Human resource management in Australian hospitals: the role of controls in influencing the effectiveness of performance management systems

This study examines the association between two aspects of HRM, the use of controls (beliefs, interactive, boundary, diagnostic) and the effectiveness of performance management systems (PMSs), which are assessed in respect to the achievement of process outcomes and hospital performance. The findings indicate that the achievement of process outcomes (both performance-related and staff-related outcomes) mediates the relationship between controls and hospital performance. Specifically, the achievement of performance-related outcomes mediates the associations between belief systems and the use of diagnostic controls with hospital performance (medical facilities), and the achievement of staff-related outcomes mediates the association between the use of diagnostic controls with the support facilities and effectiveness dimensions of hospital performance. In addition, the use of specific controls exhibits a direct impact on hospital performance with beliefs systems directly positively associated with all five hospital performance dimensions, the use of interactive controls positively associated with three dimensions (medical facilities, patient care, and staff resources), the diagnostic use of controls associated with the patient care dimension, and boundary controls positively associated with all dimensions of hospital performance except staff resources. The findings inform hospital management of their significant role in incorporating these HRM practices to effectively manage the workplace in hospitals.