HRM Issues In Banksia Healthcare Service: A Case Study

Background Information

HRM have been a major issue in BHS. The organisation’s management took the decision of rapid and dramatic expansion of service without depicting what Human Resource needs would be required for the necessary expansions to take place. In this context, the Harvard HRM model have been employed in this essay to analyse the root causes of HR disputes. The issues like the strife between the upper management and CEO in terms of managerial aspects have been described in detail. In the light of the discussed issues, various short term and long term suggestions have been provided to resolve the HR issues in BHS.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Banksia have achieved a high development rate within a short span of about 30 years. However, after the expansion of the BHS over vast geographical domain (mainly rural location) the performance audit of the BHS started to return negative results. Since the BHS is directly related to the Rural Development scheme of the Australian government, the activities are highly funded by the government. However, in the last 10 years, the Health Care Standards accreditation process of the Australian government have given poor score to the BHS, in terms of providing proper treatment to the patients and on the quality of service (on site and off site) provided by the care providers.  

The major reason for the drop down of the organisational performance of the BHS as identified in the independent process of accreditation have been the lack of control of the HR management over the employees after the rapid expansion of the organisation. Based on the report provided by the above mentioned investigations, some major organisational changes were introduced. For achieving more control over the deliverable of the employees, the organisational structure had been decentralised. As Kessler, Heron and Spilsbury (2017), professes it, decentralisation helps in HRM by setting small strategic objectives for managers instead to taking major liabilities. However, it is quite evident from the outcomes discussed in the case study, the major changes introduced after the implementation of the change plan, there was no elevation in quality of performance attained.

For the purpose of the loopholes in the HR management of the Banksia, the Harvard Model of HRM have been considered. Under the six basic concepts of the Harvard Model of HRM, the various negative aspects of HRM of the company have been grouped. As per Currie, Burgess and Hayton (2015), this model is the best suited for the discussion of the shirt term as well as long term HR strategies and implementation objectives.

Situational Factors

The first factor that is to be considered are the situational factors. The first adverse situation persists in the managerial framework of the BHS. There have been a bifurcation among organisational planning and management of the CEO and the senior managerial committee. The CEO is directly responsible to answer the Australian government regarding the spending of the fund received from the government. On the contrary, the upper management is up to adopt a more constructive approach of management. There is acute necessity of health care, nursing and health care management staff. The estimated budget plan shows that in order to incorporate these, the company would have to invest 60% of the funds for organisational restructuring. However, owing to the managerial intervention of the CEO, the current staff were given a salary hike of 5 to 10% and trained to handle extra work pressure. These unjustified amendments had its toll and the framework could not support the dramatic increase of patients in Banksia. The Payroll officer and the admin level clerks were not acquainted with the operational issues that the staff faced while dealing with the clients and naturally the organisational performance was affected. Moreover the industrial relation between the Australian government and the Banksia was also severely affected as an outcome.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

The next centre of focus as per the Harvard Model are the stakeholder interests (Cooke & Bartram, 2015). Increasing pressure from the upper managerial committee as well as pressure from the government to develop infrastructure led the CEO to make some superficial HRM implementations. Otherwise, it is evident that his position in the company could have been at stake. However, the HRM policies that were implemented that feeble link to the actual issues that were faced by the staff. The old age care centre required double shift attendance. As McCann et al. (2015), puts it, spontaneous observatory care is mandatory for the aged patients. However, in place of increasing staff, the CEO implemented rotational shift work. The staff were asked to devote 30 minutes assistance per patient per ward. However, the staff who were already exhausted failed to properly keep watch of the patients and owing to this, 5 cases of casualties have occurred in the Banksia.

Most importantly, the upper management who were at confrontation with the CEO’s style of management, did not concern themselves to conduct internal survey to understand how the HRM implications were benefitting the employees, or whether the employee were at all impacted by the HRM policies. 

Stakeholder Interests

The third most important aspect as per the Harvard Model of HRM is the HRM policy choices. In this context, Top, Akdere and Tarcan (2015), have stated that the HRM philosophy of an organisations would be clear and stratified. For evidence if there is a need of permanent surgeons in the BHS, and the managerial committee hires contractual doctors for therapeutic care, there would be obvious cases of mistreatment. Evidently the doctors would have the time to study the cases of the patients in depth. Hence, many patients have complained the poor surgical outcomes of the treatment at the BHS. There are also certain subtle aspects like implementation of an evaluation plan for understanding if the HRM policies are suiting the needs of the staff or not (Gittell and Logan 2015). This company have implemented the organisational restructure plan purely on an unscientific basis. No implementation plan was laid out and most of the field executives who directly dealt with the patients were aware of what changes were coming their ways.

The next stage of the Harvard model is centre point of HR strategy implementation. It is the stage of assessing the HR outcomes (Sadatsafavi, Walewski and Shepley 2015). Even after the implementation of organisational restructuring, there was no separate and unique HRM department formed. The managerial leaders of the company failed to understand the fact that in absence of a team of HR manager and HR executives, here would be no managerial executive to understand the deficiencies that the employees were facing. Hence the same age old heterogeneous interpretation of the managers led to the undertaking of any HR decision. However, this should be kept in mind by the managers it is of no use to form an investigation committee after any patient mal-treatment or flaw in disease diagnosis have been allegedly reported against the BHS. In this context, influenced from the views of McDermott et al. (2015), it can be suggested that another set of organisational restructuring should be done. The first issue that the company is facing that they have to make it evident that they have invested the funds from the government for expanding the scope of treatment in BHS. In this context, it is long evident that appointment of staff for a completely new HR department is not possible. As such, the managers should break the core management committee to form a Human Resource management committee and they can appoint staff gradually in the department. For the purpose, the experienced candidates from various departments can play the role of being the acting HR executives. In such a situation, as Nightingale et al. (2018), have opined in similar contexts, the management committee can also prepare a concrete report based on the employee feedback regarding why excess funds allocation for a detailed organisational restricting is required and how this change (inclusion of HR) would help to provide better patient care at the BHS. As an outcome of this change implementation, the Banksia can also empower its heath care executives. They would come forward to take wholesome responsibility and accountability of their job role. As such, the cases of ill-treatment would reduce to a certain extent in the organisation.

HRM Policy Choices

The next consideration according to the Harvard Model is the implementation of long term consequences so that the loopholes of Human Resource management can be permanently closed.

The first step in this context is the business case development. This requires the formation of a committee which would work for a certain timeframe say abruptly 2 to 3 months with every department of BHS, in order to understand what the basic HRM needs of the employees are. IN most cases where poor HRM policies are implemented, Oppel, Winter and Schreyögg (2017), states that the employees lack the motivation to perform. In case if such consequences occur at the BHs which is a nursing care providing institution, the consequences would be disastrous.

The next long term plan is the development of a Workplace capability plan, as Rice et al. (2017), have discussed in similar contexts. In this case also, the previously formed HRM committee would come to action. This committee have to properly observe how many clients in any particular department, a single service employee can handle. For evidence, in the X ray room if there is only one staff and he have to work 18 hours a day, The net role is of right HR philosophies which have been discussed already. The last step is creation of an online portal for HRM where the employees can directly report the HRM issues that they face. The issue could be too much out of expertise work handling or lack of physical resources.  It can also be the lack of motivation and adequate and justified reasons against the same cause have to be cited. Based on the reports or grievances, HR executives would observe and authenticate the cause of the employee and concerned actions can be taken by the company in the long run.


This essay have discussed in depth the reasons for mismanagement in BHS among the causes, the strife between managerial committee and the CEO is evident. Besides, owing to the fact that funding mostly comes from the government, the management is being pressurised to take evident decisions for the expansion of the scope of their service. However owing to internal confrontation, the managers are no able to highlight the change management needs to the government. In this light, the Harvard model makes a clear and in depth analysis of the issues like excessive work pressure and lack of employee motivation. The action plan suggested in the course of the essay would also lead towards permanent extinguishment of the Human resource related burning issues in the company.

HR Strategy Implementation


Kessler, I., Heron, P. and Spilsbury, K., 2017. Human resource management innovation in health care: the institutionalisation of new support roles. Human Resource Management Journal, 27(2), pp.228-245.

Currie, G., Burgess, N. and Hayton, J.C., 2015. HR practices and knowledge brokering by hybrid middle managers in hospital settings: the influence of professional hierarchy. Human Resource Management, 54(5), pp.793-812.

Cooke, F. L., & Bartram, T. (2015). Guest editors’ introduction: human resource management in health care and elderly care: current challenges and toward a research agenda. Human Resource Management, 54(5), 711-735.

McCann, L., Granter, E., Hassard, J. and Hyde, P., 2015. “You Can’t Do Both—Something Will Give”: Limitations of the Targets Culture in Managing UK Health Care Workforces. Human resource management, 54(5), pp.773-791.

Top, M., Akdere, M. and Tarcan, M., 2015. Examining transformational leadership, job satisfaction, organizational commitment and organizational trust in Turkish hospitals: public servants versus private sector employees. The International Journal of Human Resource Management, 26(9), pp.1259-1282.

Gittell, J.H. and Logan, C., 2015. Outcomes and Predictors of Relational Coordination: Empirical Assessment of an Emerging HRM Theory. 16(2), pp.1-17.

Sadatsafavi, H., Walewski, J. and Shepley, M.M., 2015. The influence of facility design and human resource management on health care professionals. Health care management review, 40(2), pp.126-138.

McDermott, A.M., Fitzgerald, L., Van Gestel, N.M. and Keating, M.A., 2015. From bipartite to tripartite devolved HRM in professional service contexts: Evidence from hospitals in three countries. Human Resource Management, 54(5), pp.813-831.

Nightingale, S., Spiby, H., Sheen, K. and Slade, P., 2018. The impact of emotional intelligence in health care professionals on caring behaviour towards patients in clinical and long-term care settings: Findings from an integrative review. International journal of nursing studies.

Oppel, E.M., Winter, V. and Schreyögg, J., 2017. Evaluating the link between human resource management decisions and patient satisfaction with quality of care. Health care management review, 42(1), pp.53-64.

Rice, B., Knox, K., Rice, J., Martin, N., Fieger, P. and Fitzgerald, A., 2017. Loyal employees in difficult settings: The compounding effects of inter-professional dysfunction and employee loyalty on job tension. Personnel Review, 46(8), pp.1755-1769.

Turner, P., 2018. The Role of the Board, the Executive Team, Line Managers and HR Professionals in Talent Management. In Talent Management in Healthcare (pp. 315-338). Palgrave Macmillan, Cham.

Shipton, H., Sanders, K., Atkinson, C. and Frenkel, S., 2016. Sense?giving in health care: the relationship between the HR roles of line managers and employee commitment. Human Resource Management Journal, 26(1), pp.29-45.

Fagerström, L., Lønning, K. and Andersen, M.H., 2014. The RAFAELA system: a workforce planning tool for nurse staffing and human resource management. Nursing Management-UK, 21(2).

Beer, M., Boselie, P. and Brewster, C., 2015. Back to the future: Implications for the field of HRM of the multistakeholder perspective proposed 30 years ago. Human Resource Management, 54(3), pp.427-438.

Paauwe, J. and Boon, C., 2018. Strategic HRM: A critical review. In Human Resource Management (pp. 49-73). Routledge.

Conway, E., Fu, N., Monks, K., Alfes, K. and Bailey, C., 2016. Demands or resources? The relationship between HR practices, employee engagement, and emotional exhaustion within a hybrid model of employment relations. Human Resource Management, 55(5), pp.901-917.