EE1- 542

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9/9/2013

John White Dept. of Public Health

CHALLENGES AND OPPORTUNITIESCHALLENGES AND OPPORTUNITIESCHALLENGES AND OPPORTUNITIESCHALLENGES AND OPPORTUNITIES

Human Resource Management

Drucker:

Problems are

opportunities

to excel.

Challenges

• Workforce

– Expanding

– Shrinking

– Changing

• Technology

– Pace of change

– Delivery of care

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Challenges: con't

• Authority v. Responsibility

– Greater responsibility

– Authority for change rests elsewhere

• Effectiveness

– Still important but…

• COST

Organizations are Flatter/Fatter

Importance of HRM

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Human Capital #1 Global Challenge

Focus on Basic HRM

Expanding Work Week

1660

1680

1700

1720

1740

1760

1780

1800

1820

1840

1860

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Global

data extracted on 09 Sep 2013 20:09 UTC (GMT) from OECD.Stat

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Manage Everyone!

• Manage Employees

• Manage your Boss

• Manage other supervisors

• Manage patients/clients

Stakeholder Model

"Core Process"

• Job analysis

• Recruitment/retention

• Selection/placement

• Payroll

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Job Analysis

• What is it people do?

• Employee focused

• Consultants

• Theory based

• Basis for all other functions

Recruitment & Retention

• Focus of federal legislation

• Costs of replacing workers

• Retention efforts

Selection and Placement

• Civil Rights Act

• ADA

• Mechanistic model

• Matrix organizations

• Job Ladders

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Diversity Efforts

Traditionalists (1925-45)

• See boomers as disrespectful, overly

blunt, too "warm and fuzzy"

• See busters as very young, impatient,

unethical

Boomers: (1946-1964)

• See traditionalists as by-the-book, overly

cautious, conservative, inflexible

• See busters as selfish, manipulative, aloof

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Busters: (1965-75)

• See traditionalists as old, outdated, rigid

• See boomers as workaholic, unrealistic, disgustingly "new age"

Millennials

• Work/life balance important

• Technology is good

• Faster career progression expected

• PWC – 38% saying that older senior management do not

relate to younger workers

– 34% saying that their personal drive was intimidating to other generations.

– half felt that their managers did not always understand the way they use technology at work.

Training and Development

• CEU and licensure

• New equipment

• Methods

• Standards

• New managers?

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Performance Appraisal

• Nobody enjoys this

• Supposed to be about improving

performance

• Mostly about distributing rewards

• Focus on negatives

• Bias

Compensation

• Compensation is more than just pay

• "Perks"

• Retirement

• Health Insurance

• Changing Expectations

Labor Relations

• Increased union activity

• Cost always increases

• Management doesn't always listen

• Avoidance

• Negotiation

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Outcomes

• Employee:

– Retention

– Satisfaction

• Organizational

– Effectiveness

– Efficiency

Future Directions?

• Outsourcing

• Matrix for real?

John White Dept. of Public Health

STRATEGIC HUMAN RESOURCES STRATEGIC HUMAN RESOURCES STRATEGIC HUMAN RESOURCES STRATEGIC HUMAN RESOURCES

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENT

Chapter 01

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Strategy:

• Built without HRM input

• Left to implement

• Personnel impression

Topics in this Lecture

• Strategic HR Management

• HR Best Practices

• The SHRM Model

• Organizational Mission and Corporate Strategy

• Measuring the HR Function

• The HR Brand

• A Strategic Perspective on HR

Strategic Human Resources Management

(SHRM)

• SHRM: the comprehensive set of managerial activities and tasks related to developing and maintaining a qualified workforce needed to achieve organizational effectiveness

• HR strategies support business/corporate strategies

• Managing people strategically is crucial in enhancing organizational performance

• All healthcare executives are human resources managers

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Significance of SHRM

• Having human resources with the right skills at the right time does not happen by accident (see opening vignette) – Some may not always be available on the market – Those available may be lacking in the requisite skills, training, or service

orientation

• To maintain or enhance organizational performance, healthcare organizations should always consider: – employee recruitment

– selection – retention

– training – performance appraisal

– compensation

• Organizations should also consider legal issues and environmental factors that affect the management of human resources

Benefits of SHRM

• Competitive advantage over other

healthcare organizations

• As a result of SHRM, enhanced employee

satisfaction can:

– Improve clinical outcomes

– Enhance service quality

– Increase market share

– Improve financial returns

Seven HR Best Practices

• Pheffer (1998)—Practice for effective organizations:

– Provide employment security

– Use different criteria to select employees

– Use self-managed teams and decentralization

– Offer high compensation contingent on performance

– Train extensively

– Reduce status distinctions and barriers

– Share financial performance information

• Do these practices make sense? Why or why not?

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“Old” vs “New”

Performance Appraisal

Uniform appraisals Customized appraisals

Control-oriented appraisals Developmental appraisals

Supervisor input only Appraisals with multiple sources

Planning Cycle

• Situational assessment

• Strategic choice

• Implementation

• Control

Model of HRM (fig. 1-2)

• Notice sequential flow

• Organization into separate tasks

• Outcomes

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HRM fits in…

• Implementation?

• All four phases – SWOT of workforce and environment

– Best use of Human Capital

– Assignment of employees to tasks

– Design of reporting relationships/organization

The Model: Situation Assessment

Internal Assessment • Strengths • Weakness • Portfolio of Service

Markets • HR KSAs • Internal Systems

Organizational Mission • Purpose • Mission • Business Unit

Environmental Assessment • Opportunities • Threats • Service/Markets • Technological Trends • Legal/Regulatory Climate • Economic Conditions • Labor market

Organizational Strategy

Formulation • Corporation • Business • Functional

HR Formulation

(Tactical/Operational)

HR Strategy Formulation • HR Goals/Objectives • HR Process Systems � HR Planning � Job Analysis/Job Design � Recruitment/Retention � Selection/Placement � Training/Development � Performance Appraisal � Compensation � Labor Relations

• Organizational Design/Culture

• Technology/Information Systems

• Workforce

Formulation of Other Functional

Strategies • Accounting and Finance • Marketing • Operations Management

Implementation of other functional

Strategies

HR Strategy Implementation • Management of

Internal and External Stakeholders

• HR practices and tactics to implement, such as adequate staffing

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Outcomes/Metrics

HR Outcomes • High Competence • High Motivation • Positive work-related attitudes • Low employee turnover • Organizational commitment • High Satisfaction

Organizational Outcomes • Competitive advantage • Financial performance • Legal compliance • Attainment of strategic goals • Satisfaction of key stakeholders

The SHRM Model

What HR problems might occur if any of the above steps were not implemented

by a healthcare organization?

The HR Brand

• A brand refers to the organization’s image or culture from the perspective of the general public or potential customers or employees. The brand reflects the organization's: – Corporate image and culture – Purpose – Type of people hired – Results it recognizes and rewards

• The purpose of the HR brand is to attract and retain the best employees and ultimately achieve competitive advantage.

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Who Performs HR Tasks

• Human resource managers

• Line managers – Recently assuming more responsibility in HR

functions

• HR departments more concerned with financial performance and strategic issues while delegating more routine HR functions to line managers. – HR executives are more likely to be members of

the executive team

Strategic Perspective of HR

• What are the potential advantages of any of the current HR practices as opposed to the old HR practices for a typical healthcare organization (see Exhibit 1.2)?

• Name one organizational outcome (i.e., competitive advantage), and indicate how and why one or more human resource practices might positively affect that particular organizational outcome (see Exhibit 1.3)?