CHAPTER ONE

INTRODUCTION

1.1 Introduction

This work is organised into five chapters. The first chapter comprised of the background of the study, statement of the problem, research questions, research objectives, hypotheses, significance of the study. Chapter two is made of the conceptual framework, theoretical review and empirical review. Chapter three comprises of background of the study area, research design, data collection, methodology, and limitation of the study. Chapter four is comprised of data presentation and analysis of results. Chapter five is made of summary of finding, conclusion, and recommendations.

1.2 Background of the study

In the last decades, organisations have been hit with the undisputable fact that the creation of competitive advantage lies in human resources. Organisations have recognised the potential for their people to be a source of competitive advantage. In the not distant past, so called Human Resource function was preserve for ‘personal managers’ whose duties included amongst others but principally recruiting and selecting, appraising, promoting and demoting. Worthy of note is that these superficial duties were considered to be performed by any manager, and as such seemed unnecessary to employ an expert human resource manager let alone create a whole department dedicated to Human Resource Management (HRM). As a result, little attention was paid to human resource management principles and its impact on performance. In today’s competitive and rapidly changing business world, organisations especially the service industry need to ensure maximum utilisation of their resources to their own advantage; a necessity for organisational survival.

Lately, organisations are focused on achieving superior performance through the best use of talented human resource as a strategic asset. Human Resource Management principles or strategies must align to business strategies for organisational success. Irrespective of the level of technology and mechanization developed, human resource remains ideally one of the most important tools of any success-oriented organisation. After all, the success of any business is built on the strengths of exceptional people. Human resource management (HRM) has now gained significance in the academic and business world and can therefore not be relegated to the background or left in the hands of non-experts. Attention must be paid to the human resources organisations spent considerable time and resources to select Barber, (1998).

Human resource management practices have the ability to create organisations that are more intelligent, flexible and competent than their competitors. A combination of practices that concentrate on recruiting, selecting, training skilled employees and directing their best efforts to cooperate within the resource bundle of the organisation. This can potentially consolidate performance and create competitive advantage, setting the organisation on the pedestal of success contrary to such structures that do not implicate the importance of human resource practice.

According to Haslinda (2009), human resource is an organisation greatest asset that ensures everyday activities such as managing public service, with customers would not be completed. It is evident that, employees and the potential they possess are key drivers of the organisation’s success.

Fierce competition in today’s global markets, the introduction of products with short life cycles, and the heightened expectations of customers have forced business enterprises to invest in, and focus attention on, the relationships with customers and suppliers (Simchi-Levi et al., 2000).

The steadily increase in customer demands along with customer expectations has created enormous pressure to organisations to revise their strategies. Meeting  customer  satisfaction  and  costs  reduction  in  hospital  can  only  be  realised  when  improved  supply  chain  performance  is achieved  (Mathur,  Gupta,  et al., 2018). The healthcare industry is highly competitive and relies heavily on  the  interlink  of companies  that  are working  together  to design,  produce,  distribute,  and  administer  a numerous health and medical related products and services  (Lenin,  2014).The concept of Supply Chain Management (SCM) has become part of the senior management agenda since the 1990s. Executives are becoming aware that the successful coordination, integration and management of key business processes across members of the supply chain will determine the ultimate success of the single enterprise (Van der Vorst, 2000). According to Christopher (1998), businesses no longer compete as solely autonomous entities, but rather as supply chains. The increased interest in SCM has been spurred by developments in Information and Communication Technology (ICT) that enable the frequent exchange of huge amounts of information for coordination purposes. Consequently, there is a need and an opportunity for a joint approach of chain partners towards the establishment of more effective and efficient supply chains.

More and more companies have to focus on their Supply chain in order to be successful in their business. Top managers had recognized the importance of having effective Supply chains to create competitive advantage according to Higginson and Alam (1997) and Cooper et al. (1997). The margins for many companies are becoming smaller and smaller due to increasing demand from the customers on lower prices. Solvang (2001) writes that one of the biggest challenges for manufacturing Supply chains is to continuously improve their performance so that their competitiveness can be sustained in long term. To be able to survive on the market the companies have to cut cost in all areas and focus on SCM. Tummala et al. (2006) state to make changes to the Supply chain helps to lower cost and enables a company to more easily compete based on the price. Many concepts for Supply chain design and Supply chain modelling have been presented during the last couple of years with different focus according to Svensson (2003).

The world transformed into a global village and as technology integrated the processes, business environment became highly dynamic. Organisations faced higher risk and greater degree of uncertainty due to the increase in global competition. These risks and uncertainties decreased market share at national and international levels, and affected organisational efficiency. However, organisations managed to survive in this condition by continuously altered, redesigned and developed their strategies.  Moreover, continuous development in the field of management enabled different functions to be integrated to produce more significant results.

The healthcare industry has contributed significantly in both economic development and social welfare in modern economies. It is a highly competitive industry and it is heavily reliant on a vast and complex network of companies working to design, manufacture, deliver, and administer a wealth of health and medical related products and services. The management of health care has stimulated a great deal of attention of several researches and practitioners over the past two decades. The main challenge in the healthcare supply chain management is to achieve improved performance and service. The healthcare supply chain shares a number of similarities with other chains, not only in terms of processes (e.g. procurement, warehousing, distribution), but also in terms of discerning customers and management structures (Walters and Rainbird, 2007). There are also considerable differences in the chain that are associated to the specific characteristics and requirements of the sector. In general, healthcare supply chains are very complex, fragmented, diverse, and dynamic. The main reason for this increasing level of complexity is due to the participation of multiple organisations, who are involved across the entire value chain and it requires key competencies.

It is essential to determine what needs to happen in the medical service industry to put the right material in the right place at the right time in the right quantity and receive a positive outcome from the company, the hospital, patient and doctors. (Medina et al, 2014, p-1). According to a research study presented to the Medical Device Supply Chain Council in 2011, 40-45% of the hospital operating expense is represented by supply chain and potential savings of 5-15% of supply chain cost can be realized with better supply chain management strategies (Global Healthcare Exchange, 2011).Achieving better supply chain performance requires successful, effective and efficient exploitation of an organisation’s resources and competencies in order to impact and position locally and internationally.

The objective of SCM should be to fulfill a customer’s request by controlling the flow of information, materials and products/services through any activity in a way that promotes the quality of an organization’s operations (Chopra & Meindl, 2007). SCM can affect the quality of healthcare services measured from a professionally medical perspective, an administrative perspective and from the perspective of the recipient of the patient services. The quality of healthcare services according to an administrative perspective depends on making use of the available resources and providing exceptional services, which involves providing the right service at the right time at a rational cost (Al-Saa’da et al., 2013). 

The 1990’s decade witnessed the integration of supply chain management into the organisation processes, and further with other organisational management functions, was considered as the strategic advantage for the firm around the world (Shub and Stonebraker, 2009). However, the integration process may vary among firms, sectors and industries around the region. Similarly, human resource management function also emerged as a dominant organisational function, which has a significant effect on organisational functions and performance (Zheng, 2009). Likewise, other organisational functions in human resource management proactively contributed to the emergence of supply chain performance (Wellins and Rioux, 2000). On the other hand, supply chain management has direct and indirect effects on human resource management practices (Kinni et al, 1999). However, few studies have been available which reported the relationship between human resource management practices and supply chain management performance, especially in the context of health care industry.

1.3 Statement of the Problem

In today’s competitive world, Human Resource Management is the fundamental factor for achieving organisational objectives and becoming international discourse (Ashkezari & Aneen, 2012). Human Resource Management has made significance in organisations and it is common to see organisations in Cameroon especially health care organisations set up a department for the purpose of managing her human resources. Although with its enormous benefits which cannot be over emphasized, many companies and organisations are still in the dark as to the importance of human resources management practices. The inappropriate blend of Human Resource Management policies and practices of some organisations can be attributed to the non-existence of Human Resource Management specialists or Human Resource Management departments. Most organisations do not realize the effect of properly managing its human resource and therefore leaves the policies in the hands of the line manager and board of directors who are non-Human Resource Management experts to implement or enforce strategies, policies, processes, programmes and practices. The value of properly managing human resource is lost to such organisations.

According to Kebede & Sambasivam (2013), human knowledge increasingly becomes a crucial factor for competitive edge, success and understanding. Factors that contribute knowledge to workplace environment are essential to every organisation. Since every organisation is made up of people, developing their skills, motivating them to high level of performance and ensuring that they continue being committed is essential to achieving organisational objectives (Abdullah, 2009).

Human resource management is extremely important for private health services institutions in Fako. Management of people and process of service are two key challenges faced by this industry. How to manage the people and how to manage the process involved in the service to be provided, determines success in this sector. Efficient service management may not be possible without efficient and skilled man power. However, ineffective practice of Human Resource Development can result in different problems such as reduced employees’ aspiration to learn and apply new skills, decrease in employees’ productivity, low morale, higher employee turnover and low performance of organisations (Edgar & Geare, 2005). Problems in Human Resource Development systems appear when the capacity   accommodate the organisational and employees’ needs. Therefore, improving organisations and employee’s satisfaction through upgrading the skills, knowledge and attitude of employees in the organisational setting is vital (Edgar&Geare, 2005).

Few private health services institutions implement along its supply chain essential human resource management practices namely, training and development, recruitment and selection, performance appraisal and compensation programmes. It is but vital for private health service institutions to centre its activities on these essential components of human resource management in order to achieve its goals. Firstly, training and development has to do with sharpening the skills of the workers through trainings, workshops and also preparing them for future higher position; secondly, recruitment and selection involve sourcing, selecting, hiring and retaining qualified human capital; thirdly, performance appraisal focuses on evaluating the workers inputs at work using performance appraisal forms; lastly, the compensation programmes entail salaries, bonuses and allowances attached to workers’ posts. In spite, the human resource management practices seen in the private health service institutions, its supply chain still faces drawbacks at the level of performance. Majority of the actors along the supply chain are unable to fully excel when it comes to work and thus deviate from the hierarchy expectations. This setback has greatly hampered the performance of its supply chain. Therefore, there is need for the implementation of human resource management practices along its supply chain in order to experience performance along this same supply chain.

     Human resource management practices will influence supply chain variables either positively or negatively .Firstly, Effective recruitment and selection practices are crucial for ensuring the supply chain has the right personnel with the necessary skills and competencies to perform their roles efficiently. Research has shown that having the right people in the right positions can enhance supply chain flexibility, responsiveness, and overall performance (Dubey & Gunasekaran, 2015). Careful screening and selection of candidates with the appropriate qualifications, experience, and cultural fit can lead to higher employee productivity, reduced turnover, and improved supply chain outcomes such as inventory management (Eltantawy, 2016).

  Also, Comprehensive training and development programs are also vital for building the capabilities of supply chain personnel. Equipping employees with relevant technical, managerial, and interpersonal skills can improve their ability to identify and resolve issues, collaborate effectively, and drive continuous improvement across the supply chain (Qrunfleh & Tarafdar, 2013). Ongoing training opportunities have been linked to enhanced supply chain integration, efficiency, and responsiveness (Gomes & Mendoca, 2011).

     Competitive compensation schemes that reward employee performance can positively influence supply chain performance by motivating personnel to achieve their targets and contribute to organizational goals. Fair and transparent compensation policies, including base salaries, bonuses, and incentives, can foster a sense of loyalty and commitment among supply chain employees, leading to reduced absenteeism, higher productivity, and better overall supply chain outcomes (Fayezi et al., 2017).

            Effective performance appraisal systems that provide employees with constructive feedback and opportunities for growth can also impact supply chain performance. Regular performance reviews enable organizations to identify skill gaps, address training needs, and recognize high-performing individuals, all of which can enhance supply chain coordination, information sharing, and overall effectiveness (Jajja et al., 2016). Aligning individual and team-level goals with broader supply chain objectives can further strengthen the link between employee performance and supply chain outcomes.

1.4 Research Questions

The main research question of this study will be; what is the effect of Human resource Management practices on the supply chain performance of private health services institutions in Fako? From this main research question, we had the following sub research questions:

• What is the effect of recruitment and selection practices on the supply chain performance of private health services institutions in Fako?
• How training and development practices does affects the supply chain performance of private health services institutions in Fako?
• To what extent does compensation programmes affect the supply chain performance of private health services institutions in Fako?
• What is the impact of performance appraisals on the supply chain performance of private health service institutions in Fako?

1.5 Objectives of the study

The main objective of the study is to investigate the effect of Human Resource Management practices on the supply chain performance of private health services institutions in Fako. From this main objective we had the following sub objectives;

• To analyse the effect of recruitment and selection on the supply chain performance of private health services institutions in Fako.
• To investigate the effect of training and development on the supply chain performance of private health services institutions in Fako.
• To measure the extent to which compensation programmes affect the supply chain performance of private health services institutions in Fako.
• To examine the impact of performance appraisals on the supply chain performance of private health services institutions in Fako.