At Aetna, a C.E.O.s Management by Mantra - Article Example

Human Capital The human resource function is very important because of the impact it has on all the other functions within an organization. Efficient human resource management will always lead to positive results (Briscoe, Schuler, & Tarique, 2012). Recently, organizations have adopted a strategic human resource management. It is about the management of human capital to achieve the goals and objectives outlined in the organizational strategy. Motivation and encouragement are the most effective ways of getting maximum output from the human capital.

Aetna has made a difference by putting the human capital at the center of the organization. The significant HR function done very well in Aetna is employee motivation and encouragement. The article presents a relatively new approach that Aetna is using to motivate employees. Based on the interview, there have been changes noted since the employees started to take part in the Yoga classes. The success being experienced at Aetna starts with the company leadership and its view on employee motivation and management. Mr. Bertolini points out that the organization does not try to force employees to take part in things they do not want.

The bottom line is that Aetna leadership does not endeavor to control employees. Instead, the management is working hard to encourage employees and make them feel part of the company. The approach taken by Aetna in managing its human capital is the reason the company has registered increase in output. The provision of Yoga classes and the pay increase for those earning minimum wage are clear indications that Mr. Bertolini views employees as human beings who have feelings and ambitions. During the interview, Aetna CEO, Mr.

Bertolini keeps on repeating the importance of treating employees as human beings who have feelings (Gelles, 2015). He narrates how he was moved by an article on minimum wage that made him increase the salaries of the employees who were earning minimum wage. The transformational leadership approach taken by Mr. Bertolini has been the driving force of the changes being witnessed in Aetna. Mr. Bertolini has been able to inspire employees by showing them how it is done instead of just commanding.

In the article, Mr. Bertolini discusses how he convinced the company doctor to create Yoga classes. He did not take a commanding approach. He found a way to convince the doctor by appealing to the doctor’s thirst for science. A critical review of Aetna’s success story shows that the form of the leadership used in the company has positively influenced employee performance. The leadership has been able to inspire the employees (Hamid, 2013). The case of employee motivation and encouragement can be handled differently by the introduction of reward programs and benefits.

The reward programs are meant to encourage employees to work hard. High performing employees are rewarded by recognition, promotion, and small financial benefits. The article is relevant to human capital because it shows the level of success that can be achieved when employees are motivated. The meditation approach has worked very well in Aetna. There are many other ways to motivate employees like the provision of benefits and emotional intelligence lessons to help management relationships.

All these methods have registered immense success in huge corporations. ReferencesBriscoe, D., Schuler, R., & Tarique, I. (2012). International Human Resource Management. New York: Taylor & Francis.Gelles, D. (2015, February 27). At Aetna, a C.E.O.s Management by Mantra. Retrieved from The New York Times: http://www.nytimes.com/2015/03/01/business/at-aetna-a-ceos-management-by-mantra.html?hp&action=click&pgtype=Homepage&module=second-column-regionion=top-news&WT.nav=top-news&_r=1Hamid, J. (2013).

Strategic Human Resource Management and Performance: The Universalistic Approach--Case of Tunisia. Journal of Business Studies Quarterly, 5(2), 184-201.