Organizations have to continuously enhance their strategies in order for future advancements and growth of their business. In order to achieve goals, strategic planning has to be implemented. “In a global market place, strategic planning and forward thinking have never been more important. If your organization wants to become or remain a key player within their industry, a strategic plan should be developed” (Davies, 2015, para.1). An essential part of all organizations including healthcare is the importance of human resources strategies including expansion, Contraction, and maintenance of scope. This is entirely due to the fact that it’s vital for healthcare organizations to fully comprehend the need for their organizations structure and resources so that changes can easily be made in order to always align the business to the growing trends in their particular industry. Human resources department is a valuable organizational asset because human resources professionals help to serve the underlying aims and goals of the healthcare organizations.
The adaptive strategies help to establish methods that ultimately help to achieve the organization’s vision pertaining to expansion, contraction, and maintenance of scope. These adaptive strategies have to establish guidelines that help them navigate their finances. Expansion of scope strategy primarily focuses on long-term growth objectives. This is entirely due to the fact that expansion strategies provide a map and clear guidelines for healthcare organization’s to achieve their growth objectives. For example, “Expansion strategy is adopted to accelerate the rate of growth of sales, profits and market share faster by entering new markets, acquiring new resources, developing new technologies and creating new managerial capabilities” (Management For All, 2012, para. 1). Therefore, expansion strategy is usually applied by an organization when the healthcare facility is trying to achieve high growth compared to the organization’s past achievements. Furthermore, expansion of scope strategy also includes diversification, market development, and vertical integration. Diversification part of expansion of scope strategy allows management teams to recruit more people who have the required skills similar to the ones that are already in the organization.
Contraction of scope is also important strategy that includes divestiture, liquidation, harvesting, and retrenchment. Contraction of scope helps to establish more control over the operations of organizations by decreasing the size of business operations. “With divestiture, an operating unit is sold off as a result of a decision to permanently and completely leave the market despite the market’s current viability” (Stahl, 2016. Para. 1). Therefore, applying contraction of scope is a difficult task to implement due to that fact that there are many factors that have to be considered before closing a certain business or corporate operation within an healthcare organization. Careful analysis has to be performed before a huge decision regarding finances can be made because such decisions can have long lasting affects on all future developments. Funding and overall revenues dictates the success of an organization therefore it’s important for organizations to continuously evaluate their operations to see where capital can be used to achieve better results. “An organization may divest a service because it needs cash to fund more important operations for long-term growth, the service may not be achieving management’s goal, or the service is too far from the organization’s core business or management’s area of expertise” (Stahl, 2016, para. 2). Therefore, Contraction is a difficult task to achieve because many different entities have to be considered before dictating funds to other areas of operations within healthcare organizations.
Organizations take advantage of maintenance of scope strategy when companies are trying to make minor adjustments to their past strategies that has been effective to target their goals. If the implementation of past strategies has been successful for an organization then it’s more effective strategy for them to just make their existing strategies better by making small required changes as opposed to developing new strategies. Maintenance of scope ultimately helps to enhance the facility, equipment, and quality of care. Therefore, maintenance of scope allows companies to continue their successful strategies with minor changes that may further enhance the strategies. “Maintenance of scope does not necessarily mean that the organization does nothing; rather, management believes the organization is progressing appropriately. The maintenance-of-scope strategies include enhancement (doing better what is currently being done) and status quo (attempting to stabilize)” (Swayne, 2016, para. 1). Therefore, the major difference that sets maintenance of scope strategy apart from other strategies is the fact that when organizations have an implementation of successful strategies that need to be made better, then maintenance of scope is the best strategy that can provide benefits. In this case, expansion, and contraction of scope strategies can’t provide any help. “When management believes that the organization is progressing toward its vision and goals but needs to do things better, a maintenance of scope strategy may be used. Neither expansion nor contraction of operations is appropriate but “something needs to be done” (Swayne, 2016, para. 2).
The entire foundation of an organization’s success rests on the human resources and their abilities of implementing strategies. Human resources management teams have to ensure ways to allocate their resources based on the individual needs of the company. “HR professionals must ensure that there is a direct connection between the policies, procedures, programs and services they offer and the organization’s larger purposes. Absent clear and deliberate linkages, the HR department is just a cost center that is undervalued and unappreciated” (Lee, 2013, para. 6). Additionally, human resources strategies are extremely important. All the adaptive strategies including expansion, contraction, and maintenance of scope have their own challenges and benefits. To some point, contraction of scope implementation is more challenging entirely due to the fact that more financial decisions have to be evaluated in order to accomplish the tasks associated with this particular strategy. If organizations are able to implement the human resources strategies properly, it’s possible for them to further increase growth, revenues and their overall functionality and profitability.
hen one thinks of human resources, thoughts are often relegated to recruiting and hiring of employees. However, there are other aspects of human resources that are strongly linked to both the implementation and management of organizational strategies. The tasks and strategies required of the human resources department will vary depending upon whether the company is expanding, contracting, or maintaining scope (Ginter, Duncan, & Swayne, 2013).
When an organization is focusing on expansion strategies, often they are working to obtain new employees with the skillset comparable to existing employees (Ginter, Duncan, & Swayne, 2013). This allows the organization to build on the current efforts and move forward with existing strategies. However, there can be times when finding talent with a more diverse set of backgrounds and talents to move the organization into a new direction. The strategy utilized will depend on if the company is looking to expand current efforts or shake things up and move into unchartered territory. The distinction between these two choices can be problematic for human resources because the management of both strategies benefit from more specialized skills of even the HR employees completing the task.
Contraction strategies revolves more around moving current employees from their current roles, and sometimes from the organization altogether. In the state of Michigan this was common practice a few years back when the automotive industry faced hard times and many related companies were offering buy outs to employees to cut payroll expenses. It will be interesting to see if a similar situation will exist in healthcare with the new Presidential Elect’s promise to modify many of the changes that have taken place with health care reform in recent years.
Maintenance of scope strategies work well when the previous strategies and efforts of an organization seem to have been successful. In this situation, leadership may not deem it necessary to make any radical changes but instead maintain previous efforts which will hopefully still allow for future success.
In order for organizations to perform successfully and function well with both the internal and external environment, it is necessary to adopt strategies for expansion, contraction, and maintenance of scope so that regardless to which strategy is required at a given time, the organization can adjust accordingly to any of the changes taking place in the industry (Salaibi, 2015). Regardless to the strategy being utilized, effective implementation leads to greater productivity to the overall company direction and the ability to accomplish the objectives and goals of the organization (Burma, 2014).