1. Healthcare Human Resource Management Flynn Mathis Jackson Langan
Strategic HR Management
Chapter 3
PowerPoint Presentation by
Tonya L. Elliott, PHR

2. After you have read this chapter, you should be able to:
Learning Objectives
After you have read this chapter, you should be able to:
Describe why a strategic view of HR is important
Discuss HR as an organizational core competency
Explain how HR planning contributes to the attainment of organizational strategies and objectives
Define HR planning in healthcare organizations
Identify three HR management challenges found in healthcare organizations

3. Strategic HR Management
Strategic HR management uses employees to help an organization gain or keep a competitive advantage against its competitors.
A core competency is a unique capability in the organization that creates high value and differentiates the organization from its competitors.
Is HR a Core Competency?

4. HR – A Core Competency People become a core competency
through HR activities:
Attracting & Retaining
-- Employees with unique professional and technical capabilities
Training & Development
-- Employees with the most up-to-date skills
Compensation Plans
-- Providing competitive compensation plans to retain talent

5. The Importance of Organizational Culture
-- the shared values and beliefs of a workforce
Company Organizational Organizational
Strategies Culture Success
Company Organizational Organizational
Strategies Culture Failure
Mismatched culture/strategy can create barriers to the use of individual capabilities.

6. HR strategic planning…
The process of analyzing and identifying the need for and availability of human resources in order to accomplish the organizational objectives.
HR strategies…
The means used to aid the organization in managing the supply and demand for employees.

7. Scanning the External Environment
Environmental scanning…
The process of studying the environment of the organization to pinpoint opportunities and threats.

8. Environmental Scanning: Supply of Labor
Workforce Composition and Work Patterns
Changes in workforce composition
Flexible work schedules and locations
Office nomads – work part-time in office, part time at home
Telecommuting – working via electronic computing & telecommunications
Virtual offices – and office that is movable (wherever they are)
Less employee supervision

9. Environmental Scanning: Supply of Labor (cont’d)
Geographic and Competitive Concerns
population fluctuation
other employers and competitors in the area
employee resistance to relocation
Economic Conditions
recession & booms
affects worker availability
affects staffing and compensation decisions
Government Influences
expanding and bewildering HR laws
safety, confidentiality, and funding regulations

10. Internal Assessment A study of: The jobs that need to be done
The skills of people currently available to do them
Compare the needs of the organization
against the labor supply available.
Human Resource Information Systems (HRIS)
-- an integrated system designed to provide information used in HR decision making

11. Forecasting Data gathered from
External environmental scanning + Internal Assessment
Forecast HR supply & demand
(in light of organizational objectives & strategies)
Short-range
Intermediate
Long range

12. Forecasting Methods Estimates
“How many people will you need next year?”
Rules of Thumb
General guidelines applied to a specific situation in the organization
Delphi Technique
Expert opinions through rounds of anonymous questionnaires resulting in ultimate agreement
Nominal Group Technique
Experts meet face to face and opinions are compiled in a report
Statistical Regression Analysis
Statistical comparison of past relationships among various factors

13. Successful HR Planning
Strategic Alignment
HR plans and programs aligned with organizational strategies and objectives
Purposeful & Measurable
No ambiguity in purpose & ability to track progress
Clearly Stated
Well documented, thoroughly discussed, & updated annually

14. HR Strategic Planning Process
Figure 3-2

15. Inputs to the Healthcare HR Strategic Plan
Figure 3-5

16. Healthcare Trends & HR Planning
American Hospital Association (AHA)’s 7 strategic HR implications:
Healthcare is fundamentally about people caring for people
Women have greater options
Healthcare leaders must view their human resources as a strategic asset
Preferred work arrangements require broader perspective on employee relations to build loyalty and sense of stability
Education needs of healthcare workers are a critical issue
New technologies should allow for focus on care giving & support
Workforce will only expand if hospitals can recruit from the general economy

17. Healthcare HR Management Challenges
Workforce Availability and Quality
Inadequate supply of workers with needed skills
Tight labor markets (low unemployment rates)
Shortage of healthcare workers
Use of contingent workers increasing
temporary employees
independent contractors
leased employees
part-time employees

18. Healthcare HR Management Challenges (cont’d)
Economic and
Technological Change
Shift from manufacturing
and agriculture to service
industries and
telecommunications
Some industries reducing # of employees
Some industries attract & retain greater # of employees
Need employees with different capabilities than before

19. Occupational Shifts
Figure 3-6

20. Healthcare HR Management Challenges (cont’d)
Diversity
More women in the workplace
Aging of the workforce
Employing individuals with disabilities (ADA)
Employing individuals with differing sexual orientation
Balancing work and family

21. Healthcare HR Management Challenges (cont’d)
Organizational Restructuring
Response to lower revenues & higher cost pressures:
Eliminating layers of managers
Closing facilities
Merging with other organizations
Out-placing workers
Result
Redesigned jobs & affected employees

22. Organizational Productivity in Healthcare
Healthcare HR Management Challenges (cont’d)
Organizational Productivity in Healthcare
Productivity is a measure of the quantity and quality of work done, considering the cost of the resources it took to do the work
Organizational input vs. Organizational output
Measure by: total cost of people per unit of output

23. Healthcare HR Management Challenges (cont’d)
Organizational Productivity Improvement Approaches
Outsourcing
Making workers more efficient with capital equipment
Replacing workers with equipment and technology
Helping workers work better
Redesigning the work