STRATEGIC HRM AT THE MAYO CLINIC:

A CASE STUDY
Sunil Ramlall
Hamline University
Tripp Welch, Jennifer Walter, and Daniel Tomlinson
The Mayo Clinic

Submitted by:
Kainat Amin (1925155)
Sania Suhail (1925112)
Khadeeja (1925156)
Amir (1925143)
Since a long period, Mayo Clinic tops the list of the best medical establishments around the
world. The success of this NPO revolves around its greater inclination for best services, customer
regard, effective research units and a thriving Human Resource Department. Provided the
momentous and existing success of Mayo, what does Mayo require doing from a Human
Resource approach in order to preserve its uniformity of excellence? This case identifies the
strategies used by Mayo to achieve excellence in employee and patient satisfaction.
The Strategic Human Resource Philosophy of Mayo Clinic solely designates its workforce as the
key to success. Mayo Clinic, in order to strategically manage its Human Resources, has found
the personal attributes that are apt for its philosophy and culture. In specific, the institute remains
on a lookout for employees who are dedicated to prime-quality services, extend an optimistic
nature, and are passionate, resourceful and candid. The health care facility also looks for people
with strong work ethics independent to extrinsic rewards, who exhibit comprehension of cultural
divert and those who seek to perform collectively.
This case presents the key HR priorities of Mayo Clinic, namely:
 Developing Teams and a Culture of Teamwork
Mayo brothers fostered an atmosphere of cooperation and working together with minimal
squabbling. Yet again, one of the factors that help to make this happen is a salaried system
without incentives. It eliminates competition among employees, while fostering a deeper
cooperation for the greater good of all stakeholders.
 Promoting Teamwork through Strategic Rewards
Mayo prides itself in hiring long-term employees who are team players. Supporting its
compensation philosophy (To foster the attitudes and behaviors that fit with the Mayo Model of
Patient Care), Mayo does not employ a performance-based compensation system. Mayo argues
that a standard of excellence is expected of everyone.
 Building and Maintaining a Highly Committed Workforce
As a specific means to attracting and retaining employees, Mayo has defined a Total Rewards
program that is quite attractive to most. The rewards program is based on the principle that no
one is big enough to be independent of others.
Irrespective of the well-off aforementioned HR strategies, Mayo Clinic has been confronted to
several market uncertainties. Following are the key shortcomings and threats of Mayo Clinic:
1. Cultural Challenge
Mayo’s culture will have to change to adapt to these new methods quickly. The resistance
argument, in some quarters, is that Mayo has been successful with its historic practices. So why
are these changes necessary? HR will have to play a key role in championing these planned
changes to improve performance.
 2. Diversity
Although diversity contributes significantly to an organization, Ivancevich & Gilbert (2000)
maintains that, once an organizational decision is made to value and promote diversity among
staff, the challenge lies in trying to manage this diversity through "systematic and planned
commitment...to recruit, train, reward, and promote a heterogeneous mix of employees."
3. Increasing Demand for Service
In America, the population of Baby Boomers has exceptionally increased. Hence, Institutions,
including Mayo, will soon start to feel the impact of 78 million Americans – Baby Boomers –
aging into higher-risk pools. Thus, in order to sustain for its next generation employees, the
company will have to employ an evolving HR strategy.
Concisely, it could be established that Mayo incorporates many lucrative strategies to manage its
Human Capital, however, it has been underlined that the institution needs to revive from key
Strategic HR challenges in order sustain its position as an industry leader.