64 Information Management and Business Review Vol. 4, No. 2, pp. 64-71, Feb 2012 (ISSN 2220-3796) Analyzing the Consequences of Bad Outsourcing on Human Resources in Iranian Public Organizations Ali Asghar Pourezzat 1 , Elham Heydari 1 , * Nader Seyed Kalali 1 , Ghazaleh Taheri Attar 2 1 University of Tehran, Iran 2 Allameh Tabatabai University, Iran * Nader_Kalali@ut.ac.ir Abstract: The purpose of present research is to compare the status of perceptional and behavioral consequences on employees who serve in bad-outsourced departments of one of Iranian public organizations and the status of consequences on those employees who serve in non-outsourced departments of the same organization. In this line, such variables as organizational justice, organizational commitment, organizational identity, job security and anti-citizenship behaviors are compared between two groups of staff. The findings show that the rate of organizational justice, organizational commitment, organizational identity and job security among those employees who serve in bad-outsourced sectors is lower than similar variables among non-outsourced ones. In the meantime, there is no significant difference between groups in terms of anti- citizenship behaviors variable. Noteworthy, present study was conducted in summer and fall 2010 in Iran. Keywords: Bad Outsourcing, Organizational Justice, Organizational Commitment, Organizational Identity, Job Security and Anti-citizenship behaviors 1. Introduction It is a long time that outsourcing has been considered as a solution to remove old bureaucratic dysfunctions by administrative theorists while it has caused new dysfunctions. The biggest problem in this arena is non- successfulness of governments in fair outsourcing, so that in many cases, national resources and facilities are assigned to private sector too cheaply. The result is irrevocable damages to wealth distribution. Due to assigning some exclusive advantages, new dealers have been emerged between work force and government. They have founded a modern slavery to decrease the costs and to increase their profits, so that in new system, workers never enjoy job security and have to do anything to survive. Thus, the preliminary aims of outsourcing such as competition development in the market, job creation, cost mitigation and productivity increase will be never achieved and a part of services already provided by government in lower costs is assigned to private sector to be delivered with higher prices and costs! Denhardt believes that government is not responsible to row, since providing services by governments is in contradictory to optimization and productivity principles. He also states that government is not responsible for steering since citizens should achieve a level of maturity to play the role of a leader (Denhardt, 1999). Therefore, Denhardt emphasizes that a major part of government’s time should be allotted to build the boat (Denhardt, 1999), But In the current method of privatization in Iran, the government does not row, does not steer and does not build the boat; actually, they lend the boat! In fact, government is not an intelligent seller; and does not choose the suitable alternative in terms of cost and benefit. In recent years, a part of public services along with relevant employees is assigned to contractors. These contractors look for more profit without any responsibility and accountability. If continues, it would pose irrevocable damages on domestic administrative structure and its work force. Hence, maybe the only method to entrust the productivity of new emerging Iranian contractors is to control and monitor their performance. The negative effects of this kind of outsourcing are too many to go into, but, to name a few, researchers in the present study, try to investigate the consequences of “Bad Outsourcing” on perceptions and behaviors of employees. Organizational justice, organizational commitment, organizational identity and job security as perceptional outcomes and organizational anti-citizenship behaviors as the behavioral consequences of “Iranian Style Outsourcing” are studied variables in present research. So, the major question