3. 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.
4. 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.
5. 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.
6. 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 system
2. Job analysis and job design
3. Recruitment and selection
4. Healthcare career opportunities
5. Distribution of employee benefits
7. 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 Motivation
7. Negotiations with organized labor
8. Employee terminations
9. Determination of emerging and future trends in health care
10. Strategic planning
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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.
15. 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.
16. Role of HRM
Regardless of organizational type, HRM is a partner
with management.
Health care organizations are unique
Two organizational structures: Administrative and
clinical.
Each set of employees has different training needs.
17. 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.
18. 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.
19. 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.
20. 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.
21. 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
22. 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.
23. 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.
24. Overview of Text: Chapter 6
Employee 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.
25. Overview of Text: Chapter 7
Motivation
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.
26. 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.
27. 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.
28. 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.
29. Overview of Text: Chapter 10
Current Trends
HRM plays a role in the following trends:
Demographic and diversity trends
Global healthcare economy
Information Technology
Teamwork and Accountable Care
Pay For Performance
Nursing Homes
Social Media
30. Overview of Text: Chapter 11
Strategic 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.
