Strategic Human Resource Management in Healthcare and Environmental Design
Misty Colvin
HSAD 710: Strategic Management of Healthcare Systems
University of South Dakota, Beacom School of Business
September 6, 2016
Strategic Human Resource Management in Healthcare and Environmental Design
Corporate sustainability, or a healthcare organization’s ability to create “an enduring competitive advantage” (Sadatsafavi & Walewski, 2013, p. 98) and its ability to meet “responsibilities toward the sustainable development of the society in which they conduct their activities” (Sadatsafavi & Walewski, 2013, p. 99) is an essential strategic concept. Healthcare is no exception. Healthcare Organizations (HCOs) must strive to manage their resources to meet their social obligation with regard to high-quality, cost-efficient care while maintaining a competitive advantage through the application of their resources.
Human capital or human resources can be the most powerful resource in that the human capital of an HCO is most likely to be “rare, costly to imitate, and non-substitutable” and therefore exert a strong effect on corporate sustainability. The strategic management of an organization’s human resources (SHRM) has long centered around employee satisfaction, employee retention, and employee safety. SHRM literature demonstrates “the impact of human resources on business growth, financial performance, and workers’ productivity” however, little research has been accomplished on the role of the employee’s physical environment (Sadatsafavi & Walewski, 2013, p. 105). The authors investigate the relationship between environment and the Perceived Organizational Support (POS), or “an experience-based attribution concerning the benevolent or malevolent intent of the organization’s policies, norms, procedures, and actions as they affect employees (Eisenberger et al., 1986, p. 42). The authors propose a model to incorporate the built environment as a “complementary resource to the array of human resource practices” to create “synergy in improving caregivers’ job attitudes and behaviors” to enhance “the human capital of healthcare firms” (Sadatsafavi & Walewski, 2013, p. 98).
Definition of Scope and Background
Sadatsafavi and Walewski (2013) seek to provide healthcare organizations with an alternate approach to “enrich their human resource capabilities and improve their performance outcomes” (Sadatsafavi & Walewski, 2013, p. 98). Job satisfaction is largely determined by intrinsic factors but job dissatisfaction often results from extrinsic factors such as policy, supervision, and work environment (Sadatsafavi & Walewski, 2013). By employing organizational management techniques and a human resource focus, the authors strive to demonstrate the importance of environmental design on corporate sustainability, loyalty, and job satisfaction (Sadatsafavi & Walewski, 2013, p. 99).
Background. Healthcare organizations acquire various types of capital to create organizational resource bundles or value-generating resources. Organizational resource bundles that are “rare, costly to imitate, and non-substitutable” contribute to the HCO’s corporate sustainability (Sadatsafavi & Walewski, 2013, p. 99). The HCO’s human capital is considered the strongest contributor to the HCO’s competitive advantage and therefore its corporate sustainability. Strategic Human Resource Management (SHRM) investigates “the relationship between human resource management and a firm’s performance (Sadatsafavi & Walewski, 2013, p. 105). Today’s healthcare environment demands expense management and prioritization of quality as critical imperative’s to a healthcare organization’s corporate sustainability strategy.
Maintenance of an organization’s human capital not only contributes to corporate sustainability, but often determines the quality of care provided. Maintenance of the HCO’s healthcare providers also helps to battle the challenges of “employee burnout, strain, job satisfaction, absenteeism, and turnover” (Sadatsafavi & Walewski, 2013, p. 100). SHRM studies have clearly delineated a correlation between a healthy, content workforce and the quality of healthcare delivered; the literature references medication error, sentinel events, inefficient care, and incompetent care (Sadatsafavi & Walewski, 2013, p. 105).
Description of Rational and Subject Importance
The article seeks to illustrate “how the firms’ resources contribute to the sustainability of competitive advantage and identifies the significance of human resources. Studies regarding the job satisfaction for healthcare professionals demonstrate the importance of job stress, working relationships and social interactions, job security and pay. However, studies to determine the effect of the built environment are lacking. The authors illustrate the built environment as an indirect influence through its effect on job stress and perception of working conditions (Sadatsafavi & Walewski, 2013). Sadatsafavi and Walewski (2013) assert that the application of human resource management to the development and maintenance of the work environment will directly affect employee organizational commitment, positively affecting outcomes such as patient safety, employee retention, employee satisfaction, and higher productivity (Sadatsafavi & Walewski, 2013).
Discussion of Methods
Sadatsafavi and Walewski (2013) review relevant healthcare, environmental design, and human resource management literature to support their assertion that the built work environment and work environment in general is an essential strategy for human resource management.
Sadatsafavi and Walewski (2013) propose the adoption of key findings of studies on “strategic human resource management, resource-based view of firms, evidence-based design, and green buildings” (p. 99). Through their analysis of these key findings, the authors deduce a framework or proposed model. The model will reduce staff stress thereby increasing job satisfaction, worker health and safety, and improve the Perceived Organizational Support.
SHRM can influence employee performance through the mediation of variables as demonstrated by several different studies. The concept of Perceived Organizational Support is taken from studies on the attitudinal and behavioral pathways that contribute to job loyalty and allegiance and is a pivotal concept in the author’s model (Eisenberger et al., 1986). Sadatsafavi and Walewski (2013) assert that the POS mediates the relationship between the physical features in the workplace and job attitudes; and employee satisfaction with the physical features of the workplace moderates the relationship between the human resource management system and POS. Eisenberger (2001) further suggests that the employer-employee relationship is one of reciprocity based on the social exchange theory. Lastly, the Affective Event Theory developed by Weiss and Cropanzo in 1996 suggests long-term behaviors, such as turnover and retirement stem from “stability features and the job environment” (Sadatsafavi & Walewski, 2013, p. 101).
The resource-based view (RBV) of firms further solidifies the importance of human capital. Studies by Barney et al. (2001) highlight the importance of human resource management as a resource-based view as a silent asset and likely to adapt to a specific HCO over time. Sadatsafavi and Walewski (2013) propose a framework for visualizing the effect of RBV and SHRM on job attitudes and behaviors of healthcare workers in Figure 1 (below).
Figure 1-Proposed framework (Sadatsafavi & Walewski, 2013, p. 108)
Evidence-based Design (EBD) highlights the effect of workplace design on “key outcomes such as patient safety, patient outcomes, and staff outcomes (Sadatsafavi & Walewski, 2013, p. 102). Ulrich et al. (2008) and Berry et al. (2004) demonstrate the healthcare workplace design improve employee recruitment and retention by increasing employees’ POS. “The negative effect of physical stressors in the workplace… are studied in the EBD and green building literature, suggesting that environmental intervention through architectural design can play an important role in reducing employees’ anxiety and increasing job satisfaction” (Sadatsafavi & Walewski, 2013, p. 110). Evidence-based design’s effect on staff outcomes such as communication with patients and medical error rates have also been proven (Sadatsafavi & Walewski, 2013).
The use of green-building features has been proven to decrease healthcare provider illness, sick time, and improve general well-being (Sadatsafavi & Walewski, 2013). Features of Green buildings are highlighted in Figure 1. Perhaps more importantly, the installation of green-building features “can send the message to employees that senior management cares about their well-being and health (Sadatsafavi & Walewski, 2013, p. 109).
Analysis of Limitations
Through the review of SHRM and EBD literature, the authors conclude that “the built environment, combined with the human resource management system, can be used for internal development of resources and for extending current organizational capabilities” (Sadatsafavi & Walewski, 2013, p. 114). The most evident limitation is that lack of differentiation between the dimensions of the physical environment such as architectural build, interior design, and the ambient work environment. Many of the supporting studies contributed to one or more of the above aspects of the physical environment but the authors do not consistently delineate the subject of each study.
While the authors did present the studies in an organized format, the authors could have prepared the manuscript in an improved fashion to describe the studies cited. A brief description would assist the reader in assigning relevance to the study and contribution to the paper. In addition to a brief synopsis of the contributing works, the authors should lend further discussion to individual employee characteristics such as age, sex, and education. Furthermore, many of the studies that contribute to the author’s conclusions are outdated.
Summary and Reflection
The article illustrates the effect of the work environment on employee satisfaction and therefore suggests strategic management of the work environment and human capital can lead to success in creating and maintaining corporate sustainability. In addition to workplace maintenance for health and safety, HCOs may seek to incorporate enhanced architectural design and green-building features to increase their employees’ POS. Not only will advances in EBD and green features enhance employee satisfaction, retention, and allegiance but these advances will likely improve patient and employee outcomes.
As a hospital administrator I better understand the role an employee’s work environment plays with regard to the employee’s affiliation, alignment, and relationship with the employer. I will consider the built environment when evaluating employee satisfaction results and also in preparation of any action plan targeting employee satisfaction. I will seek to incorporate EBD concepts and green features into any future renovation projects or redesign of healthcare areas.
Conclusion
Healthcare organizations can build and maintain corporate sustainability through improved workplace design and human resource management. Healthcare organizations that engage evidence-based design and green features will employ a healthier, more motivated and productive workforce. Improved employee sense of well-being, Perceived Organizational Support, commitment to the organization, and job satisfaction will enhance the service provided to patients through improved communication and less errors.
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