Saturday, August 10, 2019
The Key Differences Between De Beers Old And New Business Model Essay - 24
The Key Differences Between De Beers Old And New Business Model - Essay Example Kodakââ¬â¢s main strategy in this period was to avail to their customerââ¬â¢s high-margin film referred to as the razor blade strategy. This strategy involved Kodakââ¬â¢s development of inexpensive cameras as a way to an end: the company had the objective of facilitating lucrative film sales. In a heart shell, the invention of the digital camera was held back due to managementââ¬â¢s worries about the negative effects on film sales. Nonetheless, the developmental dependencies on many other industries were extremely high as microprocessors, advances in electronic storage, and various communication soft wares for the camera and digital data transfer, soft wares for image processing, etc. Microelectronics was a problem for the company during the implementation of its strategy. However, the strategies that the company employed failed. Normally in a perfect market whenever disruptive technology exists, companies always fail to capitalize on the invention of the day for fearing cannibalizing current product sales. For instance, in 1981 when Sony introduced a filmless digital camera into the market, panic permeated Kodak companyââ¬Ës executive suite. Explicitly, over the next years, the company invested about $5 billion in digital imaging. Through estimation, this was approximately 45% of the companyââ¬â¢s R&D budget. Sadly, with disruptive technologies like digital cameras, whenever a company becomes the first-mover it has a lot of advantages and others who follow suit find it very difficult to overcome the competition. The strategy failed since by the time the company realized that their razor-blade strategy was not workable; the lions were by now out of the barn. Kodak was not able to match the competition.
Friday, August 9, 2019
Undocumented nurse medical errors Essay Example | Topics and Well Written Essays - 3500 words
Undocumented nurse medical errors - Essay Example The researcher starts with description of his first day at his first job. His nurse trainer was evidently flustered with her numerous tasks in the hospital. The researcher followed her to a patientââ¬â¢s room, where she administered medication. The patient was recovering from a car accident, where he suffered from some chest and abdominal trauma, as well as a badly-broken leg. The researcher was confused, because the name on the door was not the same in the med chart. He returned to the nursing station, where she documented the medication. After opening the patientââ¬â¢s chart, she was distressed to find out that she gave the wrong medicine. She checked the patientââ¬â¢s chart for allergies and was comforted that the latter had no allergies with the incorrect medication. However, the patient complained of dizziness and nausea later on, and the nurse did not provide the pain meds as scheduled. The patient also showed signs of discomfort for several hours. The nurse closely wa tched the patient all evening and up to the next shift, since she volunteered to cover it because a nurse called in sick. The next evening, this same patient was assigned to me. The researcher checked his chart and was surprised that the medication error was not documented, and that the normal dose of pain medication was documented. During his dinner break, the patient had difficulty in breathing and went into arrest. The patient died and autopsy showed that he died from an embolus to the lung. This was a probable unavoidable complication of the injuries. But since the patient experienced pain the evening before, his family members believed that the nursing staff neglected to observe him for complications. They said that they consider suing the facility and I know that I will be named in the suit. Case Study Analysis: 8-Step Model for Ethical Decision Making The case with this patient involves an ethical dilemma of reporting the medication error of my colleague. I will examine this case using the 8-Step Model of Ethical Decision Making (Bennett-Woods, 2001). I will determine the facts of the case and all information needed to properly analyze and resolve this issue. I will state the practical problem, identify the most important ethical questions and the theoretical bases for my analysis, discuss arguments and counterarguments, including their specific ethical concepts and supporting facts, name options, and choose and explain my final decisions. Step One: Gather Relevant Information Clinical indications. Patient was recovering from a car accident, where he suffered from chest and abdominal trauma and a badly-broken leg. The most common effects of car accidents are head, chest, pelvis, and abdominal trauma (Schmucker et al., 2010). The patient complained of dizziness and nausea, which can be the result of his injuries or the incorrectly given medicine. One of the primary tasks of nurses is drug administration and it occupies around 40% of their work time (Armi tage & Knapman, 2003, cited in Tang et al., 2007, p.448). Administering drugs have become more complex, especially when there were only 656 medications in 1961, but now there are more than 8000 medicine being prescribed, with more than 17000 trade and generic names in North America (Tang et al., 2007, p.448). Giving medication is ââ¬Å"one of the most error-prone steps of the medication-use process, with 34% of all errors originating in this phaseâ⬠(Bates et al. 1995, cited in Helmons, Wargel, & Daniels, 2009, p.1202). Some studies discovered that medication errors normally take place during the prescription and administration stages and can compose 65% to 87% of the total number of medication errors (Bates et al. 1993, 1995; Benjamin 2003, cited in Tang et al., 2007, p.448). Less than 2% of incorrect medication actions are not intercepted by the patientsââ¬â¢ bedside (Helmons, Wargel, & Daniels, 2009, p.1202). The patient also showed signs of discomfort for several hours.
Thursday, August 8, 2019
Financial statements ratio analysis Essay Example | Topics and Well Written Essays - 1000 words
Financial statements ratio analysis - Essay Example The company has a relatively high turnover of more than one. A ratio of more than one means the net sales are more than the total fixed assets. This means that one dollar of fixed asset invested generates more than on dollar of sales. However, this ability decreased across the period. Current ratio highlights the capability of a company to meet its current obligations as they become due. A ratio of less than one as in the case of the company implies that the company has more obligations than the assets hence cannot meet them. In 2013 the ability increased but still does not satisfy all the obligations. Debt to total assets ratio shows the portion of the companyââ¬â¢s financing provided by the creditors that is it measures a companyââ¬â¢s financial leverage. From the calculation above the company has more assets than liabilities hence it is less risky since it has a ratio of close to 0.5 implying that it has liabilities of close to 50% of its total assets. Across the period the percentage increased from 56% to 63% meaning it increased its liabilities. Return on equity illustrates the companyââ¬â¢s ability to generate profit or return from its shareholdersââ¬â¢ investments. It therefore shows how efficient a company uses the shareholder money. From the ratio above the company is a bit efficient in using the shareholdersââ¬â¢ money but the efficiency decreased in 2013 from 36% to 28%. With regards to the profit margin, the companyââ¬â¢s ability to convert sales into profit is lower than that of the industry. Accounts receivable turnover shows that the number of times a company collects its receivables is lower than that of the company. Further, its fixed asset turnover is also lower than that of the industry implying that it uses its fixed assets less effectively. The company also has a lower current ratio than the industry thus it has more liabilities in relation to its assets than the
Wednesday, August 7, 2019
Advanced Strategic Management- International Airline Industry Essay
Advanced Strategic Management- International Airline Industry - Essay Example This is to prevent the loss of current business and attract new customers ones at a minimal cost. à à à à à à This study explores the relationship between customer service, customer satisfaction and the factors that encourage customers to choose and remain with specific airlines. In particular, this study evaluates the customer satisfaction among North American airline passengers and the quality of customer service of corresponding airlines. à à à à à à A survey was used to gather the feedback of XYZ airline passengers at NYC airport. The survey items focused on the eight factors designated as independent variables. The independent variables considered were X1 ââ¬â Delays (external forces such as weather), X2 ââ¬â Culture (company), X3 ââ¬â Prices/Frequent Flyer Programs, X4ââ¬â Flexibility, X5 ââ¬â Schedule, X6 ââ¬â Employees, X7 ââ¬â Quality of Product/Services (comfort), and X8 ââ¬â Security. à à à à à à The importance of customer service and the corresponding customer satisfaction cannot be undermined. Ventures can succeed only if there are customers. Since they are the ones who keep businesses running by bringing in profit and supplying feedbacks, it is essential to keep them satisfied. Customer satisfaction, also called user satisfaction, is defined simply as ââ¬Å"a qualitative measure of performance as defined by customers, which meet their basic requirements and standardsâ⬠(TechTarget, 2007). This definition has two main implications. First, customer satisfaction is dependent on the performance of the product or service. Second, measuring customer satisfaction involves knowledge of the basic requirements and standards of the customers. à à à à à à In relation to customer satisfaction, customer service is a term that characterizes what happens when the customer encounters the business (The Times Newspapers Ltd, 2008). Good customer service is significant because gaining a new customer can cost as much as five
Tuesday, August 6, 2019
Modern Language Association Essay Example for Free
Modern Language Association Essay The Modern Language Association (MLA) format is the most used format in doing papers especially with Liberal Arts and Humanities subjects (Purdue Owl). This format is based primarily on the authorââ¬â¢s name and page number format. But before we start discussing how to cite sources, we must first learn how to properly format the paper using MLA. According to the OWL at Purdue website, the paper size should be a standard 8. 5 x 11 inches with 1-inch margin on all sides. The paper should be double-spaced using a formal font style such as Times New Roman in 12 pts. On all pages of the paper, a header that includes the last name of the owner of the paper and page numbers should be placed. The first lines of the paper should be indented to the left and one line apart: First and Last Name of the owner of the paper, name of professor, Subject/Course, and the date. Once these things are set up, the paper could now be officially started; the title of the paper should be at the center one line following the date (Purdue Owl). There are two basic ways of doing an in-text citation using MLA format. The first is using signal phrases ââ¬â naming the author first in the sentence and then placing in parentheses the page number where the citation came from after the cited words. The second is including the last name of the author in the parenthetical citation, written before the page number and without any marks between them. If a particular source has no author mentioned, there are also two ways on how to properly cite the material. First is to use the title of the work as a signal phrase or place a shortened version of the title in the parenthetical citation. In case of sources where an organization can be used as the source, use the name of the organization as if it was the author. If page numbers are missing, like in web sites, just include the name of the author, again, either as a signal phrase or a parenthetical citation (ââ¬Å"MLA in-text citationsâ⬠2).
Monday, August 5, 2019
Management Of Organisations: Virgin Group
Management Of Organisations: Virgin Group Virgin is a leading branded venture capital (Virgin, 2011) organisation and is one of the worlds most recognised and respected brands, which was founded by the business tycoon Richard Branson. Virgin Group is classed as a Private Limited Company by Companies House. Virgin Group date of incorporation is listed as 1985 (Companies House, 2010), however, business and trading activities originally started in 1970 (Virgin, 2011). Virgin Group has gone on to grow very successful businesses in core sectors ranging from music to transportation, travel, financial services, media, drinks, books, gaming and fitness etc (Virgin, 2011).Virgin has created more than 300 branded companies worldwide, employing approximately 50,000 people, in 30 countries. Global branded revenues in 2009 exceeded à £11.5 billion (Virgin, 2011). The Virgin Group is structure is quite interestingly complex, although numbers of people recognise the Virgin Group to be a single business entity but this may not be the case. In actuality, each of the Virgin brand companies operates as a separate business entity (Grant, 2005). Although, Richard Branson holds full ownership and control of the Virgin Brand, the commercial set-up of the companies using the Virgin name is varied and complex (Grant, 2005). Even though each of the 300 companies operates as a single entity, Branson completely owns the majority of them either individually or through family trusts and is holding majority stakes in the others. However, occasionally, Richard Branson simply licenses the Virgin brand to a company that has purchased a division from him such as Virgin Mobile USA Australia, Virgin Radio and Virgin Music. (Grant, 2005). However, what connects the companies is use of the Virgin trademark, Bransons roles as chairman and shareholder and his managemen t role as the face of virgin in publicity, public and government relations. He also has responsibility for appointing senior executives (Grant, 2005). Appendix 1 illustrates the structure of the Virgin Group of companies, including some major operating companies and the holding companies that own them. Firstly, the report will explore and analyse theories relating to organisational culture for example, definitions, level and types of organisational culture, and will look at the way these theories relate to the Virgin organisation. Finally, leadership styles will be addressed with key theories supporting the importance of leadership and different types of leadership skills. In relation to the Virgin case study the particular value of the transformational type of leadership and the importance of team development will be highlighted. Case Study Analysis 2.1 Organisational Culture Organisational culture plays an important role within any organisation. Although the majority of us will have our own understanding of organisational culture, it is a universal concept that is difficult to define or explain precisely (Mullins, 2007, p. 721). It has been explained, for instance, as the dominant values espoused by an organisation (Deal Kennedy, 2000), whereas, Bower (1966) simply described it as the way things are done around here. However, despite there not being a unanimous accepted definition, there is a common theme within Deal Kennedy (2000) and Bower (1966). Their definitions uncover a central theme, that is, organisational culture refers to a system of shared meaning. A more detailed definition is: The collection of traditions, values, policies, beliefs and attitudes that constitute a pervasive context for everything we do and think in an organisation. (Mclean and Marshall, 1993 cited in Mullins, 2007) This clarifies that organisational culture is a mixture of customs and practices and the beliefs and attitudes that these are based on that make up the way of working and the approach of an organisation. According to Mullins (2007), the culture of an organisation is also often likened to the personality of an individual; this could be said of Virgin. Virgin describes it culture and brand as making a difference. Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge (Virgin, 2011). These traits are often used to describe Richard Branson, founder and chairman or the Virgin Group. The company aims to deliver a quality service by empowering its employees and facilitating and monitoring customer feedback to continually improve the customers experience through innovation (Virgin, 2011). It is evident that Virgins values and approach to business appeal to the customers and create an adventurous spirit in the organisation that has contributed to its success which has enabled it to branch out into other sectors such as those described above. Levels of Cultures To help understand culture more, Schein (2010) has categorized the places where culture is found into three fundamental categories (Figure 1), each category is recognized by its visibility and accessibility by individuals. The deeper one gets, the more difficult it is to discover the culture. Figure 1 Scheins Three Levels of Culture Source: (Buchanan Huczynski, 2007, p. 622) Scheins first level is known as Artifacts, it is the most visible level out of the three. It refers to the observable things that a culture produces. It includes both physical objects and behaviour patterns that can be observed freely through what you see, hear and feel in an organisation, for instance, the architecture and physical surroundings; its products; its technologies; its style (shown through clothing); its published values and mission statement; its language and humour; its myths and stories. In the case of Virgin their uniform is consistently red, their language style is informal hip and the company has its own myth that Richard Branson always walks around with a notebook to record and pick up on every creative idea from employees and how he surprises employees with trips to his islands. The next level is less visible and is referred to as the espoused values level. It is the beliefs and values, sometime unspoken shared within an organisation and its members, that have meaning and worth to the founders and senior management of an organisation (Buchanan Huczynski, 2007). The espoused values may have their roots and be based on values that were learnt through childhood whether its religious, societal or moral upbringing (Buchanan Huczynski, 2007). These values can give the organisation its distinct character and provide a sense of direction for employees. The Virgin Group has a distinct organisational culture which is characterised by its founders individual values, personality and personal style the company reflects his ambition a drive for success coupled with his informal anti-corporate approach, very much a product of his upbringing and the popular culture of his time (Grant, 2005). Finally, located at Scheins third level, known as the deeper level of cultural analysis are Basic Assumptions. This deeper level is more commonly known as the hidden beliefs and assumptions or shared tacit assumptions. Basic Assumptions are essential, often unaware, determinants of an organisations attitudes, thought processes, and actions. These assumptions are central to its culture. Values that gain long-term acceptance often become so embedded and taken-for-granted that individuals are usually unaware of their influence. They usually provide a tacit sense of security and an unquestioned thrust for perceptions and behaviour. Scheins three levels of culture has proved to be useful as an approach to analysing Virgin Group organisational culture. Schein (2010) emphasises the fact that if organisational culture is understood fully it can be manipulated and managed within the organisation to meet the organisations purposes. For example, Virgin has been able to use organisational culture to foster loyalty, commitment and hard work within its employees by offering freedom, empowerment and by giving them a sense of being part of something cool and different whist providing social activities. Scheins three level of culture has also help clarified why Virgin Group should give importance to organisational culture; it is a mixture of execution and culture that makes the difference between one organisation to another. Organisational culture is essential; it is the glue that binds everyone together. Virgin Group holds onto the values, symbols, and rituals that have guided them for several years, and anything new that add to the culture should always supports what already exists. In summary, organisational culture maybe identified through companies using Scheins level of culture. Though, Schein (2010) does states that there are no consistently quick ways to identify the cultural assumptions of people in organizations. He does recommends observing, talking to people, collecting archival data, listening to stories, and etc, until a pattern finally emerges. However, organisational culture can be developed through effective leadership, empowered employees, strong development programs, good communications and a real focus on customers. All attributes that Richard Branson uses to run his organisation. One thing that is clear is that the culture which Branson created through his own unique leadership style was one that is strongly influenced by his personal style and personality, making it a difficult model to adopt or mimic if he was to leave. 2.2 Leadership Styles and Team Development Due to the success and efficiency of Virgin Group, the media frequently cover the leadership and management strategies of Virgin Group. Sir Richard Branson is renowned for his vibrant yet competitive leadership style. According to Mullins (2007) and Daft (2002), leadership is essentially a relationship through which one person influences the behaviour or actions of other people, those people intentionally wish for major changes, and the changes mirror purposes shared by followers and leaders. In the case of the Virgin Group, this means that the style of Sir Richard Bransons leadership cannot be separated from the activities of Virgin Group and the effective teambuilding within the organisation. This supported by Grant (2005) and Jackson (1998) who states that a major contributor to the Virgin Groups success is the inventive leadership style of Richard Branson. This leads us to closely examine Richard Branson leadership styles. In examining Richard Bransons style, his ability as to influence and skill to build a common idea among his employees are renowned. Mintzberg (2009) maintains that you earn leadership from those you lead. He proposes that leadership is about earning the respect of employees, something which Branson appears to do a lot in his career. One of the ways he does this is through his sense of equality and fairness in how he treats people and by promoting flat, non hierarchical structure to run his businesses (Grant, 2005). The early 1980s saw a great paradigm shift in the way of leadership, from transactional to transformational. (Gaughan, 2001). Earlier models to leadership, such as the situational or contingency models of Fiedler (1967), Vroom and Yetton (1973), and Hersey and Blanchard (1969), focused on identifying the styles and behaviours, which predicted effective outcomes depending on a variety of situational factors . In an organisation and environment where constant change is the norm, these authors did not help to offer any advice. During this time, the transformational and charismatic models began to emerge (Bryman, 1992), which comprised ideas such as charismatic and visionary in their concept of what leadership meant. Richard Branson style of leadership is best summarised as a transformational approach (Lussier Achua, 2009). Branson has also been labelled as a transformational leader by management lexicon, for his individualist strategies and his stress on the Virgin Group as an organisation driven on informality and information, one thats bottom heavy rather than strangled by top-level management. According to (Bass, 1985) Transformational leadership is a style of leadership that occurs when leaders broaden and elevate the interests of their people, when they generate awareness and acceptance of the purposes and mission of their group, and when they stir their people to look beyond self- interest for the good of the group. Transformational leaders are frequently compared with others who can adjust quickly to change (Bass, 1985). Branson evidently shows his flexibility and success in adjusting to changing organisational cultures as his been able to bring in new businesses and move into new sector whilst bringing his people with him (Grant, 2005). Studies by Lowe et al. (1996) and Patterson et al, (1995) have confirmed the positive relationship between transformational leadership and performance. This has helped to support why Richard Branson has been able to make Virgin such a success. Bass (1985) states that transformational leadership is more likely reflect social values and to surface in troubled times and change. This lies true with Virgin, an organisation that is centred on constant growth and change, as a result making the transformational style more suitable. For example, of how Richard Branson demonstrated this transformational approach was when he gave Virgin Atlantic employees his personal con tact details and encouraged them to forward any ideas and suggestions for improvements by contacting him directly (Jackson, 1998). Transformational leadership theory implies that this approach of leadership is likely to bring about empowerment and growth among followers (Bass, 1985). However, Howell (1988) states this type of style may cause followers to depend on the leader. This indicates on a psychologically level, followers self esteem and motivation may depend on recognition and positive feedback from the leader. In the case of Virgin group, this may not necessarily an issue despite Richard Branson personality being marked everywhere all through business he still manages to empower his employees with a degree of independence. A study of charismatic and transformational leadership theories suggests that such leaders possibly will achieve influencing followers who personally identify with this style as well as with the colleagues they work with (Yukl, 2002). According to (Conger Kanungo, 1998) personal identification with the leader is down to the leaders charismatic approach and is based on referent power. Similarly, Shamir, House and Arthur, (1993) argues one key way leaders can influence followers is by becoming a role model. Social recognition is another aspect of Richard Branson leadership style worth highlighting. Once individuals associate with a group, they establish their self esteem and self belief to some extent on their belonging to that group, with group failures and successes being faced as personal to the individual (Mael Ashforth, 1992). Followers are inspired by the leader to identify with the group aims and ethics Shamir, House and Arthur, (1993)by connecting the followers self belief to the mission statement of the organisation and goals of the group. The ways in which Richard Branson gets his employees to recognise with the organisation, as well as himself, is through managing the mood of his organisation (Jackson, 1998) . He has been known to be empathic and self aware which has allows him to instinctively takes in how customers and employees feel and estimate the organisations emotional state. According to Salovey et al (2004), emotional intelligence is the ability to precisely tell apart others emotions plus your own. Salovey et al (2004)also states one of the main ways of becoming a triumphant leader is through emotional intelligence, something that Richard Branson has manage to achieve through the way he studies himself and others. Finally, possibly one of the most powerful traits in Richard Bransons leadership style is his persistent determination to accomplish his goals, despite a few obstacles in his way. Zaleznik (2004) states that leaders and managers think about goals differently to one another, leaders tend to be active whilst managers are more reactive. The direction an organisation takes is determined by the influence the leaders uses when changing frame of minds, suggesting expectations and in creating specific objectives and desires. The net outcome of this influence, it changes how people consider what is feasible or desirable in terms of goals. As a result, leaders are able to instil some enthusiasm for particular goals on their followers. Regardless of some negative circumstances mainly external, Richard Bransons persistent shaping of the vision for his company and his ability to infuse these desires to those he hired is the reason for Virgins continues success and growth (Grant, 2005). To summaries, Richard Bransons charismatic way of leadership is one that comes from a largely transformational approach to how he influences those in his organisation. He shows clear skills in his ability to read the emotions of others and to assess the mood of his own culture, while having tremendous skills in how he can adapt his style and approach to the particular situation or context he is in. His drive and determination to succeed has been a key element of his success, something that stems from a combination of genetics and family circumstances. His success in becoming and remaining an effective leader of Virgin is largely due to his willingness and ability to empower individuals within the organisation. Branson has shown sensitivity to the needs of others, such as the need for recognition, growth and achievement. Through his attention to and encouragement of ideas and initiatives, Branson has gotten the support of his subordinates. His authority at Virgin is extended by his fl amboyant and charismatic personality and attention grabbing behaviour, both of which increased his visibility and appeal to staff and the public. Although unique to Branson himself, this style of leadership is one that works very well within the Virgin empire. Conclusion This case study has brought to a light many different strategies that an event manager can utilize in a future role within the event industry as well as to maintain a healthy organisational culture. First suggestion would be to adopt a transformational leadership style. Transformational leadership would allow your employees to work together for one common goal which is essential, especially within the event industry when organising an event. By working together your employees can come together to achieve great things and improve their overall efficiency. My second recommendation would be to utilize delegation. Delegation is a great way to develop the skills of your employees. When management can determine where a person will be most efficient it will help those involved in the project. By putting people in the jobs that they a best suited for it will lead to a more enjoyable and effective working environment. (change to culture) In a nutshell, there is a lot to be learnt from the culture and leadership of Virgin Group. Chairman Richard Branson has created a unique culture that has contributed to the long term success of the company. Although there is a clear distinction between culture and leadership, the company has been able to integrate a blend of each in many aspects of Virgin Group. The transformational leadership has proved to be a valuable tool for executives, managers, and workers alike. Employees within the company have a willingness to work together to expand and improve the company in order to reach their own personal success in life. Personal Leadership skills assessment Looking back at the night before Spy Games Development Day, my initial feelings were excitement, but apprehensive too because I did not know what was expected from me, nor did I know how helpful it was going to be. Thankfully, all that changed after the meeting in the morning. Leadership has played an important role in the completion of our Spy Games tasks especially the first one; it was not the predictable and usual type of leadership. There was no member of the group who emerged as a sole leader, but we as a group shared and took control of the leadership that was needed to complete our tasks. Each member had the chance to voice their opinions, and from there individually we would nominate ourselves for each task we felt most confident in or had knowledge or experience in. Our groups strongest attribute was that we were very organised; this led to better performance and development. Our group was very optimistic, as there was never a situation where a group member was negative even when we failed to complete a task on time, which was why performance was very high and effective. Even though we were not familiar with each other from the beginning, we still managed to work together without much conflict. The one argument we had was on the topic of whether a group member could be a leader for more than one task. We did resolve the conflict which made our group more comfortable with each other. Overall the Spy Games Development Day was a success; I learnt how to share the leadership role with the members within my group. I learnt that performance and development is a big factor in team roles, and learned that conflict is not always a bad thing. Shared leadership does not depend on one person, but on how people act together to make sense of the situations that face them (Doyle and Smith, 2001). In order to achieve an effective leadership and an effectual result at the end of the Spy Games, a shared leadership needed to be present. In some ways shared leadership was present mostly through the outdoor tasks. The primary factor
Analysis of Recruitment in the NHS
Analysis of Recruitment in the NHS CIPD Management Report Utilising E Recruitment Executive Summary This Management report will look at the Recruitment Processes with an NHS Acute Trust and identify if E recruitment can help with the difficulties experienced in the Trust. Alongside a literature review of Recruitment difficulties, Employer Branding, Traditional recruitment and E recruitment, the author has conducted a benchmarking exercise in order to establish best practice in recruitment in local NHS organisations, A Process Mapping exercise to identify current practice and identify any difficulties or hold ups in the current process and a Managers questionnaire to allow the author to identify current perceptions of the recruitment service in the organisation alongside what expectations are. Appendices. Satisfaction Survey Survey results 1.0 Introduction The Pennine Acute Hospitals NHS Trust was established in April 2002 and manages hospitals in Oldham, Rochdale, Bury and North Manchester. Serving a population of approximately 800,000, the Trust is one of the largest in the country and had an operating expenditure of over à £425 million in 2006/07. It runs services across five hospital sites: Fairfield General Hospital, Bury; North Manchester General Hospital; The Royal Oldham Hospital; Rochdale Infirmary and Birch Hill Hospital, Rochdale and employs a staff of approximately 10,000. The Trust has four divisions identified as Surgery, Medicine, Women and Childrens, and Diagnostics and Clinical Support. It also has directorates providing support to clinical services including Human Resources, Facilities, Planning, Finance, Information and Management Technology, Modernisation and Performance, Governance and Research and Development. The local economy in which the Trust is situated is strong, with a great deal of competition from local organisations for staff. There is little competition within the NHS for staff, as Pennine is ââ¬Ëthe only Trust in town, in each of the 4 areas. Transport links to the Trust are generally good, although access to some peripheral sites is difficult, and car parking can be a problem, especially at the Royal Oldham site. The Trust is concerned, as many Trusts in the Greater Manchester area are, that many of its nurses will retire within the next five years and it is trying to develop a programme to get people to stay on after the normal retirement age. It also attempts to recruit as many student nurses as possible, but positions for newly qualified staff have been reduced in the last few years due to reconfiguration of services and redeployment to avoid redundancy. The Trust has a lower proportion of nursing staff from ethnic backgrounds than the local population, when comparing the 2001 Census with its workforce data; but the percentage of staff as a whole from ethnic backgrounds is higher, due to the numbers of medical staff from ethnic minorities within the Trust. The Trust works hard to recruit staff from ethnic minorities/deprived backgrounds. It has an Equality and Diversity Team who work to promote diversity within the Trust, supporting proactive recruitment where there is a concentration of individuals from ethnic or disadvantaged backgrounds. There is a central HR function, with designated HR Managers for each division. Restructuring of this model has taken place in recent years. Recruitment is managed from the North Manchester General Hospital site and provides a central function. With a workforce of over 10,000 people, the average monthly cost of recruitment at Pennine Acute Hospitals NHS Trust is xxxxxx. Added to this is the length of time it takes to place a new employee in post, which is on average 60 days. This estimate is from measured from the advertised positions closing date to offering that position. Recruitment is currently a major issue in the Trust with days lost in the recruitment process costing money and reducing morale and effectiveness. At present the department is receiving a lot of pressure from the rest of the Trust and the reputation of the department is poor. This management report is being undertaken to identify recommendations that will allow the recruitment process to become more efficient and identify whether utilisation of e recruitment is a viable proposal in the Trust and whether its implementation will increase efficiency and save resources. All employers face the challenge of employing the right staff for their organisation and this often falls under a human resource arena. The recruitment and retention of healthcare professionals has been identified as a key challenge facing the NHS (NHS Plan 2002). High on the agenda at local, regional and national levels is the development of strategies and initiatives to attract suitable people to work in the professions, in order to ensure that services are responsive to patient needs. 2.0 Literature Review Recruitment is an extensive subject with many aspects making up the area. A study by Ullman (1966) cited in Breaugh Starke (2000) was one of the first to examine recruitment sources. Finding that new employees who were recruited by means of informal sources (i.e., employee referrals, direct applications) had a lower turnover rate than individuals recruited via formal sources (i.e., newspaper advertisements and employment agencies). Barber (1998) has since concluded that past research has not made a strong case for the importance of source differences. The author is interested in research into the prevalence of the sources used in traditional recruitment, which appears to be research that has not been undertaken significantly. Torrington, Hall and Taylor (2005) identified that employers in the UK recruit over 3 million people each year, in a costly and time consuming exercise to add suitable staff to their organisation. They identify a need to ââ¬Ësell jobs to potential employees in order to ensure they can generate an adequate pool of applicants. Organisations are now facing a greater challenge recruiting rather than selecting. (Ployhart 2005) Other researchers having also identified the difficulties organisations have in attracting candidates, identifying selection will only be effective and financially defensible if a sufficient amount of applicants apply to the organisation. (Taylor and Collins, 2000) However according to Barber (1998), It is important that employers do not consider the recruitment process to be completed at this point, It continues during the short listing and interviewing stages and is only deemed as complete when an offer is made. For the purposes of this literature review the author will review thoughts and research on the initial stages of recruitment, that being the attraction of employees and advertisement of vacancies in order to recruit to the organisation, this will allow the author to include the areas of employer branding and e-recruitment in the review. 2.1 Recruitment Difficulties The Audit Commission (2002) has identified that the UK labour market is highly competitive at present with the rate of unemployment at a historically low level. Employers are openly competing harder to attract and retain staff. This is made more difficult, with reports across the country, of recruitment and retention problems affecting local public services, the NHS being no exception. There have been serious concerns about shortages in staff numbers, and fewer young people being attracted to work for the public sector, meaning there is a potential ââ¬Ëdemographic time bomb. It has been identified that 27 per cent of the public sector workforce are now aged 50 or over. (Gulland (2001), Audit Commission (2002)) Recruitment is also expensive, in a recent survey; CIPD (2007) identified the average cost of recruiting a member of staff is à £4,333; however this increases significantly to à £7750 when organisations are also calculating the associated labour turnover. They identified that eighty four percent of organisations have reported difficulties in filling vacancies in 2006, a rise of 2 percent on the previous year. The key challenges faced by organisations in regard to recruitment have been identified from the survey as; attracting and recruiting key staff to the organisation, reducing recruitment costs, enabling the achievement of the organisations strategic goals and addressing skills shortages. CIPD strongly believes that: ââ¬Ëeffective recruitment is central and crucial to the successful day-to-day functioning of any organisation. stating that ââ¬Ësuccessful recruitment depends upon finding people with the necessary skills, expertise and qualifications to deliver organisational objectives and the ability to make a positive contribution to the values and aims of the organisation. The Audit Commissions report (2002) also identified there are concerns about ââ¬Ëskill shortages, not only in terms of ââ¬Ëbasic skill levels in the workforce, but also in key leadership, management and specialist skills that are required. Previous research from the Audit Commission (2001) has showed that, on average, a new employee will perform at only 60 per cent of their productive potential when they are first appointed, only reaching 100 per cent after being in a post for a year. This makes recruitment in these areas and adequate delivery of services even harder to manage. In their extensive report on public service recruitment, the Audit Commission identifies the way the employers can maximise their recruitment practices. They advised: Informed, quick and professional responses to job advertisement enquiries are essential for maximising applications; routine monitoring of recruitment will ensure that recruitment initiatives are driven by the bigger picture rather than just the latest concern; success in addressing diversity issues are to be achieved through efficient, effective targeted recruitment campaigns based on knowledge of the target community; and any initiative to attract a specific group of staff will benefit from being profession-led and in partnership with HR. Audit Commission (2002) Effective recruitment practices and policies are recognised as making a significant contribution to an organisations success, according to Plumbley (1990). He states it is not simply about placing suitable candidates into jobs, but also about building an adept and flexible workforce in order to meet the organisations changing and demanding needs. The first stage of recruitment and selection is to be able to attract an adequate number of appropriate candidates. Prospective employees do not select the organisation they wish to work for on the foundation of job and organisational characteristics such as location, and organisational structure alone. 2.2 Employee Brand The increased competitiveness in the recruitment market has led to organisations spending more time, effort and resources on developing their recruitment brand and expanding the range of advertising methods used, to try and attract quality applicants from as broad and diverse a pool possible. Almost seven in ten organisations describe themselves as having an employer brand according to CIPD (2007), and studies have shown that an organisations reputation and identity is vital in the fight to attract suitable talented applicants into organisations. (Lievens Highhouse, 2003; Cable Turban, 2001). Identifying that in order for the corporate brand to be more successful at attracting suitable candidates there is an importance in promoting and monitoring that brand. (Slaughter, Zickar, Highhouse, Mohr, 2004) Fombrun, (1996) agrees with this stating the reputation of an organisation has been acknowledged as one of the key factors that can affect the probability of potential applicants choosing to apply to work for it. In the same way, organisation reputation has been found to be an important influence on applicants decisions of whether they fit with an organisation and want to join it (Rynes et al., 1991). This researcher has also showed that applicants utilised information on how informative and the ââ¬Ërecruiter friendliness as an indicator of how an organisation treated its employees. Fombrun (1996) expands this argument to identify that reputation is of particular concern to applicants seeking employment in knowledge-based institutions, such as universities and hospitals, because of the intangibility of the services these organisations provide. Whilst Turban et al. (1998) also found that applicants perceptions of the specific attributes of a post were influenced by their evaluation of the organisation, even if they had been interviewed and were successful. The importance in private/commercial organisations reputation in relation to the recruitment and retention of staff has been well documented in literature, for example: (Turban, 2001) and Cable and Graham (2000), Gray and Ballmer 1998)), there has however been comparatively little consideration on the impact of reputation for public sector organisations. Most people in the course of their life have a need to use the services the NHS provide, some more than others and health is an important issue, not only on a personal level, also in the political arena. The NHS is the UKs largest employer, so many of the UK population are at present working in it, with a great number more many having done so at some point in their lives. In brief, the NHS has a wide range of different stakeholders, who may feel they have a vested interest in the quality; provision of services and ultimately, the reputation. People have varied, and very personal experiences of the NHS and this could mean image and reputation are therefore difficult to manage. The Audit Commission study (2002) study showed that public sector staff thinks that ââ¬Ëtheir image in the eyes of the public would discourage potential recruits from entering the NHS. The study analysed a wide sample of the UKs national press to see if the evidence supported this observation. Analysis of the results showed that plenty of stories are told and coverage given to the NHS is extensive. They concur that the picture of public sector work presented to the reading public is often bleak. Of the former public sector workers surveyed, 68 per cent thought that the image of their former profession would discourage people from entering that job. Only 9 per cent thought the opposite and stated that the image would instead encourage people to enter. The NHS is such a well-known organisation that carries out specific roles in society, that when considering a career in the NHS people often have an idea regarding an occupation they would like to pursue. The GTI (2006) conducted a survey to establish the major determinants that influence applicants in their choice of employer. The results show that for 22% of student nurses and doctors, the reputation of a prospective employer (often influenced by media coverage) is a key factor in determining their aspirations. They identify that ââ¬Ëword of mouth can be damaging to an employers reputation. If employers get things wrong, it can really affect the way they are viewed by potential employees as over half of the survey respondents have shared their bad experiences with their peers. So for some people the images and reputation of the NHS may be crucial to their decision of whether to work for it. 2.3 Traditional Recruitment Methods Traditional recruitment methods are the way in the past, that an organisation announced a job opportunity to the marketplace, through a classified advertisement, a job fair, an external recruiter, or other media. Any candidate who happened to see the announcement would submit his or her CV, ring the company for an application form or submit a letter of interest. Lievens and Harris (2003) have stated that in the past, job searching was a more time-consuming activity. They identified ââ¬ËA candidate who wished to apply for a job would need to first locate a suitable job opportunity, which often involved searching through a newspaper or contacting acquaintances. After locating potentially suitable openings, the candidate would typically have to prepare a cover letter, produce a copy of his or her resume, and mail the package with the appropriate postage. Arboledas, Ferrero and Vidal (2001), presented some examples of recruitment methods that organisations have traditionally used. These were identified as newspaper advertisement, faxed/mailed resumes, recruitment agencies or the use of headhunters. Galanaki (2002) similarly identified all these methods and also defines them as ââ¬Ëtraditional recruitment methods. This idea of traditional methods can also be found quoted in numerous HR texts, which have sections dedicated to recruitment and try to identify best recruitment practices. The authors of such texts include Cole (2004), Rayner and Adam Smith, Armstrong (2007) and Mullins (2005). These texts give a useful overview of the concepts of recruitment but again the best practice and evidence of what is most effective is not present. An IDS study in 2006 reported that to maximise their chances of appointing the best candidate, many organisations have utilised a combination of online and traditional approaches. In 2004 Softworld HR and Payroll identified in a study, that 24% of respondents envisaged e-recruitment entirely replacing all traditional methods of advertising in the future, however 76% of the practitioners surveyed, see it as an additional tool to allow the widest possible range of applicants to be accessed. Traditional methods also identify the use of recruitment agencies in the way of recruiting staff. According to an IES study (2005), recruitment agencies remain confident that the growth in e-recruitment technology will not eliminate their role in the process, as many organisations lack the time and expertise to carry out these tasks. Many organisations, especially smaller ones may also lack the technology to carry out their own recruitment online. They state with the low unemployment rate that currently exists, the task of finding quality candidates will remain challenging and this may prompt organisations to continue to use agencies, in particular, for specialised, senior or difficult to fill positions A Demos report (2007) however has identified difficulties in the recruitment business. They point out that the ââ¬Ëlandscape has changed remarkably over the past decade. And identify the recruitment industry has been growing rapidly, and the talent war has led to an increase in outsourcing and much greater efforts being made to reach candidates through on and offline advertising. They identify that recruiters have had to embrace technology, or be left behind. In the 2007 CIPD recruitment and retention survey, it was identified for the first time in the UK; corporate websites have broken even with local newspapers advertisements as the most common method of recruiting candidates. 2.4 E-recruitment E-Recruitment is identified as ââ¬Ëthe use of Internet technology to make the job of recruiting staff more efficient and effective, when used together with traditional recruitment methods; the benefits derived from e-recruitment can be considerable. (E-recruitment Best Practice Guide 2007) Internet usage in recent years has seen the recruitment process transformed. Online recruitment, internet recruitment, web-based recruiting and e-recruitment are terms used to describe the use of the internet to recruit potential employees, and mediums to conduct other elements of the recruitment process. We will use the terms interchangeably in this report. According to Schreyer McCarter (1998) e-recruitment refers to ââ¬Å"The recruitment process, including placing job advertisements, receiving resumes, and building human resource database with candidates and incumbents E-Recruitment is establishing itself as a significant part of the recruitment strategy in a range of organisations across the UK and the world. This is in addition to becoming a progressively more accepted method for job seekers in searching and applying for jobs. The traditional method of recruitment has been transformed by the appearance of the Internet. In the past few years, the Internet has dramatically changed the face of HR recruitment and the ways organisations think about the recruiting function. There is predicted to be a continued dramatic growth in recruiting and hiring via this medium in future years. (CIPD 2007) A survey by the public appointment service in Ireland in 2006, relating to e-recruitment in Irish organisations, has also identified a high level of current or intended future use of e recruitment, this being identified as an area forming an important part of the Irish recruitment strategy. It would seem that e-recruitment has been implemented in many organisations from small companies to large organisations. These organisations are already using e recruitment to advertise jobs and accept CVs on the Internet, and also to communicate with the applicants by e-mail. In the CIPD Recruitment, retention and turnover 2006 survey it was identified that eighty-four percent of respondents have made greater use of e-mail applications in the last three years. Over seven in ten organisations also said they are actively advertising jobs on their corporate websites and using online recruitment applications. Lievens and Harris (2003) have identified the following methods of using the Internet to attract candidates, acknowledging that approaches are continually changing. â⬠¢ Company websites Advertising posts and providing information to candidates through the company website. The facility to apply online is often also provided. â⬠¢ Job Boards Commercial general purpose recruitment portals, (e.g. Yahoo!, Monster.com) and specific industry job boards. â⬠¢ Online Searching Recruiters searching online sources such as company websites and professional chat sites to identify candidates who may not be actively looking for a position. â⬠¢ Relationship recruiting Using the internet to build and maintain long term relationships with passive candidates, through using internet tools to learn more about web visitors interests and experience and to e-mail regular updates about careers and their fields of interest. Kerrin and Keetley (2005) have suggested that the reasons for many organisations to introduce e recruitment have been recruitment cost reduction, speedier processes, access to a wider pool of applicants and better employer branding. In the CIPD Recruitment, retention and turnover survey 2006,à it was identified that the key drivers for e-recruitment were; reducing recruitment costs (cited by 71%), broadening the selection pool (60%) and increasing the speed of time to hire (47%). It was also noted that : ââ¬Ëover a third of respondents believed it brought greater flexibility and ease for candidates, and over a quarter believed it strengthened the employer brand. This has been further supported by the IRS Employment review (2007). Reduction in costs E-Recruitment has allowed employers to make reductions in advertising costs and remove their dependency on recruitment agencies. Technology in online recruitment is not expensive and the hours saved in the pre-selection process gives HR staff more time. Administration can be significantly reduced in most organisations. This can prove to be extremely important when recruiting involves high numbers of staff or when receiving high numbers of applications. (DTI 2006, Guertal et al 2007). The IRS 2007 study identified 7 out of 10 organisations say administration is easier to perform when utilising online recruitment services and 8 out 10 identified the e- recruitment process as being substantially cheaper. Cappeli (2001) calculated that ââ¬Ëit costs only about one-twentieth as much to hire someone online as to hire that same person through â⬠¦ other traditional methods. This can again, be achieved through significantly reducing advertising costs and by reducing recruitment related administration according to Elkington (2005) An IDS HR Study in April 2006 identified how the Internet now plays a significant role in recruitment activities of employers. The report examined the use of corporate and third party recruitment websites and identified they are being used to reduce advertising costs and tap into a more diverse candidate base. They also identified that technology is streamlining the application process with the encouragement of online applications, linking into sophisticated application tracking systems and allowing organisations to measure the success of attraction methods. IDS state that over 70% of adults utilise the Internet, and employers are using this medium to attract and recruit much more frequently. They identify significant cost savings for employers and reduced time taken to fill vacancies, but are keen to point out the wariness of employees in missing out on potential candidates and feel that traditional recruitment media is set to retain and important role, particularly when recruiting locally or hard to fill jobs. This supports reservations held by IRS (2007) who identified that e recruitment was considered unsuitable for certain kinds of vacancies. Grout and Parrin, authors of the book, ââ¬Ërecruiting excellence agree with the assessment by IDS. In an article for HR Director (2006), they identify that online recruitment can improve efficiency by the reduction in man hours involved in the process, and help employers reach a wider and larger audience of jobseekers. They also recognise that it can be a valuable part of a recruitment process, in addition to traditional press advertising and the use of agencies (DTI, 2005). Kerrin and Keetley (2005) however, have stated, that the full cost savings are often only realised if the whole recruitment process is carried out online, a view supported by a number of authors. (Demos 2007, IRS 2007) Reducing time-to-hire With e-recruitment the time taken to recruit can be reduced by as much as 75% and allow the recruitment of the most appropriate employees more quickly into the organisation. Time is also saved by spending a reduced amount of time tracking, communicating with and screening the applicants. Online recruitment also allows organisations to the share best practice and improves the consistency of recruitment processes across the organisation. The Public Appointments Service survey showed that a reduction in administrative workload (cited by 49% of respondents), and reduced timescales for hiring (cited by 40% of respondents), were key drivers in the decision to implementing e recruitment. Hogg (2000) stresses a shorter recruitment cycle can be gained by the speed at which several steps of the recruitment process are carried out online. Elkington (2005) supports this and has identified that the immediate posting of jobs online and the effortlessness of completing online application forms and e-mailing CVs to an organisation has made these steps much faster. Moving further into the recruitment process, the short-listing process can be accelerated by routinely aligning applications dependent on prearranged criteria (CIPD 2005). Applications can be progressed within minutes rather than weeks, saving both recruiters and job applicants time. Widening Talent Pool Internet tools that enable employers/recruiters to reach a wider pool of potential applicants and to fill positions faster with less cost to the organisation are obviously advantageous in such a competitive environment. Online advertising opens up a wider candidate pool, by providing 24/7 access to job seekers, at local, national and international locations, thus providing a better chance of finding the right candidate (CIPD 2005a). As job seekers become increasingly more web literate and the growth of broadband makes web surfing easier and cheaper (IRS 2005), the potential for e-recruitment to attract wider candidate pools is increasing. Enhancing Employer brand Increased numbers of candidates are expecting to apply directly online and they routinely make judgements about employers based on their recruitment process. To combat this employers are adopting increasingly dynamic e-recruitment solutions to allow them to distinguish themselves from others and to professionally manage the recruitment process. (Willock, 2005; Paton 2006). E-Recruitment enables an organisation to raise its profile to potential applicants and promote itself as innovative and forward looking, allow visitors to the website to leave with a positive experience. Kerrin and Kettley (2003) in their report ââ¬Ëe-recruitment is it delivering identified a key factor for organisations in their adoption of e-recruitment, is the desire to increase their profile as an employer of choice amongst potential candidates and to promote their image as a progressive organisation. This is supported by 7 out of 10 organisations also agreeing that the use of online recruitment was more likely to improve reputation (IRS 2007) E-Recruitment can help to build the image of a brand. Barrow (2005) recommends that organisations build their brand identity very carefully however; warning of a need to ensure substance is beneath the clever name, logo or design, as employees once appointed will see through the facade. This is further supported by Gray and Balmers (1998) term, ââ¬Ëroutine interactions. They state that outsiders have a place in shaping image and reputation when they interact with organisations; communications are likely to be received with scepticism when they do not match personal experience. CIPD (2005) also demonstrated that more detailed information can be provided on the organisations website than in a newspaper advertisements and in recruitment agency literature, reinforcing the employer brand, improving the corporate image and profile whilst also giving an indication of the organisations culture The use of the Internet allows organisations to pass far more information in a much more dynamic and consistent fashion to candidates than was the case in the past (Lievens and Harris 2003). Applicants therefore have much more information at their disposal before they even decide to apply for a job than in the past. In addition, candidates can easily and quickly search for independent information about organisations from various sources, such as internet search engines and libraries. Therefore, unlike in the past, a candidate may have applied for a job based on practically no information; todays candidate may have reviewed a substantial amount of information about the organisation before choosing to apply. Disadvantages of e-recruitment The CIPD Recruitment, retention and turnover 2006 survey revealed some concerns that e-recruitment could increase the number of unsuitable applicants and that it could act as a barrier to recruiting older workers. A factor which seems to be discouraging some employers from making more use of online recruitment systems, is a concern, over the level of internet access and levels of accomplishment with technology, of their target audiences. While usage of the Internet does vary by social group there is evidence to suggest that recruiting online results in at least as diverse an applicant group as those recruited through traditional methods (McManus M.A., Ferguson M.W. 2003). Searle (2003) would dispute this however stating that participation in online recruitment is skewed towards ââ¬Ëwhite males from higher socio-economic groups. A further concern in relation to access is the suitability of online recruitment methods for candidates with disabilitie Analysis of Recruitment in the NHS Analysis of Recruitment in the NHS CIPD Management Report Utilising E Recruitment Executive Summary This Management report will look at the Recruitment Processes with an NHS Acute Trust and identify if E recruitment can help with the difficulties experienced in the Trust. Alongside a literature review of Recruitment difficulties, Employer Branding, Traditional recruitment and E recruitment, the author has conducted a benchmarking exercise in order to establish best practice in recruitment in local NHS organisations, A Process Mapping exercise to identify current practice and identify any difficulties or hold ups in the current process and a Managers questionnaire to allow the author to identify current perceptions of the recruitment service in the organisation alongside what expectations are. Appendices. Satisfaction Survey Survey results 1.0 Introduction The Pennine Acute Hospitals NHS Trust was established in April 2002 and manages hospitals in Oldham, Rochdale, Bury and North Manchester. Serving a population of approximately 800,000, the Trust is one of the largest in the country and had an operating expenditure of over à £425 million in 2006/07. It runs services across five hospital sites: Fairfield General Hospital, Bury; North Manchester General Hospital; The Royal Oldham Hospital; Rochdale Infirmary and Birch Hill Hospital, Rochdale and employs a staff of approximately 10,000. The Trust has four divisions identified as Surgery, Medicine, Women and Childrens, and Diagnostics and Clinical Support. It also has directorates providing support to clinical services including Human Resources, Facilities, Planning, Finance, Information and Management Technology, Modernisation and Performance, Governance and Research and Development. The local economy in which the Trust is situated is strong, with a great deal of competition from local organisations for staff. There is little competition within the NHS for staff, as Pennine is ââ¬Ëthe only Trust in town, in each of the 4 areas. Transport links to the Trust are generally good, although access to some peripheral sites is difficult, and car parking can be a problem, especially at the Royal Oldham site. The Trust is concerned, as many Trusts in the Greater Manchester area are, that many of its nurses will retire within the next five years and it is trying to develop a programme to get people to stay on after the normal retirement age. It also attempts to recruit as many student nurses as possible, but positions for newly qualified staff have been reduced in the last few years due to reconfiguration of services and redeployment to avoid redundancy. The Trust has a lower proportion of nursing staff from ethnic backgrounds than the local population, when comparing the 2001 Census with its workforce data; but the percentage of staff as a whole from ethnic backgrounds is higher, due to the numbers of medical staff from ethnic minorities within the Trust. The Trust works hard to recruit staff from ethnic minorities/deprived backgrounds. It has an Equality and Diversity Team who work to promote diversity within the Trust, supporting proactive recruitment where there is a concentration of individuals from ethnic or disadvantaged backgrounds. There is a central HR function, with designated HR Managers for each division. Restructuring of this model has taken place in recent years. Recruitment is managed from the North Manchester General Hospital site and provides a central function. With a workforce of over 10,000 people, the average monthly cost of recruitment at Pennine Acute Hospitals NHS Trust is xxxxxx. Added to this is the length of time it takes to place a new employee in post, which is on average 60 days. This estimate is from measured from the advertised positions closing date to offering that position. Recruitment is currently a major issue in the Trust with days lost in the recruitment process costing money and reducing morale and effectiveness. At present the department is receiving a lot of pressure from the rest of the Trust and the reputation of the department is poor. This management report is being undertaken to identify recommendations that will allow the recruitment process to become more efficient and identify whether utilisation of e recruitment is a viable proposal in the Trust and whether its implementation will increase efficiency and save resources. All employers face the challenge of employing the right staff for their organisation and this often falls under a human resource arena. The recruitment and retention of healthcare professionals has been identified as a key challenge facing the NHS (NHS Plan 2002). High on the agenda at local, regional and national levels is the development of strategies and initiatives to attract suitable people to work in the professions, in order to ensure that services are responsive to patient needs. 2.0 Literature Review Recruitment is an extensive subject with many aspects making up the area. A study by Ullman (1966) cited in Breaugh Starke (2000) was one of the first to examine recruitment sources. Finding that new employees who were recruited by means of informal sources (i.e., employee referrals, direct applications) had a lower turnover rate than individuals recruited via formal sources (i.e., newspaper advertisements and employment agencies). Barber (1998) has since concluded that past research has not made a strong case for the importance of source differences. The author is interested in research into the prevalence of the sources used in traditional recruitment, which appears to be research that has not been undertaken significantly. Torrington, Hall and Taylor (2005) identified that employers in the UK recruit over 3 million people each year, in a costly and time consuming exercise to add suitable staff to their organisation. They identify a need to ââ¬Ësell jobs to potential employees in order to ensure they can generate an adequate pool of applicants. Organisations are now facing a greater challenge recruiting rather than selecting. (Ployhart 2005) Other researchers having also identified the difficulties organisations have in attracting candidates, identifying selection will only be effective and financially defensible if a sufficient amount of applicants apply to the organisation. (Taylor and Collins, 2000) However according to Barber (1998), It is important that employers do not consider the recruitment process to be completed at this point, It continues during the short listing and interviewing stages and is only deemed as complete when an offer is made. For the purposes of this literature review the author will review thoughts and research on the initial stages of recruitment, that being the attraction of employees and advertisement of vacancies in order to recruit to the organisation, this will allow the author to include the areas of employer branding and e-recruitment in the review. 2.1 Recruitment Difficulties The Audit Commission (2002) has identified that the UK labour market is highly competitive at present with the rate of unemployment at a historically low level. Employers are openly competing harder to attract and retain staff. This is made more difficult, with reports across the country, of recruitment and retention problems affecting local public services, the NHS being no exception. There have been serious concerns about shortages in staff numbers, and fewer young people being attracted to work for the public sector, meaning there is a potential ââ¬Ëdemographic time bomb. It has been identified that 27 per cent of the public sector workforce are now aged 50 or over. (Gulland (2001), Audit Commission (2002)) Recruitment is also expensive, in a recent survey; CIPD (2007) identified the average cost of recruiting a member of staff is à £4,333; however this increases significantly to à £7750 when organisations are also calculating the associated labour turnover. They identified that eighty four percent of organisations have reported difficulties in filling vacancies in 2006, a rise of 2 percent on the previous year. The key challenges faced by organisations in regard to recruitment have been identified from the survey as; attracting and recruiting key staff to the organisation, reducing recruitment costs, enabling the achievement of the organisations strategic goals and addressing skills shortages. CIPD strongly believes that: ââ¬Ëeffective recruitment is central and crucial to the successful day-to-day functioning of any organisation. stating that ââ¬Ësuccessful recruitment depends upon finding people with the necessary skills, expertise and qualifications to deliver organisational objectives and the ability to make a positive contribution to the values and aims of the organisation. The Audit Commissions report (2002) also identified there are concerns about ââ¬Ëskill shortages, not only in terms of ââ¬Ëbasic skill levels in the workforce, but also in key leadership, management and specialist skills that are required. Previous research from the Audit Commission (2001) has showed that, on average, a new employee will perform at only 60 per cent of their productive potential when they are first appointed, only reaching 100 per cent after being in a post for a year. This makes recruitment in these areas and adequate delivery of services even harder to manage. In their extensive report on public service recruitment, the Audit Commission identifies the way the employers can maximise their recruitment practices. They advised: Informed, quick and professional responses to job advertisement enquiries are essential for maximising applications; routine monitoring of recruitment will ensure that recruitment initiatives are driven by the bigger picture rather than just the latest concern; success in addressing diversity issues are to be achieved through efficient, effective targeted recruitment campaigns based on knowledge of the target community; and any initiative to attract a specific group of staff will benefit from being profession-led and in partnership with HR. Audit Commission (2002) Effective recruitment practices and policies are recognised as making a significant contribution to an organisations success, according to Plumbley (1990). He states it is not simply about placing suitable candidates into jobs, but also about building an adept and flexible workforce in order to meet the organisations changing and demanding needs. The first stage of recruitment and selection is to be able to attract an adequate number of appropriate candidates. Prospective employees do not select the organisation they wish to work for on the foundation of job and organisational characteristics such as location, and organisational structure alone. 2.2 Employee Brand The increased competitiveness in the recruitment market has led to organisations spending more time, effort and resources on developing their recruitment brand and expanding the range of advertising methods used, to try and attract quality applicants from as broad and diverse a pool possible. Almost seven in ten organisations describe themselves as having an employer brand according to CIPD (2007), and studies have shown that an organisations reputation and identity is vital in the fight to attract suitable talented applicants into organisations. (Lievens Highhouse, 2003; Cable Turban, 2001). Identifying that in order for the corporate brand to be more successful at attracting suitable candidates there is an importance in promoting and monitoring that brand. (Slaughter, Zickar, Highhouse, Mohr, 2004) Fombrun, (1996) agrees with this stating the reputation of an organisation has been acknowledged as one of the key factors that can affect the probability of potential applicants choosing to apply to work for it. In the same way, organisation reputation has been found to be an important influence on applicants decisions of whether they fit with an organisation and want to join it (Rynes et al., 1991). This researcher has also showed that applicants utilised information on how informative and the ââ¬Ërecruiter friendliness as an indicator of how an organisation treated its employees. Fombrun (1996) expands this argument to identify that reputation is of particular concern to applicants seeking employment in knowledge-based institutions, such as universities and hospitals, because of the intangibility of the services these organisations provide. Whilst Turban et al. (1998) also found that applicants perceptions of the specific attributes of a post were influenced by their evaluation of the organisation, even if they had been interviewed and were successful. The importance in private/commercial organisations reputation in relation to the recruitment and retention of staff has been well documented in literature, for example: (Turban, 2001) and Cable and Graham (2000), Gray and Ballmer 1998)), there has however been comparatively little consideration on the impact of reputation for public sector organisations. Most people in the course of their life have a need to use the services the NHS provide, some more than others and health is an important issue, not only on a personal level, also in the political arena. The NHS is the UKs largest employer, so many of the UK population are at present working in it, with a great number more many having done so at some point in their lives. In brief, the NHS has a wide range of different stakeholders, who may feel they have a vested interest in the quality; provision of services and ultimately, the reputation. People have varied, and very personal experiences of the NHS and this could mean image and reputation are therefore difficult to manage. The Audit Commission study (2002) study showed that public sector staff thinks that ââ¬Ëtheir image in the eyes of the public would discourage potential recruits from entering the NHS. The study analysed a wide sample of the UKs national press to see if the evidence supported this observation. Analysis of the results showed that plenty of stories are told and coverage given to the NHS is extensive. They concur that the picture of public sector work presented to the reading public is often bleak. Of the former public sector workers surveyed, 68 per cent thought that the image of their former profession would discourage people from entering that job. Only 9 per cent thought the opposite and stated that the image would instead encourage people to enter. The NHS is such a well-known organisation that carries out specific roles in society, that when considering a career in the NHS people often have an idea regarding an occupation they would like to pursue. The GTI (2006) conducted a survey to establish the major determinants that influence applicants in their choice of employer. The results show that for 22% of student nurses and doctors, the reputation of a prospective employer (often influenced by media coverage) is a key factor in determining their aspirations. They identify that ââ¬Ëword of mouth can be damaging to an employers reputation. If employers get things wrong, it can really affect the way they are viewed by potential employees as over half of the survey respondents have shared their bad experiences with their peers. So for some people the images and reputation of the NHS may be crucial to their decision of whether to work for it. 2.3 Traditional Recruitment Methods Traditional recruitment methods are the way in the past, that an organisation announced a job opportunity to the marketplace, through a classified advertisement, a job fair, an external recruiter, or other media. Any candidate who happened to see the announcement would submit his or her CV, ring the company for an application form or submit a letter of interest. Lievens and Harris (2003) have stated that in the past, job searching was a more time-consuming activity. They identified ââ¬ËA candidate who wished to apply for a job would need to first locate a suitable job opportunity, which often involved searching through a newspaper or contacting acquaintances. After locating potentially suitable openings, the candidate would typically have to prepare a cover letter, produce a copy of his or her resume, and mail the package with the appropriate postage. Arboledas, Ferrero and Vidal (2001), presented some examples of recruitment methods that organisations have traditionally used. These were identified as newspaper advertisement, faxed/mailed resumes, recruitment agencies or the use of headhunters. Galanaki (2002) similarly identified all these methods and also defines them as ââ¬Ëtraditional recruitment methods. This idea of traditional methods can also be found quoted in numerous HR texts, which have sections dedicated to recruitment and try to identify best recruitment practices. The authors of such texts include Cole (2004), Rayner and Adam Smith, Armstrong (2007) and Mullins (2005). These texts give a useful overview of the concepts of recruitment but again the best practice and evidence of what is most effective is not present. An IDS study in 2006 reported that to maximise their chances of appointing the best candidate, many organisations have utilised a combination of online and traditional approaches. In 2004 Softworld HR and Payroll identified in a study, that 24% of respondents envisaged e-recruitment entirely replacing all traditional methods of advertising in the future, however 76% of the practitioners surveyed, see it as an additional tool to allow the widest possible range of applicants to be accessed. Traditional methods also identify the use of recruitment agencies in the way of recruiting staff. According to an IES study (2005), recruitment agencies remain confident that the growth in e-recruitment technology will not eliminate their role in the process, as many organisations lack the time and expertise to carry out these tasks. Many organisations, especially smaller ones may also lack the technology to carry out their own recruitment online. They state with the low unemployment rate that currently exists, the task of finding quality candidates will remain challenging and this may prompt organisations to continue to use agencies, in particular, for specialised, senior or difficult to fill positions A Demos report (2007) however has identified difficulties in the recruitment business. They point out that the ââ¬Ëlandscape has changed remarkably over the past decade. And identify the recruitment industry has been growing rapidly, and the talent war has led to an increase in outsourcing and much greater efforts being made to reach candidates through on and offline advertising. They identify that recruiters have had to embrace technology, or be left behind. In the 2007 CIPD recruitment and retention survey, it was identified for the first time in the UK; corporate websites have broken even with local newspapers advertisements as the most common method of recruiting candidates. 2.4 E-recruitment E-Recruitment is identified as ââ¬Ëthe use of Internet technology to make the job of recruiting staff more efficient and effective, when used together with traditional recruitment methods; the benefits derived from e-recruitment can be considerable. (E-recruitment Best Practice Guide 2007) Internet usage in recent years has seen the recruitment process transformed. Online recruitment, internet recruitment, web-based recruiting and e-recruitment are terms used to describe the use of the internet to recruit potential employees, and mediums to conduct other elements of the recruitment process. We will use the terms interchangeably in this report. According to Schreyer McCarter (1998) e-recruitment refers to ââ¬Å"The recruitment process, including placing job advertisements, receiving resumes, and building human resource database with candidates and incumbents E-Recruitment is establishing itself as a significant part of the recruitment strategy in a range of organisations across the UK and the world. This is in addition to becoming a progressively more accepted method for job seekers in searching and applying for jobs. The traditional method of recruitment has been transformed by the appearance of the Internet. In the past few years, the Internet has dramatically changed the face of HR recruitment and the ways organisations think about the recruiting function. There is predicted to be a continued dramatic growth in recruiting and hiring via this medium in future years. (CIPD 2007) A survey by the public appointment service in Ireland in 2006, relating to e-recruitment in Irish organisations, has also identified a high level of current or intended future use of e recruitment, this being identified as an area forming an important part of the Irish recruitment strategy. It would seem that e-recruitment has been implemented in many organisations from small companies to large organisations. These organisations are already using e recruitment to advertise jobs and accept CVs on the Internet, and also to communicate with the applicants by e-mail. In the CIPD Recruitment, retention and turnover 2006 survey it was identified that eighty-four percent of respondents have made greater use of e-mail applications in the last three years. Over seven in ten organisations also said they are actively advertising jobs on their corporate websites and using online recruitment applications. Lievens and Harris (2003) have identified the following methods of using the Internet to attract candidates, acknowledging that approaches are continually changing. â⬠¢ Company websites Advertising posts and providing information to candidates through the company website. The facility to apply online is often also provided. â⬠¢ Job Boards Commercial general purpose recruitment portals, (e.g. Yahoo!, Monster.com) and specific industry job boards. â⬠¢ Online Searching Recruiters searching online sources such as company websites and professional chat sites to identify candidates who may not be actively looking for a position. â⬠¢ Relationship recruiting Using the internet to build and maintain long term relationships with passive candidates, through using internet tools to learn more about web visitors interests and experience and to e-mail regular updates about careers and their fields of interest. Kerrin and Keetley (2005) have suggested that the reasons for many organisations to introduce e recruitment have been recruitment cost reduction, speedier processes, access to a wider pool of applicants and better employer branding. In the CIPD Recruitment, retention and turnover survey 2006,à it was identified that the key drivers for e-recruitment were; reducing recruitment costs (cited by 71%), broadening the selection pool (60%) and increasing the speed of time to hire (47%). It was also noted that : ââ¬Ëover a third of respondents believed it brought greater flexibility and ease for candidates, and over a quarter believed it strengthened the employer brand. This has been further supported by the IRS Employment review (2007). Reduction in costs E-Recruitment has allowed employers to make reductions in advertising costs and remove their dependency on recruitment agencies. Technology in online recruitment is not expensive and the hours saved in the pre-selection process gives HR staff more time. Administration can be significantly reduced in most organisations. This can prove to be extremely important when recruiting involves high numbers of staff or when receiving high numbers of applications. (DTI 2006, Guertal et al 2007). The IRS 2007 study identified 7 out of 10 organisations say administration is easier to perform when utilising online recruitment services and 8 out 10 identified the e- recruitment process as being substantially cheaper. Cappeli (2001) calculated that ââ¬Ëit costs only about one-twentieth as much to hire someone online as to hire that same person through â⬠¦ other traditional methods. This can again, be achieved through significantly reducing advertising costs and by reducing recruitment related administration according to Elkington (2005) An IDS HR Study in April 2006 identified how the Internet now plays a significant role in recruitment activities of employers. The report examined the use of corporate and third party recruitment websites and identified they are being used to reduce advertising costs and tap into a more diverse candidate base. They also identified that technology is streamlining the application process with the encouragement of online applications, linking into sophisticated application tracking systems and allowing organisations to measure the success of attraction methods. IDS state that over 70% of adults utilise the Internet, and employers are using this medium to attract and recruit much more frequently. They identify significant cost savings for employers and reduced time taken to fill vacancies, but are keen to point out the wariness of employees in missing out on potential candidates and feel that traditional recruitment media is set to retain and important role, particularly when recruiting locally or hard to fill jobs. This supports reservations held by IRS (2007) who identified that e recruitment was considered unsuitable for certain kinds of vacancies. Grout and Parrin, authors of the book, ââ¬Ërecruiting excellence agree with the assessment by IDS. In an article for HR Director (2006), they identify that online recruitment can improve efficiency by the reduction in man hours involved in the process, and help employers reach a wider and larger audience of jobseekers. They also recognise that it can be a valuable part of a recruitment process, in addition to traditional press advertising and the use of agencies (DTI, 2005). Kerrin and Keetley (2005) however, have stated, that the full cost savings are often only realised if the whole recruitment process is carried out online, a view supported by a number of authors. (Demos 2007, IRS 2007) Reducing time-to-hire With e-recruitment the time taken to recruit can be reduced by as much as 75% and allow the recruitment of the most appropriate employees more quickly into the organisation. Time is also saved by spending a reduced amount of time tracking, communicating with and screening the applicants. Online recruitment also allows organisations to the share best practice and improves the consistency of recruitment processes across the organisation. The Public Appointments Service survey showed that a reduction in administrative workload (cited by 49% of respondents), and reduced timescales for hiring (cited by 40% of respondents), were key drivers in the decision to implementing e recruitment. Hogg (2000) stresses a shorter recruitment cycle can be gained by the speed at which several steps of the recruitment process are carried out online. Elkington (2005) supports this and has identified that the immediate posting of jobs online and the effortlessness of completing online application forms and e-mailing CVs to an organisation has made these steps much faster. Moving further into the recruitment process, the short-listing process can be accelerated by routinely aligning applications dependent on prearranged criteria (CIPD 2005). Applications can be progressed within minutes rather than weeks, saving both recruiters and job applicants time. Widening Talent Pool Internet tools that enable employers/recruiters to reach a wider pool of potential applicants and to fill positions faster with less cost to the organisation are obviously advantageous in such a competitive environment. Online advertising opens up a wider candidate pool, by providing 24/7 access to job seekers, at local, national and international locations, thus providing a better chance of finding the right candidate (CIPD 2005a). As job seekers become increasingly more web literate and the growth of broadband makes web surfing easier and cheaper (IRS 2005), the potential for e-recruitment to attract wider candidate pools is increasing. Enhancing Employer brand Increased numbers of candidates are expecting to apply directly online and they routinely make judgements about employers based on their recruitment process. To combat this employers are adopting increasingly dynamic e-recruitment solutions to allow them to distinguish themselves from others and to professionally manage the recruitment process. (Willock, 2005; Paton 2006). E-Recruitment enables an organisation to raise its profile to potential applicants and promote itself as innovative and forward looking, allow visitors to the website to leave with a positive experience. Kerrin and Kettley (2003) in their report ââ¬Ëe-recruitment is it delivering identified a key factor for organisations in their adoption of e-recruitment, is the desire to increase their profile as an employer of choice amongst potential candidates and to promote their image as a progressive organisation. This is supported by 7 out of 10 organisations also agreeing that the use of online recruitment was more likely to improve reputation (IRS 2007) E-Recruitment can help to build the image of a brand. Barrow (2005) recommends that organisations build their brand identity very carefully however; warning of a need to ensure substance is beneath the clever name, logo or design, as employees once appointed will see through the facade. This is further supported by Gray and Balmers (1998) term, ââ¬Ëroutine interactions. They state that outsiders have a place in shaping image and reputation when they interact with organisations; communications are likely to be received with scepticism when they do not match personal experience. CIPD (2005) also demonstrated that more detailed information can be provided on the organisations website than in a newspaper advertisements and in recruitment agency literature, reinforcing the employer brand, improving the corporate image and profile whilst also giving an indication of the organisations culture The use of the Internet allows organisations to pass far more information in a much more dynamic and consistent fashion to candidates than was the case in the past (Lievens and Harris 2003). Applicants therefore have much more information at their disposal before they even decide to apply for a job than in the past. In addition, candidates can easily and quickly search for independent information about organisations from various sources, such as internet search engines and libraries. Therefore, unlike in the past, a candidate may have applied for a job based on practically no information; todays candidate may have reviewed a substantial amount of information about the organisation before choosing to apply. Disadvantages of e-recruitment The CIPD Recruitment, retention and turnover 2006 survey revealed some concerns that e-recruitment could increase the number of unsuitable applicants and that it could act as a barrier to recruiting older workers. A factor which seems to be discouraging some employers from making more use of online recruitment systems, is a concern, over the level of internet access and levels of accomplishment with technology, of their target audiences. While usage of the Internet does vary by social group there is evidence to suggest that recruiting online results in at least as diverse an applicant group as those recruited through traditional methods (McManus M.A., Ferguson M.W. 2003). Searle (2003) would dispute this however stating that participation in online recruitment is skewed towards ââ¬Ëwhite males from higher socio-economic groups. A further concern in relation to access is the suitability of online recruitment methods for candidates with disabilitie
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