HUMAN RESOURCE OUTSOURCING AND ORGANIZATIONAL PERFORMANCE: IT’S IMPACT ON MICRO-FINANCE CORPORATIONS

This study was done to examine the impact of Human Resource Outsourcing on the organizational performance of different micro-finance corporations. Specifically the objective was to firstly determine the relationship between outsourcing human resource and organizational profitability of the micro-finance corporation, and to also find out whether outsourcing human resource leads to increase in profitability of different micro-finance corporation. The study used the descriptive survey because the data needed for this study is of primary nature and the sampled elements and the variables under investigation are to be observed without any attempt to control or manipulate them. This is a process where data are collected from the sample population through questionnaire. And with the help of Statistical Package of Social Sciences (SPSS) version 22.0 on the completed questionnaire to assess the relative strength of response to each of the items on the questionnaire.
The findings revealed that there is a relationship between Human Resource Outsourced (HRO) functions and organizational performance and reasons for outsourcing Human Resource functions in your organisation include: to provide human resource service which your organization cannot provide, ensure effectiveness in the human resource services/activities, save money to reduce operating cost, to have access to talent and expertise, streamline human resource service, make up for reduction in HRM staff, and ensure compliance with standard. This study recommended that management of micro-finance corporations could outsource their Human Resource function to ensure they are able to focus on core functions in the organization and that it also helps to measure Human Resource functions.