Human resource management is the organization and design of governance systems of an organization that ensures workers’ skills, knowledge and abilities are utilized efficiently. Human resource management is mainly concerned with recruitment, organization, training and development of staff in an organization. For-profit organizations can replace their staff by using machines to produce their goods while non-profit and public companies rely on the competence and professionalism of workers. The incorporation of human resource in strategic management is vital for any business enterprise. This paper aims to analyze personnel practices as mentioned by Joan Pynes in Human Resources management for public and nonprofit organizations, and Bruce Field and Myron D. Fottler in Human resources in healthcare: Managing for success.

     Fried and Fottler argue that the major mistake many organizations make while developing their strategic plan is not considering the role and importance of human resources (Fried & Fottler 2005, 1). Strategic human resource management refers to the decision-making activities that enable an organization to maintain an effective and qualified workforce. Various personnel practices can be learned from the first chapters of the aforementioned books. Public companies and non-profit organizations are less likely to mechanize their production techniques since they rely on the skills of the workers to provide services to the members of the public. Many aspects of human resource management need to be considered in order to ensure the effectiveness of a company’s workforce. For instance, psychological factors such as aptitude and intelligence are important in determining the skills of workers. Knowing the skill level of workers through intelligence and aptitude tests facilitates specialization.

     Through strategic human resource management, a company can attain competitive advantage since it communicates goals effectively, encourages proactive behavior, focuses on its goals and identifies constraints that need to be addressed when implementing a plan (Fried & Fottler 2005, 9). It is also important to note that, in private organizations, human resource regulations are stipulated within a company’s policy framework while, in public firms, statutes codify the employees’ responsibilities and regulations (Pynes 2009, 8). A strategic human resource management plan is aimed at achieving various goals. These include the formulation of the firm’s business strategy, identifying requirements of the workforce and developing a benchmark for measuring progress, which compares different human resource inventories.

     An organization’s vision and mission must also be used to determine its human resource strategic plan. Tough economic times translate to increased demand for public service. Low income earners depend on housing assistance, unemployment benefits medical care assistance among other needs. Middle-income earners, on the other hand, are more concerned about health insurance, their jobs, retirement benefits and income security (Pynes 2009, 9). As a result, public companies, local governments and the state are developing strategies that are aimed at reducing expenses. This may be through hiring employees without benefits. They may also do this through hiring of contractual workers. Environmental assessment is crucial in strategic human resource management since changes in the economic and legal climate affects healthcare organizations. The healthcare environment is constantly affected by aging of employees, workforce diversity, shortage, technology and employee values and attitudes (Fried & Fottler 2005, 16).

     It is, therefore, important to note that human resource management is instrumental in healthcare and the implementation of a company’s strategic plan. Companies should incorporate human resource analyses in the development of strategic plans. Personnel practices should be analyzed since they are very crucial in determining the success of any business whether for-profit or non-profit. Analyzing the external environment is also crucial for business success.


Fried, Bruce and Fottler D. Myron. Human Resources in Healthcare: Managing for Success. Washington DC: Health Administration Press, 2008.

Pynes Joan. Human Resources Management for Public and Non-Profit Organizations: A Strategic Approach. San Francisco: Jossey-Bass, 2009.

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