An Unexplored Relationship: Australian Management Consulting and the Management of Human Resources

Abstract

Over the last two decades management consulting has enjoyed phenomenal growth and expansion; however, the activities and influence of consultants remain largely unexplored. This paper examines the relationship between the burgeoning management consulting industry and the management of human resources in Australia. Using a broad definition of 'human resource consult ing', the paper argues that the role of management consultants in human resource management has expanded significantly. The AWIRS 95 survey is used to examine factors affecting the use of consultants in employee relations. The findings suggest that consultants are more likely to be engaged by larger, overseas-owned workplaces, at head-office level, and in establishments seeking to improve productivity and employee relations. The data also suggest a possible link between the use of consultants and the outsourcing of elements of the human resource function.