Hrm Case Study-patel

7/31/2019 Hrm Case Study-patel

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PROJECT FOR HUMAN RESOURCE MANAGEMENT

Submitted By: Mehreen Abbas

Submitted To: Ms. Deep Kiran

Date of Submission: 11th

August 2012

Institute of Business Management (IoBM)


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PATEL HOSPITAL: AN OVERVIEW ON THE HUMAN RESOURCE

MANAGEMENT

INTRODUCTION

The health care industry, one of the world's largest and fastest-growing industries is meant to

deliver proper and accurate health care services in order to treat the patients. The major element

of health care industry includes hospital sector within the economy that provides cure,

prevention, rehabilitation and palliative services to the sick, injured, disabled or infirm or any

other patients.

The health care system in Pakistan has two possessions in parallel; public and private. Due to

increased number of patients and lack of maintained infrastructure in public sector, the

preference towards private hospitals has enlarged over the years as they have created the brand

image of a promised quality care and treatment in the minds of its customers. The delivery of

such health services are usually paid, however, due to economic crisis, inflation and increased

poverty, most health care organizations especially in under developed countries have emerged

the concept of building welfare trusts to treat the poor and needy. The evolution in the industry

has created increased need of human resources as human factor is central to healthcare. But yet

its proper management still require immense expertise to deal with, especially incases of large

organizations when the setup is run by fundings through Board.

The Patel Hospital, is one of those hospitals that provide services on welfare. Patel Hospital has

achieved its mission of being dedicated to serve the humanity through efficient working of

manpower that has enabled the hospitals position to withstand in the market. Upon closer view,

the hospital is still striving hard to strengthen its image in the market. Therefore, this case has

scrutinized and highlighted few human resource management issues faced by Patel Hospital.


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THE HOSPTIAL

Patel Hospital, a Project of Patel Foundation, located at Gulshan-e-Iqbal, Karachi is a non-profit

private, teaching institution established to provide state-of-the-art medical treatment services. In

1999, the hospital started functioning with only 35 beds and now functioning with 200

operational beds, the hospital has successfully achieved the status of a tertiary-care hospital.

Patel Hospital was established in by the renowned philanthropist of bantava memon community

social worker Mr. Abdul Ghaffar Abdul Rehman alias Mithu Patel whose human intention and

dedication has blessed so many people who come in contact with Patel Hospital either to obtain

services or support. Consequently, Patel hospital has become the largest hospital in Gulshan-e-

iqbal and takes pride in being one of the premier hospitals of Karachi.

The success of Patel Hospital lies in its enthusiastic, energetic, dedicated and hardworking team

and it is an example for many who would want to join the stream of services for humanity. The

hospital provides services in the following medical specialties:

Angioplasty, Heart By-pass Surgery Hand and Reconstructive Surgery Blood Disorders and Cancer Treatment Heart Health Bones and Joints Treatment Internal Medicine, Diabetes, Arthritis Burns Treatment Kidney Diseases, Surgery and Dialysis Child Health and Newborn Care Lungs and Respiratory Diseases Dentistry, Maxillo-facial Surgery Mental Health ENT, Head and Neck Cancer Surgery Neurosurgery, Brain and Spinal Surgery Eye Treatment and Surgery Plastic and Cosmetic Surgery Gastroenterology, Hepatitis, Liver

Diseases Pregnancy and Child Birth General Surgery, Breast Cancer Surgery Women Health


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Hospital is also equipped to provide 24-hour Emergency, Radiology, Laboratory, Pharmacy and

Intensive Care Services. The Hospital is equipped with Cath-lab (invasive and non-invasive

cardiology), Endoscopy Suite and purpose-built outpatient and inpatient departments.

VISION:

The vision of the Patel Hospital is to be an Institute of an International repute in the field of

health care provision, teaching, training and research.

MISSION:

The mission of Patel Hospital is to provide quality health care to all at affordable cost.

Patel Hospital is committed in combating the shortage of nursing professional and in providing

the competent nursing and paramedical professional capable of working in any setting by

maintaining the required standards, providing leadership to enhance the health of the community,

and to excel in providing education in a supportive environment where all individuals can

flourish.

PHILOSOPHY:

In lieu of the vision and mission, the hospital provides quality health care to all irrespective of

affordability. All non affording patients are supported through support fund and zakat fund.

Almost Rs12.5 million is spent every month in this regard that equals to more than 100,000 per

month. Most of the patients requiring supports are Burns Patients, Cardiac patients, renal failure

Patients and neonates etc.


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PERFORMANCE REPORT:

The Boards of Trustees of Patel hospital are pleased and satisfied with the growth of the hospital

for the preceding year as the annual report of year 2011 shows slight increase in the revenue

generated with a decrease in the liabilities of the hospital in comparison to year 2010, thus

reflecting suitable performance.

S.NO. PATIENTS 2010-11 2009-10

1 OPD 99,406 96,345

2 IPD Admissions 12,100 11,730

3 Emergencies 53,658 48,332

4 Surgeries/Procedures 12,410 11,435

5 Deliveries 2,097 2,339

6 Dialysis 8,884 7,811

7 Eye Operations 515 416

SKILL MIX

Man power in the Patel hospital comprises a mix Clinical and Non-Clinical staff. Clinical

staffing consists of Physicians including ER emergency rooms, Consultants, Surgeons, Senior

registrar, RMOs, House officers, Nursing staff, Technicians, Therapists, Pharmacists, Dieticians

etc to conduct OPDs and deal with in-patient hospitalization. However, non-clinical functions of

this hospital are handled by staff members with specialties in other fields irrespective of

medicine related. This includes staffing for various departments like Finance, Accounts, Material

management, Information technology, House keeping staff etc.

ORGANIZATIONAL CULTURE

The values of the Patel hospital have created moderate organization culture within the hospital

which is undergoing towards intense improvement. The aim to provide compassionate and


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quality care with an ethical and philanthropic approach has build up the organization set to work

and move on. But unfortunately the concept and core mission of the hospital is not implanted in

its employees to create synergy. Therefore, hospital has not come out with the outstanding

position in the market as compared to other health institutes like AKU. Key tool to success of

every organization is to build up strong culture, Patel hospital needs to focus it. it would have

helped to build up a competitive edge among existing and newly emerging welfare hospitals. The

mission and vision is not embedded within the hearts of its employees. Instead the employees

(consultants) tend to focus more on generating their own business rather than providing benefit

to the hospital.

HUMAN RESOURCES MANAGEMENT

Patel hospital being medium to large organization driven by the Board of trustees decided to

outsource the Human resource department to run its business functions. The idea was brought

into action to reduce the investments in the assets and fee up these resources for other purposes.

Also, to enhance the effectiveness more on business strategies rather tactics as well as to prevent

converting variable costs to fixed costs. The management thought to improve the operational

performance and to acquire the skills, expertise and innovation by purchasing HR services from

a third-party provider as a substitute to provide HR for itself.

The outsourcing was done through some renowned consulting firm at Patel hospital but turned

out to be a sore point. The outsourced firm did not get the clear vision of the hospital and a factor

of dishonesty to its profession had covered the whole scenario. The other reason was that the

management was relying completely on the outsourced firm to solve every problem and operate

every function of the human resource department like pay roll, recruitment, relocation, recordsmanagement, compensation etc. Eventually, the firm became unsuccessful to drive and control

the HR functions appropriately which ended up in showing flaws in the entire hospital, later

identified by the board. The employees of the hospital were not aligned with the hospitals

objectives and were not passionate to meet up the corporate objectives. Since HR act as a

strategic business partner in todays world, lack of core HR function through outsourcing created


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gaps in the employees performances. In order to keep the employees aligned with the

organizations aims required continuous inculcation of such motivational messages through

meetings, campaigns of team building trainings within each departments (via departmental

heads) which did not happen.

PAYROLL

The strong relationship of Human Resource Management and Payroll, key functions in any

organization were very weak in Patel hospital. The outsourced firm did not manage day to day

activities of the hospital accurately. The wrong processing of pay roll function had rapidly

affected the staff and created discouragement, depressed morale and decreased the productivity

of employees. There was a weak coordination of payroll section at the departmental level and the

hospital broken up by developing a risk against it through potential of politics and employee

repercussions. Pay roll functions had made a loss in adding value to the services of hospital.

ATTENDANCE MANAGEMENT

No well-defined duty roster for the staff especially nursing and other technical staff which fell

out in poor pay roll cut off dates. This in turn made the system highly complicated and resulted

in delay of the salary transfer. Moreover, the lack of authentic attendance recording had created

difficulties for the pay roll section to evaluate the office/roster timings. Consequently, the

outsourced firm used to mark up attendance at their own without taking the departmental heads

or the employees in loop which again used to create mess in the organization. Thus employees

used to show their anger in different manners.


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CONCEPT OF POLICIES IN HUMAN RESOURCE

One of the major reasons of existence of human resource is to have a control all over the

organization in terms of administration and to strictly implement the policies and procedures

within the organization. Unfortunately the hospital was missing HR must dynamics in having

policies on employee welfare and benefits, compensation policies, leave management,

attendance schedule monitoring system.

Due to missing policies, outsourced HR department was irresponsible of its intended function to

initiate, recommend, implement and revise employee related policies and procedures. The

existing policies were so insufficient to cope up the need of employees and to give value added

services to employee to gain their commitment. Inadequate loan policies, insurance policies,

pension policy, fund policy, performance appraisal policy, resignation policy, car loan policy,

training and development policy, job descripition policies.

ENDING EMPLOYEMENT- RESIGNATION, LAY OFFS, TERMINATION:

Ending of employment for positive reasons like a new job, resignation or retirement as well as

ending of employment for negative reasons such as layoffs, downsizing, job termination or

firing, both needs HR Fixed protocols and policies. No protocols for the resignation of

employees were at Patel Hospital. Even there was lack of concept for notice period. Most of the

times the resigned employee gets additional pay due to lack of track record as there is manual

attendance management system. The hospital gets huge kick backs with such kind of

situation.Employee termination and lay offs which is crucial to any organization were again

lacking fixed criteria for the termination of an employee.


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UNCLEAR EMPLOYEE STATUS:

Some employees were facing difficulties to know their employment status in the hospital,

whether they were on probation or permanent. Even if they used to approach the staff of

consulting firm the employees could not get the accurate answer. Hence the employee status was

unclear. There was no proper and accurate monitoring of employees probation period,

sometimes the probation period used to get extended without any intimation or the confirmation

used to get delayed intentionally or unintentionally due to which the sense of dissatisfaction with

the job emerged within the employees.

NEW ROLES AND CHANGE IN FOCUS

There is no existence of concepts for new or changing competency requirements in the

development of corporate strategies. The outsourced human resource firm did not pay attention

in partnering with management. In scenario of upcoming global and technological changes, when

Patel Hospital was flourishing its business in the era of economic crisis (past recent years) the

outsourced firm did not opt the role of an advisor to assist in strengthening the relationships

between employees and senior management. This created lack of synergism in the

organization,every employee was playing their part to strengthen their position in the hospital

and no one was thinking as a team.

RECRUITMENT AND SELECTION

The recruitment and selection process among the HR functions had grown considerably with

dominant and rapid changes over the recent years. It is extremely important to clearly define the

role of human resources in recruitment and selection process as it measures the success of whole

hiring process. At Patel, the major flaw existed in the process of hiring as it was majorly based

on reference hiring. The recruitment and selection process were not clear and distinct. The

consulting firm used to recruit and select without bringing into consideration the core


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competencies required for the fulfillment of the job position. Most of the times there was direct

recommendations by departmental heads. The resultant of such hirings created monopoly against

other employees and management because of increased family or friends hirings at the job

positions. Thus, the hospital politics has emerged out.

There was a strong need for the company to recognize the value and importance of HR functions,

to recruit and retain the best workforce to give the maximum output. The board needs to realize

that recruitment and selection are those functions which drives the business forward and

influences business strategy.

SALARY STRUCTURE

Salary and compensation which is one of the attractive and motivational factor among employees

is not problematic. Salary structure is based on grading system which has not been updated since

years. The existing salary structure is not up to the standard to attract, motivate and retain

employees especially in cases of new hiring, the salary becomes debatable. Due to the old point

of view (10 years old grading system with defined salary) very few employees are attracted

towards this hospital. No employees are happy with the structure and are switching means

turnover was high.

The hospital never gives the salary comparable to the market. 1 registered nurse with 5 years

diploma and 3 years of AKU experience if receiving 20K at AKU never gets the salary equal to

it rather it would get 15K at max. There was one man show only based on one degree appraisal,

and which also doesnt have the fixed policy.

PERFORMANCE APPRAISAL

Performance appraisal is a part of rewards and career development for an employee. One of the

short comings of Patel hospital is that the outsourced HR was lacking its expertise to evaluate

and monitor the yearly performance of employees.


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The hospital does not have any accurate performance management system that aligns its

employee performance goals with corporate performance goals. No use of recent technology.

Currently companies are increasingly focusing on strategic HR, aligning human resources

initiatives with the overall goals of the organization to improve business success but Patel

hospital is far behind these strategies and this is a big challenge for this hospital to exist in the

market.

TRAINING AND DEVELOPMENT:

TnD act as an integral part of the human resource development activity but the hospital

employees were deficient of any such program. There was no personal development programs

offered and TNA system did not exist.

OTHER DEFICIENCIES

Man power planning is also one of the weaknesses of this hospital. No proper headcountsare defined per department.

The job positions also lacked job descriptions for some employees. No HR software existed to manage its functions. The documentation track record was poor and plenty of certificates of employees were

either missing or fake.

No proper delegation o work. There is no element of confidentiality in the hospital. Ad hockism was so common at the site.

Looking insights of this hospital and comparing it with the changing market trends and

increasing cost of doing business with existing and newly emerging welfare organizations, post a

big challenge for operations of its business set up in the current scnario.

Hrm Case Study-patel

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