2023-2024, Block 2 GW4004MV. Organizational Behaviour
WEEK 5
HRM & Performance
Inhoud
Optional video: HRM & Performance...............................................................................................................2
Hard HRM & Soft HRM..................................................................................................................................2
Organizational & Employee level (performance) outcomes..........................................................................2
Mutual gains & Competing outcomes perspective.......................................................................................3
Lecture 4. Part 2 (10-11-2023)..........................................................................................................................4
HR bundles/systems......................................................................................................................................4
Will HRM lead to better performance?.........................................................................................................6
Workgroup meeting..........................................................................................................................................9
Assignment 5............................................................................................................................................9
Bath tub model.......................................................................................................................................10
The intended-actual-perceived model.....................................................................................................10
The AMO model......................................................................................................................................11
HRM activities – HRM outcomes – Firm performance (model by Paauw & Richardson).........................11
Summary / Mind maps that capture the whole course...........................................................................13
Literature........................................................................................................................................................16
SUMMARIES...................................................................................................................................................17
I. West, et al (2006). Reducing patient mortality in hospitals: the role of HRM..........................................17
II. Paauwe & Farndale (2017). HRM and performance: achievements and challenges...............................20
Intended – Actual - Perceived.............................................................................................................22
Bath tub approach..............................................................................................................................22
The black box & levels of analysis...........................................................................................................23
Micro, Meso & Macro levels of HRM..................................................................................................23
The 5 black boxes................................................................................................................................23
Mutual gains & Conflicting outcomes approaches..............................................................................24
HPWSs....................................................................................................................................................25
III. Paauwe (2014). A multidimensional perspective on performance........................................................27
HRM activities – HRM outcomes – Firm performance............................................................................27
1
,2023-2024, Block 2 GW4004MV. Organizational Behaviour
Optional video: HRM & Performance
Slide 3
An overview of the characteristics of HPWS, more from a business / administration perspective:
Challenging targets/costumer-oriented units
Decentralization/delegation of decision making
Work by semi-autonomous task groups/teamwork
Performance management linked to financial performance indicators
Business process reengineering -> Costumor focus
Benchmarking performance -> shareholder value
Creating and stimulating learning and development at alle organizational levels
Information and communication: from top down to flowing in all directions
Slide 4
If we look at high performance organizations from a HR viewpoint, we will see the following characteristics:
Create a value proposition that defines the workplace
Hire people that fit the values, core competences and strategic goals
Continuously train employees to do their jobs and offer them opportunities to grow and develop
Design work that is meaningful and provides feedback, responsibility and autonomy
Have a mission, strategies, goals, values that employees understand, support and believe in it
Have reward systems that reinforce core values and strategy
Hire and develop leaders who create commitment, trust and a motivating work environment
Slide 5
But how do we define ‘performance’ in health care? Do you want to be in the “Ziekenhuis top100”, do you
want to be the frontrunner in patient safety or patient centered care, do you prioritize your employees, etc.
Slide 6. Performance and goals
Hard HRM & Soft HRM
If we look at ‘performance and goals’ from a HR perspective: you could say that there is a focus on the
added value (Hard HRM; more of an economic point of view; e.g. do we make enough profit, do we have
enough budget for our activities, etc.), but there could also be a focus on moral values (Soft HRM; e.g. do we
care for the well-being of people, are our organizational activities all legitimate based on the legislation, and the
norms and values of society, do we meet the demands for being a sustainable organization, etc .).
This kind of distinction also has to do with whether we believe in this so-called:
Shareholder value narrow view, so little attention to other stakeholders (apart from the
economic-incented shareholders).
Stakeholder value broad view, so multiple stakeholders are considered.
Slide 7. Organizational and employee level outcomes I
Organizational & Employee level (performance) outcomes
Also important to distinguish the level of analysis: do we look at performance at the level of the whole
organization or do we also look at the outcomes at the level of the employees.
Organizational outcomes Employee well-being
Operational outcomes: Happiness: subjective experiences and
productivity, quality functioning at work (individual)
Financial outcomes: ROI Health: stressors and strain (individual)
Social well-being: interaction and the
quality of relationships Trust
2
, 2023-2024, Block 2 GW4004MV. Organizational Behaviour
Slide 8. Organizational and employee level outcomes II
Mutual gains & Competing outcomes perspective
If you then look at the outcomes(?) and you want to check whether high performance / high involvement
work systems (HPWS) have positive results, but might also generate negative outcomes, then you see 2
perspectives:
Mutual gains perspective: this is an optimistic view, that views the HPWS is both good for the
organization as well as for the employees; so the employees and employers benefit from the HRM.
HPWS people work harder better reputation and/or profit.
Competing outcomes perspective: this is a more skeptical or pessimistic view, it simply says that a
HPWS is not beneficial for well-being; on the contrary: it will damage the well-being of people, they will
have to work too hard, they are suffering from stress. So there is kind of a trade-off between
organizational outcomes and employee well-being: the organization might benefit from it (more profit,
better reputation), but it might be at the expense of the employees.
So, which perspective is true? / which perspective can be supported by empirical evidence?
Slide 9. Evidence shows…
The evidence shows that in general, HPWS contribute to the
happiness and social well-being of employees. But at the same time
they do involve a risk for the health of employees, especially in the
long run (due to stress and strain).
Slide 10. In conclusion
Performance is…
A multidimensional concept
Balancing well-being and performance
Adopting a broad stakeholder instead of narrow stakeholder perspective
3
WEEK 5
HRM & Performance
Inhoud
Optional video: HRM & Performance...............................................................................................................2
Hard HRM & Soft HRM..................................................................................................................................2
Organizational & Employee level (performance) outcomes..........................................................................2
Mutual gains & Competing outcomes perspective.......................................................................................3
Lecture 4. Part 2 (10-11-2023)..........................................................................................................................4
HR bundles/systems......................................................................................................................................4
Will HRM lead to better performance?.........................................................................................................6
Workgroup meeting..........................................................................................................................................9
Assignment 5............................................................................................................................................9
Bath tub model.......................................................................................................................................10
The intended-actual-perceived model.....................................................................................................10
The AMO model......................................................................................................................................11
HRM activities – HRM outcomes – Firm performance (model by Paauw & Richardson).........................11
Summary / Mind maps that capture the whole course...........................................................................13
Literature........................................................................................................................................................16
SUMMARIES...................................................................................................................................................17
I. West, et al (2006). Reducing patient mortality in hospitals: the role of HRM..........................................17
II. Paauwe & Farndale (2017). HRM and performance: achievements and challenges...............................20
Intended – Actual - Perceived.............................................................................................................22
Bath tub approach..............................................................................................................................22
The black box & levels of analysis...........................................................................................................23
Micro, Meso & Macro levels of HRM..................................................................................................23
The 5 black boxes................................................................................................................................23
Mutual gains & Conflicting outcomes approaches..............................................................................24
HPWSs....................................................................................................................................................25
III. Paauwe (2014). A multidimensional perspective on performance........................................................27
HRM activities – HRM outcomes – Firm performance............................................................................27
1
,2023-2024, Block 2 GW4004MV. Organizational Behaviour
Optional video: HRM & Performance
Slide 3
An overview of the characteristics of HPWS, more from a business / administration perspective:
Challenging targets/costumer-oriented units
Decentralization/delegation of decision making
Work by semi-autonomous task groups/teamwork
Performance management linked to financial performance indicators
Business process reengineering -> Costumor focus
Benchmarking performance -> shareholder value
Creating and stimulating learning and development at alle organizational levels
Information and communication: from top down to flowing in all directions
Slide 4
If we look at high performance organizations from a HR viewpoint, we will see the following characteristics:
Create a value proposition that defines the workplace
Hire people that fit the values, core competences and strategic goals
Continuously train employees to do their jobs and offer them opportunities to grow and develop
Design work that is meaningful and provides feedback, responsibility and autonomy
Have a mission, strategies, goals, values that employees understand, support and believe in it
Have reward systems that reinforce core values and strategy
Hire and develop leaders who create commitment, trust and a motivating work environment
Slide 5
But how do we define ‘performance’ in health care? Do you want to be in the “Ziekenhuis top100”, do you
want to be the frontrunner in patient safety or patient centered care, do you prioritize your employees, etc.
Slide 6. Performance and goals
Hard HRM & Soft HRM
If we look at ‘performance and goals’ from a HR perspective: you could say that there is a focus on the
added value (Hard HRM; more of an economic point of view; e.g. do we make enough profit, do we have
enough budget for our activities, etc.), but there could also be a focus on moral values (Soft HRM; e.g. do we
care for the well-being of people, are our organizational activities all legitimate based on the legislation, and the
norms and values of society, do we meet the demands for being a sustainable organization, etc .).
This kind of distinction also has to do with whether we believe in this so-called:
Shareholder value narrow view, so little attention to other stakeholders (apart from the
economic-incented shareholders).
Stakeholder value broad view, so multiple stakeholders are considered.
Slide 7. Organizational and employee level outcomes I
Organizational & Employee level (performance) outcomes
Also important to distinguish the level of analysis: do we look at performance at the level of the whole
organization or do we also look at the outcomes at the level of the employees.
Organizational outcomes Employee well-being
Operational outcomes: Happiness: subjective experiences and
productivity, quality functioning at work (individual)
Financial outcomes: ROI Health: stressors and strain (individual)
Social well-being: interaction and the
quality of relationships Trust
2
, 2023-2024, Block 2 GW4004MV. Organizational Behaviour
Slide 8. Organizational and employee level outcomes II
Mutual gains & Competing outcomes perspective
If you then look at the outcomes(?) and you want to check whether high performance / high involvement
work systems (HPWS) have positive results, but might also generate negative outcomes, then you see 2
perspectives:
Mutual gains perspective: this is an optimistic view, that views the HPWS is both good for the
organization as well as for the employees; so the employees and employers benefit from the HRM.
HPWS people work harder better reputation and/or profit.
Competing outcomes perspective: this is a more skeptical or pessimistic view, it simply says that a
HPWS is not beneficial for well-being; on the contrary: it will damage the well-being of people, they will
have to work too hard, they are suffering from stress. So there is kind of a trade-off between
organizational outcomes and employee well-being: the organization might benefit from it (more profit,
better reputation), but it might be at the expense of the employees.
So, which perspective is true? / which perspective can be supported by empirical evidence?
Slide 9. Evidence shows…
The evidence shows that in general, HPWS contribute to the
happiness and social well-being of employees. But at the same time
they do involve a risk for the health of employees, especially in the
long run (due to stress and strain).
Slide 10. In conclusion
Performance is…
A multidimensional concept
Balancing well-being and performance
Adopting a broad stakeholder instead of narrow stakeholder perspective
3
