1 well in brainstorming meetings. Use PEST

   1      IntroductionIn developing a criticalanalysis of the East Scotland National Hospital (ESNH), we will perform asimple version of the PEST process, to determine those external factors thatmay have an impact on the strategies of the organisation. “The PEST analysis isa useful tool for understanding market growth or decline, and as such theposition, potential and direction for a business. A PEST analysis is a businessmeasurement tool. PEST is an acronym for Political, Economic, Social andTechnological factors, which are used to assess the market for a business ororganizational unit.

The PEST analysis headings helps in reviewing a situation,and can also, like SWOT analysis be used to review a strategy or position,direction of a company, a marketing proposition, or idea. “Completing a PEST analysis is very simple, and is a good subject for workshopsessions. PEST analysis also works well in brainstorming meetings. Use PESTanalysis for business and strategic planning, marketing planning, business andproduct development and research reports.”1 (JS, n.d.) http://forhr.

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blogspot.com/2009/11/pest-analysis-tool.html    2      LO2.

1 Business Factors that Underpin HR planningFor ESNH, there are no outstanding Political issuesthat would affect the continued success and growth of the organisation, unlessof course there major upsets or changes in funding. Because it is a Nationalhospital and part of the government hospital system, while unlikely, majorpolitical changes in health care policy and funding could in fact present achallenge to the hospital.From an Economic perspective, thereare definitely some considerations that will have an affect on the humanresources needed for the hospital to maintain its reputation and patientsatisfaction. The expected growth of the number of procedures carried out, by11 percent for next year, 5 percent for the next two years, and then settlingto 2 percent for the succeeding 7 years, will mean that the hospital will needadditional staff and budget for that staff, in order to remain successful.Expectedadditional human resource availability will mean that the hospital will be ableto adapt to the changes in the Socialfactors that may affect the plans of the hospital include being able tomaintain the 98 percent satisfaction record of patients.

  Keeping nurses working at low absentee ratesand ensuring that the availability of bank nurses is kept at a just-in-timeposition will be critical to developing or enhancing a proper HR strategy.There seems tobe no major impact from Technologicalfactors, however the HR plan must ensure that the highest level of trainednurses is available for the major surgical operations and procedures that areexpected.  Based on theabove simple analysis, the conclusion is that there are some critical needs forthe HR strategies to include a strict focus on the quality and availability ofhighly trained nurses, while at the same time ensuring that the “bank” nursesare being used at the best efficiency, and starting to phase out the use ofmore expensive “agency” nurses. 3      LO2.2 Human Resource RequirementsThe keystrategic initiatives of ESNH include a) Reduce patient waiting times, b) Manageresources for the expected growth of annual procedures (22,000 last year,24,420 next year, 25,641 the following year, 26,923 the following year, thenincreasing at an average of 2 percent per year for the next seven years), c)Phase out the use of expensive “agency” nurses, d) Creation of a new cardiacunit, e) transferring 120 nursing staff from 3 regional hospitals to the newunit, f) develop an internal workforce plan for nurses.The aboveinitiatives are significant, and require significant human resource changes toaccomplish them. “An effective health care WPM shouldinclude data, strategy, planning, and evaluation (DSPE). This health care WPMwhite paper outlines an a la carte method that will help organizations create acustomized model.

When developing a health care WPM, organizations should focuson the following: 1. Data – An analysis of the current health careworkforce and the needs of the future. 2. Strategy – An overarchingworkforce planning approach.

3. Planning – An approach to createpipelines to fill future workforce needs. 4. Evaluation – The ability tomonitor the effectiveness of the plan. The following assessment tool includes aseries of questions that you can answer that will help you create a customizedWPM for your organization.

To create a comprehensive WPM, be sure to answer allthe questions in each of the sections”2 (Stephanie H. Drake, 2013)The data thatwe have for ESNH shows that we will need a gross growth in nursing staff of 30%over the next 10 years.  This takes intoconsideration the need to develop the new cardiac unit, as well as maintain thequality of nursing care given to the delight of the patients.

  (See Figure 1 below)Figure 1 East Scotland National Hospital Workforce Plan FTE Qualified Assistants Current Workforce 630 220 33 Planned Workforce Next Year * 819 244 37 Planned Workforce After Next Year 860 256 38 Planned Workforce Third Year 903 269 40 Planned Workforce Succeeding Years 921 275 41 * Considers new cardiac unit    4      LO2.3 Human Resources PlanThe needs ofthe ESNH for resources for the next three (3) years can be narrowed down toaccommodating for the expected natural economic growth of the hospital in termsof the number of procedures expected, as well as allowing for the creation ofthe new cardiac unit and providing for the necessary staff for the new unit.  My plan in additional resources, as shown inFigure 2 below, accounts for the expected growth of the number of procedurescarried out, by 11 percent for next year, 5 percent for the next two years. Figure 2 East Scotland National Hospital Workforce Plan (3 years) FTE Qualified Assistants Current Workforce 630 220 33 Planned Workforce Next Year * 819 244 37 Planned Workforce After Next Year 860 256 38 Planned Workforce Third Year 903 269 40 * Considers new cardiac unit  In order to meet the above requirements, we willpresent the following plan:a.   Utilize “bank” nurses rather than “agency” nursesb.   Maintain low “sick rates” for staff by ensuringwellness programs are followedc.

   Recruit new cardiac specialty nurses to replace someof the current nursing workforced.   Ensure that the 120 regional hospital nurses aresuccessfully transferred to the new cardiac unit 5      LO2.4 How an HR Plan contributesThe successfuldevelopment and implementation of the above HR Workforce plan is critical tothe success of ESNH.  The hospital MUSTensure that the expected growth in procedures over the next 10 years can be metwith the same quality of nursing staff that is currently providing the hospitalwith a 98% patient satisfaction rate.Additionally,the following benefits will be seen in the successful implementation of theabove Workforce plan for Human Resources.”CompensationHR compensation specialists developrealistic compensation structures that set company wages competitive with otherbusinesses in the area, in the same industry or companies competing foremployees with similar skills. They conduct extensive wage and salary surveysto maintain compensation costs in line with the organization’s current financialstatus and projected revenue” (Odina, 1990).”BenefitsBenefits specialists can reduce thecompany’s costs associated with turnover, attrition and hiring replacementworkers.

They are important to the organization because they have the skillsand expertise necessary to negotiate group benefit packages for employees,within the organization’s budget and consistent with economic conditions. Theyalso are familiar with employee benefits most likely to attract and retainworkers. This can reduce the company’s costs associated with turnover,attrition and hiring replacement workers” (Odina, 1990).”SafetyEmployers have an obligation toprovide safe working conditions. Workplace safety and risk managementspecialists from the HR area manage compliance with U.

S. Occupational Safetyand Health Administration regulations through maintaining accurate work logsand records, and developing programs that reduce the number of workplaceinjuries and fatalities. Workplace safety specialists also engage employees inpromoting awareness and safe handling of dangerous equipment and hazardouschemicals” (Odina, 1990).Liability”HR employee relations specialistsminimize the organization’s exposure and liability related to allegations ofunfair employment practices.

They identify, investigate and resolve workplaceissues that, left unattended, could spiral out of control and embroil theorganization in legal matters pertaining to federal and stateanti-discrimination and harassment laws” (Odina, 1990).Training and Development”HR training and developmentspecialists coordinate new employee orientation, an essential step in forging astrong employer-employee relationship. The training and development area of HRalso provides training that supports the company’s fair employment practicesand employee development to prepare aspiring leaders for supervisory andmanagement roles” (Odina, 1990).Employee Satisfaction”Employee relations specialists in HRhelp the organization achieve high performance, morale and satisfaction levelsthroughout the workforce, by creating ways to strengthen the employer-employeerelationship.

They administer employee opinion surveys, conduct focus groupsand seek employee input regarding job satisfaction and ways the employer cansustain good working relationships” (Odina, 1990).Recruitment”HR recruiters manage the employmentprocess from screening resumes to scheduling interviews to processing newemployees. Typically, they determine the most effective methods for recruitingapplicants, including assessing which applicant tracking systems are bestsuited for the organization’s needs” (Odina, 1990).Selection”HR professionals work closely withhiring managers to effect good hiring decisions, according to theorganization’s workforce needs. They provide guidance to managers who aren’tfamiliar with HR or standard hiring processes to ensure that the company extendsoffers to suitable candidates” (Odina, 1990).Compliance”HR workers ensure that theorganization complies with federal state employment laws. They completepaperwork necessary for documenting that the company’s employees are eligibleto work ….

.. They also monitor compliance with applicable laws fororganizations that receive federal or state government contracts, throughmaintaining applicant flow logs, written affirmative action plans and disparateimpact analyses”3 (Odina, 1990).http://smallbusiness.chron.com/10-reasons-hr-important-organization-22424.html 6      LO3.1 Purpose of Human Resource Management”Essentially, thepurpose of HRM is to maximize the productivity of an organization by optimizingthe effectiveness of its employees.

This mandate is unlikely to change in anyfundamental way, despite the ever-increasing pace of change in the businessworld”4 (inc.com, n.d.

).”Until fairlyrecently, an organization’s human resources department was often consigned tolower rungs of the corporate hierarchy, despite the fact that its mandate is toreplenish and nourish what is often cited as an organization’s greatestresource, it’s work force. But in recent years recognition of the importance ofhuman resources management to a company’s overall health has growndramatically. This recognition of the importance of HRM extends to smallbusinesses, for while they do not generally have the same volume of humanresources requirements as do larger organizations, they too face personnelmanagement issues that can have a decisive impact on business health” (inc.com, n.

d.). As Irving Burstinercommented in The Small Business Handbook, “Hiring the right people-;and training them well-;canoften mean the difference between scratching out the barest of livelihoods andsteady business growth’5(Burstiner, 1988).   Personnel problems donot discriminate between small and big business. You find them in allbusinesses, regardless of size.”6 (inc.com, n.

d.) https://www.inc.

com/encyclopedia/human-resource-management.html For ESNH, the purpose of HumanResource Management, as defined in the quotes above, is to ensure that thequality of service that is currently enjoyed is maintained, and that thehospital can assuredly maintain its strong leadership position in the region. 7       LO 3.2 Impact of RegulatoryRequirements on HR policiesThere do not appear to be manyregulatory requirements that will impact the ESNH, with the exception that thenational regulatory entity (Audit Scotland) has issued national rules onbuilding additional time into nursing staff requirements to cover annual leave,sickness absence, study leave, maternity leave and protected time. The regulatory guidelines have notedthat these additional (cumulative) requirements for “off-time” should be aminimum of 21 percent, to ensure that the impact on existing staff is not toogreat, and to avoid the use of overtime and temporary staff.

The implementation of thisrequirement will require a consideration of additional staff to cover for theminimum 21 percent “off-time”, and can be seen in the Figure 3 below.  While it is an estimate of additional staffrequire to ensure that the regulatory requirements are met with additionalstaff, it does show that there is a significant impact on the cost of the ESNHfor meeting this requirement. Figure 3 East Scotland National Hospital Workforce Plan (3 years) FTE Qualified Assistants Current Workforce 630 220 33 Planned Workforce Next Year * 819 244 37 Planned Workforce After Next Year 860 256 38 Planned Workforce Third Year 903 269 40 Impact of Regulatory Leave 1093 326 49 * Considers new cardiac unit  The overall 3-year impact on costsin additional minimum nursing staff required to meet the scheduling of theminimum leave requirements is an additional 10 percent staff.  This may seem significant, and in fact is ahuman resources requirement that adds cost and scheduling impact to thehospital, but it does ensure that the hospital, while meeting regulatoryrequirements, is also ensuring the well-being of the nursing staff, ensuringthe continued high quality of service for the nursing procedures, and ensuresthe overall continued patient satisfaction.

“Human resources management must comply with allemployment, health and safety and other relevant legislation applicable to thejurisdiction where the organization operates. This includes federal, state andlocal laws that pertain to various areas of HR such as recruitment, benefits,labor relations and termination. Keeping up-to-date with legislation ensuresthat the organization remains compliant and avoids costly penalties”.7 (inc.com, n.

d.) http://smallbusiness.chron.

com/legal-regulatory-requirements-human-resource-process-20590.html “Increasing globalizationhas seen large organizations doing business internationally or setting upoperations overseas. Ensuring legal and regulatory compliance can be verychallenging in a foreign environment where laws and business practices may bedifferent. Companies must take note of local laws impacting not only how theirbusiness is run, but also how their employees are managed. This includesmanagement of employees on travel or international assignments and employeeshired locally.”8(Burstiner, 1988)http://smallbusiness.chron.com/legal-regulatory-requirements-human-resource-process-20590.

html  2,432 wordsReferencesArmstrong, M. (1999). A Handbook of Human ResourceManagement Practice. Retrieved from INC:https://www.inc.com/encyclopedia/human-resource-management.htmlBurstiner, I. (1988).

The Small Business Handbook.Prentiss Hall.inc.

com.(n.d.). Retrieved from INC:https://www.inc.com/encyclopedia/human-resource-management.htmlJS, B.

S.-S. (n.

d.). bLOGsPOT. Retrieved fromHuman Resources: http://forhr.blogspot.com/2009/11/pest-analysis-tool.

htmlMahew, R. (n.d.). Retrieved from Small Business Chronicle:http://smallbusiness.chron.

com/10-reasons-hr-important-organization-22424.htmlOdina, R. (1990). Small Business Chronicle.Retrieved fromhttp://smallbusiness.chron.

com/legal-regulatory-requirements-human-resource-process-20590.htmlStephanie H. Drake, M. S.

(2013, Sep). AmericanHospital Association. Retrieved from AHA.org:http://www.aha.org/content/13/13wpmwhitepaperfinal.pdf1 http://forhr.blogspot.com/2009/11/pest-analysis-tool.html2 http://www.aha.org/content/13/13wpmwhitepaperfinal.pdf3 http://smallbusiness.chron.com/10-reasons-hr-important-organization-22424.html4 https://www.inc.com/encyclopedia/human-resource-management.html5Burtstiner, Irving6 https://www.inc.com/encyclopedia/human-resource-management.html7 http://smallbusiness.chron.com/legal-regulatory-requirements-human-resource-process-20590.html8 http://smallbusiness.chron.com/legal-regulatory-requirements-human-resource-process-20590.html

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