Mckesson human capital management

Running Head: HUMAN RESOURCE MANAGEMENT 1

HUMAN RESOURCE MANAGEMENT 3

Human Resource Management

Introduction

The McKesson Corporation which has its headquarters in San Francisco California is an American company that involved in healthcare provision. The company was founded in the year 1833, and it is rated at number five in the Fortune Global 500 companies. Some of the products and services that McKesson offers include the distribution of pharmaceuticals, medical supplies, provision of health information as well as care management tools. As one of the oldest operating company in the United States, McKesson has gained international offices in other areas like the Netherlands, France, Ireland and Australia.

The success of the company can be attributed to the excellent leadership especially in the human resource department which is the most vital in every company. The human capital is one of the production factors that determines much the success or failure of a business and hence it is essential to establish policies that are in line with the needs of the company. This paper will assess aspects of human resource management including employee engagement strategies, the management of global talents, corporate social responsibility, challenges of human capital in the 21st century, human resource technology, the best practices in human resource management and the emerging trends among other aspects and their impacts on McKesson Corporation.

Employee Engagement Strategies

According to various studies, employees who are engaged at their workplace show increased productivity by 50 percent compared to those who disengaged. It requires the involvement of colleagues, seniors, and subordinates in addition to the designing and implementation of human resource strategies that are effective to improve the engagement of workers. The aspect of human beings to belong and to belong is vital to the success of any company. For an extended period, the available solutions have advocated two-at communication that consists the bottom-to-top as well as the top-to-bottom strategies. However, most organizations are moving towards the adoption of collaborations between employees and the open discussion (Albrecht et al. 2015). The manner in which employees interact with each other determines the health of the organization significantly.

Besides these aspects, employees also require to be empowered and provided the autonomy to make decisions about their jobs to increase productivity; it is vital for an organization to go beyond the traditional management ways and help the staff remain motivated and engaged in their daily activities. A company should be able to choose the best employee management strategy that suits their company since different companies require different approaches. When considering the vision of McKesson to facilitate health in the world, the corporation understands that this vision starts with their patients and then their employees. Healthy employees are not only in a position to enjoy their life but have a high capability of helping the society to create a healthy environment. One of the ways that McKesson promotes employee engagement is through providing programs that improve their health. The Total Rewards Package which helps to advance the financial, mental and physical well-being of employees and their families is a program that brings together all employees including the Executive committee and the Chief Executive Officer.

Another way through which employees of a company feel engaged is by the organization being able to create an opportunity for them to succeed and advance in their career. Some of the ways that McKesson have been able to achieve this is by investing heavily on growth and development of workers, providing learning opportunities for those in need, one-on-one development initiatives with managers and also rewarding task assignments. Employees also feel engaged when the environment they are working in is safe, secure and healthy. By providing security highlights to employees, continually training programs on safety are some of the aspects that have significantly helped to reduce workplace injuries at McKesson Corporation. Providing the right tools and equipment also ensures that employees stay safe. The issue of diversity in an organization is of paramount importance since it facilitates innovation and creativity (Albrecht et al. 2015). Many organizations and national policies require that the aspect of diversity is present in the workplace. Some of the ways that McKesson has been able to implement this strategy is by engaging women and the people of color as well and the retention and engagement of veterans. The impact of employee engagement is that it has enabled the company to thrive for about 183 years and is still doing well today.

Global Talent Management

Today, the business environment for organizations is considered to possess characteristics such as being universal, highly competitive, dynamic and also extremely volatile. For the past twenty years, there has been an increase in the need for multinational companies to be competitive. Many companies today are facing numerous challenges related to matters such as talent flow, the management of two generations including the young and older workers and also lack the needed competencies. As a result, many human resource practitioners have recognized the need for proper management of global talents as a critical priority to the success of their firms (Al Ariss, 2014). With the problem at hand, one might expect that companies have adopted global talent management systems that are both effective and efficient. However, this is rarely the case for many organizations which lack sufficient talent pipeline hence reducing the ability of the company to grow. The primary challenge that many organizations face is the inability to determine the meaning of global talent management in their particular organizational context.

As a company that has offices in different countries, the top management at McKesson Corporation understands the need to have a diverse workforce and also manage global talents that will help reach out to more people who need healthcare facilities. One of the philosophies that the corporation is committed to fulfilling is equal employment opportunity that ensures people are not discriminated against their color, gender, religion and other aspects. The company has been able to manage the workforce which includes both the old and the young workers who advance their career through internship programs. To create a pool of competent employees, the organization provides the young student from all countries with an internship in jobs such as business development, finance and accounting, human resource and auditing activities. In addition to having a diverse workforce, McKesson is one of the organizations that support veterans who thrive at all levels of the company. As a result of this diversification, the healthcare facility has been able to offer quality services to a wide range of patients in most parts of the world.

Corporate Social Responsibility

Today, many companies have implemented the corporate social responsibility which are initiatives that help companies to take responsibility for the effect it causes to the environment and the well-being of the society within which they are located. Such corporate citizenship may require firms to incur short-term costs that do not bring direct profit but helps to maintain a positive environment and social change (Schwartz, 2017). Many nations have large companies that most often trump on the interests of the country. Most of these organizations have especially detrimental effects on the environment because of the products they produce, the process involved and the waste products from companies. The current trend in climate change has been associated with the environmental effect caused by companies, and although it is difficult to control the effects sufficiently, corporations can also create a positive impression by reducing such effects.

The most pressing environmental problems affect both the community and businesses. In light of these challenges, McKesson Canada has made efforts and is dedicated to creating a healthcare system that is sustainable. This objective is achieved by the commitment of the company to operate in an environmentally friendly method. The corporation integrates principles that are environmentally geared to the way they do their business to ensure a vibrant and healthy company that will be effective for future generations. A team of Eco-Initiative and Eco-Champions across the country have formed programs that benefit not only the environment but also the community and company. The environmental agenda focus on factors such as recycling of waste products, controlling pollution through gas emission from production processes and transportation, using energy efficient means and encouraging sustainability.

Apart from caring for the environment, corporate social responsibility for most companies is also directed towards improving the livelihood of the society starting from the employees and the surrounding community. The McKesson Foundation is one of the ways through which the corporation supports the local community. This foundation is committed to improving the health of patients and contributes about $5. 5 million to help non-profit organizations that work to improve healthcare in the society. Also, the employee volunteering and philanthropy programs provide an opportunity to the employees to take part in making a difference and developing the life of patients. Some of the work that this program carries out include focusing on cancer care which essential in this day and age where cancer issues have increased. The program also recognizes and rewarding outstanding services to the society and lastly supporting both local and global communities. The corporate social responsibility function has a more significant impact to the company, and this can be assessed through increased financial performance and increased customer loyalty as a result of trust that is created from the activities of the corporation.

Human Resource Technology

The human resource technology acts as an umbrella that houses both hardware and software functions that are used for automating the activities related to the human resource. Some of the events that the process aid in include the acquisition and management of talent, employee compensation, performance management and benefits of the administration. The concept of HR tech has developed in the recent years as a result of advanced technology. Many companies now adopt technology-based systems from software supply like Oracle and SAP. These systems have enabled organizations to cater for their employees who are the major contributor to the success of any firm. The healthcare sector is one among those that have adopted technology in their functions to improve the quality of services they deliver. To deliver such services, there it is vital for the employers to ensure that the employee management system is in line with the current technology to improve functionality.

While in some companies the employers have systems that only specialize in payroll, for others it includes tracking the wages and salaries. One of the main challenges with the compensation program is to monitor the salary and wages without withholding the tax (Cascio, 2018). At McKesson Corporation, the system utilized involves using an attendance software that tracks the number of hours that employees work and determine their pay. Also, to attract and retain employees like the veterans, a unique software is utilized for compensation management. Many individuals apply for jobs at the McKesson Corporation since they would want to be associated with the Fortune 500 Company. As a result of the numerous applications, the company utilizes the employment assessment software that helps to determine suitable candidates for various positions without discrimination. Performance management is among the most vital activities in a company, and continuous performance management systems have been adopted to allow employee feedback and interaction. All measures that are taken in HR tech help in ensuring that human capital is managed in the right way to increase productivity.

Employment Law and Human Rights Issues

Year after year, the local, federal and state laws that govern companies keep on changing necessitating employers to ensure that their organizations keep up with these changes. The government requires that companies have to fulfil particular employment laws which differ in different places. Some of these employment laws include those that deal with wages and working hours, the health care laws and laws governing the use of social media by the employee among others. These laws are also varied for different organizations, and they go hand-in-hand with the rights of employees working in various companies. Some of these rights are based on the constitution and include rights against discrimination, equal pay, secure working environment and others (Weissbrodt, 2017). Lack of complying with such laws and rights is enough reason that can lead to a business being shut down by the authority.

Apart from depending on the ICARE and ILEAD principles, McKesson Corporation has a comprehensive compliance ethic program that helps to maintain the code of conduct in the company. This board which is approved helps to preserve the cultural integrity of the company. Other functions of the program include ensuring that all written and publicized policies are adhered to and also carry out compliance monitoring and internal auditing. For production companies like McKesson are required to adhere to marketing laws and the organization uses that opportunity to illustrate their good corporate citizenship. The firm ensures that all activities that involve promotion and marketing of products and the technology used to produce the end products are according to the requirements of the law. Regarding human rights, McKesson is dedicated to making sure clear policies regarding anti-slavery and anti-corruption are put in place. The working environment has made secure to minimize or eliminate workplace injuries while employees are provided with the right tools to accomplish their daily activities.

Emerging Trends in Human Resource Management

Emerging trends refer to the changes that occur in the business environment, and that affects business in various ways. With changes in technology and increased competition, companies adopt different strategies that enable them to thrive. One of the emerging trends is the renewed focus on productivity where in the past the company recruited more people to solve the problem of capacity. However, this method seemed like a problem and reduced productivity. AS a solution, the management at McKesson has changed the perspective and now concentrates more on productivity instead of capacity. This situation means that although the company recruits new employees, significant efforts have been made to utilize the full potential of the existing employees which helps to reduce cost and also increase production. The other trend is that the workers in various departments have been given the authority to control the manner in which they work. Unlike in the past when employees need to be guided on what to do, providing them with an opportunity to manage their work is a strategy used for performance management.

Innovation and creativity are vital for every organization, and the end of fixed jobs have marked this critical trend. Most organizations have discovered the need to stop fixed processes and procedures that are used in the production of goods (Bliese et al. 2017). As a result, most sectors including the healthcare facilities have been able to come up with solutions to world’s most prominent health problems. The changes in training programs is also another significant trend that has occurred. Rather than the company investing in programs that are to be used in the future, such programs are now geared to what is useful in the present to reduce the amount of money and time invested in such initiatives. McKesson Corporation is among companies that have implemented automation programs that help to provide the best care to their patients. This process marks the new trend of shrinking human resource teams that are replaced by automated programs that make work more comfortable and effective.

Human Capital Challenges in the 21st Century

For the past few decades, there have been perfect storms that have been blowing the workplace environment both nationally and at global levels. Such storms consist of factors such as the evolving technology, change in demographics and globalization. These changes are occurring in an era where businesses need to stay competitive and figuring ways to move forward. Although these changes pose a significant threat to many organizations, they cannot be ignored since they are not going away, but companies have to adapt and tackle them. The most compelling change that is occurring is based on the transformation of demographics that affects the human capital in the 21st century. According to demographic studies, the number of the youths in the society is rapidly increasing and making the number of jobs not sufficient for the ever growing numbers. Also, due to improved healthcare, older people tend to live longer and work for companies for an extended period (Suseno et al. 2017).

The issue of demographics poses a significant threat to many companies since they have to be able to balance between accommodating all the generations of the workforce. The problem of technology is also related to the challenges of human capital in the 21st century. The mobile and social aspects are some of the advancements in technology that do not only affect the social life of individuals but also their production levels. While the young workers are conversant with using complicated machines, this might not be the case with the baby boomers hence making it difficult to manage human capital in the 21st century. Lastly, the level of experience required at the workplace is also a major human capital challenge in this century. As a result of all other changes, high levels of education are becoming increasingly important in many organizations to produce skilled employees in the future, and this may transform into harsh economic experiences for the company.

Best Practices in Human Resource Management

In any organization, the human resource department plays a significant role as it determines the profitability and success of the company. The HR sector improves the company by aiding in processes such as hiring competent employees and keeping the morale of the company. Some of the best practices of the HR include making sure that new employees are made aware of the existing policies and what they are expected to do. As such, the HR department in McKesson has managed to display best practices as new entries undergo the induction process that equips the employees with such information. Another best method is enhancing the process of frequent feedback between the top management and the subordinates that facilitate the smooth running of the company. Lastly, the HR department has also been able to embrace technology which has been essential in ensuring that all the activities of the department are run in a proper manner, and employees’ potential is maximized.

Conclusion

The human resource management is vital for every organization since the human factor contributes significantly to the success of a company. The top management must ensure that all elements pertaining the department are put in line with the objectives of a particular company. Such factors include the engagement of employees that makes employees feel belonging and responsible for everything that happens in the company. Issues dealing with corporate social responsibility are also important while there are new trends that have been experienced in the human resource department. These among other aspects contribute to the functions of the department, and when well-managed, the results is that companies can thrive long in the business arena like McKesson Corporation which has operated for 183 years.

Reference

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Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), 7-35.

Bliese, P. D., Edwards, J. R., & Sonnentag, S. (2017). Stress and well-being at work: A century of empirical trends reflecting theoretical and societal influences. Journal of Applied Psychology, 102(3), 389.

Cascio, W. (2018). Managing human resources. McGraw-Hill Education.

Schwartz, M. S. (2017). Corporate social responsibility. Routledge.

Suseno, Y., & Pinnington, A. H. (2017). The war for talent: human capital challenges for professional service firms. Asia Pacific Business Review, 23(2), 205-229.

Weissbrodt, D. (2017). Business and human rights. In Human Rights and Corporations (pp. 103-121). Routledge.