HRM and its effect on employee, organizational and financial outcomes in health care organizations.

Bram Steijn,Marcel Lankhaar,Sandra van Beek,Brenda Vermeeren,Lars Tummers,Robbert-Jan Poerstamper

doi:10.1186/1478-4491-12-35

Abstract

BackgroundOne of the main goals of Human Resource Management (HRM) is to increase the performance of organizations. However, few studies have explicitly addressed the multidimensional character of performance and linked HR practices to various outcome dimensions. This study therefore adds to the literature by relating HR practices to three outcome dimensions: financial, organizational and employee (HR) outcomes. Furthermore, we will analyze how HR practices influence these outcome dimensions, focusing on the mediating role of job satisfaction.MethodsThis study uses a unique dataset, based on the ‘ActiZ Benchmark in Healthcare’, a benchmark study conducted in Dutch home care, nursing care and care homes. Data from autumn 2010 to autumn 2011 were analyzed. In total, 162 organizations participated during this period (approximately 35% of all Dutch care organizations). Employee data were collected using a questionnaire (61,061 individuals, response rate 42%). Clients were surveyed using the Client Quality Index for long-term care, via stratified sampling. Financial outcomes were collected using annual reports. SEM analyses were conducted to test the hypotheses.ResultsIt was found that HR practices are - directly or indirectly - linked to all three outcomes. The use of HR practices is related to improved financial outcomes (measure: net margin), organizational outcomes (measure: client satisfaction) and HR outcomes (measure: sickness absence). The impact of HR practices on HR outcomes and organizational outcomes proved substantially larger than their impact on financial outcomes. Furthermore, with respect to HR and organizational outcomes, the hypotheses concerning the full mediating effect of job satisfaction are confirmed. This is in line with the view that employee attitudes are an important element in the ‘black box’ between HRM and performance.ConclusionThe results underscore the importance of HRM in the health care sector, especially for HR and organizational outcomes. Further analyses of HRM in the health care sector will prove to be a productive endeavor for both scholars and HR managers.

Highlights

One of the main goals of Human Resource Management (HRM) is to increase the performance of organizations
The results show that employees perceive a relatively large number of HR practices (M = 6.08 on a 1 to 10 scale)
The main contributions of this study to the literature on HRM and performance in the health care sector concerns the use of a multidimensional performance perspective

Summary

Introduction

One of the main goals of Human Resource Management (HRM) is to increase the performance of organizations. Few studies have explicitly addressed the multidimensional character of performance and linked HR practices to various outcome dimensions. This study adds to the literature by relating HR practices to three outcome dimensions: financial, organizational and employee (HR) outcomes. One of the main goals of Human Resource Management (HRM) is to increase the performance of organizations [1]. Dyer and Reeves [7] noted that HR and organizational outcomes are more proximal outcomes, for example, closely linked to the HR practices adopted by an organization, whereas financial outcomes are more distant, as they are less likely to be directly affected by HR practices. Specific HR outcomes are often used as intermediate outcomes that bridge the ‘black box’ between HR practices and financial or organizational outcomes [8]

Methods

Results

Conclusion