I neeed help with HR Unit 5 IP

Running head: STRATEGY FORMULATION AND PLANNING 1

STRATEGY FORMULATION AND PLANNING 17

Human Resource Environment

Sandra Fitzhugh

American InterContinental University

Abstract

The report was prepared with the aim of analyzing the operations of the McKesson Company Human Resource department and activities and offer a suitable recommendation based on the research carried out on the company activities. The research undertaken sought to identify and determine the effectiveness of the company`s Human Resource department and what possible measures might be implemented to help increase the efficiency of the company personnel. The research carried out seeks to enhance the McKesson Company effectiveness in operations and overall service administration to its various clients. The report analyses the various human resource aspects such as compensation and benefits, diversity, leadership and business strategy, employee relations, talent management, technology, appropriate practices in human resource, ethics and corporate responsibilities among other essential human resource factors.

Benefits and compensation

The McKesson Company is a healthcare leader in America which seeks to provide

futuristic medical services through continuous developments in product development, distribution and service provision in the Healthcare industry. To achieve all these, the company seeks to maintain employee motivation levels through the implementation of various packages designed to motivate and retain the company`s personnel ("McKesson Company Profile from Hoover’s", 2016). All employees of the company are encouraged to inspire others by practicing and maintaining better health practices. The company bases its belief on the fact that a healthy employee will better serve patients and motivate patients to lead healthy lives by practicing appropriate healthcare lifestyles. McKesson employees are involved in mandatory daily healthy routines to motivate and enhance their participation in service provision to needy patients. Employees are given a conducive environment to work in, one that is stress-free and promotes healthy lifestyles as well. As a result of this, all employees are part of a healthy living diet promoted by the company to help maintain the health of its employees while transforming all personnel into ambassadors of healthy living. Additionally, all employees are given discounts on fitness programs in a bid to assist all members of the team achieve their individual health goals. Further, the discount in the fitness programs enables employees to maintain a flexible work-out routine between shifts, before work, after work or during breaks.

The employees benefit most from health care incentives given by the company. Such

incentives include, free screening, discounted gym charges and flu shots as well. The free screening is extensible to direct family members which seeks to promote a continuity of healthy lifestyle to the personnel`s kin. In addition to the flu shots, the employees are given medical cover by the company. This move by the McKesson Company seeks to promote employee welfare by securing the health of personnel and their respective family. Also, as one of Americas most profitable and productive businesses in terms of revenue, the company offers competitive package and bonuses to motivate employees to perform their functions without compromise. In addition to the competitive pay, the employees are also involved in wellness programs to promote healthy lifestyles and family activities to create a good and self-sustaining work environment. Therefore, the company not only seeks to provide healthcare options to its clients but also elevate the lives of its employees through consistent health incentives in the work environment.

Business leadership and strategy

The company has recorded immense returns in profits since the current C.E.O John Hammergren took over as chairman in 2001. Since his appointment as leader and C.E.O. Hammergren has transformed the company into a household name in pharmaceuticals, health technology solutions, and healthcare services as well. The revenues have exceeded $190 billion which is a quadruple of the initial turnover in revenues while catapulting the company to a top five position in Fortune 500("McKesson Company Profile from Hoover’s", 2016). The chairperson has received numerous accolades for his tremendous work in transforming the company into a health care powerhouse in both technology and distribution. Mr. Hammergren is a perfect example of the company`s strategies as he has gradually risen in ranks since his 1996 appointment to the company as a division manager ("Key Facts from Health Care Services Leader Key Facts McKesson", 2016). McKesson Company is a firm believer of promotional strategies in a bid to increase personnel productivity and commitment to the cause. Well performing employees are usually considered before external candidates to fill out positions that are crucial to the successful running of the business.

In addition to the C.E.O, the company also has a host of qualified vice president’s in

different departments to support the overall manager in running the institution. The McKesson Company has eight executive officers all reporting to the C.E.O. There company`s different departments are represented at the executive level with the human resource vice president being Jorge Figueredo. Also, the company has a business development and corporate strategy department led by Bansi Nagji ("McKesson Medical Supplies, Pharmaceuticals, & Health Services", 2016). The company leadership structure is focused on offering a reliable channel of communication as the executive officers have subordinates in the form of departmental managers who help manage the different department at the ground level. The McKesson bases its strategies on delegation and outsourcing where the top managers delegate various departmental tasks to their respective subordinates.

Diversity and inclusion

The McKesson Company believes that diversity is an integral part of its

operations and as a result have various incentives put in place to ensure that diversity is appreciated, and the company benefits from diversity as well. As a result of this, Hammergren has in his tenure as C.E.O established a council on diversity at the company executive level. The purpose of the Council is to participate in developing relevant company strategies to appreciate and accommodate diversity in all operations. Both line leaders and the corporate staff have been directly involved in diversity championing operations through the establishment of a diversity board that deals with advisory issues. Additionally, the company regularly participates in training programs for its employees and managers at different levels. The training programs are designed to educate both corporate and line staff on how to accommodate diversity in operations. Furthermore, in 2009, the company formed Resource groups for its employees spread across America to help absorb every employee and maximize the benefits associated with diversity.

The McKesson Company is a firm believer in diversity in operations and as a result has built a long-standing reputation for its commitment to equality and fairness in employment. Through the various incentives implemented by the company, McKesson remains as one of the most friendly and hospitable environments to work in. Additionally, the company has an inaugural inclusion and diversity report that details the C.E. O`s commitment to diversity and progress in inclusion ("McKesson Medical Supplies, Pharmaceuticals, & Health Services", 2016). The company reiterates its commitment towards excellence and equality especially in business culture and its role in developing the company.

Employee Relations

McKesson believes that its patients can only benefit from the company operations when the company itself has a healthy internal environment. This shows the dedication of McKesson to its employee relations. Every successful company must ensure that it has necessary input required to maintain the employee relations at a favorable level to minimize the instances of deviations in set targets. First, the company only seeks to higher extremely qualified individuals to ensure that work responsibilities are addressed prior to other activities. Therefore, the company has a position dedicated towards the management of the very important department. McKesson has a unique position of a consultant in the field of employee relations. The consultant is usually tasked with the responsibility of providing first level consultation and response for both seasonal and day to day employee concerns and relations. The consultant, in turn, reports to the manager in charge of employee relations.

Therefore, the employee relations manager is responsible for responding to both first level and non-third party issues that may arise in the ER. Additionally, the company shows consistent commitment towards creating a friendly environment to enhance employee performance. Furthermore, the company has appointed a consultant in its various branches to assist the manager in interpreting corporate policy and employment law in a bid to offer immediate guidance, clarification, and advice to employees when the need arises. Most importantly, the company believes that all disputes arising from employee work activities should be settled and consequently addressed with a solution that addresses posterity. McKesson has through its management activities proved the importance of managing personnel from a different managerial perspective hence its decision to create a department that seeks to follow up, monitor, regulate and define employee relations.

Ethics and corporate social responsibility.

As one of America`s leading companies, McKesson has a responsibility of ensuring that quality services and products are released to the public without exposing them to any risk whatsoever. The company in pursuit of maintaining its ethical obligation has developed a portal on its website whereby complaints and ethical regulations are communicated ("Leader in Corporate Citizenship McKesson", 2016). The platform allows for different stakeholders to communicate on issues they feel require investigation or addressing. Moreover, the portal also has a follow-up section where the complainant can follow up to see if the issue has been addressed ("Leader in Corporate Citizenship McKesson", 2016). Employees also have the ethical responsibility of ensuring they put client and patient interest first just as the McKesson Company interests itself in creating a good working environment. The employees can raise concerns over various issues arising at the work place that they feel requires addressing. Additionally, the McKesson policies prevent and prohibit retaliation against employees who out of good will communicate issues that go against the company policies. In addition to the integrity line, the company has a hotline number where employees can call and report situations that go against the company policy.

The company is aware of the image it has and consequently must strive to maintain. As a result of this, the McKesson participates in many charitable and social services that seek to develop the standards of life of various members of the community. McKesson`s outstanding commitment to corporate citizenship has overseen its participation in society welfare and outreach activities. The company through its shared principles actively supports those in need such as the elderly and abandoned, seeks to directly improve the complex healthcare system through innovations and developments. Moreover, McKesson is actively involved in environmental protection programs while striving to maintain diversity in its workforce through fair treatment of all employees. Therefore, through the aforementioned activities McKesson demonstrates its profound commitment and devotion to customers, corporate responsibility and the community on a daily basis.

Organization and employee development

McKesson is a company founded on the principles of personnel growth. This is made possible through the numerous training opportunities gifted to its employees targeted to improve both organizational and personal growth. McKesson believes that employee growth is directly related to company growth, and all employees should, in turn, receive equal opportunity for growth. Therefore, as McKesson develops its various strategies at the beginning of a financial year, the management through its executive superiors implements a training program designed to equip specific employees with additional skills to perform their tasks in a professional manner. Additionally, McKesson is keen on societal development as part of giving back and thus, believes that development should not be restricted to the organization only, but also spread out to the society by offering additional assistance to those in need.

Employees are the foundation of the company and must; therefore, receive health and lifestyle guidance tips from McKesson to enable them to spread out the message of healthy living while at the same time remaining motivated. Employees receive numerous benefits to improve both their personal and professional lives through health incentives such as subsidies on gym charges as earlier mentioned. The incentives given to employees prepare and equip them with necessary skills to cope with work-related stress and maintaining their level of aggression and motivation throughout all activities. Therefore, the organization develops by developing and improving the standards of its employees.

Talent Management

The company is ranked among America`s best places to work which is a direct representation of the company`s commitment towards talent management. The company has distribution of pharmaceuticals in America and Canada. The successful operations of the company are due to the brilliant management of available talent in the workforce. McKesson is known for its ability to utilize labor effectively by optimizing on talent. The McKesson workforce is divided into the respective departments they work under. Therefore, the company seeks to manage and retain the employees under its wings through various methods such as training and compensations (Werner, 2014). First, the recruitment process in the company observes a no canvassing rule which ensures that all personnel grilled are qualified for selection. The pool of applicants is then downsized to allow selection of qualified personnel. The recruited individuals are given various incentives and privileges as well to enhance their productivity. Such incentives are such as medical insurance, healthy meals at the workplace, free checkups and flu shots among other privileges. Additionally, the selected employees are in turn transformed into super performers through seasonal training and seminars designed to equip employees with relevant knowledge to conduct research and perform relevant tasks associated with the training. The strategic management of personnel enables the managers to obtain the maximum benefits of motivated employees which are crucial in achieving the various set goals at the beginning of the financial year. The company C.E.O Mr. Hammergren is an example of the company`s talent management principles whereby he climbed the ladder and received recognition for his tremendous contributions by receiving a well-deserved promotion.

Technology

The McKesson IT solutions have enormously contributed towards the success of the business. This is due to the company`s commitment towards empowering all its customers into strategically using IT solutions throughout the healthcare ecosystem. Similarly, the company has employed the strategic use of technology to enhance its human resource department. For instance, the company has the complaint and suggestion box in the form of a website where personnel can air out their concerns and receive instant feedback while following up on the issue. As a result of this, the communication in the company has been fluid owing to the various channels of communications in the company. Additionally, the company has a database that is used to record all employee contributions and achievements. The database is extremely helpful in identifying qualified from unqualified personnel for a promotion based on achievements in the course of performing his or her specific functions. McKesson usually applies its technological tools directly in its operations prior to selling or outsourcing to other healthcare providers. This means that the company benefits directly from applying its innovations in its management of both personnel and resources.

Practices in Human Resource management

Due to the large number of employees McKesson has, there is a need for a dependable human resource management system that will minimize costs. The company adopted an integrated human resource and payroll system designed to minimize the costs associated with managing human resource finances and payment systems. Modern day`s healthcare environment is competitive hence the need for appropriate tools for human resource management to help manage workforce planning, improve the satisfaction of labor, minimize labor costs and satisfy reporting and tracking requirements. The aforementioned system is important in helping the McKesson`s annual goals by managing labor from hire right to retire through record maintenance and department collaboration. The design of the system is such that it enables successful elimination of overhead costs in the form of third party additional costs.

The solution is empirical in leveraging labor information so as to meet all regulatory requirements and improve overall performance. Additionally, the website facilitates ease of access to information that may be needed by managers and employees. The system enables centralized financial reporting which is important in allowing multiple entries from different users. Additionally, the system posts and reports costs in labor in all the organizational levels which are important in maintaining a consistent database to enable proper personnel planning prior to the commencement of a financial year ("McKesson Medical Supplies, Pharmaceuticals, & Health Services", 2016). The system is important in the management of complex payrolls by clustering different payrolls based on their frequency and bracket. In addition to managing complex organizational payrolls, the system extends the participation of the human resource through the access of self-service in the platform. Most importantly, the system enables ease in interviewing, hiring, enrolment and employee support.

Conclusion and recommendations

The human resource incentives offered by the McKesson Company to its employees are the main reason for its success in both management and operations. McKesson, through its reliable management, has managed to develop a system that manages both payroll and the human resource function to enable the company to perform at an optimum level while significantly reducing administration costs. The talent management criterion has led to increased motivational levels to the employees while the leadership structure has enabled the company to develop annually. Also, the commitment of McKesson in giving back to the society and upholding ethical observations as well has seen the company rise gradually into one of the world`s finest brands. The McKesson Company can increase employee participation in welfare and outreaches as a form of giving back to the society. Additionally, the McKesson should increase the number of promotions instead of external recruitment as a way of improving personnel motivation.

References

McKesson| Company Profile from Hoover’s. (2016). Hoovers.com. Retrieved 28 August 2016,

from http://www.hoovers.com/company-information/cs/company-profile.mckesson_corporation.799b312b86da2ecd.html

Key Facts from Health Care Services Leader | Key Facts | McKesson. (2016). Mckesson.com.

Retrieved 28 August 2016, from http://www.mckesson.com/about-mckesson/key-facts/

Leader In Corporate Citizenship | McKesson. (2016). Mckesson.com. Retrieved 28 August 2016, from http://www.mckesson.com/about-mckesson/corporate-citizenship/leader-in-

corporate-citizenship/

McKesson | Medical Supplies, Pharmaceuticals, & Health Services. (2016). Mckesson.com.

Retrieved 28 August 2016, from http://www.mckesson.com/

Werner, J. (2014). Human Resource Development ≠ Human Resource Management: So What Is It? Human Resource Development Quarterly, 25(2), 127-139.

http://dx.doi.org/10.1002/hrdq.21188