PLEASE NOTE THAT THE POSSIBLE ANSWERS PROVIDED ARE AN INDICATION.
Question SHRM
The Contextual Strategic HRM model, developed by Paauwe, emphasizes the importance of context
for creating HRM in organizations. The Covid-19 pandemic impacted the St. Bernold’s hospital (as
described on pages 8-12). One might argue that Covid-19 will be a remaining factor in healthcare and
remains a part of the context in which hospitals operate. (see the document "OB_case_final v2" in
the attachment)
a) Based on the Contextual Strategic HRM model, explain how the Covid-19 pandemic has changed
the context of the St. Bernold’s hospital (compared to the situation before Covid-19). Describe two
competitive mechanisms and two institutional mechanisms that have changed. In addition, argue
how the changes (of competitive and institutional mechanisms) have affected the leeway of the
key decision makers.
Use the information in the case, but do not restrict yourself to this and use your own knowledge
on Covid-19 and the healthcare setting in answering this question. (15 points)
- Because of Covid, the context of hospital workers around the Netherlands (and the whole
world) changed significantly. Suddenly, there was a steep rise in patient numbers, a shortage
of professionals, a change in the way the care had to be delivered (i.e. because of keeping
distance and infection dangers), and a sharp need for adhering to the regulations in fear of
another outbreak. This has also manifested itself in essential mechanisms to have changed,
which affected the leeway of key decision makers.
- For example, regarding competitive mechanisms, there was now a huge competition for
employees, as there was already a shortage, and more and more patients were coming in.
Those who have enough staff had a big competitive advantage, but it was hard to get more
staff. Secondly, finding innovative ways to keep up with/be better with respect to
competitors was crucial in this time, as a whole new way of care delivery had to be realised.
For example, digital and remote health became very important, and hospitals which made
this digital transition quicker, had an easier time for their employees and delivering care
anywhere. Thirdly, those hospitals with a relatively healthier population, i.e. those who
adhered more to the rules, were younger, more vaccinated, etc. had a competitive
advantage because they would be less overburdened capacity-wise.
- Regarding institutional mechanisms, regulations changed a lot during the pandemic, and
hospitals had to be responsive to the constant changing rules, regulations, distance keeping,
etc. This could prove to be hard at an institutionalised place like a hospital, where everything
is regulated in a particular way and it is hard to suddenly change that, as it can lead to
confusion, people not knowing what to do, ambiguity, conflicting information, and
frustration. Moreover, the moral context of care delivery became very important, as many
people knew loved ones that had passed away, or were dealing with Covid themselves. It
was a very ambiguous, changing, uncertain, and difficult time, as nobody really knew what
, was happening and what tomorrow would bring, so the staff had to take this into account
and use compassion to care for their patients.
- Explanation: the competitive changes increased the leeway of the key decision makers, as
they had more options and could be more innovative in finding solutions, which had never
been done before. There was not yet a “right way” established, so they really could make a
change here. They could choose a dynamic fit. But the limited workforce also significantly
decreased the leeway.
- Regarding institutional mechanisms, there was decreased leeway because of the
institutional changes, as there were now strict rules to adhere to that could not be
changed/differed from. There was also a fixed budget given. But also an increase in leeway
here: public plea to treat the healthcare workers better; leeway in finding innovative ways to
do so and retain staff.
Possible direction:
Two competitive mechanisms: for example: (5 points)
Innovation: Bigger focus towards modernisation with digitization, digital health. There was a
high sense of urgency to set up remote work and digital consultations. There were more
possibilities created in a short period of time.
Workforce: The availability of employees was already a challenge, as it was difficult to find
the right skilled professionals. During Covid this increased as all hospitals struggled with
keeping their current workforce healthy.
Two institutional mechanisms: for example: (5 points)
What is seen as a good organization: being good for patient and a good employer: more
emphasize on being a good employer, taking care of health care professionals as they have
been seen as the hero.
Encouraging to provide more care from home instead of hospitals.
Explanation (5 points): leeway could have been increased on the topics on innovation/ digital health
as with the competitive mechanism is shown that there was more possible on digitalization and this
was seen as a good solution and future proof (within the institutional mechanism).
Leeway could have been decreased on the topics on workforce as there is a competition on
workforce and a more limited workforce to compete on. But one could also argue that the leeway is
increased due to the crisis on workforce and the plea to treat the workforce well; this creates more
leeway to innovative HR strategies.
b) One could argue that the competitors of the St. Bernold’s hospital will have to deal with the
same competitive mechanisms and institutional mechanisms, but that the heritage mechanisms
will create a unique situation for each hospital. Describe five heritage mechanisms that
characterize the St. Bernold’s hospital and argue how each mechanism (will) impact(s) the crafting
of HR strategies by taking the organizational fit into account. (15 points)