Attracting quality health professionals is always a challenge. One way to get th

Question

Attracting quality health professionals is always a challenge. One way to get the best is to have a consistent hiring practices and competitive wages. Currently, your organization needs OR techs, Respiratory Therapists, ICU Nurses, and Primary Care physicians. Use the "Increase of supply" and "monopsony" concept to add support to a strategy you plan to implement to attract personnel, reduce shortages, and prevent inefficiency within the work system at your organization. Discuss how you would incorporate these models as a management tool to assist you in preventing future work shortages.

Explanation / Answer

Monopsony power and labour shortages

We know that shortages of labour force in health industry is a major challenges faced by the economy. The imbalances in quality health personnel is a major challenge. To improve the health sector of the country must assist the balnce between the quality of labours. To understand this concept we must study the monopsony power maintained by the hospitals.

Monopsony we means that a single buyer operated in the market. We know that under monopsony the buyer is a price maker rather than price taker. So under this condition the monopsonic labours seek more wages to employ. When a hospital add a new personnel to the industry they must pay higher wages to the employer. So under this condition the marginal cost paid by the additional employer is also paid to the all the employer in this market.

So to prevent the shortages of health personeel to introduce the concept of contract labour. When increase in supply labour will not eliminate the shortages of labour, but it will create larger gap beween supply and demand for labour. So to eliminate the shortages we must introduce unifrom wages, subsidy to the wages,etc to the employers.

Used as a tool

1. Paid higher wages increases the supply of labour

2. Applies the principle of minimum wages to the employer

3. Increase the number of emplees

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