The Significance of Human Resource Management, Essay Example

Abstract

The paper discusses the significance of HRM in organizations. The factors affecting recruiting ‘in demand’ employees are discussed. The paper evaluates the impact, which restructuring produces on staffing decisions and lists the risks of reducing the number of employees in organizations. Industry-specific HR issues are included into the list of the most problematic organizational aspects in healthcare.

Introduction

Effective Human Resource Management has already become the determining factor of strategic success in business. The role of HRM in healthcare is difficult to underestimate. The quality and professionalism of the medical personnel plays the critical role for achieving strategic health outcomes, and thus, HRM is made responsible for the quality of healthcare and care delivery in medical settings. In this context, it is more than important to see what factors affect recruiting ‘in demand’ employees, how restructuring and staffing in healthcare are interrelated, and whether decreasing the number of employees is the best approach to cost reduction.

The Significance of HRM and Recruiting ‘In Demand’ Employees

Human resource management is the source of the major benefits to the company, because human resources are fairly regarded as the most valuable organization assets. In healthcare organizations, HRM carries organizational, professional, and social significance. Organizational significance of HRM is in promoting effective utilization of HR, and developing/ recruiting/ retaining people, who meet the HR demands of each particular organization (Sims, 2006). In the social contexts, HRM maintains a reasonable balance between jobs and applicants, helps avoid wasteful HR practices, and provides individuals with productive employment and social satisfaction (Sims, 2006). From the professional perspective, HRM promotes continuous education and training, creates favorable social and physical environment for employees, and maintains employee dignity in the workplace (Sims, 2006). The role of HRM is no less important in recruiting ‘in demand’ employees. Careers that are high in demand are characterized by a number of features: healthcare organizations find it costly to replace ‘in demand’ employees, while the pool of applicants is so large that it is simply impossible to choose the best one. “In demand” employees tend to believe it will not be difficult for them to find a good employment; thus, it is getting more and more difficult for healthcare organizations to retain and attract such workers. The factors that influence recruiting “in demand” employees include the number of applicants, the compensation and benefits offered to applicants, the quality of interviewing and selection techniques, as well as the organization’s desire to hire someone, because “if you oversell, under-listen, or give the job away, you won’t hire many in demand candidates” (Adler, 2009).

Restructuring and Decreasing the Number of Employees

In the context of HRM, restructuring produces serious effects on staffing decisions. Restructuring and downsizing in hospitals and healthcare facilities often go hand in hand (Burke, 2004). Unfortunately, restructuring is not always a positive process: more often than not, staffing decisions during and after restructuring become less effective and more burdensome. As a result of restructuring, medical staff reports higher nurse-patient rates, poorer psychological health, lower job satisfaction, and less effective hospital functioning (Burke, 2003). Moreover, restructuring and decreasing the number of employees does not always lead to cost reduction. The fact is that decreasing the number of employees is associated with numerous hidden costs – if handled unprofessionally, it reduces motivation and morale of survivors, requires that companies pay out severance and outplacement compensations, eliminates skillful employees, and results in the loss of talents (Bruno, 2008). These problems do not reduce costs but lead to poorer profitability and performance. To avoid these problems and to improve the overall efficiency of HRM in healthcare, HR professionals should be aware of industry-specific HR issues: these include quality improvement, new technology, and physician involvement in the decision-making processes (Sims, 2006). Quality improvement is impossible without hiring and retaining prospective personnel and overcoming their resistance to change; new technologies require professional training; while to be involved in managerial decision-making, physicians need the basic business skills, all of which are the critical functions of HRM in healthcare.

Conclusion

The significance of HRM in healthcare is difficult to underestimate. From organizational, professional, and social perspectives, HRM should serve the critical HR needs of medical facilities and provide them with the most prospective personnel. Unfortunately, healthcare organizations often fail to effectively restructure their practices. Downsizing results in poorer productivity, lower morale, and the loss of talents. HR professionals should realize that quality improvement, technologies, and physician involvement in decision-making are the three industry-specific issues, which HR departments have to resolve in order to improve the efficiency of their practices in medical settings.

References

Adler, L. (2009). 10 steps to finding and hiring diversity and high-demand candidates. The Multicultural Advantage. Retrieved from http://www.multiculturaladvantage.com/recruit/staffing/Finding-Hiring-Diversity-High-Demand-Candidates.asp

Bruno, J.B. (2008). Layoffs can pose both pros, cons. NewsOK. Retrieved from http://newsok.com/layoffs-can-pose-both-pros-cons/article/3293962/?tm=1220720312

Burke, R.J. (2003). Hospital restructuring, workload, and nursing staff satisfaction and work experiences. The Health Care Manager, 22 (2): 99-107.

Burke, R.J. (2004). Implementation of hospital restructuring and nursing staff perceptions of hospital functioning. Journal of Health Organization and Management, 18 (4): 279-289.

Sims, R.R. (2006). Human resource management: Contemporary issues, challenges, and opportunities, IAP.