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Increasing Value of HR Outsourcing: The Management of the Outsourcing Relationship in the Aviation Sector in Ireland

Woloch, Sylwia (2019) Increasing Value of HR Outsourcing: The Management of the Outsourcing Relationship in the Aviation Sector in Ireland. Masters thesis, Dublin, National College of Ireland.

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Abstract

Despite its relatively small territory, Ireland is home to many commercial airlines which compete fiercely to secure a position of superior value in the highly demanding aviation market. In order to gain this competitive advantage, airlines attempt to focus on their core activities (strategic operations, inbound and outbound logistics, marketing and service) and choose to outsource their non-core functions (HR management, technology development, company infrastructure and procurement) to external providers. Outsourcing has therefore become a key business trend among airlines in Ireland who seek efficiencies, innovation, expertise and increased organisational value. Despite this prominence, outsourcing initiatives still fail affecting negatively end users’ performance. As uncovered in the literature, a decision to outsource does not suffice and managing the outsourcing relationship is equally important.

The aim of this study is to explore how commercial airlines in Ireland manage the HR outsourcing relationship with external providers to maximise their organisational value. The main research question is supported by the following objectives: managers’ role in increasing their teams’ consciousness and engagement in the outsourcing projects, the level of control over the external providers required to achieve the anticipated outsourcing outcomes as well as the evaluation and measurement systems of the outsourcing relationship and outsourcing deliverables. The research problem is examined in context of the outsourced HR services as they are considered to generate considerable costs and administrative volumes for airlines.

This cross sectional research applied a qualitative approach where data collected from a non-probabilistic purposive sample of managers working in commercial airlines in Ireland was interpreted to address the main research question and objectives. The findings highlight that in order to leverage this organisational value, managers should focus on increasing consciousness and engaging their teams in the outsourcing initiatives, adjusting level of control over the external providers in line with organisational strategies, designing and implementing comprehensive evaluation and measurement systems and incorporating communication and problem-solving mechanisms in a day-to-day management. The managers’ role and involvement in the outsourcing projects is therefore critical.

Yet, as the findings demonstrate, although outsourcing has been a well-established business model among airlines in Ireland, many organisations still operate without developed outsourcing management systems. This study is therefore a good opportunity to reflect on how airlines in Ireland can increase value of HR outsourcing through the management of the outsourcing relationship.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Aviation Industry
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > Human Resource Management
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > Human Resource Management > Outsourcing
Divisions: School of Business > Master of Arts in Human Resource Management
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 16 Oct 2019 14:00
Last Modified: 16 Oct 2019 14:00
URI: http://trap.ncirl.ie/id/eprint/3928

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