Human resource management (HRM) is the process of managing human resource and it is actually designed for maximizing the productivity of the employees for enhancing overall organizational productivity. The purpose or aim of this study is to explore various HRM theories and concepts for effective management of human resource. Effective human resource management is extremely important for enhancing the overall organizational productivity.
The study will recommend various ways to the CEO of the first hospital in the case study for improving their HRM practice. The study will also analyze various features for building sustainable human resource capability.
Improving HRM in First Hospital
Developing Separate and Dedicated HR Department
The prime issue in the first hospital of the case study is that it does not have any separate and dedicated human resource (HR) department. The CEO and finance manager are currently running the HR functions. They are virtually developing all of the HR functions in the hospital. In such situation, lack of proper HR knowledge of these managers is actually driving problems in human resource management (HRM). In such situation, the CEO of the hospital should build a dedicated and separate HR department for managing the human resources. According to Jackson et al., (2014), proper HR management needs a HR manager, who has extensive knowledge in his domain area. Therefore, this hospital should also have a senior manager for managing the human resource properly.
Negotiation and Collaboration
Without having a knowledge and senior HR manager, the hospital has become incapable of handling the disputes of the employees. In this way, increasing industrial disputes is ultimately becoming the reason for employee frustration and de-motivation. According to Brauns, (2013), negotiation and collaboration is way, where both employers and employees come into an agreed point for resolving conflict between them. This hospital should also adopt negotiation and collaboration process for resolving the conflicting situation at the workplace. On the other hand, Kramar, (2014) opined that negotiation and collaboration find the root cause of the problem and attend the conflicting situation in least confrontational manner. Therefore, the hospital should immediately adopt negotiation and collaboration for resolving its industrial disputes.
Supportive Managerial Practice
Lack of proper human resource management in this hospital ultimately cause challenges for the quality care and even causing serious accidents involving staffs and patients. Moreover, the employees are not getting proper managerial support handling critical care of the patients. In this way, such ineffective managerial support causes staff grievances in the hospital. According to Alfes et al., (2013), supportive managers are always intended to provide kind support to the employees, which enhance employee morale and their association with organizational success. Therefore, the CEO and HR department of the hospital should be concentrated on providing supportive managerial practice to the employees in solving critical tasks. On the other hand, Kehoe and Wright, (2013) pointed out that supportive managers always show concern for the issues of the employees. It actually enhances the motivation level of the employees. Therefore, the CEO of the hospital should be very much concerned about initiating supportive managerial practice for reducing staff grievance.
The reason behind increased staff grievance and industrial disputes of this hospital can be the lack of effective communication with the staffs. According to McDermott et al., (2013), effective communication assists an organization in establishing clear expectation with the employees. Therefore, the employees can better understand their job responsibilities by avoiding any role conflict. Likewise, the CEO of the organization should also initiate flexible communication for better communication of job roles to the staffs. It will encourage the staffs in better concentrating on their jobs and reduce de-motivation level. On the other hand, Sheehan, (2014) opined that flexible communication assists the employees in sharing their issues with their supervisors. Therefore, the CEO and the HR department of this hospital should initiate flexible communication, where the staffs would be able to share their issues with top management directly so that the issues are resolved immediately. In this way, flexible communication will be helpful for the hospital to reduce employee grievances.
Fair and Justified Performance Appraisal
Lack of effective performance appraisal in this hospital is actually causing employee depression, which is also increasing the absenteeism rate. Moreover, the staffs are also leaving the hospital for its ineffective performance appraisal and career growth options. According to Paill? et al., (2014), effective performance management provides adequate value to the employees for their contribution in organizational success. Therefore, the HR department of this hospital should conduct fair and justified performance appraisal for giving proper valuation to the staffs for their contribution level in hospital success. It will actually enhance the motivation level of the employees and reduce the absenteeism and turnover rate of the staffs. In this way, the hospital will be able to recover the issues of staff shortage.
Features of Sustainable HR Capability
Responsibility Oriented HR Team
Responsibility is one of the most important features for building sustainable HR capability. According to Al Ariss et al., (2014), responsible human resources teams are highly concerned about successfully meeting the organizational goals and maintain economic develop of their organization. Therefore, such responsible HR team would perfectly assess the human resource demand for successful meeting organization goals with adequate productivity. On the other hand, Rasool and Shah, (2015) opined that responsible HR team also understand and meet the needs of human resource for increased employee satisfaction. In this way, responsible HR teams are quite capable of maintaining sustainable human management in the organization.
Accountability and Trust
According to Kramar, (2014), the HR team should be accountable and transparent enough with the employees for managing sustainable managerial practice. Moreover, the HR team should clearly communication organizational values and goals among the employees. It would keep the employee intact with the organizational goals and value, which will ultimately enhance their productivity. Therefore, accountability is also an important feature for sustainable HR capability, which will maintain sustainable productivity of the organization. On the other hand, Kehoe and Wright, (2013) opined that HR team should be highly capable of building trust with the employees so that they can genuinely align with the organizational goals and objectives for providing increasing productivity. Therefore, trust is also an important feature for building sustainable HR capability.
Long Term Perspective
According to Sheehan, (2014), HR teams having long term perspective can plan for long term profitability of their organization. Therefore, high forecasting power and long-term perspective of the HR team help an organization towards maintaining productive human resource for overall and long term organizational profitability. Therefore, long-term perspective is an important feature towards building sustainable HR capability.
Innovative Approach for Mitigating Organizational Risk
Contemporary business organizations are more likely to face dynamic business challenges in the market. The situation can also be same for the hospital of the case study. According to Kramar, (2014), innovative approach of the HR teams encourages them towards thinking out of the box for sustaining the organizational profitability through retaining talented employees. On the other hand, Al Ariss et al., (2014) opined that innovative approach also make the employees more productive even in challenging situation for sustainable organizational profitability. Therefore, innovative approach of the HR teams is extremely important for building sustainable HR capability of this hospital.
While concluding the study, it can be said that the prime issue in the first hospital of the case study is lack of dedicated and separate HR department. Therefore, the hospital should first develop a dedicated and separate HR team for perfectly managing the human resources and providing best care to the patients. The CEO and HR department should be highly concentrated on negotiation and collaboration for reducing the industrial disputes of the hospital. The HR managers of the hospital should also conduct effective and fair performance appraisal for enhancing employee motivation and reducing turnover rate. In case of second hospital of the case study, responsibility oriented HR team is extremely important for building sustainable HR capability.
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