MH0048 – Management of Healthcare Human Resources

Q.1. You are the HR manager of a healthcare organization,

you are asked to appoint staff for a new coming branch in
another city, what are the methods you will follow for
recruitment and selection?

Sol – RECRUITMENT

Recruitment refers to the process of attracting, screening, and selecting qualified

people for a job at an organization or firm. For some components of the recruitment
process, mid- and large-size organizations often retain professional recruiters or
outsource some of the process to recruitment agencies.

The recruitment industry has five main types of agencies: employment agencies,
recruitment websites and job search engines, "headhunters" for executive and
professional recruitment, niche agencies which specialize in a particular area of staffing,
or employer branding strategy and in-house recruitment. The stages in recruitment
include sourcing candidates by advertising or other methods, and screening and
selecting potential candidates using tests or interviews.
Process

Job analysis
The proper start to a recruitment effort is to perform a job analysis, to document the
actual or intended requirement of the job to be performed. This information is captured
in a job description and provides the recruitment effort with the boundaries and
objectives of the search.[3] Oftentimes a company will have job descriptions that
represent a historical collection of tasks performed in the past. These job descriptions
need to be reviewed or updated prior to a recruitment effort to reflect present day
requirements. Starting recruitment with an accurate job analysis and job description
ensures the recruitment effort starts off on a proper track for success.
Sourcing
Sourcing involves 1) advertising, a common part of the recruiting process, often
encompassing multiple media, such as the Internet, general newspapers, job ad
newspapers, professional publications, window advertisements, job centres, and campus
graduate recruitment programs; and 2) recruiting research, which is the proactive
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identification of relevant talent who may not respond to job postings and other
recruitment advertising methods done in #1. This initial research for so-called passive
prospects, also called name-generation, results in a list of prospects who can then be
contacted to solicit interest, obtain a resume/CV, and be screened
Screening and selection
Suitability for a job is typically assessed by looking for skills, e.g.
communication, typing, and computer skills. Qualifications may be shown
through résumés, applications, interviews, educational or professional experience, the
testimony of references, or in-house testing, such as for software knowledge, typing
skills, numeracy, and literacy, through psychological or employment testing.
Other resume screening criteria may include length of service, job titles and length of
time at a job. In some countries, employers are legally mandated to provide equal
opportunity in hiring. Business management software is used by many recruitment
agencies to automate the testing process. Many recruiters and agencies are using
an applicant tracking system to perform many of the filtering tasks, along with software
tools for psychometric testing.

On boarding
"Onboarding" is a term which describes the process of helping new employees become
productive members of an organization. A well-planned introduction helps new
employees become fully operational quickly and is often integrated with a new company
and environment. On boarding is included in the recruitment process for retention
purposes. Many companies have on boarding campaigns in hopes to retain top talent that
is new to the company; campaigns may last anywhere from 1 week to 6 months.
Recruitment is the process of identifying that the organisation needs to employ someone
up to the point at which application forms for the post have arrived at the organisation.
Selection then consists of the processes involved in choosing from applicants a suitable
candidate to fill a post. Training consists of a range of processes involved in making
sure that job holders have the right skills, knowledge and attitudes required to help the
organisation to achieve its objectives. Recruiting individuals to fill particular posts
within a business can be done either internally by recruitment within the firm, or
externally by recruiting people from outside.

Q.2. Write short notes on the following

(a) Performance Management-

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Performance management (PM) includes activities to ensure that goals are

consistently being met in an effective and efficient manner. Performance management
can focus on the performance of an organization, a department, employee, or even the
processes to build a product or service, as well as many other areas.

Performance Management as referenced on this page is a broad term coined by

Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e. science imbedded in
applications methods) for managing behaviour and results, two critical elements of what
is known as performance

Where PM is applied

This is used most often in the workplace, can apply wherever people interact — schools,
churches, community meetings, sports teams, health setting, governmental agencies, and
even political settings - anywhere in the world people interact with their environments to
produce desired effects. Armstrong and Baron (1998) defined it as a “strategic and
integrated approach to increasing the effectiveness of organizations by improving the
performance of the people who work in them and by developing the capabilities of
teams and individual contributors.”

It may be possible to get all employees to reconcile personal goals with organizational
goals and increase productivity and profitability of an organization using this process. It
can be applied by organisations or a single department or section inside an organisation,
as well as an individual person. The performance process is appropriately named the
self-propelled performance process (SPPP)

First, a commitment analysis must be done where a job mission statement is drawn up
for each job. The job mission statement is a job definition in terms of purpose,
customers, product and scope. The aim with this analysis is to determine the continuous
key objectives and performance standards for each job position.

Following the commitment analysis is the work analysis of a particular job in terms of
the reporting structure and job description. If a job description is not available, then a
systems analysis can be done to draw up a job description. The aim with this analysis is
to determine the continuous critical objectives and performance standards for each job.

Benefits

Managing employee or system performance facilitates the effective delivery of strategic

and operational goals. There is a clear and immediate correlation between using

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performance management programs or software and improved business and

organizational results.

For employee performance management, using integrated software, rather than a

spreadsheet based recording system, may deliver a significant return on investment
through a range of direct and indirect sales benefits, operational efficiency benefits and
by unlocking the latent potential in every employees work day (i.e. the time they spend
not actually doing their job). Benefits may include:
Direct financial gain

 Grow sales
 Reduce costs
 Stop project overruns
 Aligns the organization directly behind the CEO's goals
 Decreases the time it takes to create strategic or operational changes by
communicating the changes through a new set of goals

Motivated workforce

 Optimizes incentive plans to specific goals for over achievement, not just
business as usual
 Improves employee engagement because everyone understands how they are
directly contributing to the organisations high level goals
 Create transparency in achievement of goals
 High confidence in bonus payment process
 Professional development programs are better aligned directly to achieving
business level goals

Improved management control

 Flexible, responsive to management needs

 Displays data relationships
 Helps audit / comply with legislative requirements
 Simplifies communication of strategic goals scenario planning
 Provides well documented and communicated process documentation

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(b)Compensation Management-

Human Resource is the most vital resource for any organization. It is responsible for each
and every decision taken, each and every work done and each and every result.
Employees should be managed properly and motivated by providing best remuneration
and compensation as per the industry standards. The lucrative compensation will also
serve the need for attracting and retaining the best employees.

Compensation is the remuneration received by an employee in return for his/her

contribution to the organization. It is an organized practice that involves balancing the
work-employee relation by providing monetary and non-monetary benefits to employees.

Compensation is an integral part of human resource management which helps in

motivating the employees and improving organizational effectiveness.

Components of Compensation System

Compensation systems are designed keeping in minds the strategic goals and business
objectives. Compensation system is designed on the basis of certain factors after
analyzing the job work and responsibilities. Components of a compensation system are as
follows:

Types of Compensation

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Compensation provided to employees can direct in the form of monetary benefits and/or
indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services. If the compensation
offered is effectively managed, it contributes to high organizational productivity.

Direct Compensation

Indirect Compensation

Need of Compensation Management

 A good compensation package is important to motivate the employees to increase

the organizational productivity.

 Unless compensation is provided no one will come and work for the organization.
Thus, compensation helps in running an organization effectively and
accomplishing its goals.

 Salary is just a part of the compensation system, the employees have other
psychological and self-actualization needs to fulfil. Thus, compensation serves the
purpose.

 The most competitive compensation will help the organization to attract and
sustain the best talent. The compensation package should be as per industry
standards.

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Strategic Compensation

Strategic compensation is determining and providing the compensation packages to the

employees that are aligned with the business goals and objectives. In today’s competitive
scenario organizations have to take special measures regarding compensation of the
employees so that the organizations retain the valuable employees. The compensation
systems have changed from traditional ones to strategic compensation systems.

Q.3. Explain the theories of wage fixation?

Sol-
Besides the basic factors provided by job description and job evaluation, there are some
other criteria also which is taken in to consideration while fixing the wage and salaries,
those are…

1. The organization’s ability to pay

2. Supply and demand of labour

3. The prevailing market rate

4. The cost of living

5. Living wage

6. Productivity

7. Trade union’s bargaining power

8. Job requirements

9. Managerial attitudes

10. Psychological and sociological factors

11. Levels of skills available in the market

The Organization’s Ability to Pay

In the short run, the economic influence on the ability to pay is practically nil. All
employers, irrespective of their profits or losses must pay no less than their competitors

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and need pay no more if they wish to attract and keep workers. In the long run, the ability
to pay is very important. During the time of-prosperity, employers pay high wages to
carry on profitable operations and because of their increased ability to pay. But during a
period of depression, wages are cut because funds are not available. Marginal firms and
non-profit organizations (like hospitals and educational institutions) pay relatively low
wages because of low or no profits. Wage increases should be given by those
organizations which can afford them. Companies that have good sales and, therefore,
high profits tend to pay higher wages then those which running at a loss or earning low
profits because of the high cost of production or low sales.

Supply and Demand of Labour

The labour market conditions or supply and demand forces operate at the national,
regional and local levels, and determine organizational wage structure and level. If the
demand for certain skills is high and the supply is low, the result is a rise in the price to
be paid for these skills. When prolonged and acute, these labour-market pressures
probably force most organizations to “reclassify hard-to-fill jobs at a higher level” than
that suggested by the job evaluation. The other alternative is to pay higher wages if the
labour supply is scarce; and lower wages when it is excessive. Similarly, if there is great
demand for labour expertise, wages rise; but if the demand for manpower skill is
minimal, the wages will be relatively low.

The supply and demand compensation criterions very closely related to the prevailing
pay, comparable wage and on-going wage concepts since, in essence, all of these
remuneration standards are determined by immediate market forces and factors.”

Prevailing Market Rate

This is also known as the ‘comparable wage’ or ‘gain wage rate’, and is the most widely
used criterion. An organization’s compensation policies generally tend to conform to the
wage rates Payable by the industry and the community.

This is done for several reasons:

First,
 competition demands that competitors adhere to the same relative wage level.

Second,
 various government laws and judicial decisions make the adoption of uniform
wage rates an attractive proposition.

Third,
 trade unions encourage this practice so that their members can have equal pay,
equal work and geographical differences may be eliminated.

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Fourth,
 functionally related firms in the same industry require essentially the same
quality of employees, with the same skills and experience. This results in a considerable
uniformity in wage and salary rates.

Finally,
 if the same or about the same general rates of wages are not paid to the
employees as are paid by the organization’s competitors, it will not be able to attract and
maintain a sufficient quantity and quality of manpower.

Some companies pay on the high side of the market in order to obtain goodwill or to
insure an adequate supply of labour, while other organizations pay lower wages because
economically they have to, or because by lowering hiring requirements they can keep
jobs adequately manned.

The Cost of Living

The cost-of living pay criterion is usually regarded as an auto minimum equity pay
criterion. This criterion calls for pay adjustments based on increases or decreases in an
acceptable cost of living index. When the cost of living increases, workers and trade
unions demand adjusted wages to offset the erosion of real wages. However, when living
costs are stable or decline the management does not resort to this argument as a reason for
wage reductions.

The Living Wage

This criterion states that wages paid should be adequate to enable-an employee to
maintain himself and his family at reasonable level of existence. However, employers do
not generally favour using the concept of a living wage as a guide to wage determination
because they prefer to base the wages of an employee on his contribution rather than on
his need.

Productivity

It is another criterion, and is measured in terms of output per man- hour. It is not due to
labour efforts alone. Technological improvements, better organization and management,

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the development of better methods of production by labour and management, greater

ingenuity and skill by labour are all responsible for the increase in productivity.

Actually, productivity measures the contribution of all the resource factors - men,
machines, methods, materials and management. No productivity index can be devised
which will measure only the productivity of a specific factor of production. Another
problem is that productivity can be measured at several levels - job, plant, industry or
national, economic level. Thus, although theoretically it is a sound compensation
criterion, operationally many problems and complications arise because of definitional
measurement and conceptual issues.

Trade Union’s Bargaining Power

Trade unions do affect rate of wages. Generally, the stronger and more powerful the trade
union, the higher the wages. A trade union’s bargaining power is often measured in terms
of its membership, its financial strength and the nature of its leadership.

A strike or a threat of a strike is the most powerful weapon used by it. Sometimes trade
unions force wages up faster than increases in productivity would allow and become
responsible for unemployment or higher prices and inflation. However, for those
remaining on the pay roll, a real gain is often achieved as a consequence of a trade
union’s stronger bargaining power.

Job Requirements

Generally, the more difficult a job, the higher are the wages Measures of job difficulty are
frequently used when the relative value of one job to another in an organization is to be
ascertained. Jobs are graded according to the relative skill, effort, responsibility, and job
conditions required.

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Managerial Attitudes

These have a decisive influence on the wage structure and wage level since judgment is
exercised in many areas of wage and Salary administration — including whether the firm
should pay below average, or above average rates, what job factors should be’ used to
reflect job worth, the weight to be given for performance or length of service, and so
forth, both the structure and level- of wages are bound to be affected accordingly.

These matters require the approval of the top executives. Top management’s desire to
maintain or enhance the company’s prestige has been a major factor in the wage policy of
a number of firms. Desires to improve or maintain morale, to attract high-calibre
employees, to reduce turnover, and to provide a high living standard for employees as
possible also appear to be factors in management’s wage-policy decisions.

Psychological and Social Factors

These determine in a significant measure how hard a person will work for the
compensation received or what pressures he will exert to get his compensation increased.
Psychologically, persons perceive the level of wages as a measure of success in life;
people may feel care have an inferiority complex, seem inadequate or feel the reverse of
all these. They may not take pride in their work, or in the wages get.

Therefore, these things should not be overlooked by the management in establishing

wage rates. Sociologically and ethically, people feel that “equal work should carry equal
wages,”

That “wages should be commensurate with their efforts,” that “they are not exploited, and
that no distinction is made on the basis of caste, colour, sex or religion.” To satisfy the
conditions of equity, famines and justice, a management should take these factors into
consideration.

Please note that people and institutions both have a hand in designing jobs and wage
structures.

Skill Levels Available in the Market

With the rapid growth of industries, business trade, there is shortage of skilled resources.
The technological development, automation has been affecting the skill levels at a faster

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rate. Thus the wage levels of skilled employees are constantly changing and an
organization has to keep its level up to suit the market needs

It is clear that organizations determine the pay for jobs by taking a number of
considerations into account. Furthermore, they have considerable choice as to how much
emphasis to place on various determinants.

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