Page 173 - Budgeting for Managers

Budgeting for Managers
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vendor manages hiring and payroll, but the company manages
the people as part of the department.
In using outsourced services, the company has the vendor
provide the service and the vendor runs the department or team
using its own management methods and structure, which may
be different from those of the company that is hiring the out-
sourced service. The vendor provides the people and also man-
ages them for the company.
This can be done in several ways:
• Particular departments may be outsourced. Commonly,
companies outsource support services that are not
directly related to the core business. Some common
examples are the mailroom, maintenance staff, and
computer support services.
• Body shops may be used to allow quick expansion and
contraction of extra staff. A department may have a
core staff of permanent employees supplemented by
additional staff during peak seasons or times of high
work demand. When demand drops, the outsourced staff
are not retained, but they continue to work for their
employer on other jobs.
• Outsourcing may be used for particular jobs, such as
traveling sales or field representatives.
If you are moving to a new management position, be sure to
find out who makes human resources, body shop, and out-
sourcing decisions. Find out if you are responsible for any HR-
related responsibilities, including hiring, performance reporting,
and job definition. This will determine the degree of departmen-
tal control—that is, how much control you, as a department
manager, have over staffing decisions.

Departmental Control

If you have departmental control, then you will be making deci-
sions about jobs, job definitions, and staff positions. Even so,
you will not be responsible for the routine work of HR services.