Critical Role of Human Resource Management in the Cost, Quality and Productivity Equation
New Horizons in Management series
Edited by Peter Spurgeon, Ronald J. Burke and Cary L. Cooper
Chapter 5: The contribution of ‘best- practice’ HR management to better organisational performance
Health care is all about people – the people who receive the care and the people who provide the care. While there is plenty of complex technology in health care, most delivery comprises a relationship between a health professional and a patient. The performance of health systems and health care organisations is dependent upon the performance of their health workers (Dussault, 1999). Yet, when there are failures in health care systems poor people management is often found to be a contributing factor. Studies of high-performing organisations in private sector industries have consistently pointed to a positive relationship between human resource management (HRM) and organisational performance (Delaney and Huselid, 1996; Guthrie, 2001; Youndt et al., 1996; Barraud-Didier and Guerrero, 2002). This research suggests that bundles of HRM systems and practices that are aligned to the particular needs of an organisation contribute to better organisational performance (MacDuffie, 1995). There is increasing evidence that this relationship is also present in public health care (Harmon et al., 2003; Aiken et al., 1994; West et al., 2006; Harley et al., 2007; Laschinger et al., 2001; Leggat et al., 2010)
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