Strategic Human Resource Essay
Health care organizations are typically labor-intensive with people costs representing 70-80 per cent of total cost. This is often stated in the form of a statement “people are our most important asset” in many business documents. However in reality many people find it difficult to translate this statement of intent into operational reality. Organizations today should adopt a “strategic approach” to human resource management. Taking a strategic approach would mean that
1. Objectives and priorities of the organization drive the human resource agenda.
2. Recognizing that there are critical interrelationships and interdependences between the areas of HR.
3. HR initiatives which would recognize the need to know “where you are now” in relation to growth in the organization (Massey, 1994).
Strategic approach to Human resource management requires active engagement from the employees. There is a widespread acceptance of the idea that energized, engaged employees produce the most satisfied, loyal customers (Garlick, 2010). Employee satisfaction is linked to service quality and the HR practices are important determinants of employee satisfaction. Engagement ratio used by Gall up is an indicator of an organization’s progress which allows managers to track the proportion of engaged to actively disengaged employees. In organizations whose performance is average, the ratio of engaged to actively disengaged employees is