Strategic Hrm at the Mayo Clinic: a Case Study

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STRATEGIC HRM AT THE MAYO CLINIC: A CASE STUDY
Sunil Ramlall
Hamline University

Tripp Welch, Jennifer Walter, and Daniel Tomlinson
The Mayo Clinic

ABSTRACT For many decades, Mayo Clinic has been ranked as one of the top medical institutions in the world. The entire health care industry has been experiencing immense challenges. Given the current and historic success of Mayo, what does Mayo need to do from an HR perspective to maintain this standard of excellence? This case identifies the strategies used by Mayo to achieve excellence in employee and patient satisfaction. The case describes how this complex service organization fosters a culture that exceeds customer expectations and earns deep loyalty from both customers and employees. The role of HR is analyzed to explain how strategic HRM enables the organization to achieve its strategic business objectives.

INTRODUCTION Mayo Clinic is the first and largest integrated, not-for-profit group practice in the world. Doctors of every medical specialty work together to care for patients, joined by common systems and a philosophy that "the needs of the patient come first." More than 3,300 physicians, scientists and researchers and 46,000 allied health staff work at Mayo Clinic, which has sites in Rochester, Minnesota, Jacksonville, Florida, and Scottsdale/Phoenix, Arizona. For many decades, Mayo Clinic has been ranked as one of the top medical institutions in the world. Over the past few years, the entire health care industry has been experiencing immense challenges. Mayo is not immune to these challenges and faces the risk of losing critical components of its culture and overall tradition of excellence that have been at the core of its success. Given the current and historic success of Mayo, what does Mayo need to do from a human resource (HR) perspective to maintain this standard of excellence?

Journal of Human Resources Education

13

Volume 3, No. 3, Summer 2009

This case study examines the core components of HRM at Mayo and details the respective HR strategies used to sustain Mayo’s highly touted culture. The case describes how this complex service organization fosters a culture and practices that exceeds customer expectations and earns deep loyalty from both customers and employees. Specifically, the case will enable you to: 1. 2. 3. 4. Study Mayo’s organizational strategies and be able to articulate the relevance of organizational culture as part of the business strategy. Understand the value of organizational culture in helping an organization to build its brand. Critique HR practices using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems. Identify relevant value-added strategies necessary to deliver services at the highest quality.

Currently, the HR team at Mayo is a major player in helping to maintain and build a culture of teamwork. Workforce planning, employee recruitment and selection, training and development, compensation and benefits, and performance management are key areas in which HR strategies are used to develop and reinforce Mayo’s Model of Patient Care. The founders of Mayo have established the mission to “provide the best care to every patient every day through integrated clinical practice, education and research.” It therefore supports a comprehensive research department to “bring the bench to the bedside” and the Mayo College of Medicine to teach and prepare tomorrow’s medical professionals. In doing so, the premise of teamwork has been at the root of the culture, and subsequently human resource management (HRM) strategies have been designed to maintain these values.

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Journal of Human Resources Education

14

Volume 3, No. 3, Summer 2009

STRATEGIC HRM AT MAYO CLINIC: THE CASE The role of human resource management (HRM) in organizations continues to be of stronger importance and relevance (Bartel, 2004; Becker &...
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