To ensure a high probability of success in the implementation of strategic human resource management, the HRM function needs to be truly strategic in its orientation.
Discuss how Netcare endeavours to this strategic position through their various HRM practices.
Fred R. David (2007:5) defined strategic management as “the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organisation to achieve its objectives.
Strategic human resource management as described by Nel et al. (2011:562) is “long-term, top-level management decisions and actions regarding employment relationships that are usually made and performed with the overall general strategic management of …show more content…
Employee relations: Surveys are done to assist Netcare in identifying employment issues so that corrective measures can be implemented. Netcare’s training interventions enables better employee relations as better employees are recruited, intellectual capital is retained, career prospects are attainable, leadership culture is aligned with employee expectations and emotional intelligence training aids employees to work together better.
Selection: Around 50% of Netcare’s posts are filled by internal candidates due to the high training standards. Netcare has designed their training with succession in mind to enable them to promote people on merit.
Pay Structure: Remuneration at Netcare is benchmarked at the median with salaries paid for scarce resources at above average.
Incentives: Netcare has implemented numerous initiatives to reward and recognise employees including “Carer of the month”, “Netrewards” and management support of international nurses day. Mid-management participates in incentives based on the business unit’s performance while other staff all gets a 13th cheque.
Benefits: Netcare provides employees with an in-house medical-aid scheme and an extensive employee wellness programme
In conclusion, Netcare has indeed endeavoured to align their HRM practices with the company strategy. At a top-down and horizontal integration level, Netcare has structured