Question

Which of the following HR activities is MOST likely to be outsourced successfully?

a: True/ False 401k administration
b: True/ False risk management
c: True/ False union contract negotiations
d: True/ False performance management

Answer 1

401k administration is the most likely HR activity to be successfully outsourced.

Step-by-step explanation:

Outsourcing is a common practice in businesses to reduce costs or gain access to specialized expertise. When considering which HR activities are most likely to be successfully outsourced, one must consider the complexity and level of expertise required for each activity. In this case, 401k administration is the most likely HR activity to be outsourced successfully.

401k administration involves managing employee retirement plans, which can be a complex and time-consuming process. Outsourcing this activity allows companies to leverage the knowledge and experience of specialized firms that focus exclusively on retirement plan administration. These firms have the necessary infrastructure, expertise, and systems in place to efficiently manage 401k plans.

On the other hand, activities like risk management, union contract negotiations, and performance management require a deeper understanding of the company's internal operations, culture, and objectives. These activities are better suited to be handled internally by HR professionals who have a comprehensive understanding of the organization's goals and policies.