Resource Management in Health Care Organization Assessment Answer
PLANNING AND MANAGING RESOURCES
The report has provided relevant details related to the resource management. In order to ensure effective management of resources, it is important for health care organisation to analyse its business environment by the help of SWOT and PESTLE analysis framework. It has helped the organisation to analyse resource management and planning. The report has included relevant information about the analysis and consideration of different sources applied for funding or raising funds for carrying out the mental housing project. It has highlighted about the different key methods for measurement success in business and has helped the organisation to adopt effective strategies for mitigating gaps and achieve the long short and medium term organisational goals. It has also highlighted over effect of effective management of resource over the overall performance of staff in the health care organisation. The report has also discussed about responsibility and accountability associated with appropriate usage of resources.
In order to ensure effective management of resources, it is important for health care organisation to analyse its business environment by the help of SWOT and PESTLE analysis framework. It could help the organisation to analyse resource management and planning. The report would shed light over relevant details related to the resource management. The report would discuss relevant information about the analysis and consideration of different sources applied for funding or raising funds for carrying out the mental housing project. It would highlight about the different key methods for measurement success in business that would benefit the organisation to adopt effective strategies for mitigating gaps and achieve the long short and medium term organisational goals. It would discuss over effect of effective management of resource over the overall perform of staff in the health care organisation. The report would also discuss about responsibility and accountability associated with appropriate usage of resources.
Reflecting on the importance of attaining best service user outcomes in care, discuss how concept of resource planning could be used to make available and free up resource for new “Mental health supported housing” project.
Effective resource management is dependent over effective allocation, scheduling and planning of the available resources. It helps the organisation towards effective cost control by avoiding wastage of resources. This method would help Arden Healthcare to carry out resource management activities effectively for gaining most skilled staff in adequate number along with financial and other resources successfully. Furthermore, sound budgeting skills such as delegation, critical thinking self-discipline and others is helpful for Arden Healthcare to plan budgets for planning and managing different sources effectively, identify financial gaps and adopt strategies to carry out project activities successfully.
|Political factors||Effective FDI arrangements in the nation could help the organisation raise funds globally. |
However, BREXIT referendum has lead to significant changes in the legislation and employment laws, which is likely to affect negatively overtime and staff decisions of Arden healthcare (Beta.companieshouse 2019). Therefore, it is required to make significant adjustments in their staffing strategies for adapting the changes effectively.
|Economic factors||Brexit has brought increase in tax rates e considerable inflation that could enhance level of unemployment. Being a private limited organisation Arden Healthcare would get significantly affected with this economical environment in UK. It would also create a negative impact over profitability and productivity of the organisation as patients would prefer to avail affordable services from NHS instead of private companies. |
|Social factors||Arden healthcare is required to familiarise with community to whom it serves for avoiding infringement of relevant healthcare standards or principles.|
As this project would support housing for mental patients the staff must be aware of various beliefs and cultures of the patients while using services for prevention of any practices that could leave other people feeling offended.
|Technological factors ||Development in advanced technologies in the UK would be effective for the organisation to adopt advanced technologies and equipment for providing excellent services to mental patients. However, it would require much cost, ineffective management of which could negatively influence budget planning and resource management of the organisation. |
|Legal factors ||UK government has established different laws and legislations related to data protection and employment, effective compliance of which could positively affect the project operation of the organisation and enable it to achieve objectives. |
|Ecological factors ||Restrictions of UK government levied over healthcare organisations related to environmental sustainability and waste production is required for Arden Healthcare to follow for improving project scope and attaining long-term objectives. |
Table 1: PESTLE analysis
Source: (Moro Visconti 2016)
|Strengths ||Arden is regarded as one of the most specialised health care organisation across UK, which help the organisation to provide advanced facilities to the organisation. However, it is the biggest strength for the organisation to initiate the concerned project and gain long-term objectives.|
The organisation possesses skilled staff that has contributed towards the organisation ranked as the topmost specialists organisations in the nation. They possess effective mental health education, which would help them to treat the patients suffering from mental disability effectively.
|Opportunities||The organisation possesses massive opportunities of expanding its operations over a global scale through this project. It would help the organisation expand its operations in emerging nations to treat the mental health victims having inadequate health care facilities.|
The organisation possesses opportunity to maximise its market share in the nation being a private limited organisation, through development of project of mental housing.
|Weaknesses||For initiating the project, Arden Healthcare might require more employees or staff to take care of the patients and carry out activities in different functional departments. This would require implementation of series of HR activities such as recruitment, selection as well as training. |
The training costs incurred for providing relevant information about mental treatments to the trainees to provide effective services to the patients could create a negative impact over the financial stability of the business. Furthermore, training process is complex in nature and consumes substantial time frame, which could negatively influence the decisions making of the company.
|Threats ||As already there exist multiple numbers of mental care organisations in UK, it would be highly competitive for Arden Healthcare to sustain its mental care activities. Tough competition in the industry could be a considerable threat for Arden Healthcare.|
For overcoming the threat, it is significant for the organisation to conduct competitor’s research and analysis for carrying out planning activities in a strategic way (Bull et al. 2016.). For instance, it could help the organisation to fix reasonable prices for the services as compared to that of its competitors.
Furthermore, the organisation could face a threat of staff shortage considering that the project is new and uncertain.
Table 2: SWOT analysis
Source: (Phadermrod et al. 2019)
Analyse at least 3 different sources of funding and consider 2 you will use to support your resource planning for new “Mental health supported housing” project.
Budget planning is a systematic process, which helps the business enterprises to control costs by following the budget plan while carrying out project activities. It plays an important for an organisation to build proper framework for the finances. It is concerned combination of past trends with the actual forecasts for fiscal year. The budget provides with detailed information about assets, liabilities income and expenses along with the forecasted profits and losses. It helps in managing finances effectively, which is very important to achieve the project objectives. For raising adequate finance associated with the project, it is important for Arden Healthcare to analyse different sources available for funding and adopt effective sources that would help in gaining maximum profits with lowest costs and risks. Funding helps in ensuring sustainable financial growth; however, it involves huge costs incurring funds, which could create negative effect over profitability and productivity. They are analysed as follows.
It is the procedure of sale of unpaid invoices of the customer considered as the debtor or accounts receivable to a provider of debt factoring or a “factor” (Ghosh 2019). Now the debt-factoring provider or the factor owns debt and approaches the customers for collection of debt.
- It helps in acceleration of financial growth
- It improve the flow of cash in the business
- It helps in the effective management of resources
- It could reduce profitability as it charges high-interest costs
- Slow paying base of customers translates towards high fees related to factoring
Trade credit contributes towards sustainable financial growth in business. Concerned credit provided by the suppliers provides the customers with extended time for repayment of credit received (Cole 2018). It involves a low rate of interest, and there is the compulsion of payment of credit at stipulated, i.e. payment could be extended if the supplier wants.
- It contributes towards outlay of minimal cash that results in the effective management of working capital
- It contributes towards enhanced loyalty of patients thereby enables the company to ensure maximisation of sales
- It helps the company achievement of competitive advantage
- It leads to loss of privileges of trade credit
- It charges penalties and fees on delayed repayment of credit amount
- It could create a negative influence over cash flow in the business
The bank or financial institution provides these kinds of services to the businesspersons, and industrialists. It involves high rate of interest and non-payment of the overdraft amount could lead to bankruptcy of business (Liu et al. 2016). In this source of funding, the bank provides facility of withdrawing amount from bank account in excess of the amount prevailing in the account balance.
- It helps in the maintenance of sound track record of financial transactions
- It helps in raising substantial amount of funds within short time period
- It does not involve any additional charges as it charges interest over only the amount withdrawn
- It involves high interests rates that could create a negative influence over the cost structure and profitability of the organisation
- The collection of debtors usually becomes lethargic in such kind of funding sources
Considering the analysis of different sources for raising finance for the project, it has been analysed that, the debt factoring and trade credit is two of the most effective source, which would help the organisation towards the effective collection of the maximum amount with lowest costs and financial risks. Debt factoring would help the organisation to accelerate growth, improve the flow of cash in the business and better manage its resources. Furthermore, the bank overdraft would assist the Arden Healthcare in maximisation of sales, the loyalty of patients and enable the organisation towards achievement of competitive advantage in the healthcare industry.
Discuss how effective resource management in Arden Healthcare ltd would support staff performance, care team and organisation as whole. Explore how this links to short, medium and long-term goals of Arden Healthcare ltd- especially given its intention to expand.
Accountability and responsibility of resource utilisation
There are different departments in the Arden healthcare that are responsible for different activities (Price et al. 2018). Those functional units perform their activities effectively for contributing towards business developments. For effective management of the project and resource utilisation Arden Healthcare might require to establish different departments such as the operational management department who would take of the equipments and machines used in the healthier centre for treating the patients. It would help in effectiveness in provision of mental health services by effective maintenance of equipments. Additionally, management staff associated with the project, accountability of whom would be help under Hr departments the department, is accountable of recruiting, selecting, training and motivation the employees in the project. Training would help the organisation improve staff skills and motivate them through attractive appraisals. Additionally the finance and budget would be managed by finance department who would carry out activities for improving profitability and minimising costs of business.
Tools for measuring performance
For measuring overall performance of the project, it is important for the organisation to adopt different tools such as benchmarking, appraisal as well as KPI in order to bridge the financial gaps and improve the scope of the project effectively.
Performance appraisal is one of the most effective tools by the help of which the performance of staff could be effectively analysed, and the well-performing staff could be motivated through non-monetary and monetary rewards such as the promotion, incentives, salary increment, competitive jobs, job recognition and others. It is helpful for improving the level of morale of the performing employees (Kampkötter 2017). Additionally, non-performing employees could be provided with training for enhancing their skills, removing their weaknesses to help them perform well in their job and contribute the organisation towards efficient achievement of goals. Nevertheless, performance appraisal involves a huge amount of costs that are likely to reduce the overall profitability of the business.
“Key Performance Indicator” is concerned with measurable value, which represents the effectiveness of an organisation in achieving significant business objectives. Arden Healthcare could apply KPI for evaluating success in meeting specified targets. By setting performance targets for the staff and evaluating timely the targets achieved, the performance of staff could be evaluated (Sinelnikov et al. 2015). By analysing financial ratios such as profitability ratios, liquidity ratios and others, the overall performance of business could be analysed, and strategies could be developed accordingly for improving performance. It would help the organisation in the successful accomplishment of project objectives. However, this process is quite complex and might require experts or specialists for the task, recruitment of whom would involve high cost. It could create a negative effect on the financial stability of the organisation.
Benchmarking is concerned with the creation of ranks of the results. Arden Healthcare could adopt both external and internal benchmarking methods for measuring the performance of its business. Internal benchmarking would help the company in comparison of its performance with results of past performance (Blanc-Brude et al. 2016). It could help the company to identify and bridge the gaps between the results through effective strategies. Furthermore, external benchmarking would help the organisation in comparing its performance with competitors for reviewing their functions and identify things that are possible in the healthcare industry externally. External benchmarking could help the organisation improve it business operations to provide tough competition at the market. Both the process (external and internal) of benchmarking involves huge amount of time, which could exercise a negative influence over decision-making of the company
Impact of resource management in supporting the performance of staff Arden Healthcare
As per the views of the Shantz et al. (2016) Resource management creates a negative impact over the performance efficiency and quality of the staff associated with Arden Healthcare Ltd as the concept is strongly related to the performance of staff. Resource management involves training and performance appraisals. Training would help the organisation improve staff skills and motivate them through attractive appraisals. Non-monetary and monetary rewards such as the promotion, incentives, salary increment, competitive jobs, job recognition and others are helpful for improving the level of morale of the performing employees. Additionally, performance appraisal is one of the most effective tools by the help of which the performance of staff could be effectively analysed. However, the costs of training incurred for providing relevant information about mental treatments to the trainees to provide effective services to the patients could create a negative impact on the financial stability of the business. Resource management also involves the evaluation of financial information and comparing the performance at present with the performance at the past for identifying the performance efficiency of the employees. Therefore, in order to improve the level of performance of staff, it is important for the organisation to manage resources effectively.
Impact of funding challenges, budget restriction over expansion strategy
The organisation would have to face certain challenges in carrying out the finding process for raising finance for the process. As selected from the three sources of funding, it has been analysed that the bank overdraft facility, which the organisation has selected as a funding source, would involve a high rate of interest, which could enhance the costs of the organisation (Hughes et al. 2017). Additionally, with the referendum of Brexit and inflation and interest charged by the factor in the debt factoring processes might enhance, which could reduce the profitability of the organisation. Additionally, in the case of bank overdraft, the collection of debtors usually becomes lethargic in such kind of funding sources. Similar, during debt factoring slow-paying base of customers, translates towards high fees related to factoring. Restriction on the budget is helpful for the organisation to control costs by avoiding risks of wastage of resources. It which enhances the profits for a short period of time; however, due to budget restrictions the healthcare organisation is unable to acquire advanced technologies in the budgeted amount which could create a negative impact over the scope of achievement of the long-term objectives.
Risk and strategies for managing risks
The organisation, while carrying out project activities could face certain risks such as financial risks, which could be effectively resolved through the adoption of relevant tools for measurement of business performance such as KPI, Benchmarking, balanced scorecard and others. Benchmarking could help the company to identify and bridge the gaps between the results through effective strategies. By analysing financial ratios such as profitability ratios, liquidity ratios and others as KPI, the overall performance of business could be evaluated, and strategies could be developed accordingly for improving performance. Furthermore, budget restriction and proper resource planning could also help in the mitigation of financial risks. Furthermore, it can also face risks associated with HR planning and management as new staff would hesitate in joining the project, considering that the project is new and uncertain. Therefore, in order to manage the risks, effective strategies such as training and rewards could be adopted. Training would help the organisation improve staff skills and motivate them through attractive appraisals. Non-monetary and monetary rewards such as the promotion, incentives, salary increment, competitive jobs, job recognition and others are helpful for improving the level of morale of the performing employees. Additionally, performance appraisal is one of the most effective tools by the help of which the performance of staff could be effectively analysed.
As the report ends, it can be concluded that the current policies developed in the UK associated with the health and social care have helped the organisation to manage its resources effectively in order to achieve the objectives connected to the development of mental housing project. However, there are certain challenges, such as BREXIT that could create a negative effect over the staffing operations of the organisations. However, such issues could be resolved through effective resources planning and management. There are different kinds of sources available for raising appropriate and adequate financial resources for the project, analysis of which could help the organisation consider and apply most appropriate sources for the project. PESTLE and SWOT framework have served as an effective method for analysis of the external and internal environment of business for the health care organisation in order to analyse the market changes and adopt effective strategies to gain a competitive edge and achieve objectives associated with the project effectively.