Analyzing The Strategy Of Introducing An India Essay

834 Words Sep 7th, 2014 4 Pages
4.1 Feasibility
Analyzing the strategy of introducing an HRIS against the background of feasibility shows that the company does not fulfil the resource requirements to become successful with the strategy as HRIS requires teamwork and interaction (Fischer, 1991).
In contrast, the outsourcing strategy appears to be feasible as it grants flexibility and is often recommended to small and medium-sized companies that lack experience (Rodriguez, 2000). Although CGMS is characterized to be the industry leader, the management and HR department did not manage to grow with the company and therefore, recommendations for small and medium-sized companies might still be suitable for CGMS. Source: Spencer (2014)
Moreover, the outsourcing decision matrix recommends that CGMS should outsource the HR function as although it highly contributes to operational performance, its strategic importance can be found to be low because CGM is manufacturing firm. Therefore, its core competencies are probably related to technology and production. Therefore, outsourcing HR allows CGMS to focus on its core competencies (Katz-Stone, 2000).

4.2 Cost
Analyzing the costs, it becomes apparent that introducing an HRIS requires high upfront-payments which probably cannot be made as CGMS is already facing financial difficulties. Moreover, according to a study conducted by PricewaterhouseCoopers (2004), “given the complexity of in-house systems on the market today, and the increased frequency of system…

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