workshop-5

Many companies hire service employees either by offshoring or onshoring. An onshoring is hiring employees domestically wherein they advantage such as ease of communicating, since you speak the same language, also easier counterpart risk assessments regarding to say legal dispute resolutions since the counter parties are local. Another benefit is political aspects where onshoring can help the local communities by providing jobs. Offshoring is when the companies hire service employees from abroad, where they can save on cost as the production of materials outside the country are many times cheaper than the local country. To go offshoring a company gets widen range of option in which sector they may go to hire employees, also going abroad can help in easier scaling of employees if in case there are not enough workers locally available.

Outsourcing janitorial service to a local company can help in cost saving. When one hires a new staff, they must train the new individual into the system and that costs money, by outsourcing the service provider already has established the required training required by the company so when they bring the outsourced person in, they can immediately start working with no extra cost. Another reason for outsourcing would be that if your staff that quits or becomes suddenly unavailable to multitudes of reason which would otherwise cost a lot of money to hire someone new and manage what previous staff has last left off on, and training them, the companies janitorial function will continue as is, as the service provider would have someone exactly what you would require immediately to replace the worker.

One of the ethical frameworks that could apply to my consideration of outsourcing is pragmatism. With pragmatism we can solve a practical problem via scientific method as per pragmatists such as John Dewey who used philosophy, science, and politics to solve issues. If we look at the problem where in the company wants to cost benefits in hiring the janitorial staff via outsourcing, they are approaching the situation without causing ethical distress in hiring and firing certain individuals or losing money and time over those let go. As mentioned by Susarla & Mukhopadhyay (2019) “the purpose of outsourcing is to usher in organizational or strategic transformation” (p.930) - Outsourcing service providers will take care of the exact required needs of the company and deal with staff replacement in case of someone being let go.  This would be the most practical and strategic way by outsourcing the janitorial staff.

The Fiduciary duties and social responsibility as play here is that the company this working with the owners needs and consent to cut down on operational cost by suggesting the way of outsourcing. It will help the company maintain the regular functions as is by outsourcing and without the ethical dilemmas in dealing with hiring and firing of individuals due to cost cutting.

 

 

References

 

Susarla, A., & Mukhopadhyay, T. (2019). Can Outsourcing of Information Technology Foster Innovations in Client Organizations? An Empirical Analysis. MIS Quarterly, 43(3), 929-A5. https://doi.org/10.25300/MISQ/2019/13535

 

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