A corporate is a susceptible body that is highly affected by external forces be they technical, ecological, political, economic or socio-cultural. All these factors have implications for procurement, from price intervention to trade management. Despite the fact the external factors take place outside of a business, it can have a major effect on its development, current operations, and lasting sustainability. A good strategy for a human resources department ought to take into consideration all the external factors that might affect the unit. The introduction of the business compliance standards regulated by the government is known to put too much pressure on the HR department. These types of regulations influence the department’s decision making including training, hiring, termination, and compensation. Without abiding by such regulations, a business can be penalized extensively which if it was bad enough could cause the business to shut down. Therefore, the HR departments should keep up with political events taking place at a domestic and global level and act quickly to reduce risk and make the most out of opportunities (Kachru, 2009).
Decision makers should be more willing to consider a community’s makeup when making decision in their businesses. This is because by considering a community’s makeup, trust and confidence will be built easily in both the decision process and the decision makers. Also, the decision-makers’ consideration enables the community participants to come into agreement and make choices on the basis of common understanding of the market’s current state (Kachru, 2009).
Even though not a single person is quite certain of the effect of the healthcare bill on the performance of organizations, there will obviously remain to be a descending pressure on the organization and a serious need to validate capital expenditure. Corporate managers are regularly faced with three major policy decisions, which are dividend decisions, capital expenditure decisions, and nuancing decisions. Nevertheless regulating the care expenditure and all the elements that increases costs continues to be a major concern especially when patients are concerned. All expenditure and every dollar are subject to analysis in the healthcare industry. This is inclusive of the most important resource investments in healthcare services, frequently the leading single expenditure earned by practitioners in a particular time. These are seen as decisions an industry cannot simply fail to make. However, maintaining unproductive and out-of-date facility for tool long has a great effect on the operational budget since there will be an increase in the operational and maintenance. In a healthcare industry, capital share decisions should be purposefully founded with the beneficiaries or patients in mind.
Benchmarking acts one of the best tools for a manager to determine whether a business is efficiently performing certain activities, whether its costs are consistent with those of other businesses, and whether its internal functions need to be improved. Once a business has successfully selected its competitors and a benchmark or collected enough data and critically examined the findings, then it is possible to reach a decision concerning the future of the business. Moreover, benchmarking makes use of a variety of sources of data, which includes printed materials, and conversation with clients and promotion agents. It is actually known as an important method for attaining continuous growth in the performance processes, and operational efficacies. In a healthcare environment where there has a great need for controlling costs, benchmarking helps decision makers in identifying sectors that require improvement that can result in practice transformation essential to the businesses’ success (Tecca, 2002).
- Kachru, U. (2009). Strategic Management: Concepts and Cases. London: Excel Books. Print.
- Tecca, M. (2002). Benchmarking: The Backbone of Successful Performance Improvement.
Caring. New York: Prentice Hall Publishers. Print.