Professional in Human Resources (PHR) Practice Exam

Question: 1 / 575

Which of the following describes outsourcing?

A method for increasing employee salaries

A contract with an independent organization to handle specific functions

Outsourcing refers specifically to the practice of contracting an independent organization to perform certain business functions or services that might otherwise be conducted in-house. This approach allows companies to focus on their core competencies while leveraging the expertise and efficiency of external providers. By outsourcing, organizations can often reduce operational costs, improve service quality, and access specialized skills that may not be available internally.

On the other hand, increasing employee salaries pertains to compensation management, hiring permanent staff relates to recruitment strategies, and reducing employee benefits costs involves managing benefits packages. These concepts, while relevant to HR practices, do not align with the primary definition of outsourcing.

Get further explanation with Examzify DeepDiveBeta

A process for hiring permanent staff

A technique for reducing employee benefits costs

Next Question

Report this question

Download Professional in Human Resources (PHR) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy