Original DQ:What are the primary differences in the human resources strategies needed for expansion, contraction, and maintenance of scope? Which type of adaptive strategy is the most difficult to implement from a human resources perspective? Why?…(IN HEALTHCARE)
What are the primary differences in the human resources strategies needed for expansion, contraction, and maintenance of scope? Which type of adaptive strategy is the most difficult to implement from a human resources perspective? Why?
In the Bischoff article,“ adaptive healthcare system”, it discuses how different strategies should be made for the different patients based on their lifestyles. (Bischoff 2013). Throughout the articles it mentions strategic development as a way to function as an organization. There are different aspects of the strategies that must occur in order for development to progress.
In the Chan article, it discusses cultural and environmental changes that occur in human resource management and strategy to assist in development of the company. It discusses how the human resource management can assist in giving a company and a competitive edge on other companies. With the use of human resource strategies expansion, contraction and maintenance, these are ways that make the company better. (Chan 2004) With expansion, the human resource department should look into employing people who have a vision to gain more territory, acquire new companies and technology. The expansion can benefit the company’s progress and competitive edge. Also, the human resource department can hire and fire the proper employees so that they can make the company more efficient. The more proper employees with the company can make the company more profitable. An example of a healthcare system that uses expansion through human resource is the Cleveland Clinic. The Cleveland clinic is now considered the number one hospital in the world. It has acquired hospitals throughout the United States and in other countries. Since, its expansion it has promoted and hired more employees to develop these new establishment.
Other strategies are contraction throughout the adaptive healthcare system. In some instances, healthcare system realizes that they are not as efficient as they should be due to having too many in efficient employees working through the facilities. Some times a company may have to down size in order for it to be more functional. It seems that it could be opposite of expansion. However, it maybe more efficient to act on the opportunity that when the circumstance presents itself. Some hospitals like county hospitals may “downsize” their staff to stay operational. Sometimes consultants come in to help these types of hospitals come out of the “red” and become profitable. A lot of the “downsizing” comes from the human resources department actions and strategies to make the company better.
Thirdly, maintenance is another key aspect to human resource strategy. When a health care system is doing well, the human resource team wants to keep a profitable company and well-established health care team. Once, they have a well working team they want to keep or maintain that team and system. When a company acquires new companies they will do what ever it takes to make both companies profitable. Having maintenance in company is a great way to keep a company stable. Most companies try to maintain a great strategic team. (McGlynn 2003). In a healthcare setting, most places want to maintain adequate facilities and services for their patients. Therefore, adapting your healthcare services to meet the patient’s need is a great asset that organizations should strive for and keep.
All three aspects of human resource management, expansion, contraction and maintenance are great ways to uphold a company. Also, it is a way to implemented adaptive healthcare system strategy to uphold the company. There are differences between the three aspects, but they are needed for a company to succeed. These three aspects are difficult to implement into adaptive human resource strategy, but once implemented it can be a great asset.
Strategy in the business environment determines the best way to maximize resources for each business function to achieve the organizations goals (Gupta, 2016). Human resources are organizational assets and human resource management must be part of business strategy. The more efficient an organizations workforce the better the organizations results, which leads to a competitive advantage in the market. There is a best human resources process or policy depending on the strategy. There are also certain human resource functions which may change based life-cycle of the business. For example, organizations may develop a “results-oriented” strategy such as profit sharing which motivates employees. Organizations that are new to the market may focus on recruitment and job security (Gupta, 2016).
Organizations that focus on improving employee performance will improve the organizations competitiveness in the market (Frixou & Charalambous, 2016). This requires the development of strategies specific to human capital. Human capital is defined as the “knowledge, intelligence, enthusiasm, and ability to learn” which employees bring to the organization (Frixou & Charalambous, 2016). When employees are thought of as capital, leaders appreciate the employee value in a similar sense as the value of new equipment. Just as an organization has an overall mission, it is important to realize the human resources mission is to meet the employee needs while also meeting organizational needs (Frixou & Charalambous, 2016). Developing human capital while also meeting organizational needs requires a strategic approach.
As businesses grow and or alter strategies, leaders must recognize and adapt human resource strategies to fit employee and organizational needs. The primary difference in human resource strategies required for expansion, contraction and maintenance of scope deals with adding human resources, releasing human resources and maintaining a motivated well-trained workforce. When an organization is expanding additional human resources are needed. This can be challenging in that there may be new skill sets required which may be difficult to find or more difficult to manage than the current workforce (Ginter, Duncan, & Swayne, 2013). An organization that is contracting may need to reduce the workforce. Reduction in the workforce may be accomplished through lay-offs or attrition. A shift in the workload must be managed during this period as well as addressing the emotional side when employees see their coworkers have been separated from the organization (Ginter, Duncan, & Swayne, 2013). When an organization is maintaining scope there continue to be the needs of motivating employees, ensuring compensation plans and evaluations are in line with the organizations values, and ensuring succession plans are in place (Ginter, Duncan, & Swayne, 2013).
The most difficult adaptive strategy to manage is expansion strategy. Expansion strategies include diversification, vertical integration, market development, product development and penetration (Ginter, Duncan & Swayne, 2013). Expansion strategies are difficult as they require adding workforce which can be challenging. There is an estimated lack of “4.3 million healthcare workers” which not only impacts the organization from moving forward but also impacts quality of care (Frixou & Charalambous, 2016). Expansion strategies are also complicated when integrating with another organization. This requires adapting the culture of the two organizations (Ginter, Duncan & Swayne, 2013). Service related organizations, such as healthcare, typically have a unique culture (Giachetti, 2012). The organizational culture is “pervasive” throughout human resources and the merging of companies through expansion may require employees to “unlearn” or adapt the values that have been important to them and the healthcare organization as a whole (Giachetti, 2012). When new service lines are added which require new skills and expertise it may also impact the organization’s culture and processes. These circumstances make expansion strategies not only challenging but also risky (Ginter, Duncan & Swayne, 2013).