Strategic Human

RUNNING HEAD: Strategic Human

Strategic Human Resources Research

University of Phoenix

MBA530 Human Capital Development

March 14, 2005

Abstract

In this paper the author informs the reader of specific issues related to InterClean Inc. The issues at InterClean Inc. will be compared and contrasted to: Tenet Healthcare The Home Depot, . A brief explanation of how the companies have experienced similar problems that have affected the human resources department at each business in specific areas will be provided for the companies. In the following pages the reader will find a synopsis containing information that will be used to discover similarities and differences and will define the human resource style of approaching and solving issues that each company utilized.

The companies researched in this paper have all experienced various changes since the beginning of 2007. These changes have had a negative impact on the human resources department in all companies. The recent changes have affected their employees with issues like employee morale and ethical problems. In comparison to InterClean Inc.'s the Human Resource department for these companies have also found problems that have affected the company in a negative ways. These issues include code of ethics policies, morale, and cost of hiring and firing of employees.

Tenet Health-Diana Ortega

Tenet Healthcare is a corporation that owns and operates acute care hospitals through out the United States with the goal to provide the best possible care to their patients. With an operating strategy to create market leading integrated delivery networks offering a variety of medical and ancillary health care services. Tenet focuses on quality, industry recognition, and transparency. Using internal Balanced Scorecards Tenet hospitals are able to track their results on metrics that measure the quality of care and service provided to patients. This has led to an eight percent increase in quality performance measures from the hospitals in the network prompting them to receive numerous recognitions. The company has also instituted some of the most rigorous standards for corporate governance, compliance, and ethics to ensure employees consistently behave ethically and honorably.

Issue

According to a company's statements "Business can only be as good as its team of employees" leading the company to hire, develop and promote quality people dedicated to providing quality healthcare.(H.R. Fact sheet, 2006) However, although the intention to hire the best candidates possible is there, unfortunately there were times when this company made some wrong choices. What many people don't know are the real reasons Tenet has taken the initiative to implement such rigorous standards lately. Since 2002 this company has been facing an array of financial problems thanks to the greed and corruption of some employees stationed in different Tenet owed hospitals through out the United States.

After finding several employees guilty of tempering with insurance claims, subordination and others serious charges the government has imposed a severe penalty on all Tenet hospitals. The court fees and settlements have been sadly felt by almost every hospital in the network over the past few years forcing the company to conduct serious cost reduction plans and strategies. For example, local Tenet hospitals here in El Paso have suffered various losses thanks to all the problems caused outside of the city. Although, these local hospitals are some of the most profitable for the network, they've had to undergo a series for cuts and changes. Unfortunate changes as well as stressful for many jeopardizing the company's reputation as well.

Company response

The first changes implemented in all Tenet facilities were new Ethical Policies. Employees began taking longer mandatory training classes and online courses to avoid government fines. The network made several agreements with the government from which new mandatory ethical training for all Tenet employees was part of. Later came the requests for cost reductions from each department which included reductions in the purchase of supplies, equipment and the request for services such as repairs. After the cuts of material things proved not to be sufficient to help alleviate the situation H.R. began to conduct intensive analysis of employee conduct, labor surplus, and continued by suggesting mergers of departments and facilities. The consequences followed with things such as the delay of pay increases, the removal of bonuses, and the elimination of some employee assistance programs such as the child care services for employee's children.

Out Comes

Finally, after numerous attempts to bring down cost to help the rest of the network stay afloat the local facilities were asked to evaluate employees and layoff as many people as possible leaving only the necessary staff to do the job. Naturally, this brought more problems such as over time, distrust and fear from employees towards management, frustration, turnover, etc. Unfortunately, the layoffs proved to be only a temporary financial boost because the company continues to spend more money on early retirements, severance pay, overtime, new hire training, and outsourcing.

Key Concept

Tenet intended to "align organizational structure with strategy "by providing new and more intense ethics classes. Mergers were then conducted where several employees they got to be cross trained and able to transfer to other departments. Although, the intention was to organize the company for success, sadly the attempts haven't provided good lasting outcomes. The company continues to look for more ways and areas where money could be saved like the renegotiation of contracts, purchases, and even the removal of clinics and services in the community. Despite the hard work performed and the loyalty of the remaining employees, sometimes it is just not enough and it is then when the company is forced to conduct more layoffs as it has and will probably continue to do so.

Home Depot-Eddie Maese

Home Depot is the largest home improvement store in its class. The store has swept the Nation with 2,000 stores in the United States. Home Depot began by servicing and catering to the "do it yourself' customers. As the company emerged