Strategic human resource management in employees’ productivity for selected South African business process outsourcing companies
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Date
2024
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University of the Western Cape
Abstract
The business environment has experienced rapid growth in the past few years. This growth is owed mainly to the impact of several factors such as the globalization of the economy, the dynamic customer demands, the technological advancement, and aggressive market competition. If a business entity wants to achieve its business objectives in such a turbulent market, it needs to develop and adopt strategies to enhance the quality and efficiency of the products or services it offers. Nevertheless, some companies are known to engage in the provision of services without any form of physical buying and selling of products through information dissemination. These types of companies are known as service companies. This study intends to focus solely on service companies which outsource their businesses. These service companies are known as business process outsourcing (BPO). They mostly use their personnel as their main tool to render their services. For such companies, people are considered to be the cornerstone of the success of the business. That is why the strategic human resource management (SHRM) framework plays a crucial role in facilitating the organization to boost employees’ performance and achieve its objectives. The aim of this study is to explore the role of SHRM in employees’ productivity for BPO companies operating in South Africa. In addition, this study seeks to empirically establish whether an improvement in SHRM will improve employees’ productivity for BPOs. There exists a considerable body of pertinent literature on strategic human resource management. However, from the researcher review of these available literature, there is insufficient or limited South African literature on SHRM applied to BPOs. This study intends to fill this gap by contributing to the literature on SHRM for BPOs operating in South Africa. Primary data were collected using semi-structured interviews guided by a qualitative research method. The researcher interviewed randomly 1 BPO from the 5 major South African cities: Johannesburg, Pretoria, Cape Town, Durban, and Port Elizabeth. The researcher interview 3 people per company: The HR manager or his representative, a manager in operation, and 1 employee. The results showed that the SHRM can be used as a tool to trigger employees’ productivity for BPOs operating in South Africa.
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Keywords
Strategic Human Resource Management (SHRM), Employee productivity, Business Process Outsourcing companies, South Africa