MNE should stop outsourcing to developing countries 2 Assignment

MNE should stop outsourcing to developing countries 2 - Assignment Example The information collected will then be analyzed using tables and graphs. As competition continues to be tough, organizations are seeking to counter challenges presented by the ever-changing environment by frequently coming up with strategies that will ensure effective performance. One of such strategies is outsourcing. Outsourcing refers to the practice of entrusting part or whole of an organization’s function or process to a supplier. There has been great concern regarding the negative impacts that such a move can pose to an organization in terms of employee performance. For instance, Rosheen and Hammayoun assert that the practice of outsourcing may lead to grave effects on employee commitment and loyalty because the outsourced agencies may not be well aware of the organizations culture, values, and goals. The term â€Å"Multinational Enterprise (MNE)† denotes a kind of firm, which has its headquarters in only one country but has operations in several other nations. In other words, organizations’ that have their own production and/or service accommodations in one or more than one nation apart from home country is known as a multinational enterprise (Dunning and Lundan 3-5). Organizations strive to cut on costs by employing the outsourcing technique in order to stay competitive as well as maintaining a strong financial base. However, Bockerman and Marilanta suggest that the short-term costs occasioned by adjustments as a result of outsourcing, lead to resentment from employees. This will in turn have negative effects on the level of job satisfaction among the employees of an organization. In this regard, it is observed that outsourcing has become a key strategy for the multinational enterprises. In accordance with Wladimir Andreff (2009), multinational enterprises strateg ies are actually influenced by certain theoretical models; among them John