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Managing Capitol Means

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BHS 499 Proposed Project/Plan

Module 4: Case Assignment

Dr. James Ivey

Managing human capital means everything for health care organizations to keep the business running and growing. Since human capital is the main resource for a company, the company needs a good management strategy to produce human capital. It could be easy for an organization to achieve goals when top management is able to manage human capital in their organization. But when the organization leadership fails on managing human capital, then the organization is faced with the possibility of failure to achieve its goals and downsizing their workforce to avoid bankruptcy.

“The single most important policy for solving the problem of overworked and understaffed hospitals is the establishment of staffing ratios, mandating both a minimum ratio of RNs to patients and controlling the ratio of RNs to lesser-trained hospital staff. While management generally opposes staffing ratios, evidence suggests that they have proven effective in the recruitment and retention of nurses. Linda Aiken, founder of the magnet hospital program and perhaps the most widely respected author in the field, argues that unless "a floor for staffing is established, we are not going to be able to stop the flight of nurses from hospitals."169 Similarly, JCAHO President Dennis O'Leary notes, "While mandated ratios are controversial among health professionals, there are established relationships between nurse staffing levels and patient outcomes." He also stresses "achievement of mandated ratios will be meaningless until controls are placed on the numbers of non-nursing tasks that nurses are required to perform."170
Management in hospitals that have adopted such ratios has come to appreciate them. Cape Cod Hospital in Massachusetts, which signed a collective bargaining agreement in 1997 mandating a 1:5 staffing ratio for medical/surgical units (with a skill mix of 85 percent RNs), initially resisted the proposal but now hails it as a cornerstone of recruitment strategies. "It definitely does help with recruitment," stated Human Resources Director Molly O'Connor. "I've won some candidates over that way." As of 2002, the hospital — in a relatively isolated part of the state — had achieved a vacancy rate of just 8.9 percent.171” (AFSCME, 2009)
“Compensation. Competitive compensation packages are imperative. Employers must know how the compensation they offer for critical positions compares with compensation for similar positions at other organizations in the served market. If a healthcare organization is perceived to be a great place to work in terms of such factors as training, resources, technology, work environment, staffing, and scheduling, the organization may be able to pay less than its competitors do (within an acceptable range).” (Gering & Conner, 2002)
To reduce turnover, managers must show a genuine interest in their employees' development and success. Employees want to feel that their contributions are important and want employers to demonstrate their commitment to stated corporate values. In addition to their technical skills, employees want to be appreciated for their work ethic, working well with customers and coworkers and performing high-quality work. Giving an employee a stake in the decision-making process makes them feel part of the larger organizational picture instead of a drone.
Development programs prepare employees to perform their jobs satisfactorily and be accountable for their job performance. Employees need to be rewarded for their achievements and provided an opportunity for advancement. In the military, Soldiers are given the opportunity to advance within the ranks at a pace equal to their performance and maturity within the skill level. I have long been told that Soldiers are not promoted based on their past actions, but more so on their future potential.
Consistent monitoring of staff levels, compensation, incorporating the value of each employee, and affording growth opportunities are only a few methods for reducing staff turnover. They offer a strategic solution for a long term and continuous challenge instead of a quick fix. Further incorporation of the human aspect by the organization will guarantee the retention and recruitment of quality employees.

References • AFSCME. (2009). Best Practices for Recruitment and Retention of Nurses. Retrieved 11 April 2011 , from AFSCME: http://www.afscme.org/publications/2198.cfm

• Gering, J., & Conner, J. (2002, November). A strategic approach to employee retention - Business. Retrieved 11 April 2011, from BNET: http://findarticles.com/p/articles/mi_m3257/is_11_56/ai_94131951/

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