Management communication and employee participation in the outsourcing process of BPI cash operations

• Main Author: Calingasan, Reynaldo C.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Management—Employee participation; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5026
• Institution: De La Salle University

Business leaders in different industries are in continuous search and quest to strategically improve processes and approaches. One popular approach for globalization and innovation is the outsourcing or the contracting out of the company’s non-core, non-revenue producing activities to specialized firms that possess expertise in the outsourced business function. It is generally better, faster and cheaper than an in-house capability. It has transformed into a tactical and strategic management tool for improving performance, cycle time, cost-savings, market share, productivity, customer service and quality performance in industries. For the financial services industry, most Philippine banks are still doing their operations in house. The Bank of the Philippine Islands (BPI) is the first local bank that moved into outsourcing the cash operations functions. The outsourcing of the residual cash operations functions of BPI in Metro Manila is a timely project and subject for action research. The action research team addressed employee resistance through effective management communication and more participation of employees in different stages of outsourcing. The results indicated that it is not outsourcing itself that the affected employees had difficulty with , but it was more of how they were given importance and involvement in the process.