Ernesta Stasiulytė

Master of Business and Administration

Faculty of Social Sciences

Kaunas University of Technology

MOTIVES OF HUMAN RESOURCE MANAGEMENT OUTSOURCING: A CASE STUDY FROM LITHUANIA

ernesta.sta@gmail.com

ABSTRACT. This article analyzes main motives of human resource management outsourcing. By many authors, outsourcing is associated with increase of company’s competitiveness, innovation, efficiency of activity etc. As human resource management is not the main activity of a company it can be transferred to services suppliers of the external form. These services have been recently put into market in Lithuania that is why it is important to discuss what motives encourage Lithuanian companies choose services’ outsourcing of human resource management. To reveal these motives, case of the distinctive Lithuanian trading company UAB (Ltd.) “Laimalukss” was chosen and this case shows choice of HRM services outsourcing through the aspects of benefit for the company, employees and influence of competitiveness.

Received: February, 2011

1st Revision: May, 2011

Accepted: June, 2011

JEL Classification:  O15, M12, P2

Keywords: outsourcing, human resource management, motives of outsourcing, Lithuania.