make-or-buy

The decision to ‘make or buy’ the human resources needed by an organization is fundamental to employee resourcing. Where the choice is to ‘make’ resources then the company will provide stable, open-ended employment and build necessary skills through training and development. Where the choice is to ‘buy’, in contrast, skills will be provided through subcontracting or reliance on a contingent workforce. [See also flexible firm model and human resource architecture.]