The Foundation Of The NHS Commerce Essay

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In 1947, the following year the foundation of the NHS, British United Provident Association BUPA began as the BUPA is one of the principal international healthcare group, these organization propose personal and company health insurance, run care homes for older persons and hospitals, and offer workplace health services, health assessments and chronic disease management services, as well as health coaching, and home healthcare. Mainly in the UK, Australia, Spain, New Zealand and the USA, as well as Hong Kong, Thailand, Saudi Arabia, India BUPA employs 55,000 people worldwide.

With no shareholders, the company reinvest the money to make into more and better healthcare. The centre for this reinvestment is on products and services which help out the company to get closer to their customers so that they can help their customer. They are dedicated to making quality, patient-centred, reasonable healthcare more available in the areas of wellness, chronic disease management and ageing.

Task 1

1.1 Strategic Human Resource Management

Strategic Human resource management is a progress towards that refers how the aims of the organization will be obtained throughout the people by means of human resource strategies and joint human resource practices and policies. Strategic Human resource management is also based with presentation of the individuals of the organization as a strategic element for the attainment of competitive benefit (Huslid, 2003).

Kaplan and Hurd (2002) according to Kaplan and Hurd the strategic HRM is a set of tasks and processes shared together by line managers and human resources to solve business issues based on people. According to (Kostova and Roth, 2002) the macro organizational approach to look the meaning and role of human resource management in the big organization is termed as Strategic HRM. Leug (2003) defined that strategic human resource management focuses on performance that varied the organization from its competitors.

Strategic HRM means the organization's intentions and plans on how its business goals should be achieved through people. It is based on three propositions: first, that human capital is a major source of competitive advantage; second, that it is people who implement the strategic plan; and the third is, that a systematic approach should be adopted to defining where the organization wants to go and how it should get there.

1.2 Importance of Human Resource Management

Human resource management is important in an organization so first we need to understand what are human resource management and their importance for any organization. HRM is the organizational function that deals with issues associated to persons such as reimbursement, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Human Resources Management (HRM) is the strategic management of the workers, who independently and jointly contribute to the attainment of the strategic objectives of the company. Assuming that the staff of an organization are those with own mental maps and awareness, own goals and own personalities and as such they cannot be apparent as a whole, HRM holds that the business must be able to employ both individual and group psychology in order to perform workers to the accomplishment of organizational goals.

The organization is aim to attain its strategic goals by attracting, retaining and developing staff, HRM functions as the connection among the organization and the staff. A business should first become responsive of the needs of its staff, and at a later stage, understand and assess these needs in order to make its workers observe their job as a part of their personal life, and not as a regular obligation. At the end, HRM is very essential for the entire function of an organization because it assists the organization to form loyal, motivated and hard working staffs, which is prepared to do their best anything they can.

The main HR function in any company is recruiting the right person and then getting essential quality and quantity of work jointly with organizational goals which use different tools and techniques for motivation, appraisal, training, cross cultural management, up-and-coming issues in personnel laws like, sexual harassment etc.

Applying Barney's (1991) VRIN framework it can be determine if a resource is a source of sustainable competitive advantage. To serve as a basis for sustainable competitive advantage, then resources must be --

Valuable - means that the source must be of greater value, in terms of relation costs and benefits, than similar resources in competing firms

Rare -the resource must be rare in the sense that it is limited relative to demand for its use or what it produces

Inimitable - inimitable is a source that is difficult to imitate or cannot be copied

Non substitutable -- types of resources cannot be substituted

The criteria of the VRIN Framework noticeably rules out best practices as a basis of competitive advantage. If other organization can simply understand and copy the ability, it is not a source of advantage.

1.3 Framework of strategic human resource management


Harvard model of HRM. Source: Beer et al. (1984).

Figure key:

Stakeholder interests: stakeholders are people who have a financial interest in the organization, management, and employee groups. They also include external bodies such as government and the local community, particularly in areas where one company is a large provider of employment.

Situational factors:

Situational factor are consist of the characteristics of the workforce, labour markets, union representation, and legislation, as well as societal values and culture. Fundamentals of the business environment also need to be considered, such as the current economic environment, the strategic direction of the company, and the management perspective that drive the company. These guide to HRM policy choices in areas such as reward and incentive systems, work systems, and employee influence.

HR outcomes:

HR outcomes pursue from the HRM policy choices and concerned with commitment, competence, similarity, and cost-effectiveness.

Long-term consequences

These follow on from HRM policy and outcomes and refer to individual welfare. Will the outcomes certify that individuals are looked after and their needs measured? Will the organisation still be capable to be effective and compete or offer a service in the external market? How will the HR outcome please the wider needs of society and the community as a whole?

Stakeholder interests:

This refers to shareholders who have a financial interest in the business. These range from the management, who need to ensure that organisational goals are fulfilled, to employee groups, either formal or informal. Externally, the government also has an interest in how organisations operate; this includes legislation to make sure that people are protected and to observe how the organisation contributes to the economy. Often in communities where one type of organisation is a major employer, the community may also have a stake in the organisation. This was the case in the 1980s when, with the demise of the coal mines and manufacturing industries, many communities were destroyed as people moved away to find work. Unions may also have an interest in the organisation and, although many unions lost their power after the 1980s, workers still have the right to belong to a union and employers have a duty to be familiar with this.

Situational factors:

These include the characteristics of the workforce, which in turn include labour markets, union representation, laws and societal values. Questions need to be asked such as: Who are they? Where do they come from? What is the culture? The business environment also needs to be considered, such as the economic conditions, strategic issues as to the direction of the organisation, and the management philosophy that drives the organisation. The technology and work systems also need to be taken into account to make sure that the workers can be successful.

Managing diversity:

Managing diversity is another important issue for HR managers today, which is why HR managers need to be aware, not only of legislation, but also how it can affect the morale of the employees. Managing for diversity guarantee that all employees can feel valued as part of the organisation.

The soft view of HRM planned by the Harvard model recognises the significance of people and that stakeholder interests are more likely to be met if HR policy, choices and outcomes ensure the long-term consequences of individual welfare, which impact on societal wellbeing and increase organisational effectiveness as well. The Harvard model suggests those organisations that encourage employee influence in decision-making are likely to be more effective provided they are stable with organisational goals.