Inter-Organizational Communication Processes Related to Human Resource Outsourcing: A Case Study of Lamina Graphics Corporation (LGC) and Triple Star Staffing Center, Inc. (TSSCI)

Abstract

Human resource outsourcing is a relatively new way of partnership between organizations. It is the process by which an organization subcontracts manpower from outside organizations. Nowadays, when most business organizations are becoming more competitive and highly profit-oriented, some companies are finding ways to cut their operational costs. In doing so, they realized that outsourcing their human resources is more cost-effective than employing internal staff. It would not just lower their production costs but will also avoid labor union-related problems. There are now a lot of companies embracing human resource outsourcing. This paves a way to inter-organizational communication between a company that outsources human resources and the service enterprise that provides manpower. However, the nature of these communicative interactions between organizations has not been clearly defined and until now, is not yet fully understood. Hence, this study seeks to describe the inter-organizational communication processes apparent between companies related to human resource outsourcing. The researcher therefore addresses this problem: “How does inter-organizational communication occur between Lamina Graphics Corporation (LGC) and Triple Star Staffing Center, Inc. (TSSCI)?” Given this problem, this study will attempt to answer the following questions: 1) What are the profiles of TSSCI as an employment agency and LGC as its client? 2) What is the nature of their relationship (length of partnership, contract or formal agreement and special arrangements) and interactions? 3) Based on their communicative interactions, what are the predominant directions and messages? 4) What are the channels used in this communicative interactions? To gather the data for this study, the researcher used an exploratory-qualitative method of research. It employed interviews and participant observations. The data were obtained from the representatives of both organizations during communicative interactions. The data were analyzed through thematic analysis and organization of data in descriptive narratives. The data revealed that communication, a daily and monthly activity between LGC and TSSCI, has been more face-to-face than through phones and written messages. This is because TSSCI deployed a coordinator holding office with the HR personnel of LGC, Thus, most of the communicative interactions between LGC and TSSCI are mediated by the coordinators. In sum, it is concluded that most of the communicative interactions occurring between LGC that subcontracts workers and TSSCI that provides manpower to the former are coordinator-mediated.