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705 Human Resource in health service Management

Executive Summary


Part A Case Study


History of Ryman health care begins at 1984 by the co-founder Kevin Hickman with John Rider visited a rest-home which he did not like. It has shared bathrooms with little privacy or dignity for the residents. He doesn't want his mom to live in similar place. So he teamed up with John Ryder to start a company with a simple aim- “Good enough for mom”.

Over the past 34 years of Ryman's Villages have various resort-style amenities such as indoor swimming pools, bowling greens, cafes and hair and beauty salons. The care we show for the residents is the refined one (Ryman health care ltd, 2018).

Ryman health care offer independent living in townhouses and apartments for residents who like to have freedom in living with good companion, safety with all activities that will engage the elders and provide refreshment in their living (Ryman health care ltd, 2018).

It also provide serviced apartments that provide extra care to the elders who needs extra assistance in their day today life, with all personal requirements based on their needs (Ryman health care ltd, 2018).

Village provide rest home care and dementia care, with short term and several weeks care to look after the loved one.

Ryman healthcare currently provide various practicing for the wellness and good being of the residents. The following are facilities provided by Ryman

Best practice policies and procedures

Quality training programmes and qualified staff

Specific quality improvement objectives and policy

Comprehensive, Ongoing monitoring

Constant review, feedback and improvement planning

(Ryman Accreditation Programme, 2018)


Core Aim

The business value

To incline the productivity and saving time with the care givers spending extra 20% of their time.

Communication and care to focused with significance, and single source of truth on every resident with immediate and exact correct information. Ability to provide a more tailored, personalised resident experience

Removal of paper based system in all aspects of the business.

Easy and immediate response to use – no user manual 

Provides a “window on the world” for residents, helping to “bring the outside world in”

Rostering time to be decreased by 4–8 hours per village Ability to scale to accommodate significant growth and seamlessly roll out incremental changes to the device fleet 

Provide basic net of Things-enabled healthcare services (Ryman health care, n.d.)


Environmental analysis plays a major role in the strategic management planning process. Internal and External environment factors in an organization are analysed by the tool of framework SWOT (Strength, Weakness, Opportunities and Treats). As this analysis is simple and practical it is widely accepted and reappraises its value as a strategic management tool. SWOT is used as a tool for management and business development process and not as a static analytic tool for the output. The use of SWOT framework is more closely associated with mechanistic approach (Pickton & Wright, n.d.).  


Ryman deliver high-quality health care support which makes the residents, families and the staff to be satisfied.

Satisfaction by the residents as a testimonial plays a major role in marketing.

Ryman health care in the Northshore is better place for upcoming residents.

The management team is quite experienced.

The main strength is the strong reputation in this sector. Residents and their families are too careful about their choice to care for them in the future.

Ryman stands out in the crowd because of its well designed and built villages that offers a great range of options at just one location that offers residents village, though their care needs change.


Complains that pay is not good for the health care professionals.

Not friendly with surrounding environment because few people the village were not happy about the retirement village.

The cash flow is unstable.

The Profit of the retirement is used by the CEO only.


There is always a need of a good retirement village as the aged populations are more in New Zealand.

Increase in the acceptance of the old age home among the old citizens.

It requires the need of extensions in various remote areas in New Zealand.

The organization has become fast due to improvement in the digital technology.


The organization should be in harmony with the surroundings.

The industry has become more competitive as other organizations are also improving.

Government regularly tightens the rules regarding the retirement village.

PESTEL analysis:

Pestel analysis is an acronym of Political, economical, Social and technological. These are the External factors that influence the company's growth, activities and its performance (Jennifer, 2017)


Legal rules and regulations that are framed by the government that influences the company not to be profitable. Tax guidelines, copyright, property rules, political influence, trade regulations, social and environment policy, employment rules and safety regulations will be considered in the political involvement company.

Government policy

The protocols for the operation were rejected by Commissioner Dave Sergeant which was later approved by Commissioner Kitt Littlejohn and John Hill, which created an external stress on the Ryman. The basic role of the board is to promote and represent the interest of shareholders with the company's long term vision which was delayed. Auckland Council received hundreds of submissions opposing the project.

Funding grants

Government funding contributes the major part of the staff wages. But to match up with their level is extremely difficult and the Ryman is working hard to contribute in the government funding.

NZX's rulings

The Ryman is listed by NZX so if any contravention takes place the decision will be made on the basis of authorized rules by the constitution which makes Ryman to be dependent on the NZX and delaying the working process.

Tax policies and foreign trade policies are also given importance in the Ryman that makes the organization to establish.


Factors that examine the issues that are economic play an important role in the company's growth. Economic stability, economic growth, exchange,  inflation and interest The government accepted that the funds for pay increase will be provided by lifted aged care fees. Though it acknowledges the importance of caregiver in the lives of older people it does not profit the Ryman healthcare.

rates, unemployment policies, credit availability are included in the economic factors.



The purchases of the necessary consumables in the villages are expended during the period when it was incurred that made Ryman to spend more on the consumables.

Maintenance costs

Just like consumables, maintenance costs are also accounted during the period they are incurred which adds extra effort to be made by the Ryman.


The Social factor analyzes the culture and demographic importance of the organization. Demographics, population growth rates, age distributions, attitude towards the job and its market trends are included in the social factor which helps to know the needs of an organization.


 The big vacant 4.2ha site once had a navy housing on it but is owned by Ngati Whatua's Whai Rawa commercial arm and Ryman struck a 150 year lease of the land. The property is bought for lease and it is not their own property which made them to spend more on the lease.

Apposition of retirement villages by the local residents

Iain Rea, a resident who opposed the scheme and is a part of Ngataringa Bay action Group formed which influence the project and expressed their disappointment in the village with a formal statement. For the sake of peace and care solutions people have now accepted the idea of retirement villages.

Organizational Structure

Local objections include the appearance of the sixty story project its dominance, bulk, scale, traffic generation, its lack of relationship to surroundings and absence of effective landscaping to mitigate visual dominance.


Technological issues affect an organization to deliver its product or service to the market place. Government spending on the technological research, life cycle of current technology, role of internet and how IT changes influence the organization.

Emerging technologies

To replace outdated paper roaster Ryman has introduced myRyman roster which is the roster application. This application makes things easy like the confusions about shifts or the residents and their tasks.  

Producing services

The upcoming Ryman plan shows blocks up to six levels, 195 living apartments, number of care bed facilities and 78 serviced suits and a basement car parking which made Ryman to loose its older plans.

Target market communication

The communication to the focused population is a part of the technical factor. Rather than that the other factor is distributing of goods and services.


It may sound like that environmental factors affect little on the business but the reality is those factors can affect different aspects.

 Promoting business ethics and sustainability

Positive promotion of business ethics is mandatory.

Consumer health

In the business the main motive is better lifestyle for the residents.some research shows that more you exercise the healthier and more independent one live in the long-term


Health & safety Policy

The primary aim of the health & safety committee is to assist the board in discharging its responsibilities by oversight and review of health and safety matters arising out of activities of the company and the impact of these activities on employees, contractors, and suppliers.

Data protection

Proper use of Ryman Assets and Information

Ryman have a duty to protect Ryman assets from loss, damage, misuse, waste and theft. Ryman assets include systems, information, intellectual property and networks.

Ryman people have to

• Only use Ryman assets for lawful business purposes authorized by Ryman; and

• Only create and retain, information by communications required for business needs or to meet legal obligations.

Organisation strategic plan:

Ryman health care has various strategic plans as an organisation:

Digital Transformation Opportunity:

Simon Chillies, Managing Director of Ryman Healthcare, has digitally transformed his business in retirement village to mitigate the risk and for the advanced care for its seniors residing within its premises. This transformation of the Ryman Healthcare has started 2 years ago to mitigate the documentation errors as it knows the risks on manual and paper-based works in the patient care. Ryman healthcare lost its head office in earthquake in February 2011, Christchurch which created an opportunity to digitalize the organization. The current aim of this organization is 95% of digitalization of the organisation without pen and paper. It developed a tablet based nursing app running on Microsoft Surface devices and Azure cloud services, in turn helps the staffs to focus on the health care than documentation and gives good understanding and opportunity to understand how the Ryman staffs are working around the clock to provide the best service (Ryman healthcare Digital transformation, 2016).

The divers for transformation Business innovation are the latest organisational plans with new currency in the Data. New Data culture with Microsoft cloud made this business innovation successful. It made all the Doctors, nurses, residents and care givers to spend more time with the patient with more benefits reaped by the advanced technologies The three ingredients of success are

1. Change from the top.

2. Demarcating the data and services.

3. IT is an enabler and not the driver. (Ryman healthcare Digital transformation, 2016).

Staff share scheme:

Pay increase was given to all staffs in this year, with addition to more than 2000 Ryman caregivers has achieved the lift since 2017 following the Government's settlement of the aged care equal pay case. The Government has accepted the increase has been by the lift in aged care fees, to make the impact on Ryman on neutral. This settlement was significant as it encourages and recognises the importance of caregivers in the lives of each and every old people. The caregivers' rates are constantly increased and the credit is given to the Government for identifying the hard work of the caregivers which creates an attractive career system for many people.

In this Staff share scheme all the staffs in the Ryman healthcare are encouraged to share their success story in the organisation and the positive goals that are achieved to be successful. The experience gives the sense of ownership in the company and a very strong interest in its long term success.

The annual report disclosure of details regarding financial assistance of up to $13 million which has been provided to the part of staff share schemes. All shares are purchased in the open market with assistance is in the form of interest-fee loans. This interest-fee loan has made the staffs to be benefited and encouraged them to be the part of the organisation (Ryman healthcare Annual report, 2017)

Positive deviance approach.

Positive deviance approach focus on the people who demonstrate exceptional performance, despite undergoing the same process what other constraints are facing. These people are identified and learnt how they succeed from others. Different methods with healthcare organisations, although limited guidance exists, varying quality is identified. The quality of existing application and the methods used within them how the staffs and patients are involved are identified. The approach and the processed followed are to be noted by the health care team. It requires extensive resources than the involvement of the staffs and the patient. Validated tools are used for the systemic approach of this process. The efficiency and the efficacy of this approach should be indentured for the better quality.

Past harm has been identified and learning are done based on leaving the past harm. Bradley et al have proposed a four-stage process for the this positive deviance approach.

Stage: 1 Positive deviant with exceptionally high performance are identified using widely endorsed routinely collected data

Stage: 2 Qualitative methods are used to generate hypotheses about how positive deviants succeed

Stage: 3 These hypotheses are tested within larger, more representative samples

Stage: 4 The successful, positively deviant practises are disseminated widely (stage 4) (Baxter, Taylor, Kellar, & Lawton, 2015).

Figure: 1 Positive Deviance Approachz

Source: (Baxter, Taylor, Kellar, & Lawton, 2015)

Human resource strategies based on the organisation strategies:

Short term human resource strategy:

Human capital management strategy

The Human capital management strategy is one of the most important strategic tools used by the Human resource for the short term. Human resource manager is currently in search of people who have good digital knowledge, with good staff relationship with the company and positive deviance for the needs to be taken care by the employee to fit in apt position. Human capital can enhance the value of the organisation to achieve its future goals. An employee's skills, knowledge and understanding will make the organisation to achieve the outcomes that are required to be fulfilled.

Human resource management promote the entrepreneurial performance in short term plan of the Ryman health care. A small sized enterprise in Ryman health care with the other HRM practices constitutes the main human capital management of Ryman health care in North shore. With which activities like recruiting the skilled care takers with wide knowledge and understanding about the patient care has been found. It promote the employees discretionary behaviour, knowledge sharing and Ryman organisational learning are found to be positively associated with their performance. Many contingency models are used in strategic human capital management hence forth it enhances the observed positive association of the entire organisation (Hayton, 2004).

Human oriented initiatives in the Ryman health care will make the organisation unique in their performance. Human equation in the health sector from the receptionist to the senior most people in the organisation plays an important role in making the goals to be achieved. Health care organisation is always dependant on the humans than other technologies, as the most of the residents prefer to be taken care by a  person than other technologies. Most of the residents are not aware of the technologies and they require human guidance in every aspect in the Ryman health care organisation (Luthans & Youssef, 2004).

HR strategic Action plans

Employee empowerment

1. Employee with wide skills in the field to be prioritised for the recruitment process. Employee empowerment is one of the most important action plan that is implemented in Ryman health care.

Entrepreneur Bargaining

2. Will Entrepreneur bargaining and the entire working environment is supportive or not. Self managed team with an active performance with their own ideas to be imparted in the Ryman to achieve its goal.

Belief of high performance

3. Capability of the people to withstand in company that they are recruited. Stick to their belief with high performance in their action outcome makes a difference from other health care organisations.

(Luthans & Youssef, 2004)

Key performance

360-degree feedback

360 – Degree feedback from the patient and the employees are the key performance that will make the Ryman to achieve their short term goals. Human capital plays a major role for the feedback to be known to know the pros and cons of the organisation. It makes them aware in what are the places the changes should be made by the organisation. (Luthans & Youssef, 2004)

Pay-for- performance

All the caregivers are rewarded for the performance with the pay. Over time workers are encouraged with an extra pay for the extra work, which in turn make the performance of the employers to be improved and the residents' satisfaction. (Luthans & Youssef, 2004)

Medium term human resource strategy:

Mutual gain strategy:

Medium term human resource strategy is the strategies that are created not more than 5 years. Mutual gain strategy is the relationship between the HR performances with the other human capital in the health care organisation. The HR system that is focused on the human capital development is directly related to the multiple angle in the operation process which includes employee productivity, machine quality and customer adaptation to the organisation. The above mentioned terms are linked directly to the human capital systems. (Youndt, Snell, Dean, & Lepak, 1996).

When the mutual gain strategy is implemented it imparts skills for the future Ryman health care organisation. It acts as a labour for the career establishment for the many other employees. It creates an environment to maintain the flexibility and skills of an aging work. With mutual gain strategy both the implementation retraining and the career consulting services are achieved. This strategy creates a positive environment that motivates the entire organisation as a team to March forward with mutual understanding between employee and the employer.

Mutual understanding in the health care unit will make the residents feel like home and motivate the employees that their role is important in the organisation. This in turn helps the management to achieve their goal with mutual benefits and goals to be achieved. Both the internal market and the external market are taken care so the effects and the errors in the organisation is reduced. Labour markets changes, customers, shareholders, technology, society and economic are the external factors in the health care organisation which is controlled by the action plans and key performance by the human resource management.

(Human Resource Management, 2016)

HR strategic Action plans:

Employee- employer relationships

HR manager plays a major role in the employee- relationship with the other members in the entire organisation as well with the patients. It is the basic actions between two parties with which mutual understanding created by the Hr manager. In Ryman health care patient and the employee and the employer- management mutual understanding are maintained by the HR manager.

Employment motivation

 Hr Manager imparts peace with all labours, employment motivation and act as a best morale for the entire health care sector. In turn the productivity of the entire organisation is inclined due to the mutual understanding of the entire health care unit.

Employment adjustment policies

Negotiate the Job security and the employment adjustment policies. With which the productivity and the flexibility in the work rules are achieved.

(Human Resource Management, 2016)

Key performance indicators:

Compensation structures

Meet both the external markets with consideration to the internal equity effects to establish formal compensation structures. It also implements tighter cost control of the organisation and make the employees to aware of the ongoing situation in the organisation. It also exceeds the labour market rates to attract needed talent.

Encourage turnover:

Mutual gain strategy in Ryman health care encourages sufficient turnover to reduce the layoffs and create an opportunity for the new openings. It also encourages mobility and reorganise the shift jobs within the organisation.

(Human Resource Management, 2016)

Long term human resource strategy:

Strategic staffing

Strategic staffing involves a combined form of long-term, succession planning and short term planning. Talent perspective based company's business plans are achieved. It evaluates the staffing levels to identify the pros and cons in the health care environment. Skills are identified from the staff that helps in company's upliftment by their experience. Training section is conducted to rectify the gaps in the skills in working when lack of ability is identified in the employee. The decision as a HR manager about staffing in the business can have drastic effects on the quality of the work, the retention rates and stages in the customer service. Production output and goals are at risk when appropriate staffing is not done properly by the HR manager (Jillian Peterson, n.d.).

The main goal of the staffing to organise the right people in the right place to achieve the goals in the health care sector, changes can be made to bring closer to the goal. The successful manager has map for the future plans for which support ideal situation in the company according to the Management study guide.

Account past turnover, employees who may be retiring or on the maternity or other leave, expected improvement and poorly performing staff members are approached proactively for the long term involvement. When determining such needs are identified develop a plan to recruit the right talent.

False security about the business owner who fall into a comfort zone can leave the health care management team to the downfall, by the lose key of the management staff. Good management of succession planning allows the management turnover by understanding the duties and responsibilities of the management staff who train the internal candidates to be ready for the next step of promotion.

HR strategic Action plan:

Organization Chart

Organisational chart is a drawing of the health sector positions, by the title or the job with organisation chart that shoes who works for whom.  This chart helps in creating an effective long-term staffing plan as it identifies the needs that will have and also shows how function fits into the health sector of Ryman.

Functions and Titles

Listing the functions rather thatn names and titles of the current employees plays an important role in identifying the  function of the staff in the health care sector. It helps in determine the long term growth of the Ryman shift people to the responsibilities, than reactively plugging holes later.

Even if you believe you are well-staffed, create an organization chart as if you were starting over, listing functions rather than names and titles of your current employees. This helps you determine if you are already set up to handle long-term growth or if you need to shift people or responsibilities now, rather than reactively plugging holes later. Basic business functions include marketing, sales, finance, information technology, production, human resources and administration. Above these functions are often a chief executive officer, or owner, and a chief operating officer, who works for the CEO or owner and oversees all of the other departments. As a long tern staff plan write job description for each title you believe that eventually help you to better understanding when we hire a new staff.


 Bench marks helps in knowing the time to add staff or bring contracted work in the house.  Knowing when Ryman reach an employment threshold that requires a manger or coordinator in the accounting department and knowing when the need to spilt your accounting and HR functions which set as a benchmark.

(Sam Ashe- Edmunds, n.d.)

Key performance Indicators:

Planning and guidelines:

A wise manager in health sector will plan and use guidelines to have appropriate staff in appropriate place in an organisation. Anti-discrimination laws prevent the lawsuits or labour review.  Planning and guidelines will helps in preventing the overstaffing and understaffing Ryman.A successful electronic staffing system take advantage of the modern technology and find potential candidates in the online It helps the business to thrive and the needs of the employees.


Customer demand in Ryman health care can be rectified by the sufficient staff recruitment . Starting out with the best candidates staff  members should be outlooked for the promotion of cross-train and development. It helps in retention rates high and save money on hiring and newcomer training.

(Ray Linda, n.d.)

Benefits of the Human Resource Management:

Human Resource Management act as a bridge between the employees and the employer.

It plays a major in implementation of the organisation's goals.

It helps is finding the demerits of an organisation.

Human resource act as a main human capital in the issues of the an organisations.

It helps the employees feel that they are in the safe environment.

Regulations are monitored by this management.

Helps the employees to clarify the risks that are faced in the organisation.

Risks of the Human Resource Management

Human resource managers have to be partial with the management in most of the conditions.

Any lack in the resources the human resource manager are questioned.

Human resource manager are always questioned when there is a loss in the organisation.

 HR Managers are at risk when the employee's needs are not fulfilled in their work.

The Hr managements at risk when the customers not satisfied.

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