WHAT IS HUMAN RESOURCE MANAGEMENT?

Introduction

Student Learning Objectives

1. Discuss the history of human resource management.

2. Define human resource management.3. Identify four applications of human resource

management to health care organizations.4. Examine the importance of human resource

management to organizations.5. Assess the impact of Frederick W. Taylor on

managing employees.6. Analyze the impact of the Hawthorne studies on

motivating employees.

Did You Know That?

Chinese and Greeks used employee screening and apprenticeship programs in 2000 B.C.

It is the legal responsibility of the employer to provide a safe and healthy work environment.

The health care industry employs more than 3% of the U.S. workforce.

Employee benefits are considered incentives to recruit and retain employees.

In 1900, the B.F. Goodrich Company was the first to establish a human resource management department.

Human Resource Management

Human resource management is defined as a system of activities and strategies that focus on successfully managing employees at all levels of an organization to achieve organizational goals.

Employees are the human resources of an organization and its most valuable asset.

HR and Successful Organizations

To develop a high-performance and effective workforce, the organization should use human resource management in the following areas:1. Establishment of a legal and ethical management

system2. Job analysis and job design3. Recruitment and selection4. Healthcare career opportunities5. Distribution of employee benefits

HR and Successful Organizations

To develop a high-performance and effective workforce, the organization should use human resource management in the following areas:6. Employee Motivation7. Negotiations with organized labor8. Employee terminations9. Determination of emerging and future trends in

health care 10. Strategic planning

Major Milestones in HRM

Because of this Industrial Revolution, there developed a separate class of managers and employees in the factories.

Labor unions were established from 1790 to 1820. These membership labor organizations represented different types of skilled employees to ensure that these employees were treated fairly by management.

Labor unions focused on job security, fair wages, and shorter working hours for employees.

Major Milestones in HRM

The U.S. economy change emphasized the need for a system in the workplace to manage both employees and management—the human resources of these new types of organizations.

During this period, labor unions became powerful advocates for employee rights.

Major Milestones in HRM

From 1950 to 1970, union membership represented more than 25% of the U.S. workforce.

From 1980 to 1999, as the U.S. economy focused less on manufacturing and evolved into a service economy, union membership declined.

Although union membership has since continued to decline, labor unions can be regarded as the predecessors of human resource management departments. The goal of both is the equitable treatment of employees by management.

Taylorism Influence

A labor shortage existed in the early 20th century, forcing a focus on increasing employee productivity. In 1911, Frederick W. Taylor promoted scientific management through four principles:

1. Evaluate a task by dissecting its components.2. Select employees that had the appropriate skills

for a task.3. Provide workers with incentives and training to

do a task.4. Use science to plan how workers perform their

jobs.

Taylorism Influence

Taylor developed a differential pay system that rewarded workers who performed at a higher level.

This type of human resource management is still used today.

U.S. Department of Labor Influence

Because of the economic revolution in the United States, a federal agency, the U.S. Department of Labor, was established in 1913.

Its mission was and is to promote the welfare of working people and their work conditions.

By the end of WW I, the DOL had established policies to ensure that fair wages and work conditions.

Hawthorne Studies Influence

1920: a Harvard research group implemented the “Hawthorne studies”, which focused on changing the physical work environments of employees to assess work habit changes.

Results indicated an increase in productivity, as workers believed that management was concerned about their welfare, which improved their productivity.

Fair Labor Standards Act of 1938

The Fair Labor Standards Act of 1938: established federal minimum wage standards,

child labor laws, and increased wages for overtime.

The law, Taylor, and Hawthorne established the precedent for human resource management today.

Chapter 2 will discuss several pieces of legislation that impacts employers and employees.

Role of HRM

Regardless of organizational type, HRM is a partner with management.

Health care organizations are uniqueTwo organizational structures: Administrative

and clinical. Each set of employees has different training

needs.

HR and Management Partnership

To foster a relationship between the HR department and senior management:

1. Treat HR employees as internal consultants to the organization who can provide recommendations about employee relations.

2. Ensure that management actively collaborates with HR employees, which includes inviting HR management to strategic planning meetings.

HR and Management Partnership

3. Ensure that HR provides extensive training to all employees on a routine basis.

4. Both HR and management should participate in an HR audit to assess the state of the organization.

Turnover rates, incentive plans, diversity rates, and strategic planning activities should be continuously reviewed to ensure the organization is performing at a high level.

Overview of Text: Chapter 2 Employment Law

Employees at all levels should have an understanding of basic legal and ethical principles that affect the work environment, particularly in the health care industry.

The legal relationship between the organization and the consumer—the health care provider and the patient—is the foundational relationship of all health care activities.

Overview of Text: Chapter 2 Ethics and Safety

Ethical behaviors-actions that are the right thing to do (not simply what is required by law)-must be addressed, because the health care industry is fraught with difficult situations that involve ethical dilemmas.

Another major employment issue is that of a safe working environment. According to the federal Occupational Safety and Health Administration (OSHA), it is the responsibility of the organization to monitor and ensure a safe and healthy work environment.

Overview of Text: Chapter 3 Job Analysis and Job Design

The HR department is responsible for performing job analyses to assess the workflow of the organization.

Job analysis is a process of determining the different tasks that are associated with a specific job.

It enables the organization to develop job descriptions and specifications to recruit individuals that have specific knowledge, skills, and abilities for these jobs.

Job design defines how tasks are performed and the types of tasks that are part of a job.

Overview of Text: Chapter 4: Recruitment and Selection

The HR department is responsible for collaboration with management to ensure that the recruitment process is legally defensible, meaning it is systematic & fair, to objectively recruit & select potential employees.

Recruitment consists of any activity that focuses on attracting the appropriate candidates to fulfill job openings in the organization.

Once candidates are identified, the next step is the selection process, which identifies the best employees for the organization.

Overview of Text: Chapter 5: A Career in Healthcare

The health care industry is one of the largest employers in the United States, employing more than 3% of the U.S. workforce. There are approximately 200 health occupations and professions and a workforce of more than 12 million health care workers.

The Bureau of Labor Statistics indicates that health care will generate more than nearly 4 million new jobs through 2014.

Overview of Text: Chapter 6Employee Benefits

Employee benefits are a typical responsibility of the HR department. HR personnel educate employees about benefits and administer benefits programs.

Mandatory benefits include social security, unemployment insurance, workers’ compensation, and family and medical leave, and are required by law.

Employee voluntary benefits, not required by law, such as retirement plans, paid leave, and different types of family care, can be considered a recruitment tool because they can attract qualified candidates.

Overview of Text: Chapter 7Motivation

The goal of health care organizations is to provide the highest quality of patient care.

The development of incentives such as work–life balance programs and employee career programs is an example of how HR can play an integral role in a high-performance organization.

Overview of Text: Chapter 8 Labor Unions in Health Care

Labor unions are membership labor organizations formed to protect their members’ employee rights.

Their main goal is to ensure that management treats its employees fairly.

In 2009, union membership represented 12% of all U.S. workers—a decrease from 24% in 1979. However, union membership in the health care industry is increasing slightly.

Overview of Text: Chapter 8 Labor Unions in Health Care

In 2000, 12.9% of health care workers were unionized. In 2009, the percentage increased to 13.6% (Davis, 2010).

Health care unions are increasing in strength, particularly in the nursing sector.

Overview of Text: Chapter 9 Terminating Employees

Employment is a legal relationship between an employee and an employer.

Both employers and employees have established rights: Employers must provide a safe working environment

for their employees. Employees must perform to the best of their ability in

accordance with their job descriptions and organizational policies or they may be terminated.

Overview of Text: Chapter 10 Current Trends

HRM plays a role in the following trends: Demographic and diversity trends Global healthcare economyInformation Technology Teamwork and Accountable CarePay For Performance Nursing Homes Social Media

Overview of Text: Chapter 11Strategic Management

The strategic planning of an organization consists of long-term goal setting to compete successfully in an industry. The ultimate goal is to maintain a sustainable competitive advantage over the organization’s rivals.

HR management plays a role in workforce planning to ensure that there exists the appropriate and adequate current and future labor supply.

HR departments have evolved to play an important role in the strategic planning of an organization.