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Hospital human
resource
planning
383
Robert Wagner
Svatopluk Hlavacka
Ljuba Bacharova
Introduction
As Bhatti et al. (1998) note, organisations today operate in a world that is
increasingly deregulated, instantaneous, competitive, data computer rich and
Internet connected. This unprecedented rate of change, facing both public and
private sectors, produces a major reorientation of structures, systems and
management methods. In other words, organisations are being forced to
continue their business in conditions of cost constraints, market deregulation
and structural changes such as mergers and acquisitions. As a result, human
resource planning becomes of vital assistance in deciding which jobs are
essential and which will be lost (Zeffane and Mayo, 1994a). In a similar vein,
other writers argue that, in the current highly uncertain socio-economic climate,
human resource planning is emerging as a focal human resource activity, as it
is increasingly becoming an essential and very prominent boundary spanning
function (see, for example, Evans, 1991; Richards-Carpenter, 1989; Walker,
1989).
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This view has also been supported by Marchington and Wilkinson (1996),
who strongly criticised some early 1990s writers, referring to human resource
planning as at best irrelevant, and at worst misguided and dangerous, in the
turbulent and increasingly insecure competitive environment of the late
twentieth century. Marchington and Wilkinson have stressed that such
opinions misunderstand the nature and uses of the planning process, and can
be used to justify ``ad-hocery'' and reactive management. However, planning is,
according to them, at least just as important during turbulent times, if not more
so, for at least four reasons:
(1) It encourages employers to develop clear and explicit links between their
business and human resource plans, and so integrate the two more
effectively;
(2) It allows for much better control over staffing costs and numbers
employed;
(3) It enables employers to make more informed judgements about the skills
and attitude mix in the organisation, and prepare integrated personnel
and development strategies;
(4) It provides a profile of current staff (for example, in terms of gender, race
and disability) which is necessary for moves towards an equal
opportunities organisation.
Additionally, some writers even argue that there is a new human resource
function in this economic era (see, for example, Rousseau and Arthur, 1999), which
consists of simultaneously positioning organisations and workers to respond
flexibly to market changes, while seeking stability by recruiting, developing and
retaining people whose talents are critical to the organisation. Evidently, human
resource planning should play one of the key roles in such a process.
In the light of these realities, it seems that, rather than being seen as an
anachronism, human resource planning may now be more important than ever,
and remaining constantly aware of employees' strengths and weaknesses and
catering for them in planning future needs should, therefore, form a primary
thrust of human resource management (see Margerison, 1991; Mayo, 1990).
Nevertheless, while such an importance is being assigned to human resource
planning by the western writers, research on human resource practice,
especially in the health-care context, in the central and eastern European
countries is rather scant. Moreover, some authors contend that personnel
management and human resource management practices, including human
resource planning, in central and eastern Europe still have a long way to go
before they represent anything like current practices in western organisations,
and that these activities have a low priority in many central and eastern
European organisations (see Garavan et al., 1998). If this is true for Slovakia's
health-care settings, then it is the reality that is likely to become a major issue if
left unattended, because, as Gill (1996) argues, workforce planning is of vital
importance in a service that is predominantly provided by people.
The present study has, therefore, attempted to examine some general aspects
of the current state of affairs in human resource planning in the Slovak health
sector. More specifically, it has focused attention on human resource planning
practices of the Slovak acute care hospitals and perceived functions, typical
customers and priorities of their personnel departments. In doing so, first, the
origins of and some conceptual frameworks for human resource planning are
briefly explored. Then, three main approaches to this activity, plus some recent
approaches to human resource planning in health care, are reviewed. Third,
human resource planning in Slovakia is briefly investigated. Fourth, a design of
the study is described and the results are discussed. Finally, some implications
for future practice are considered and conclusions are drawn.
The origins of and conceptual frameworks for human resource
planning
According to Rahman bin Idris and Eldridge (1998), modern human resource
planning dates from the 1940s when it was used to allocate staff and to develop
career structures in conditions of acute shortage of skills. However, as they
further explain, the status of human resource planning as a discipline with a
strong conceptual base was established only with Bartholomew's 1967 work on
stochastic models for social processes and Smith's 1971 models of manpower
systems. This stage of conceptual development was further reinforced by the
emergence of the corporate view of human resource planning in the mid-1970s
(see Bowey, 1975; Bramham, 1975), according to which human resource
planning follows from and is complementary to organisational strategy.
Bowey's (1975) conceptual framework involves the subdivision of human
resource planning into three broad categories of activity. First, there is an
assessment of future labour requirements, which presumably ought to be
derived from projected business expectations. Second, she refers to an
assessment of the organisation's ability to retain its current workforce, and any
replacements which may be necessary. Finally, there are predictions that have
to be made about the ability of the organisation to acquire or attract different
kinds of staff from the external labour market.
On the other hand, Bramham's (1975) concept of human resource planning
comprises four main activities investigating, forecasting, planning, and
utilising. The investigation provides an analysis of the external environment, a
review of the external labour market, and an audit of the internal labour
market. Forecasting refers to future and projected requirements and the
potential supply of that labour from within and outside the organisation.
Planning involves turning forecasts into personnel and development policies
for recruitment, training and development, absence control, and motivation and
reward. The final activity, utilisation, requires the human resource plans to be
compared against defined and important measures of organisational success,
such as customer satisfaction and product quality.
More recently, Khoong (1996) suggested an integrated system framework for
human resource planning. He claims that all the planning activities, which he
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calls perspectives, can interact with one another in intricate ways. However,
few insights have been, according to him, reported on such interactions and the
impact of these interactions on the resultant human resource plans. Khoong
maintains that the key human resource activities include:
.
establishment requirements planning;
.
career progression planning;
.
staff movement planning;
.
personnel assignment;
.
posting projection;
.
succession planning; and
.
recruitment, retention, staff promotions, postings and training as the
basic operational human resource activities that support human
resource plans.
Approaches to human resource planning
Over the years, many different approaches have been developed to accommodate
different types of constraints and the kind of policies under which the planning
system might operate (see, for example, Lawrence, 1980; Purkiss, 1981; Edwards,
1983; Gaimon et al., 1987; Wilson, 1987; Lee and Biles, 1988; Jorssen, 1989;
Dawson et al., 1990; Uwakweh and Maloney, 1991; Schuler and Huber, 1993;
Zeffane and Mayo, 1994b; Rothwell, 1995; Parker and Caine, 1996; Khoong, 1996;
Castley, 1996, Bramham, 1998). According to Marchington and Wilkinson (1996),
broadly these approaches have been applied to three sets of issues:
(1) forecasts of the demand for labour;
(2) forecasts of internal supply;
(3) forecasts of external supply.
Approaches to forecasting future demand
In general, there are basically two types of approaches to assessing future
demands for labour, the objective and the subjective. The objective approach
relies upon the projection of past trends and needs to take into account shifts
brought about by changes in technology and organisational goals. Simple
projections from the past to indicate the amount or type of labour required in
the future can be related to results from work study exercises or ratios of
customers to staff. These approaches often use techniques such as
extrapolation/regression, work/productivity, measurement, or econometrics
(see, for example, Bartholomew and Forbes, 1991; Bennison and Casson, 1984;
Verhoeven, 1982; Lawrence, 1980). On the other hand, the subjective approach,
in its most basic form, takes the form of managerial judgement about future
needs and, as Marchington and Wilkinson (1996) emphasize, in some cases it
can be an excuse for speculation and even guesses based on limited amounts of
data. For example, Schuler and Huber (1993) refer to the Delphi technique as
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Task analysis has two distinct phases. The first one is concerned with
measuring existing workflows and paths. The second phase refers to assessing
the skills and knowledge needed now and in the future. This method is
considered to work best where the activities are clearly defined and
measurable. Another method of reprofiling activity sampling is in its purest
form a statistical process dependent on the accurate recording of activities
being undertaken at specific time intervals. It is usual to collect this
information for a minimum of two weeks. Once this information has been
collected, it is typically analysed using a computer spreadsheet or database.
Third, zero based methods draw from a wide discussion as to the purpose of
the particular function or department. Having established and agreed the
purpose, the work, tasks and activities that need to be undertaken to meet the
objectives of the function or department are then considered. Finally, the
combined approach builds on the strengths of other methods without needing
to consider any of their disadvantages. Gill (1995) maintains that the method
works best when, first, the zero based approach to identify clearly the staff
groups who should take on the identified tasks is used. Second, the staff groups
are then compared with current activity, by using data drawn from either
activity sampling or task analysis. Finally, from this comparison an action plan
for achieving change is developed.
Skill mix, as the second approach to human resource planning in health care
reviewed here, only looks at the skill factor. As Bevan et al. (1991) explain, this
approach focuses on ensuring the optimal distribution of skills among the
workforce, so that a cost-effective service can be provided. This often means
looking at the extent to which particular skills being used are appropriate to
particular grades of groups of staff and, if necessary, having the skill
performed by another group or grade of staff with appropriate training.
Finally, the workload indicators of staffing need method for planning health
staff should be mentioned here as the one being implemented by the Ministry of
Health in the health sector of the Slovak Republic. This approach has been
developed for the World Health Organization by Peter J. Shipp Initiatives, Inc.
(1998) in response to the failure of other methods, for example, population
ratios and standard staffing schedules, to take into account the wide local
variations which are found within every country, such as the different levels
and patterns of morbidity in different locations, the ease of access to different
facilities, the patient attitudes in different parts of the country to the services
provided, and the local circumstances. This method allows for calculating:
.
the optimal allocation and deployment of current staff geographically,
that is, allocating staff to regions within a country, districts within a
region, areas within a district, and so on, according to the volume of
services which are being delivered and the different types of health staff
which are required to deliver these services;
.
the optimal allocation and deployment of current staff functionally, that
is, allocating staff between different types of health facilities or different
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.
390
.
44.4
29.2
15.3
2.8
8.3
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resource
planning
391
73.6
15.3
11.1
11.1
15.3
19.4
12.5
11.1
11.1
9.7
9.7
Measures
In addition to two descriptive items, each respondent was asked to indicate the
degree to which each of the following six essential human resource activities is
a current priority for his/her human resource department:
(1) analysing present and future demands for staff;
(2) ensuring that the department has a workforce plan for obtaining and
using staff in the future;
(3) reducing staff turnover/improving staff retention;
(4) having quick access to accurate labour market information;
(5) selecting the highest quality people;
(6) having a quick, efficient and cost-effective recruitment and selection
system.
The respondents were asked to indicate the degree of priority on a five-point
scale, ranging from 1 not a priority, through 2 low priority, 3 moderate
priority, 4 important priority, to 5 critical priority. These original priority
categories were later compressed into only three groups to allow for the more
appropriate use of statistical processing, due to a relatively small number of
cases within the sample. In consequence, the responses from categories 1 and 2
(that is, not a low priority) were allotted to group 1 low priority; the responses
from category 3 (moderate priority) were assigned to group 2 moderate
priority; and finally, the responses from categories 4 and 5 (that is, high and
crucial) were allocated to group 3 high priority.
Table I.
Demographic features
of the sample
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Statistical procedures
To analyse the data gathered by the survey, first, the descriptive statistics were
obtained for quantitative data, and frequencies and percentages calculated for
qualitative data, based on a content analysis of the two descriptive items.
Subsequently, to investigate the relationships between ownership of a
workforce plan and type of hospital, as well as the degree to which the
aforementioned human resource activities are a current priority for the hospital
human resource department, a cross-tabulation procedure was adopted, using
SPSS 8.0 for Windows software.
Additionally, a hierarchical cluster analysis, using between-groups linkage
and square Euclidean distance method, was applied to identify relatively
homogeneous groups of hospitals based on the different priority patterns of the
six essential human resource activities mentioned before. The significance of
differences between the clusters obtained was tested using the one-way
ANOVA.
Results and discussion
The main functions of hospital human resource departments
The results of the content analysis of the responses (see Table II) suggest that
in a majority of hospitals the human resource specialists perceive the main
functions of their departments to be recruiting and dismissing the workers,
doing various kinds of statistical analysis, processing the data for social and
health insurance companies, and filing the personal records of hospital
employees. Similarly, they believe that their departments' main functions
include administering the legislative aspects of labour relationships and
retirement, providing references on their former employees, administering the
part-time job agreements and scheduling vacations, but also ensuring
employee development and education. However, in only a very limited number
of hospitals is decision making viewed by the human resource staff among the
main functions of their departments.
Clearly, this picture of the role of human resource departments in the Slovak
hospitals is far from managing diversity in the workforce (Conant and Kleiner,
Function
Table II.
Main functions of
hospital human
resource departments
in Slovakia
Percentage of 72
92
90
89
89
86
79
75
75
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resource
planning
393
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the contribution of the human resource function should also be made at the
strategic level. In other words, it should include not only day-to-day personnel
administration, such as personnel records, payroll, and administration of
benefit programmes, but establishing the overall direction and objectives of
key areas of human resource management as well.
394
Table III.
Results of hierarchical
cluster analysis
(squared Euclidean
distance) and one-way
ANOVA for
significance of
differences in a priority
given to each HR
activity between the
clusters obtained
A
B
C
D
E
F
1.40
1.20
1.40
1.00
1.20
1.20
0.55
0.45
0.89
0.00
0.45
0.45
Clusters
C2 (N = 55) C3 (N = 7)
Mean SD Mean SD
4.09
3.64
3.69
3.67
4.53
3.87
0.62
0.62
0.74
0.88
0.54
0.61
2.86
2.57
1.71
2.86
4.29
3.57
0.90
0.79
0.49
0.90
0.49
0.53
C4 (N = 3)
Mean SD
2.33
2.67
3.67
3.00
3.00
1.33
0.58
1.15
0.58
1.00
1.00
0.58
C5 (N = 2)
Mean SD
4.50
1.50
4.00
2.00
4.50
2.50
0.71
0.71
0.00
1.41
0.71
0.71
Significance
F
p<
28.15
23.34
21.64
12.83
45.44
35.34
0.001
0.001
0.001
0.001
0.001
0.001
Notes: A: Analysing present and future demands for staff; B: Ensuring that the department
has a workforce plan for obtaining and using staff in the future; C: Reducing staff turnover/
improving staff retention; D: Having quick access to accurate labour market information;
E: Selecting the highest quality people; F: Having a quick, efficient and cost-effective
recruitment and selection system
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giving almost no priority to having a workforce plan might simply mean that,
once having the data on future staff demands, rewriting them into a plan is a
worthless paper exercise.
Ownership of a workforce plan in hospitals
The findings indicate that only 39 per cent of human resource departments in
the surveyed hospitals have a workforce plan, whereas in 61 per cent of
hospitals they do not have any. These results quite clearly show that human
resource planning, at least at a formal level, in the Slovak acute care hospitals is
rather neglected. Adopting Marchington and Wilkinson's (1996) perspective,
this would mean that hospitals are giving up the major advantage of planning
in advance, that is allowing managers to consider a range of solutions rather
than being pressurised into adopting the only realistic option which remains
open to them as a last-ditch attempt to avoid crisis. Furthermore, Rahman bin
Idris and Eldridge (1998) contend that informal human resource planning is the
one that has greater flexibility of response and is relatively easier to enact.
Nonetheless, they admit that the drawback of informal human resource
planning is that it may exist only in the mind of the chief executive, and hence
its outputs may not be meaningful to all key decision makers.
In the context of Slovak health care, such a risk of lack of meaning seems to
be undesirable for at least two reasons. First, from the perspective of hospitals,
as the health system is still quite centralised and the Ministry of Health is a key
decision maker with respect to determining the network of health-care
providers, hospitals may find it a severe limitation that they lack the objective
data to justify the existence of their current staffing patterns and numbers.
Second, from the perspective of the Ministry, to have the appropriate data on
hospital staff future needs or workload may be important with respect to the
Ministry's budgetary planning responsibilities.
The relationships between ownership of a workforce plan and type of hospital
In order to gain more insight into the above findings, the relationships between
ownership of a workforce plan and type of hospital were examined. In the
Slovak health care system, there are three different types of hospitals. These
types are based on the hospital's bed capacity, type of services provided and
hospital geographic location:
.
Type I rural hospitals have typically 30 to 300 beds, are located in
small towns and rural areas and deliver services mostly in up to four
basic specialties (internal medicine, surgery, paediatrics, and
gynaecology).
.
Type II small urban hospitals include hospitals with approximately
400 to 800 beds, located in district cities and providing specialised care.
.
Type III large urban hospitals refers to hospitals with 900 to 1,200
beds, located in regional cities and in the capital city of Bratislava, and
providing highly specialised care, usually at a national level.
Hospital human
resource
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397
Count
Expected
Count
Expected
Count
Expected
Count
Expected
count
count
count
count
Priority
Analysing
Low
Moderate
High
Total
Count
Expected
Count
Expected
Count
Expected
Count
Expected
count
count
count
count
Yes
Workforce plan
No
Total
10
11.7
14
12.1
4
4.3
28
28.0
20
18.3
17
18.9
7
6.7
44
44.0
30
30.0
31
31.0
11
11.0
72
72.0
Yes
Workforce plan
No
Total
2
4.3
3
3.1
23
20.6
28
28.0
9
6.7
5
4.9
30
32.4
44
44.0
11
11.0
8
8.0
53
53.0
72
72.0
Table IV.
Results of
cross-tabulation
procedure for the
relationships between
ownership of a
workforce plan and
type of hospital
Table V.
Results of
cross-tabulation
procedure for the
relationships between
analysing present and
future demand for staff
and ownership of a
workforce plan
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.
.
.
.
398
.
.
Ensuring
Low
Moderate
High
Total
Count
Expected
Count
Expected
Count
Expected
Count
Expected
count
count
count
count
Yes
Workforce plan
No
Total
2
5.4
6
8.9
20
13.6
28
28.0
12
8.6
17
14.1
15
21.4
35
35.0
14
14.0
23
23.0
35
35.0
72
72.0
Yes
count
count
count
count
Priority
Having quick access
Low
Count
Expected
Moderate
Count
Expected
High
Count
Expected
Total
Count
Expected
count
count
count
count
Workforce plan
No
8
7.9
16
13.4
20
22.6
44
44.0
13
13.0
22
22.0
37
37.0
72
72.0
Yes
Workforce plan
No
Total
12
9.2
12
11.6
20
23.2
44
44.0
399
Total
5
5.1
6
8.6
17
14.4
28
28.0
3
5.8
7
7.4
18
14.8
28
28.0
Hospital human
resource
planning
15
15.0
19
19.0
38
38.0
72
72.0
Table VII.
Results of
cross-tabulation
procedure for the
relationships between
reducing staff
turnover/improving
staff retention and
ownership of a
workforce plan
Table VIII.
Results of
cross-tabulation
procedure for the
relationships between
having quick access to
accurate labour market
information and
ownership of a
workforce plan
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Table IX.
Results of
cross-tabulation
procedure for the
relationships between
selecting the highest
quality people and
ownership of a
workforce plan
Selecting
Low
Table X.
Results of
cross-tabulation
procedure for the
relationships between
having a quick,
efficient and costeffective recruitment
and selection system
and ownership of a
workforce plan
Priority
Moderate
High
Total
Count
Expected
Count
Expected
Count
Expected
Count
Expected
Having a system
Low
Count
Expected
Moderate
Count
Expected
High
Count
Expected
Total
Count
Expected
count
count
count
count
count
count
count
count
Yes
Workforce plan
No
Total
1
2.3
0
0.8
27
24.9
28
28.0
5
3.7
2
1.2
37
39.1
44
44.0
6
6.0
2
2.0
64
64.0
72
72.0
Yes
Workforce plan
No
Total
1
3.9
3
5.8
24
18.3
28
28.0
9
6.1
12
9.2
23
28.7
44
44.0
10
10.0
15
15.0
47
47.0
72
72.0
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hospital human resources in order to be able to ensure the best use of the
limited resources available.
One of the major challenges for the Slovak health-care administrators,
however, is to grasp the opportunity for implementation of modern human
resource planning practices, as there seems to be a gap between the degrees of
priority given to analysing present and future demands for staff, as well as
selecting the highest quality people, on the one hand, and actual ownership of a
workforce plan, on the other. To put it in the light of the more market-oriented
principles of supply and demand, there seems to be a higher need for some
system, method or procedure of analysing and selecting the appropriate
hospital workforce, but one of the potential satisfiers of that need developing
a workforce plan is not being recognised as a possible solution to this. More
importantly, the results suggest that this applies to all the acute care hospitals
in Slovakia, irrespective of their type, and thereby their bed capacity, extent
and pattern of services provided and their geographic location.
To summarize, the implications of the present study seem to be threefold.
First, the study contributes to the understanding of what is essentially a
greenfield site in the Slovak health-care management, that is comprehensive
and systematic human resource planning. Second, it shows that, because of the
emerging recognition among hospital human resource managers of a need for
such planning, it may now be the right time for implementation of the new
methods in this field. Finally, these early findings indicate that further
consideration should be given to how the existing workforce plans are
integrated into an overall hospital strategy. Researchers might also find a rich
vein in discovering the real-life effects of human resource planning, and the
existence of workforce plans, on the hospital performance indicators and/or
cost consciousness.
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Bevan, S., Stock, J. and Waite, R.K. (1991), Choosing an Approach to Reprofiling and Skill Mix,
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Bhatti, M.I., Kumar, K. and Schofield, M. (1998), ``On Deming's principle of human resource
management: a statistical perspective'', Career Development International, Vol. 3 No. 6,
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