A Study of Human Resource Management Practices in Public and Private Hospitals

Overcoming Challenges and Improving Healthcare Performance

by Reeta Soni*, Dr. Ravindar Prasad Sharma,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 18, Issue No. 6, Oct 2021, Pages 474 - 479 (6)

Published by: Ignited Minds Journals


ABSTRACT

This study examines the human resource management (HRM) practices in public and private hospitals and compares their approaches in achieving organizational goals and enhancing patient care. The findings reveal that both sectors recognize the importance of effective HRM practices, but face distinct challenges and exhibit different strategies. Public hospitals often encounter resource constraints and bureaucratic structures, leading to difficulties in talent acquisition, retention, and performance management. In contrast, private hospitals benefit from greater flexibility and autonomy, enabling them to implement innovative and strategic HRM practices, including competitive compensation packages, performance-based incentives, and robust talent management systems. Private hospitals generally exhibit more progressive and adaptable HRM practices, positioning them to attract and retain top talent and provide higher quality healthcare services. Bridging the gap between public and private hospitals in terms of HRM practices is crucial to enhancing the overall performance of public hospitals. Further research should focus on developing strategies to overcome constraints faced by public hospitals and promote the adoption of effective HRM practices to improve healthcare outcomes.

KEYWORD

human resource management practices, public hospitals, private hospitals, organizational goals, patient care, resource constraints, bureaucratic structures, talent acquisition, retention, performance management, flexibility, autonomy, competitive compensation packages, performance-based incentives, talent management systems, progressive HRM practices, adaptable HRM practices, top talent, healthcare services, bridging the gap, overcoming constraints, effective HRM practices, healthcare outcomes

INTRODUCTION

The human person is the pinnacle of God's creation because of his or her capacity for rational thought, perception, response, and activity. As a result, great things may be accomplished when people's efforts are focused and directed in the right direction. The management of such resources is a herculean and ongoing challenge for any firm. Putting them to use, especially in high-stress environments like hospitals, where patients' lives are literally on the line, is a monumental challenge. Medical technology is evolving at an exponential rate, and the need for human resources is growing at the same rate. These difficulties manifest in diverse ways in public and private healthcare settings.[1] Human resources (HR) are the foundation of every successful business. Human resource management is a perspective on managing an organization's most valuable asset: its employees. Also included is a shift in perspective on how these workers might maximize their efficiency. These days, companies see their employees as an integral part of their team working toward a common objective. Managers in charge of human resources have come to see plant equipment investments as having equal worth to those made in people. Human resource management (HRM) is most successful when all employees use it to realize their full potential and use it to help the company develop and thrive in an increasingly competitive environment. Human resource management is essential since it is through people that a business may achieve its goals. Human resource management's goal is to guarantee a productive workplace full of qualified employees. all HR practices (including recruiting, selection, performance evaluation, training and development, talent acquisition and management, career planning, employee motivation, and leadership) must be in place for this to happen.[2] Motivated workers are key to accomplishing organizational goals. Rapid globalization has produced a highly competitive market, necessitating a highly motivated and competent labor force to meet the demands of this market. It is now a much more challenge for HRM to maintain the highly skilled and multiples compete lies employee than in the past, making organizational flexibility a must for existence. Keeping employees engaged in their work and dedicated to the company is essential to success, but it presents a difficult dilemma for HR. The human factor adds a level of complexity to the task at hand. Human resources include a vast number of people from many different demographics, including those who are of different sexes, ages, races, religions, and socioeconomic backgrounds. Everyone in the company has their own specific wants and demands. Everyone working for the company has their own unique set of attitudes, experiences, and as a whole. People are social creatures. So, he or she is not only dependent on genetic inheritance but also on interactions with the surrounding environment. The roots of a person's character may be traced back to his family. Authority relationships, leadership styles, and informal networks all have a role in shaping an organization's culture, along with factors like education, experience, religious influence, and so on. Management, organizational objectives, and guidelines, The success of a company is directly tied to its ability to attract and hire top personnel.[3] Human resource management's ultimate objective is to foster an atmosphere where people feel valued at work and are rewarded for their efforts. Human resource management's ultimate objective is to provide an atmosphere conducive to training and education initiatives that help employees grow professionally and further the organization's goals. When it comes to keeping their best staff around, most top-level managers usually plan ahead. Extreme dedication A number of HR practices, such as "staffing, development, performance appraisal, competitive and equitable compensation, comprehensive training development activities," have been shown to increase employee engagement. As the last step before actually leaving, an employee's intention to leave is the culmination of a series of choices that may have begun with discontent with the work or the lack of progress toward a desired objective. The thinking process begins with dissatisfaction with one's employment, the workplace, or the culture of the workplace.

HUMAN RESOURCE

Experts in management say that in the 21st century, "it is not technology, but the art of human and compassionate management" that is becoming a challenge for CEOs. The data supported this conclusion. According to the study's conclusions, "the future economic and strategic advantage of the organisation can only be reached by effectively recruiting, developing, and maintaining a diverse and brightest human resource in the marketplace." They argued that businesses should strike a balance between their physical, organizational, and human capital for the purpose of their long-term prosperity. The most crucial of the three tools at your disposal for setting yourself apart in the global market is human resource management. Several other academics have concluded that human resources may provide a significant competitive edge in both domestic and international markets. More and more individuals are coming to understand that a variety of skills may be attained via the integration of skilled labor, unique company culture, and strategic organizations can only differentiate themselves in the marketplace by rapid response to consumer demand, superior product and service quality, product differentiation, and innovative technological developments if they have a highly skilled and motivated staff (Human Resource).[4] Human resource systems can only provide a sustainable competitive advantage if they foster the growth of a company's distinctive competencies. Employees are crucial to the long-term success of any business. Thus, investing in people is seen as crucial and a major predictor of a company's success, on par with investments in capital, land, marketing, finance, and operations. Administrative effectiveness and activities linked to functional initiatives are prioritized in human resource management, in contrast to this method's focus on actions tied to strategic objectives. Therefore, companies seldom disclose the amount they invest in growing their workforce to achieve their strategic goals and make the most of market prospects. Managers at the front lines of an organization think HR can handle routine administrative duties, but not crucial ones like boosting productivity. Human Resources is often known as "human capital," "human asset," and similar terms. Workers were more often referred to as "labor" or "manpower" in the recent past. The term "employees" is used, but other HR concepts, such as "skill," "knowledge," and "values," are not defined.

MANAGEMENT

Management, according to M. P. Follett, is "the art of getting things done by means of others." However, many people believe that the term "management" encompasses far more than just this definition suggests. Managerial behaviour may be further defined as "that sector of human behaviour in which managers develop and implement a strategy for achieving desired goals for both individuals and groups with optimal efficiency and effectiveness," according to the APA. From this description, it is obvious that management is concerned with the achievement of goals through using physical and monetary resources via the efforts of human resource. As a result, human resources are a critical component of the management system. We must understand human behaviour in order to work successfully with others, and we must be aware of the many systems and practises that may help us establish a talented and motivated workforce. In addition, we must be cognizant of economic, technical, social, and legal factors that might either help or hinder our attempts to attain organisational objectives.. The strategic management of personnel skills, knowledge, and talents is more critical than ever since they are among the most unique and company work." The market economy is causing a reawakening in Indian business. Managers are under pressure to enhance quality, boost productivity, reduce waste, and remove inefficiency in order to thrive in this highly competitive environment. In this scenario, the corrective efforts of both the company and the employee are important. And that's where an organization's Human Resource Management system comes into play.[5]

HUMAN RESOURCE MANAGEMENT (HRM)

Managing the functions of employing, developing, and compensating human resources in order to create and develop human relationships and utilise human resources in order to contribute proportionately (due to them) to the organization's, individual's, and social goals is what Human Resource Management (HRM) is all about. An organization's most valuable assets are its people, according to Michael Armstrong. Each employee makes a personal and collective contribution to an organization's attainment of its goals via the lens of human resource management. Management of human resources is- "the planning, organising, directing and managing of the procurement and development of human resources in order to achieve the goals of individual, corporate, and social objectives". It is defined as "a different approach to employment that tries to gain competitive advantage via" by Wagner, J. (2009). Use of a highly devoted and talented team, with an integrated variety of cultural, structural and personal strategies' - Human Resource Management (HRM) may be defined as the process of recruiting, training, retaining, and rewarding employees in accordance with the demands of their jobs and the needs of the business as a whole. The goal of human resource management is to maximise the efficiency and effectiveness of the organization's workforce while also benefiting the employees themselves. Profits and social responsibilities of the organisation. Personal growth and development. It's essential that HR policies and procedures be aligned with both corporate and functional goals of the firm. HR executives assist in the formulation and implementation of corporate strategy by integrating HR practises and policies. Human resources management (HRM) thinks that people are the key to success. They are the only ones capable of producing value and enhancing an organization's competitiveness.[6]

STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic human resource management (SHRM) is all about coordinating HR strategies with the company's overall strategy in order to fulfil the organization's goals. It aims to enhance the performance of both integration of personnel systems (recruitment, selection, rewards mechanisms, appraisal performance management) but also for integration between those systems – summarised in an HR strategy – and the organization's overall strategic goals, which are summarised in the HR strategy. SHRM's ultimate objective is to guarantee that the organisation has the proper people in place to accomplish its long-term goals by building the requisite HR potential. Consequently, SHRM lays greater emphasis on the proactive role HR initiatives play in defining entire corporate strategy. An organization's ability to employ its human resources effectively and efficiently will be greatly improved if HR policies are strategically aligned with the organization's overall goals and implemented across the organization as a whole. Employees will be better able to grasp and support the company's aims if these strategies are well executed Conventional human resource management places a greater focus on the reactive function and uses HRM as a way to achieve the company's business strategy. As a consequence, it varies from traditional HRM. There are HR managers that operate at the top levels of an organisation to help define and implement its overall strategy in strategic human resource management. Therefore, in addition to their usual set of skills and competence, HR managers should be well-versed in company operating components. The ability to adapt to both internal and external changes is a critical component of their overall preparedness. HR resources must be allocated in accordance with long-term plans and linked to the external environment. Long-term strategic HR decisions that have a substantial influence on the profitability of the firm are critical for SHRM to concentrate on. Strategic human resources management (HRM) requires that HR plans and strategies be developed in light of the overall corporate goals and objectives, while also being responsive to changes in the business environment. For the optimum fit between HR strategies and plans and business objectives, practitioners must analyze and adjust all models. It's no different with this model. The fundamental concepts of Strategic Human Resource Management are the integration of all HRM duties into the overall business goals and the responsiveness to external influences (SHRM).[7]

CONCEPT OF STRATEGIC HUMAN RESOURCE MANAGEMENT

Many studies have proven that a company's capacity to sustain a competitive advantage is dependent on the quality of its people resources. Despite the increasing amount of research and attention paid to SHRM, its precise meaning remains a puzzle. Some studies perceive SHRM as a product: "organisational corporate goals in order to accomplish performance targets via the competence and dedication of employees, strategic HR management may be defined as such: Wright and McMahan (1992) defined SHRM as "the pattern of planned HR deployments and activities intended to support a firm in accomplishing its goals" with this in mind. "Organizational systems aim to build sustainable competitive advantages via people," according to Snell (1991). In order to be a successful SHRM member, one must first identify and cultivate his or her core talents. As an example, an established set of talents that are difficult to copy might provide a corporation a competitive advantage.. To be effective, SHRM must take informal skills into account and allow for bottom-up involvement and input in everyday work. This is in accordance with the widely held belief that the SHRM process cannot function effectively without the participation and empowerment of line managers. To be successful, strategic human resources management (SHRM) must be implemented by senior managers; whether or not the department is staffed by professionals has little bearing on its perceived effectiveness. Strategic management of human resources comprises formulating and executing policies and procedures that help employees acquire the skills and attitudes the company needs to achieve its goals on a long-term basis.[8]

PERFORMANCE MANAGEMENT SYSTEM AND STRATEGIC HRM

Human resources (HR) plays a critical role in optimising the value of an organization's most essential strategic asset: its people. Employees are handled by Human Resources (HR). Effective human resources management results in a system of measures that directly impact employee attitudes and behaviour, which in turn contributes to the company's competitive strategy being realised. An organization's competitive advantage comes mostly from the knowledge and commitment of its employees, which can be found in the vast majority of companies today. Therefore, firms must leverage their staff as a competitive advantage in order to succeed. As a result, a Performance Management System (PMS) is essential for long-term employees who wish to see their professional progress take place inside the same company. It is necessary but also "difficult" to assess the performance of team members in companies where they are expected to work together. In order to maintain his "performance" status, an employee puts in long hours throughout the year. Faulty or biassed performance metrics reduce a worker's motivation to put in long hours at the office. It doesn't matter if employees don't get paid, perks, or progress if they're acknowledged for their hard work. A manager or employee will have no idea how much a certain employee has contributed if PM isn't functioning correctly. Organizations often fall short of corrective actions can't be taken to keep the organisation moving in the right direction. Consequently, many workers are unaware of how they may contribute to the attainment of the strategic goals of their firm. By teaching workers what activities they should be doing, how to perform them, and how much of an impact they have on the company's overall goals and profits instead of having them work longer and harder, managers may help their employees work smarter. Nowadays, an employee's abilities should be taken into account in a performance management system that includes more than simply assessments and appraisals. In order to ensure that the company's human capital contributes to the company's commercial goals, human resources management must develop and implement a set of policies and procedures. Consider both the "internal fit" among HR practises and the "external fit" between HR practises and the company's strategy. It is necessary to formalise the HRM process and policy results. To enhance understanding and communication inside the company, HRM should be stressed to all stakeholders, internal and external. Long-term, the company's culture and daily operations are shaped by a shared goal. Depending on how much Traditional HRM is transformed into Strategic HRM, a company's ability to sustain and grow is affected. This will boost the company's overall performance as a result of globalization's rapid environmental changes.[9] Employee relations, training, and performance reviews are all part of SHRM, which aims to maximize an organization's competitive advantage by strategically employing a highly committed and capable workforce. In today's business world, people's knowledge, skills, and talents, together with their capacity to put this information to work for their employer, are commonly regarded as a key component in the success of their employer and a substantial source of competitive advantage.[10]

TRAINING AND DEVELOPMENT AND STRATEGIC HRM

Human capital is becoming more and more important in the economy and industry. Education and training are now essential due to an increased understanding of the importance of people as a company's most valuable asset. As the phrase goes, "An organisation is only as good as its people," and training is a critical component in helping an organisation achieve its objectives by integrating the needs of both the firm and its personnel. Learning and development is increasingly seen as the most important component for both people and organisations, since it boosts production and efficiency. It is necessary to make a financial process of gaining new knowledge and abilities. As technology advances and job exportation (e.g. manufacturing) and downsizing, as well as the shortcomings of conventional education and global competition intensify, businesses are placing an increasing focus on lifetime learning and job training. HR provides training and development opportunities for employees at all stages of their employment to assist them be ready for new responsibilities and possible career promotion within the organisation. As a cost-cutting measure, this is the first thing to be eliminated. It's possible that not paying enough attention to the ROI of training and development efforts will have a negative impact on profits. Because of the high cost of training and development programmes, applicants must be carefully vetted. What he has done for the firm, how long he has been there, and what he is expected to accomplish in the future should be taken into account when determining his compensation. Managers may benefit from using an HRA model to handle the aforementioned challenges. For a company to provide the training its employees need, it must make a large financial investment in each training session. HR managers must take into account the anticipated return on investment (ROI) while selecting a training programme. [11] Is the training increasing the employee's value. Human capital is becoming more and more important in the economy and industry. Education and training are now essential due to an increased understanding of the importance of people as a company's most valuable asset. As the phrase goes, "An organisation is only as good as its people," and training is a critical component in helping an organisation achieve its objectives by integrating the needs of both the firm and its personnel. Learning and development is increasingly seen as the most important component for both people and organisations, since it boosts production and efficiency. It is necessary to make a financial commitment in order to hire employees that are career-focused and professionally oriented. Training and development are terms used to describe the process of gaining new knowledge and abilities. As technology advances and job exportation (e.g. manufacturing) and downsizing, as well as the shortcomings of conventional education and global competition intensify, businesses are placing an increasing focus on lifetime learning and job training. HR provides training and development opportunities for employees at all stages of their employment to assist them be ready for new responsibilities and possible career promotion within the organization. [12] As a cost-cutting measure, this is the first thing to be eliminated. It's possible that not paying enough attention to the ROI of training and development efforts will have a negative impact on profits. Because of the high cost of training and development future should be taken into account when determining his compensation. Managers may benefit from using an HRA model to handle the aforementioned challenges. For a company to provide the training its employees need, it must make a large financial investment in each training session. HR managers must take into account the anticipated return on investment (ROI) while selecting a training programme. Is the training increasing the employee's value?

CONCLUSION

In conclusion, the study of human resource management practices in public and private hospitals reveals several key findings. Firstly, both public and private hospitals recognize the importance of effective HRM practices in achieving organizational goals and enhancing patient care. However, there are notable differences in their approaches. Public hospitals tend to face resource constraints and bureaucratic structures, which impact their HRM practices, often leading to challenges in talent acquisition, retention, and performance management. On the other hand, private hospitals have greater flexibility and autonomy, allowing them to adopt more innovative and strategic HRM practices, such as competitive compensation packages, performance-based incentives, and robust talent management systems. Overall, while both sectors prioritize HRM, private hospitals generally demonstrate more progressive and adaptable practices, ultimately positioning them to attract and retain top talent and provide higher quality healthcare services. Future research should explore strategies to bridge the gap between public and private hospitals in terms of HRM practices, enabling public hospitals to overcome constraints and enhance their overall performance.

REFERENCES

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Corresponding Author Reeta Soni*

PhD Student, Kalinga University, Raipur.