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Human resource management (HRM) is a system of improving utilization of human capital and associated productivity through the development of relationships and objectives of employment amongst the staff and their organization (Trebble, Heyworth, Clarke, Powell, & Hockey, 2014). HRM is considered to be strategic when it supports achieving organizational objectives. Strategic human resources management (SHRM) states that an organization must acquire realistic information on the capabilities and talents to their employees, in order to be effective and adapt to changes quickly (Pynes & Lombardi, 2011).An example of this, is using the skills of the staff as a resources to develop a competitive advantage from other organizations, instead of simply supporting the organization and its goals (Trebble, Heyworth, Clarke, Powell, & Hockey, 2014). We can observe this when using strategic human resources, as this type of resource aims at making the necessary changes to support and or improve the overall operational and strategical objective of the organization (Pynes & Lombardi, 2011). SHRM is important because it can help with designing jobs, hiring proper staff, develop the employees skills, and identify new approaches to improve the overall performance and customer service, etc.(Fottler, 2008). A successful healthcare manager needs to be able to understand the impact any change may have on their company’s performance, and therefore, prepare themselves and the staff for such changes. He or she understands human behavior, works effectively with his or her employees, and is knowledgeable about numerous systems and practices available to improve the overall performance of the facility, including the staff. The manager must also be aware of the economic, technological, social, and legal issues that can affect human resources, and the facility (Fottler, 2008). The performance of an organization will determine the outcome of such. An organization must be competitive to ensure their success. Strategic human resources management helps health care organizations match the requirements of their human resources with the needs of the organization, and the demands of its external environment. SHRM ensures the appropriate staff needed, and it assists with the needs of clinical outcomes and human resources practices (Pynes & Lombardi, 2011).
There are several ways for an organization to maintain and achieve sustainable competitive advantages through human resources. Human resources are valuable because they can improve the efficiency and or the aeffectiveness of the corporation. They also focus and improve the employees skills. Organizations can also achieve competitive advantages through SHRM by encouraging proactive behavior, improving communication, improving the company’s goal and vision, and improve strategical planning (Fottler, 2008).
Human Resources strategies include staffing, development, compensation, and workforce composition. A staffing strategy is a set of activities used by the organization to determine its proper employee needs. A developmental strategy assists the organization in enhancing the quality of its human resources. A compensation strategy has to complete the organization’s other strategies. An example of this is, if the organization in pursuing a strategy of diversification, its compensation strategy can be aimed towards rewarding the employee whose skills allow them to move from the original business to the relevant one. A workforce strategy has to change over time as the workforce diversifies (Fottler, 2008).
A healthcare manager is constantly improving and changing strategies. It is important that he or she makes the more appropriate decision pertaining his or her company. Philippians 4:6-7 says: “Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus.” When in doubt, we must remember that god will provide us with the knowledge to make the proper decision.
Fottler, M. D. (2008). Strategic human resources management. Human resources in healthcare: Managing for success, 1-26.
Pynes, J. E., & Lombardi, D. N. (2011). Human resources management for health care organizations: A strategic approach (1st ed). San Francisco, CA: Jossey-Bass.
Trebble, T. M., Heyworth, N., Clarke, N., Powell, T., & Hockey, P. M. (2014). Managing hospitals doctors and their practice: what can we learn about human resource management from non-healthcare organizations? BMC Health Services Research, 14(1), 1-11 .doi: 10.1186/s12913-014-0566-5.
The discussion around the movement back towards a pay for performance model in healthcare compensation has become trending in healthcarehuman resources. In the past this system has come under fire for being subjective and focusing primarily on compensation (Pynes & Lombardi, 2011). In order for a merit pay, otherwise known as pay for performance system to work, strategic goals for evaluation must be aligned with the overall goals of the organization, as well as training raters which will most likely be managers need to be held accountable as well (Pynes & Lombardi, 2011, p. 264).
In coming fiscal years, Medicare will allow for individual physicians, practices, or medical groups report goals to participate in Merit-Based Incentive Payment System (MIPS) program (Rutherford, 2017, p. 51). Many of the goals that can be selected from for additional Medicare compensation are supportive of other trending topics in healthcare such as quality improvement, integration of electronic health records, and reporting procedures (Rutherford, 2017, p. 52). By participating in national level merit pay programs an organization regardless of size could increase the ability of payments that it can give to its providers. “For medical practice managers in groups serving any significant Medicare population, participation in the Medicare MIPS program is a sound strategy for 2017” (Rutherford, 2017, p. 53). Pulling national and government funds to be able to give merit pay to healthcareproviders allows the organization to use organizational dollars to offer merit rewards to the support staff. Offering merit pay to support staff can be used to attract and retain employees, which can save costs overall in regard to recruiting and training due to staff turnover.
Merit pay or pay for performance offered for all employees of a healthcare organization can possibly increase employee morale, and play a significant role in the retention of employees. However, when employees stay with an organization for longer than 10 years it is possible that they could max out their pay, it would not make sense to play an employee such as a lab technician more than a BSN registered nurse. In order to avoid this from happening managers and HR leaders need to look towards a compensation system that attracts, retains, focuses, and motivates employees (Boden, 2017, p. 411). Additional ways that pay for performance can be used is in the rewarding of additional benefits, such as paid days off, scheduling preferences, or improved overall benefits. “If it sounds like you’re simply ‘cutting’ earning potential, you will drive morale deeper yet” (Boden, 2017, p. 412). For this reason, a clear pay structure and earning potential needs to be crafted by management and HR and shared with employees particularly if there will be a change to the overall compensation system with the move to pay for performance or merit pay.
Fair pay and compensation of employees is not only legally required, but ethically encouraged. When looking to scripture for guidance in the compensation of employees managers and leaders in HR can look to 1 Timothy 5:18, “For the Scripture says, ‘you shall not muzzle an ox when it treads out the grain,’ and, ‘the laborer deserves his wages’” (English Standard Version). In the case of healthcare compensation it is very important to make sure every level of care is compensated appropriately. Pay for performance or merit pay can be a cost saving compensation system that can be used inhealthcare to reward top performers for their excellence in care, as opposed to using traditional methods of time in service, experience, and position. It is important to make sure that each employee has wages that they deserve. An additional benefit or compensation that could be given due to performance is educational benefits to give top performing employees the chance to advance their pay potential within the organization.
Boden, T. W. (2017). Establishing a fair wage structure for the healthcare practice. The Journal of Medical Practice Management: MPM, 32(6), 411-412. Retrieved from https://search-proquest-com.ezproxy.liberty.edu/docview/1930757658?pq-origsite=summon&accountid=12085
Pynes, J. E., & Lombardi, D. N. (2011). Human resources management for health care organizations: A strategic approach. San Francisco, CA: Jossey-Bass. ISBN: 9780470873557.
Rutherford, R. (2017). Thriving under medicare’s newest pay-for-performance program: Strategies for success with the merit-based incentive payment system: Part III. The Journal of Medical Practice Management: MPM, 33(1), 51-54. Retrieved from https://search-proquest-com.ezproxy.liberty.edu/docview/1933856170?pq-origsite=summon&accountid=12085