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

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

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?

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

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.

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.

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

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

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

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

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

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

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

HR Strategic Planning Process Figure 3-2

Inputs to the Healthcare HR Strategic Plan Figure 3-5

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

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

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

Occupational Shifts Figure 3-6

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

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

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

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