After stumbling upon Alice Wo’s blog on the outsourcing of the human resources department, I would argue that the human resources department is not a vital function in every organization. Although human resources may be a significant aspect of a company, it is not entirely a bad idea to outsource because the benefits will depend on the organization and some organizations are better off by following this modular organization structure of outsourcing.

Air Canada, for example, has approximately 27,000 employees. By outsourcing its human resources department, it can devote managerial talents to most critical activities. As well, the company will be able to increase its focus on customers and markets. As Air Canada is a large organization, it will have a rigid vertical hierarchy structure. This translates to independent departments and highly standardized jobs. Therefore, outsourcing its human resources does not greatly influence the overall functions of operations.

A reason for concern in outsourcing is that it negatively affects the organizational culture. However, I would reason that organizational culture is not centralized at its human resources department. Organizational culture is established by its top management and practiced through developed norms and rituals. Outsourcing will be beneficial for certain large organizations to allow for an efficient way to achieve corporate goals.

Works Cited
Alice Wo’s Blog – https://blogs.ubc.ca/alicexwo/2013/11/05/fighting-the-death-of-human-resources/
Air Canada – http://www.aircanada.com/en/about/acfamily/