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PERSONNEL OUTSOURCING AND ORGANIZATION’S COMPETITIVENESS

ABSRACT
The study sought to determine the nature of the relationship between personnel outsourcing and
organizational competitiveness, ascertain the extent to which commercial banks outsource their
personnel services, identify the areas in which commercial banks outsource personnel services,
determine the benefits from outsourcing personnel services. The study had a population size of
613, out of which a sample size of 242 was realized using Taro Yamane’s Formula at 5% error
tolerance and 95% level of confidence. Instruments used for data collection were questionnaire
and interview. A total number of 242 copies of the questionnaire were distributed while 191
copies were returned. The Survey research design was adopted for the study. The four
hypotheses were tested using Pearson product moment correlation coefficient and chi- square
statistical tools.

The findings indicated that there is a significant relationship between personnel
outsourcing and organizational competitiveness. Nigerian commercial banks always outsource
their personnel services. Recruitment of human resource, cleaning and security services are
areas in which Nigerian commercial banks outsource personnel services. Reduced cost,
improved quality and time-related advantages are benefits attributed to personnel outsourcing.
The study recommended that every organization that operates in a highly competitive
environment should embark on personnel outsourcing.

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