Assessment of Strategic Human Resource Management at the Yorkshire NHS Foundation Trust

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Business and Human Resource Management – Year 3

Module - SHRM

Assessment of Strategic Human Resource Management

Health Wars

Introduction:

The NHS Foundation Trust is a different type of NHS organisation which is an independent establishment. This organisation is a public benefited corporation which holds accountability to the local community rather than Central Government control. The NHS Foundation Trust was formed to decentralize decision making from central government control so they are more responsive to the needs and wishes of the local people.

The Yorkshire NHS Foundation Trust serves a population of 425,000 in Grimley, Barnsdale and Idlethorpe, employing over 5,000 staff within five hospital sites.

In 2008/09, The Trust handled over 150,000 patients in Accident and Emergency, approximately 88,000 new outpatients, 112,000 in-patients treated and discharged, and in addition helped to deliver 4,193 babies.

Although there has been quite a lot of success from decentralising away from the central government control, the recent Government inspection shows otherwise. Therefore, as HR Director of the NHS trust, investigation shall be carried out in order to improve the issues that have arisen and to also bring up the rates by next government inspection.

Current Business Strategy

The current Business strategy at the moment is to emphasise quality through friendly service, a broad range of suitable health and care provision and a service free at the point of contact 24 hours a day.

Kay (1999) stated that “Business strategy is concerned with the match between the internal capabilities of the company and its external environment.” (Armstrong, 2006, pg.20)

The Trust believes their main focus has always been on the customers. However, it is essential for the Trust to also focus on their employees in order to maintain a good working force and in succession, deliver excellent service.

There is a need for clearer objectives therefore a need to create a more specific plan to put into action. It is also vital that the HRM Systems support the key business priorities. There is a need for more ‘systems’ thinking in sequence to succeed.

Issues

The three major problems that have been recently identified are:

  • Accusations from customers of ‘being let down’ by rude staff
  • Little evidence of continuous employee development / poor succession planning.
  • Low job satisfaction

The issues that will be looked into further will be to find solutions of how to tackle problems, mainly associated around Employee Development.

Harrison (2002) defined employee development as a learning experience in the workplace, so that performance could be improved, and also stated that work goals can be achieved through enhancing skills, knowledge, learning ability and enthusiasm at every level which would lead to organisational as well as individual growth. (Beardwell et al, 2004. Pg. 293)

This clearly indicates that the trust should focus on employee development in order to improve organisational performance as a more highly skilled workforce can accomplish more through employees gaining more experience and knowledge.

Therefore, the new business strategy should be focused around both employees and customers in order to get the work done and strive towards success.

New Business Strategy

The new Business strategy is to emphasise on professional competence. Due to major problems being circulated around employee development the following action should be taken into account as soon as possible:

  • Huselid and Becker (1996) identified integrated systems of High-performance work practices as significant economic assets for organisations, concluding that the magnitude of the return on investment in High Performance Work Practices is substantial’. (Beardwell et al, 2004. pg.60) Therefore it is crucial to create a highly skilled and motivated workforce and develop skills for the future in order to improve organisational performance as a whole.
  • Customer complaints forms should be monitored and checked on a regular basis so that success and failures can be identified, and then through customer questionnaires, make reasonable changes to provide better customer service. Improve not just the quantity but also the quality of employee efforts. Needs considerate research as well as management attention.
  • Require staff to work in a professional manner – in order to have this put into practice, introduce new HR policies appropriate to a fast moving and dynamic organisation and also include a fast effective staff appraisal system.

This will allow the organisation to facilitate the employees to pick up on the right skills and experience in sequence to deliver transformation, which will benefit the organisation as a whole. This will also ensure that individuals both internally and externally are treated with equality and respect.

The link between HRM and Business Strategy

Now that the business strategy is complete it is essential that the HR strategy is put into practice as well. It is important that the HR Strategy is fitted appropriately to achieve the Goals in the longer run, as the relational attribute of the combination linking Business strategy and HRM refers to the relationships between the ‘factors’ and the ‘actors’ involved.

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In addition, Buller (1988) states that “striving for two-way or integrative linkages would be advantageous for most firms, since most firms are operating in dynamic and unpredictable environments. In such situations, firms achieving a higher level of integration between business strategy and human resource management would have a competitive advantage”.

Bearing in mind that the NHS Trust is operating in a dynamic environment it is vital that the HR Strategy, covering policies and practices are logically driven by the organisations business strategy to enable competitive advantage. (Kydd & Oppenheim (1990)

Human Resource management is focused on developing on HR ...

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