithal to copetition. In order to succeed in the global copetition, we need innovation enterprise strategy and strategic huan resources anageent. It s necessary for the enterprises to win the talent advantage, especially high-end talent due to the downregulation of the econoy, which is expected to increase the likelihood of corporate layoffs and the increasingly intense copetition in the 2 st century (Zafar, 203). As for huan resources anageent, this is paradox of the special needs of a higher deand. Huan resources anageent needs to provide the enterprise strategic anageent ore support to help enterprises establish core copetitiveness (Metin and Erturgut, 200). In addition, the aggravation of Chinese aging population weakens the advantage of personnel, which ake the increase in labor costs inevitable. In the context of the ties, to ake enterprises aintain the ipetus, the huan resources departent needs to continue to hunt the talented people and iprove the anageent syste in order to save costs, which requires liberation fro the tedious clerical work (Spencer, 993). Huan resources outsourcing has becoe the general trend of the drive. Considering a growing nuber of copanies choose the outsourcing of huan resources at the sae tie, we cannot ignore the huan resources outsourcing is not a panacea and not all corporate huan resources outsourcing can achieve the desired results. There are any reasons of its failure or ineffective. One iportant reason is that the decisionaking odel is iperfect decision-aking odel is the lack of effective cost and benefit analysis in decision aking. The function of huan resource anageent, transactional activities accounted for the vast ajority of, such as recruitent, training, social insurance and personnel file anageent, these activities deal with relatively cubersoe, tie and energy consuption, to create the core copetitiveness of enterprises is of little significance (Stone and Deadrick, 205), but it consues ost of the huan resources departent staff, these business activities exist to provide the possibility for the existence and developent of huan resources outsourcing. With the advantages of outsourcing will continue to appear, Huan Resources Outsourcing (HRO) as a reduce enterprise cost and iprove the core copetitiveness of one of the effective ways and in 20 century 90's first developed in the United States and other developed capitalist countries. Using huan resources professional institutions can save enterprise huan resources activities tie and increase the efficiency of the enterprise huan resources anageent, at the sae tie, the enterprise can concentrate anpower on the strategic research and the core copetitiveness of the building, HRO becoe the trend of the ties. Outsourcing HRO is refers to the enterprise according to their own needs a one or a few of the huan resource anageent outsourcing work out, ake by other professional enterprise or organization for anageent, to low labor costs, to achieve axiu efficiency. In the aspect of huan resource outsourcing, soe scholars classify the HRO function according to the nature of the nature, so as to classify it into different Corresponding Author: Yong Li, School of Econoics and Manageent, Northeast Dianli University, Jilin, 3202, China This work is licensed under a Creative Coons Attribution 4.0 International License (URL: 964

2 types. Brian and McClendon (200) considered that the outsourcing of huan resource function is ainly about four kinds of outsourcing, naely, coprehensive, transactional, capital and acquisition. Therefore, huan resources outsourcing of functions divided into four kinds: such as huan resources planning, staff perforance appraisal and evaluation for coprehensive outsourcing; salary payent is based on the transaction of outsourcing; staff training, professional title prootion is nature of huan capital prootion activities, staff recruitent and selection is to obtain the outsourcing activities. Klass and Gainey (999) also carried out the division of huan resources outsourcing, naely, the general HRO, transactional HRO, huan resource investent, recruitent and selection of four kinds of. In the aspect of huan resources outsourcing otivations, scholars fro different angles of econoy, politics and enterprise of research the otivation of HRO in the enterprise, fro the perspective of their own research accounted for the vast ajority, ainly concentrated in reducing the cost of huan resources and enhance the core copetitiveness of enterprises. Jenster (999) pointed out that affecting the huan resources outsourcing factors reduce the operational cost of huan resources, iprove the focus of attention of the enterprise business, enhance the enterprise internal anageent control and can share with suppliers for developent strategy. David (997) consider that the cost advantage of HRO, ore appropriate allocation of tie, fro the ore convenient channels obtained leading technology and finally let huan resource outsourcing service providers by siple providers into the organization's strategic partner. In addition, Jaes and Johnson (203) pointed out HRO reason ainly has the following several, naely, econoy, technology, talent and political factors. Greer and Gray (999) pointed out that whether the enterprise of HRO driving factors has 5, respectively, whether to need to strealine the corporate anageent syste, whether the enterprise is in rapid growth or recession, the pace of globalization is accelerated, copetition is intensified and enterprise whether need to recreate and in the fundaental factors behind the copetition factors is lower costs and increase huan resources service quality. With the advantages of HRO research, scholars started to pay attention to the outsourcing in bring various benefits at the sae tie is also accopanied by risks. These risks sued up including transaction risk, conversion risk, quality risk and supervision risk. Gilley and Charles (2004) argues that the outsourcing can for the enterprise cost savings, iprove the copetition status and work efficiency, eliinate the risk, in addition to HRO ay also bring the transaction cost rise and affect the value of the copany and the other fro the supplier risk. Lever (997) pointed out Adv. J. Food Sci. Technol., 9(2): , that huan resource outsourcing ay produce two risks: one is enterprise in outsourcing subcontractors over reliance on, another risk is the huan resources outsourcing business efficiency and quality of work did not achieve the original expectations of enterprise, thus fundaentally shadow ring to the overall efficiency of enterprises. RESEARCH OBJECT AND METHODS In nuerous can carry out the outsourcing service odel choice in practice, the choice of enterprises on the HRO odel of cognitive bias, ost enterprises rely on subjective experience or is the outsourcing decision of copycat industry peers to judge and choose outsourcing odel. The abuse of these outsourcing choices has brought a great uncertainty and potential risk to the developent of outsourcing decisionaking. In this study, we in view of the enterprise should be how scientific evaluation and reasonable choice of suitable for its own developent outsourcing odel the objective, through the establishent of a set of effective huan resource outsourcing ode selection of a ulti-level evaluation index syste and coprehensive expert opinion ethod and entropy ethod to deterine the index weight, thus foring coprehensive outsourcing decision-aking odel to guide the enterprise outsourcing ode selection decision. Entropy ethod: Inforation entropy reflects the degree of disorder of inforation. It can reflect the degree of the inforation of the index in the process of evaluation and the degree of the ipact of the index on the evaluation results. The greater entropy indicates a higher degree of disorder of inforation, the inforation entropy of the utility value of the saller. The first application of entropy function in statistical physics, in the icroscopic point of view, it is assued that the syste entropy can be fro the olecular arrangeent of the statistics obtained. According to the Boltzann entropy forula as: Ω E = k ln () In forula, k is the Boltzann constant, Ω is the arrangeent of olecules in the syste: Ω= ni! 2! i= = n! n! K n! n! n! K n! ( n+ n + L+ n ) 2 2 (2) According to the forula, it is concluded that entropy of the syste:

3 Adv. J. Food Sci. Technol., 9(2): , 205 Table : Evaluation index syste of HRO odel Level indicators Secondary indicators Judgent standard Strategic factors α Core copetence A Strengthen the core copetitiveness of the enterprises Business risk A2 The lower the risk of enterprise anageent Manageent factors α2 Manageent resources A3 Ease enterprises shortage of resources and technology Talent allocation A4 Advantageous to the talent of professional configuration Counication A5 Conducive to counication between the organization Cost factor α3 Fixed cost A6 Can reduce the enterprise HRM fixed costs Operating cost A7 Reduce the non-core business investent Technical factors α4 Manageent tool A8 Acquire advanced technology Knowledge A9 Obtain the latest anageent knowledge Service factor α5 Service standards A0 Service standards and tiely service Service charge A Service price is low, cost-effective Service quality A2 Service personnel quality is high E 2 i n ln n = = k i i= + n ln n2 +Ln ( n ln ln n n So that, the unit entropy in syste is: ) (3) the influence of enterprise huan resources outsourcing project decision-aking factors of 80%, to ensure index set up a scientific and concise. Consistency principle: Indicators set to have a certain logical rigor, prevent conflict between indicators. e E = n i i= Unit entropy function of the syste can be obtained: e (4) y = k y i i ln (5) i= In the process of the calculation of inforation entropy, constant K is related to syste saple, according to the inforation entropy of disorder liit value as e = can be concluded that when k = (ln ) -. The selection principle of index syste: Evaluation index syste of huan resources outsourcing pattern choice, the iportance of the each indicator should be closely related to enterprise requireents. The coplexity of the outsourcing decision is that every index in the process of decision aking requires careful consideration, to ensure the scientific and reasonable evaluation result, the first index selection criterion is particularly iportant. In order to ake the selected indicators can be coprehensive, syste, objective and true reflect huan resource outsourcing decisionaking of the project, when set up evaluation index ainly follow the principle of the following aspects. Coprehensive systeic principle: The selection of indicators has to fully reflect the current enterprise anageent status, joint enterprise business philosophy and coply with all aspects of enterprise developent strategy target. Siple science and principle: The set of index syste has certain liitations, so 20% of the index to reflect 966 Cobination of qualitative and quantitative principle: In the process of the index set, will fully allocated proportion of qualitative indexes and quantitative indexes, coprehensive and balanced set of qualitative and quantitative indicators, prevent evaluation index is easured according to the qualitative or quantitative point of view, only guarantee the index set is scientific. Establishent of evaluation index syste: Through cobing the existing related inforation, as well as the coprehensive decision-aking influence factors and cobining the research of the otives of outsourcing as a result, the sall and ediu-sized enterprises in our set selection and index syste of enterprise huan resources outsourcing ode choice, for we will be divided into strategic level classification index factor, anageent factor, cost factors, technical factors, factors of outsourcing service providers have five categories of the final coprehensive evaluation. In order to ake the evaluation ore reasonable scientific process, the evaluation results ore accurate, on the basis of the theoretical foundation of the enterprise huan resources outsourcing decision-aking odel, we will again any secondary refining the five levels of classification index into a single index, evaluation indexes and evaluation standards at all levels can be shown in Table. RESULTS AND DISCUSSION Questionnaire investigation: In order to understand the present situation of huan resource anageent and the enterprises, the ajor issues of outsourcing anageent 20 copanies, the author of this study has carried on the detailed analysis of the actual survey. Soe of the 20 copanies engaged in huan resource anageent outsourcing. The investigation is ainly

4 aied at the huan resources anageent departent in the saple, the anager and assistant and the staff of huan resources departent. The purpose is to find the current situation of the enterprise in the huan resource anageent outsourcing decision and engaged in outsourcing anageent difficulties. In enterprise huan resources anageent present situation investigation, our ain purpose is to clear the enterprise the present situation of huan resource anageent. After analysis of the current enterprise, it shows necessity of the ipleentation of huan resources outsourcing. We ainly aied at the enterprise huan resources anageent strategy, personnel anageent specialist tissue, enterprise recruitent, copensation design, perforance appraisal five aspects to investigate. Huan resource anageent focuses on investigation of current situation of enterprise huan resources anageent strategy idea, anageent talent, enterprise organization structure, HRM a total of four aspects. Aied at investigating the situation of enterprise huan resources outsourcing decision, we ainly use the situation in view of the enterprise huan resources outsourcing, the otives of outsourcing, outsourcing project choice, enterprises to adopt or avoid the difficulty of outsourcing, outsourcing risk factors for a total of 5 aspects to investigate. In the for of questionnaire as online survey and field distributed and been send to HR departent of sall enterprises. Because the subjects for the sall and ediu-sized enterprise HR personnel and a line of the project anager, the relatively sall saple size, a total of 200 questionnaires, recycling, 76 and 48 valid questionnaires. The recovery rate of valid questionnaire is 74%. Fro the point of enterprise property, copanies surveyed the vast ajority of private enterprises, private enterprise nuber only with the private enterprises, foreign enterprises less two. Fro a nuber of copanies surveyed the huan resources departent, the following 5 people accounted for 26.7%, ore than 5 people accounted for only 20%, the vast ajority of the nuber of enterprise huan resources departent for 5 to 5 people, accounts for about 53.3% of the proportion of the saple. Specific statistics are shown in Table 2. In view of the huan resources anageent present situation of enterprise's survey, we found that according to the content of the questionnaire, there are 6 copanies which have no specific huan resources departent, the other eight with incoplete or independent of the personnel departent. Nuber of copany personnel engaged in huan resources anageent, according to statistics, ainly concentrated in the 5-5 people. Executives of the iportance of huan resources according to the survey, ost of sall and ediu-sized enterprise only 54% of Adv. J. Food Sci. Technol., 9(2): , Table 2: Statistics analysis of questionnaire saples Option Attribute Nuber Proportion Enterprise Private enterprise for State-owned enterprise Nuber of < people in HR 5-5 person > surveyed, head of the business enterprise personal anageent often participate in the enterprise strategy in the decision-aking process; the questionnaire survey of executives about the iportance of huan resource anageent is not high. In the surveyed enterprises, the copany eployees knowledge level of huan resource anageent departent according to the survey, the copany eployees the average degree of bachelor degree or above, in the inority enterprise huan resource anageent departent staff of an average of record of foral schooling of three-year institution of higher education. Result of expert score: Enterprise fored expert evaluation group, group ebers for 7 people, including 3 consists of huan resources outsourcing and consulting experts, the other 4 people fro the enterprise internal anageent decision-aking. In ensuring the reliability of inforation, under the preise of fairness, graded by the expert group for running outsourcing odes one by one, in order to eliinate the influence of abnoral hit points and we are in the process of actual statistical scoring, reove a high score, reove a iniu points, take the arithetic ean value included in the initial evaluation atrix of each expert. Finally, the individual index evaluation points below 6.0, ipleent a veto. Using expert scoring ethod of the running ode on each evaluation index scores (Table 3). According to the calculation forula of entropy value ethod, data coputing applications, we get about the priary classification indexes in the Table 4, as well as the second single index weights. Weights are shown in the Table 4. Fro the classification index weight distribution we can see that on a visit to any factors, anageent and service factors weight ratio is higher, the second is the cost factors and technical factors, the iniu entropy strategic factors. In the study of the weight of single index, we can see, for exaple for the anageent factor, organizational counication individual indicators reflect the largest aount of inforation, the greater the degree of discrete, the role of it in the rating index syste is saller, so the iniu value of entropy. Analysis of project evaluation results: According to the expert subjective rating data and the weight of each index, in the process of coprehensive evaluation value

5 Adv. J. Food Sci. Technol., 9(2): , 205 Table 3: Expert evaluation score of HRO odel Expert scoring Level indicators Secondary indicators Recruitent outsourcing Training and developent outsourcing Medical clais outsourcing Strategic factors α Core copetence Business risk Manageent factors α2 Resources Talent allocation Counication Cost factor α3 Fixed cost Operating cost Technical factors α4 Tool Knowledge Service factor α5 Service quality Service charge Service quality Table 4: The entropy weight of the evaluation index Secondary individual index Level indicators Secondary indicators Entropy Classification index entropy Single index entropy Entropy weight Strategic factors α Copetence Business risk Manageent factors α2 Resources Allocation Counication Cost factor α3 Fixed cost Operating cost Technical factors α4 Tool Knowledge Service factor α5 Service quality Service charge Service quality Table 5: Overall evaluation score of the election pattern Outsourcing service Recruitent outsourcing Training and developent outsourcing Medical clais outsourcing Single index evaluation score Overall score calculation, in order to reflect the attribute significance of scores, we calculate in addition to the single paraeter relative to the index syste of coprehensive score and coprehensive score relative to the classification index, in order to reference for decision aking. The running ode coposite scores are shown in Table 5. Fro the Table 4, in the 3 outsourcing service odel, the recruitent outsourcing has the highest score of 7.6 points, edical clais outsourcing in. 7. points. This shows that the copany currently experts assess group consensus that the enterprise should take recruitent outsourcing of huan resources outsourcing odel. Recruitent outsourcing can ake the enterprise in coprehensive under the action of various factors, the axiu iprove the efficiency of the work of huan resources departent, enterprise outsourcing. Fro the result of coprehensive evaluation, we can also see that for the present industry widely popular edical clais process outsourcing service odel, but is not suitable for the enterprise outsourcing practices, this and the enterprise the current 968 labor shortages, the brain drain and the actual situation of huan resource ature edical clais procedure. CONCLUSION In the ipleentation of enterprise huan resources outsourcing, outsourcing service provider of the correct choice is second only to outsourcing ode selection of another iportant link. The size of the ability of outsourcing service providers and service quality high and low, the pros and cons of working ethods directly deterine the success of enterprise outsourcing activities. Large enterprises at hoe and abroad in selecting the appropriate outsourcing service provider usually adopt the cobination of qualitative and quantitative ethod, as well as to establish a reasonable evaluation index syste of outsourcing service providers and to choose scientific and reasonable optiization strategy and ethod, to provide reference for the enterprise huan resources anageent activities. In search of alternative in the process of outsourcing service providers, enterprises

6 Adv. J. Food Sci. Technol., 9(2): , 205 should first outsourcing services arket in arket research, extensive collection arket scope of business of all kinds of outsourcing service providers, outsourcing, looking for an object confors to the enterprise outsourcing project selection decision alternatives. These alternative first of outsourcing service providers should have a good reputation, quality of service and job perforance. After the lock a few candidates, copanies can use the cobination of qualitative and quantitative ethods to ultiple aspects and choose the best service can provide the enterprises with the high quality specialized resources. In the capacity of outsourcing service providers, the outsourcing service providers ust have the external ability which the enterprise lacks and can be copetent to anage the huan resources. According to the front of the outsourcing decisionaking odel which choose the outsourcing projects for outsourcing project, after the enterprise to ake outsourcing decisions, one of the ost iportant proble is the need of outsourcing cost and benefit analysis, in order to enterprise profit axiization in the end. Scientific and reasonable cost-benefit analysis test project huan resource anageent outsourcing can help enterprises choose and outsourcing service provider of decision-aking is correct or not. When doing huan resource outsourcing decision-aking, enterprise's high cost will be very seriously and the corresponding rate of return on investent, enterprise can obtain profit is always the source of enterprise developent. The cost of huan resources outsourcing is refers to in the ipleentation of enterprise outsourcing decision of recessive or doinant costs include all kinds of huan expenditure. When analyzing the costs and benefits of the enterprise, we think that the sall and ediu-sized enterprise scale is sall, suitable for using a siple and effective easure. The calculation existing enterprise staff to coplete a function of costs and benefits, huan resources was copared after with outsourcing cost benefit. REFERENCES Brian, S.K. and J.A. McClendon, 200. Outsourcing HR: The ipact of organizational characteristics. Hu. Resour. Manage., 40: David, F., 997. Outsourcing the HR function: Personal threat or value opportunity. Strat. Change, 8: Gilley, K. and M. Charles, About Huan resource outsourcing an organizational perforance in anufacturing firs. J. Bus. Res., 57(4): Greer, C. and S. Gray, 999. Huan resource anageent outsourcing the ake or buy decision. Acad. Manage. Exec., 3: Jaes, D. and R.D. Johnson, 203. Huan resource etrics and decision support: A classification fraework original. Hu. Resour. Manage. R., 23(): Jenster, P., 999. Deal aker or deal breaker: Huan resources issues in successful outsourcing project. Strat. Change, 8(999): Klass, M. and J. Gainey, 999. HR outsourcing and its ipact: The role of transaction costs. Pers. Psychol., 52: Lever, S., 997. An analysis of anagerial otivations behind outsourcing practices in huan resources. People Strat., 20: Metin, A. and R. Erturgut, 200. Iportance of educated huan resources in the inforation age and view of inforation society organizations on huan. Proc. Soc. Behav. Sci., 2(): Spencer, K., 993. The wisdo of teas: Creating the high-perforance organization. Acad. Manage. Exec., 7: Stone, D.L. and L. Deadrick, 205. The influence of technology on the future of huan resource anageent. Hu. Resour. Manage. R., 25(2): Zafar, H., 203. Huan resource inforation systes: Inforation security concerns for organizations. Hu. Resour. Manage. R., 23():