Solution to Work-related stress

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MBA (Health Executive) Programme 2001

Human Resource Management

Assignment:

Following the introduction of new technology within your department and

subsequent changes to traditional structures and patterns of working a

number of staff have approached you on separate occasions complaining of

work-related stress.  Further investigation has uncovered low morale within

the department and higher than average absenteeism.  You have been asked

by your line manager to review the factors which may have contributed to this

situation (drawing on the literature regarding organisational design and the

workforce) and develop proposals to address the existing situation.

Student Number:  020109477

Report to:        Director of Human Resources

From:                Student Number 020109477

Title:                One year review of implementation of Human Resource and Payroll System

Status                Strictly Confidential

1.        Introduction

This report assesses the impact of the implementation of a Human Resource Information and

Payroll Management System (CHRIPS) on the Human Resources Directorate from an

organisational development perspective.  The system was introduced into the Trust a year ago.

This report was commissioned following concerns raised within the HR Directorate regarding

stress and poor morale caused by the introduction of the CHRIPS.

2.        Background to CHRIPS implementation

The new CHRIPS went live in the trust 12 months ago, following a full procurement process

and a significant development phase, which included training for all HR and payroll staff.  During

the test phase a comprehensive risk assessment and contingency plan was developed.  As part

of this process it was agreed to “double-run” the new processes, whereby HR staff input data

onto the computer system, whilst maintaining the paper forms which were sent to payroll for

checking and re-entry if necessary.  The reporting lines, roles and responsibilities within the HR

Directorate have changed to reflect the utilisation of the CHRIPS.  

It was agreed by the CHRIPS Project Board that “double-running” should stop three months

ago, but that the position would be kept under review over the next 15 months.

A review, three months after implementation, showed that approximately 10 percent of

transactions resulted in queries or errors.  However, after nine months this figure had reduced to

approximately 3 percent and the Project Board agreed this level as satisfactory.  It was noted

that there is no information available to indicate how many queries or errors occur with the old

system.  The level of errors has increased to 4½ per cent in the past month.  

The primary reason for purchasing a new system was to improve the efficiency of payroll

transactions.  Dawson (1996) defined efficiency as “the amount of resources used to produce a

unit of output”.  The actual cost of the system is less than was paid for the old system, with the

staffing costs remaining the same.  Therefore, the Project Board can demonstrate to the Trust

Board that efficiency has been improved.  

The trust is a District General Hospital, providing acute care services to the local population with

a workforce of 4,200 staff.

3.        Policy Context

The implementation of the new system is set against the changes within the National Health

Service at macro meso and micro levels.  Ham and McIver (2000) stated that:

*        macro decisions are made by governments;

*        meso decisions are made by health authorities (and therefore the newly established primary

care groups);

*        micro decisions are made by health professionals.

At the macro and meso level, there has been a significant policy shift since the procurement for

the new system was initiated.  The main changes are set out in the Department of Health’s

(2001) “Shifting the Balance of Power” which will establish new working relationships for the

trust and has created a level of uncertainty within the HR Directorate, particularly with the

potential shift to shared services for payroll and HR services across the health economy.  

At the micro level the trust has seen a relatively stable position in terms of the HR services

provided and the activity levels.  However, there have been two major areas of HR activity due

to an overseas recruitment drive and the transfer of staff to a local Primary Care Trust, under the

Transfer of Undertakings Regulations.

Furthermore, members of the HR Directorate have been involved in an ongoing process to

review and update all HR policies.  This has resulted in the staff being very aware of the purpose

and content of all the current policies.

4.        Introduction to Review

This 12-month review took a more comprehensive, organisational developmental (OD)

approach than the previous reviews, which only concentrated on the transactional data

processes between HR and payroll.  Mullins (1993) stated that OD “is concerned with the

diagnosis of organisational health and performance, and the ability of the organisation to adapt to

change”. He concludes “the manager needs to understand the nature and process of OD, the

importance of organisational culture and climate, and the management of organisational conflict

and change”.  This definition forms the basis of the review.

The review involved interviewing HR Directorate staff and other key stakeholders within the

trust and includes references to relevant literature.

The key characteristics of the review will be to consider the major elements of any organisation,

which Dawson (1996) identified as:

*        People

*        Strategy

*        Technology

*        Environment

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*        Structure

*        Culture

Within the current review Dawson’s “people” element is too broad, therefore the review findings

include a number of sub-elements.  These are stress; motivation; career; performance

management

5.        Review Findings

This section includes key issues raised from a literature review and the interviews with

stakeholders.

5.1        People

The review is set against a background of increasing sickness absence within the HR Directorate

and anecdotal evidence of low morale and stress linked to the introduction of CHRIPS.

The HR managers and officers have over 30 years of NHS HR experience between ...

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