1 Ms.

Swati Rajesh Dhaundiyal

? Guide: Dr. Mrs. Vijaya Raghatate

LITERATURE REVIEW : IMPACT OF RECRUITMENT

PROCESS OUTSOURCING ON ORGANISATIONAL GROWTH

I ntroduction
This research paper explores the links and
complete package of skills, tools, technologies and
activities.
interconnection between the concepts of Recruitment process outsourcing looks like
recruitment process outsourcing and growth of an a strengthening trend as a lot of budget is used for the
organisation. Recruitment process outsourcing trend in-house recruitment process; and the outcome of the
is increasing rapidly all over the world (Clott, 2004). RPO process always results in big savings for the
Recruitment HR activities were traditionally organisation. In addition, there are lot of benefits of
performed in house but now recruitment process RPO, including quicker and more promptly executed
outsourcing trend has been speedily increasing than any other function of HR, BPO or HRO
(Stewart and Woods 1996, Schneider and Bowen (Shelgren 2004; Won and Kim 2007). A company can
1985). This research explores the perception and give lot of time to its HR managers and focus them to
feelings of in-house HR professionals and top core activities.
management about the impact of RPO on their Moreover, the RPO can provide the best
corporate brand. It also studies the RPO performance quality of candidates, decreases in time and cost of
within organisations and its impact on their corporate hiring, increases the HR reputation internally and
growth. The main objective of this literature review is externally. Additionally, does improvement in
to explore the insights on the impact of RPO on branding by training the outsourced employees as
growth of an organisation. good brand ambassadors for the organisation (Wood
II Literature Review and Collings, 2009).
Recruitment Process Outsourcing (RPO) is a According to Kakabadse and Kakabadse
form of business process outsourcing (BPO) where (2002) and Woodall, et al. (2009) the main reasons
employer outsources or transfers all or part of its for recruitment outsourcing process is always cost
recruitment activities to an external service provider savings. Yet they also added certain different aspects
(Stroh and Treehuboff, 2003). RPO may involve the for outsourcing like best practice, good service
outsourcing of all or just part of recruitment functions quality and focus on the core competencies of any
and process. The external service provider may serve company.
as a virtual recruiting department by providing a According to Lever (1997), Abdul-Halim et

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 al. (2009), Klaas et al. (2001) and Lievens & De- As per Hatch and Schultz (2001), Balmer
Corte(2008), the decision about the HR activities and Greyser (2003), and Gilani (2011) corporate
outsourcing includes the reasons to decrease the brand is infact about people of the organisation; they
costs, get access to HR expertise, get employees assert that a corporate brand is not only made by the
easily and as per requirement and focus managerial perception of the customers but also by the
resources related to strategic issues. perception of its employees. Macrae (2001) argues
III RPO and Organisational Growth that employees play a very important part in the
through Branding corporate branding process. They are the main
According to Riel (2001) the corporate catalysts who make the corporate image through their
branding is the steadily designed and executed learning and capabilities. I
process of developing and maintaining the good V RPO impacts on Organisational
reputation of the company with its basic components Growth:
through sending the signals to stakeholders through Bishop et al. (2005) argues that the impact of
the behaviour, communication and imagery using the HR plans, processes and actions have incredible
corporate identity. impact on organizational growth. The HR activities
Ambler and Barrow (1996) argue that and actions impact on the brand both internally and
corporate brand or internal branding is always externally. Moreover, Gosti and Wilson (2001) say
evolving within the organisational activities, be it that HR practice like recruitment policies must align
outsourced recruitment or in-house. According to with the brand values in order to avoid conflicting
Balmer and Wilkinson (1991), Kennedy (1997), and messages. Furthermore, they highlight that
Schneider and Bowen (1985), the workers of any successful promotion of internal branding dependent
organizations are the actual interface between on HR initiatives created in marketing department
internal and external environment of the corporate and through involving the HR department in internal
brand through their behaviours and interactions. branding projects. In this manner, the
Hence recruitment of the right staff is very organisation can use the good communication in
much important and should be through experts as giving the understanding to the employees about the
they would have a direct contribution in building and corporate brand and their role in strengthening the
shaping the corporate brand and enhance the brand promise henceforth reducing the confusion
organizational reputation. regarding the brand because of any misleading
Similarly, according to Formburn et al. messages, if any. However, Hauser (2011) and
(2000) the reputation of a company is considered as Moroko and Uncles (2008) point out some issues
the net perception as the overall capabilities of regarding the RPO not successful in representing the
company to meet the expectations of all its corporate brand of the organization. This is the
stakeholders. According to Bosch, et al. (2006), possibly something that RPO providers require to
brand perception in the minds of the consumers is tackle as there is strong proof that corporate or
built by the employees. These perceptions are employer brand is critical in attracting the best
developed during the interaction of customers with workers. Rousseau (2001) asserts that if the subject
organization. of the brand message provides enough information
then it will help in improving the perception of the
IV Creating the Corporate Brand
organization by the recruiter. Additionally, as per
through the employees:
Tikoo and Backhaus (2004) the success of internal
According to Olins (2000) corporate brand is branding by any recruiter depends on the skilled level
built with the interaction of talented staff otherwise of newly hired employees, secondly, the percentage
termed as brand ambassadors that steadily and of turnover rate and thirdly, increase in productivity
consistently interact with the customers and other may also link with employer branding success. So
stakeholders and create a corporate image in the when outsourcers are fulfilling the image of
minds of customers with their attitude and corporate brand then it means the outsourcers are
behaviours.

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 strengthening the corporate brand of any Acid test TM of corporate identity management”,
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VI Gaps in Review of Literature Balmer, J.M.T. and Greyser, S.A. (2003)
Revealing the Corporation: Perspectives on Identity,
Ambler and Barrow (1996) explained that
Image, Reputation, Corporate Branding and
there is improvement in the performance of company
Corporate-Level Marketing. London: Routledge.
through employer branding while Witt and Rode
(2005) gave arguments about some important points Bishop, T. R., Aurand, T.W. and Gorchels, L.
which do affect the reputation of corporate brand and (2005),”Human resource management's role in
highlight the internal factors like human resource internal branding: an opportunity for cross-
management and employees but did not dwell deeper functional brand message synergy”,
into linking the concepts of RPO and corporate Journal of Product and Brand Management,
branding in must detail. Vol. 14, No. 3, pp. 163-169.
Capello and Constance (2011) explained the Bosch, J., et al. (2006), "The impact of brand
relationship of RPO with the corporate brand but they identity on the perceived brand image of a merged
did not mention that how the expertise of RPO in higher education institution: part two", Management
recruitment help in providing talented employees Dynamics, Vol. 15 No.3, pp.36-54.
who enhance the corporate brand of organization Clott, C.B.(2004),”Perspective on globe
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Hatch, M.J. and Schultz, M. (2001),”Are the
Yoon and Naadimuthu (1994) argued that the in-
strategic stars aligned for your corporate brand?”,
house human resource professionals do not have
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good knowledge about how to retain the employees
134.
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