A large manufacturing organization uses several consulting firms to provide training programs, private staffing agencies to perform recruiting and selection activities, and a financial organization to handle benefits administration. This situation is an example of
A) outsourcing.
B) shared services.
C) decentralized work surveillance.
D) telecommuting.
E) offshoring.

Question

Quizplus · Accepted Answer

The situation described in the question is an example of outsourcing – a business practice in which companies hire contractors or external organizations to perform services that were traditionally done in-house. In this case, the manufacturing organization has hired several consulting firms, staffing agencies and a financial organization to handle training, staffing and benefits administration, respectively, instead of managing these functions themselves.

A Large Manufacturing Organization Uses Several Consulting Firms to Provide