The size of the organization is affected by the affordable care packages. Large businesses with more than fifty full-time employees are obligated to provide insurance cover to their employees. These firms are also required to provide occasional reporting on the state of healthcare insurance of their employees; failure to do this will attract huge fines. Moreover, small businesses which offer insurance cover to their workers are exempted from taxes by the government.
Over the years, human resource management has changed its formations due to increased dissatisfaction, economic changes, and modifications in its goals. Organizations also change their modes of administration to improve the flexibility of the company and lower operational costs. Centralized organizations have the power in the hands of topmost managers vested with full responsibility for making decisions affecting the business. In the organizational model, emphasis is put on different departments which may make independent decisions.
Centralized organizations have large economies of scale, high control over employees, and a large pool of competent human resource management. A centralized collection of managers enhances the quality of decisions made about the organization. This strategy promotes sharing of resources and technology to perform high-quality work. These organizations tend to have reduced pharmaceutical costs due to high economies of scale. With the organizational human resource model, management is decentralized, which contributes to prompt decision-making. However, they have small economies of scale, hence the high cost of pharmaceuticals.
Strategies exist for minimizing the cost of pharmaceuticals in an organization. First, substitute or generic medications can be used as they are cheaper. Second, utilizing extended prescriptions of drugs reduces the cost of applying for refills and improves adherence to therapy. Finally, individuals can compare the prices of medications from legitimate websites to identify the cheaper options.
