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Economic Analysis and Application Practice of Outsourcing of Human Resources Management

This paper studied the outsourcing of human resources management from economic view. The theory of transaction cost, game theory and the principal-agent theory were used to study decision making, monitoring and incentive compensation of the outsourcing for the service provider. The essentials of human resources management outsourcing were analyzed and summarized. The aim of this study is to provide some reference of human resources management for increasingly internationalized Chinese enterprises.