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Questions: 1.What course of action would you recommend to the CEO in the first hospital as a way to Improve the Operation of HRM at the Hospital? 2.What are the key features of building a Sustainable HR Capability? Answers: Introduction Human Resource Management practices in an organisation is based on an official system that assists the company to look after in managing their workforce, recruitment of employees, staffing and maintaining a methodical and formal work design within an entity. Productive outcome of company is dependent largely on effective HR planning and practices. This business report aims on focusing lack of supervision in HRM practices that can cause disruption in internal environmental condition of organisation that can affect sustainability of company in market. Examples of two health care organizations in Australia are considered where contrasting HRM is implemented and a comparative study on HRM within the organizations is demonstrated. The learner has conducted a secondary methodology analysis here to gather information from secondary sources to provide insight into the HRM functions and their sustainability in the organisations. Thesis statement of this report shades light on the significant factors of prolonging sustainable HR practices within an organisation and probable recommendations in improvement of HRM operations in a healthcare organisation. 1.Recommendations for improving HRM operations The two hospitals that are considered in studying effective HRM prolongs contrasting practices of human resource within the organisation and subsequent consequences are faced by them. The first hospital lacks a specific HR department and consequently face challenges in market sustainability due to large number of employee turnover. On the contrary, the second hospital possess an HR department in the organisation that consists of a dedicated HR team that looks after employee that looks after organisation designing, employee recruitment and resourcing, their performance as well as rewards and recognitions. Ehnert, Harry Zink, (2014) mentioned that successful employment flexibility always allows an organisation to maintain an integrated HRM within the organisation. In the first hospital, lack of HR department has resulted in nil flexibility among employees and as a result huge internal disruption has taken place due to non involvement of key HR practices. CEO of the first hospital along with the finance manager have taken the responsibility of HR department and a consultant is appointed, who visits the hospital once in a week to look after the HR policies. Bogdanovic, Durian, Cingula, (2016) mentioned that it is not possible to acknowledge the factors and develop policies of human resources by a finance manager who has no relevant knowledge about the particular field. Figure 1: Three components of Karon Legge model (Source: Nazeer, Zahid Azeem, 2014) As per Karen Legge Model, HR practitioner within an organisation can involve three types of innovative approaches that can help in operations on HR departments (Lakshmi Kennedy, 2017). The primary recommendation that is required to be provided to the CEO of the first hospital is to develop a specific Human Resource Department within the organisation following the Conformist Innovator approach of Karen Legg model. Conformist Innovator approach of Karen Legg model will help the company to identify objectives of the organisation, strategies of conflict reduction, cost reduction and increase organizational productivity (Psychogios et al. 2016). HR team of the second hospital has framed a strategic HR capability, dealing with the visions of the organisation, thus enhancing their profit and productivity. Figure 2: Components of Six Sigma lean approach (Source: Veloso, Tzafrir Enosh, 2015) The second hospital has maintained an effective monitoring of different HR practices, policies and processes of their organisation. As per Kemayou, (2014), quality and performance measurement of an organisation is done by six sigma model, which can be utilized by HR departments. The second hospital has identified and measured the internal and external market factors that are followed by undertaking the six sigma lean approaches in monitoring organizational HRM. CEO of the first hospital is strongly recommended to conduct a methodical monitoring of the HR practices with the help of Six Sigma model that would assist to frame an organizational chart, designation of each employee, their performance and scope of improvements. Specific training and development requirement, key performance indicators along with rewards and recognitions of the employees can be identified from this model. Benn Rusinko (2013) stated that in HRM, key performance indicators portray the metric of performance eva luation of several HR activities. 2.Key features in building sustainable HR capability The second hospital has taken successful measures in developing the vision of organisation, identifying key performance indicators, monitoring effects of organizational HRM, motivating their employees and employee retention. Longoni, Golini Cagliano, (2014) opined that a sustainable HR capability is developed within an organisation on individual considerations of HR activities and specific analysis of those activities for future improvement. Figure 3: Key performance Indicators (Source: Story et al. 2014) Key performance indicators identified by second hospitals are: Training and development Absenteeism Workforce cost Employee retention Employee motivation Employee turnover Workplace health and safety Determination of each of the key performance indicators has allowed the second hospital to improve their job designing in HR practices. As per Smith Synowka (2015), a company can develop a proficient strategy in executing HR practices, which would help them to prolong a smooth workflow and also increase competence to survive tough market competition. Capability of HR department of the second hospital is judged by their sustainable position in the market and this has been possible because a smooth relation is maintained between the HR departments as well other departments of organisation. On the contrary, the first hospital has not established a specific HR department, thus their sustainability in HR capability is questionable. They have only appointed a consultant in reviewing their HR policies, processes and practices. As per Akhtar et al. (2014) appointing only a consultant to supervise HR policies is not sufficient in evaluating the HR capability of the organisation and its conse quent sustainability in market. Healthcare organisation Key performance Indicators Monitoring HR processes Employee retention Sustainable HR capabilities First hospital No No No No Second hospital Yes Yes Yes Yes Table 1: HR practices in two organisations (Source: Created by learner) HR department of the second hospital has considered the motivation of their employees as a crucial factor and had introduced several reward and recognition processes to increase the encouragement and loyalty of employees. This has helped the company in retaining their employees, reducing staff turnovers and overall production quality of the company has increased. Lack of all these systems in the first hospital has resulted in huge employee turnovers, staff grievances, absenteeism, and reduction in overall company productivity. Varma (2013) has stated that effectual production is indirect in the HR department, utilization of staffs is being initiated from this department itself. Hence, it is obvious that the first hospital will face reduced productivity as their employees are not enough encouraged and motivated. CEO of the first hospital is content with the supervision of an HR consultant in their organisation to look after HR policies set by CEO and financial manager. As mentioned by Lussier Hendon (2014), an HR consultant can oversee and supervise the prevalent HJR policies but cannot undertake measures in introducing new strategies as well as look after employee benefits that are essential for company benefits. Options Characteristics Creating HR functions Staff engagement Organisational commitment Quality of patient care HR manager Planning Job analysis Recruitment Selection Table 2: HR practices in second organisation (Source: Created by learner) The second hospital has effective HR department that deals with all the HR activities of the organisation and essential measures of improvement are recommended. This is another key factor in maintaining sustainability regarding capability of HR and consequently assists in profit enhancement of the organisation. (Refer to Appendix 1) Conclusion Findings and analysis in the above report shows that there is an effective relationship of HR department of an organisation with the enhancement of companys profit since the primary lookout of this department is towards the wellbeing of staff, who are the actual human resources of an organisation. Requirement of a specific department within an organisation deals with overall increase in productivity of an organisation and lack of presence of this department does not allow sustainability of the organisation in market. It is thus required to establish an effectual HR department within an organisation to look after the internal work culture of the organisation along with the sustainability of the company to survive tough competition in the external market environment. Reference List Akhtar, N., Azeem, S. M., Mustafa Mir, G. (2014). Impact of hrm practices on perceived organizational performance.International Journal of Academic Research,6(5).632-745. 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