MANAGING FOR SUSTAINABILITY
The role of HR in creating sustainable organisations
A hospital is operating with about 400 staff members across multiple sites in a geographically dispersed area in Australia. Currently, the organisation has a payroll department but does not have a dedicated HR department and senior HR manager. In fact, the CEO and his finance manager are currently running HR at the facility. They have devolved virtually all of the key HR functions of HR planning and job analysis, recruitment and selection, training and development, performance management and occupational, health and safety to middle managers. Unfortunately, many of the middle managers don’t really know much about HRM or think it is actually their job! The CEO thinks the organisation is in good hands because they have a consultant who comes in once a week to oversee the development of HR policies and practices. The outcome of this model of HRM has been significant challenges in terms of inconsistent application of HR poticiei and practices by middle and supervisory management, which has Lead to industrial disputation, high Level of staff grievances, absenteeism and turnover, and staff shortages. Consequently, this has lead to challenges for the quality of care and even serious accidents involving patients and staff. • A similar-sized hospital operating under similar conditions has a very different story to tell when it comes to HR and its impact on staff and the quality of patient care. The CEO is passionate about HR and its impact on staff engagement and organisational commitment and subsequent effect on the quality of patient care. He is passionate about creating an HR function that prides itself on creating sustainable management practices, process and policies. This hospital has a dedicated HR manager and highly motivated HR team. The HR team meet regularly and have .developed a strategic FIR capability that is congruent with the goals of the organisation. A dedicated member of the HR team is responsible for managing each HR function, such as FIR planning and job analysis, recruitment and selection, yaining and development, performance management and occupational health and safety. The HR team meets regularly
contiqiied and has developed a number of key performance indicators (such as employee turnover, absenteeism, accidents, employee morale, complaints) for each of the HR functions so that they can monitor the effects of their HR policies, practices and processes. This organisation has an excellent track record of staff retention, morale and overall quality of patient care and patient safety. They are regarded in the industry as a leading healthcare provider. Source T Battiarn, Unpublished field notes.
CRITICAL THINXING QUESTIONS 1 What course of action would you recommend to the CEO in the first hospital as a way to improve the operation of FIRM at the hospital? 2 What a:e the key features of building a sustainable HR capability?
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MANAGING FOR SUSTAINABILITY (Case study)
MANAGING FOR SUSTAINABILITY