Topic: Problems of outsourcing

1. Literature on the Theoretical Framework: Academic Books and Articles The theories and concepts that will be used in this critical literature review are those concerning organisational outsourcing and the problems that are concerned. These areas are discussed in various academic texts, which can be located by means of electronic subject and title searches of library catalogues. From completing these searches the following academic books have been revealed. A good reference source containing relevant information in this field is Rugman, chapter 3 (p.72) of: Rugman, Alan M, Donald J Lecraw and Laurence D Booth (McGraw-Hill 1985)

International Business Other academic literature found through library catalogue searches relevant to the topic: Katz, Donald R. (Holbrook, Adams Media, 1994) Just do it: the Nike spirit in the corporate world Goldman, R and Papson (SAGE, 1998) Nike culture: the sign of the swoosh Shaw, Randy (Berkeley, 1999) Reclaiming America: Nike, clean air, and the new national activism Bonacich, (Edna Berkeley 2000). Behind the label : inequality in the Los Angeles apparel industry

Literature by other authors was found when running searches for organisational behaviour: edited by Mike Smith Basingstoke : (Macmillan Education, 1991) Analysing organizational behaviour [edited by] Derek Adam-Smith and Alan Peacock. (Pitman, 1994) Cases in organisational behaviour From the lituratue found all of the information should be accurate and reliable as they are sources of reference and information and not fiction. All of the listings contain relevant information to give a wider understanding of the aspects involved within the topic. 2.

Company and Market Sector Information from Commotional Databases. The most useful commercial database for locating relevant information was ABI/Inform-ProQuest, especially when using the search option. A Title search of "Nike & outsourcing" produced 45,410 citations, but a similar search of "outsourcing" found a more manageable total of 30 articles. Some of the more significant articles located by these searches of ABI/Inform-ProQuest are referenced below. Hunt, Kevin D. ; MAI 42/02, DAI-A 64/11, p. 4036, May 2004 Ethos, texts, and technology: Nike and its critics on the Web

Williams, Heidi Michele; p. 486, Apr 2004 Smiling and lying: Corporate evasions of responsibility regarding global sweatshops Aaron Bernstein. Business Week. New York: November 8, 1999. , Iss. 3654; pg. 104 Cynthia Koury. Telegram & Gazette. Worcester, Mass. : Nov 18, 1999. pg. A. 1 Kelley Holland, Aaron Bernstein Business Week. (Industrial/technology edition). New York: May 25, 1998. , Iss. 3579; pg. 46. After years of pressure to stop abusive practices in Nike's overseas plants, CEO Philip Knight has decided to revamp labour policies.

He is also challenging other US companies to match his new standards. Business Week, a reliable well established source. Andy Bernstein. Sporting Goods Business. San Francisco: Dec 15, 1997. Vol. 30, Iss. 18; pg. 10, 1 pgs. Recent report from an Ernst & Young audit of a Nike Vietnamese factory outlined overtime violations and an excessive level of toxic fumes in the workplace. The leak of the report and the ensuing media coverage prompted Nike to hold a rare press conference to address the report and put it in perspective. Worthy Evans Bobbin.

Columbia: Aug 1998. Vol. 39, Iss. 13; pg. 8, 3 pgs. When Nike came under fire for allegedly contracting production to sweatshops earlier this year, the debate over how to best eradicate them surfaced stronger than ever. Nike has committed to a list of several initiatives that would improve factory conditions in all of its contractors' plants. There is, however, scepticism as to whether monitoring programs are going to turn the tide on labour law violators. Anonymous. Business Asia. New York: Jul 28, 1997. Vol. 29, Iss. 15; pg. 1, 2 pgs.

Nike's culpability for poor labour practices at its Asian plants remains an open issue. Other companies operating in Asia should take note and act quickly to prevent similar crises. Nike has been criticized for out-sourcing production to Asian factories that maintain sweatshop conditions. Nike's troubles amount to another example of an age-old dilemma: how to balance the dollars-and-cents demands of business against the enforcement of ethical practices. Hill & Knowlton, a US-based public relations firm, advises companies to be proactive instead of reactive with labour issues.

More crucially, Hill & Knowlton strongly advocates the hiring of local managers to break Cultural business barriers and to bridge local customs, something that Nike has acknowledged it failed to do. Robyn Fontes. Folio: The Magazine for Magazine Management. Stamford: 2000. pg. 112, 2 pgs. To stay competitive, publishers are outsourcing more – including production, circulation and even editorial. For example, last January, trade publisher Penton Media began for the first time to outsource reader service inquiries. Many small and midsize companies outsource to reduce costs or hold down costs of office space or computer equipment.

Cost savings alone should not be the only factor driving outsourcing decisions. Delivering quality product and service and bringing in quality people is a critical part of the equation. Magazines large and small find that outsourcing production allows them to take advantage of the latest computer-to-plate technology and improve the look of their magazines. In addition, it alleviates problems brought on by the short shelflife of software and the expense of upgrading equipment. Stephen A Huth. Employee Benefit Plan Review.

New York: Nov 1999. Vol.54, Iss. 5; pg. 18, 6 pgs. Outsourcing appears to have taken hold in employee benefits departments throughout the country, while rising benefits costs and the threat of further increases dominate the concerns of benefits managers themselves. A recent survey also found an increase in salary levels for benefit managers and for supervisory and clerical staff. The most dramatic increases were for benefits managers in companies with 5,000 or more employees. The top concerns of benefits managers include costs, staffing, and difficulties with outsourcing.