Project Abstract

This study focuses on the effect of Outsourcing human resources on organizational performance in selected quoted deposit money banks in Enugu state, Nigeria. The objectives which guided the study were to determine the nature of the relationship between man-power development and organizational productivity in selected deposit money banks in Enugu state Nigeria, to access the effect of innovation on customers’ satisfaction in selected deposit money banks in Enugu state, Nigeria, to examine the effect of cost reduction on organizational market share in selected deposit money banks in Enugu state, Nigeria, and to investigate the relationship between employees’ focus on core-activities and organizational competitive advantage in selected deposit money banks in Enugu state, Nigeria. The descriptive survey design research methodology was adopted for the study. A five point Likert scale-type questionnaire was constructed, and administered among staff of selected money deposit banks in Enugu state, Nigeria, manually. The research hypotheses were tested using Pearson production moment correlation coefficient and linear regression with the aid of SPSS (statistical package for social science). The results of the analyses showed that there is positive significant relationship between man-power development and organizational productivity (r = 0.712, p<0.05),product innovation has significant effect on customers’ satisfaction (r = 0.823, p< 0.05), cost reduction has positively affected organizational market share (r = 0811, p <0.05); and there is significant relationship between employees’ focus on core-activities and organizational competitive advantage ( r = 0.6r11, p <0.05) in selected deposit money banks in Enugu state, Nigeria. The study therefore, concluded that the effect of outsourcing human resources on organizational performance in selected deposit money banks in Enugu state, Nigeria has repositioned organization for diversification of their resources into others profit making ventures, specialization, cost cutting, employees’ focus on what their core-competencies are, operational control, flexibility, access to superior expertise, efficiency and effectiveness. Some of the recommendations made in this study are Banks should outsource only their activities on the periphery to enable employees’ focus on what their core-competencies are, The employees of an organization should not see outsourcing as a threat to their job; but as a catalyst for change, Companies that outsource should continue to monitor the contractor’s activities in other to establish constant communication.

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