Copyright David Alman 2010 Page 1 Organizational Health Improving Organizational Performance and Employee Well-being Abstract Organizational Health refers to an organization’s ability to achieve its goals based on an environment that seeks to improve organizational performance and support employee well-being. While these two perspectives are very different, a nexus between them means issues in one affect the other. Improving organizational performance involves applying a systems thinking approach at organization, process, and role levels, and supporting employee well-being involves addressing both employee satisfaction and employee health (physical, mental, and social). Organizational health and employee well-being audits provide the means whereby an organization can continuously learn how to improve itself. Contents 1. Organizational Health 2. Employee Well-Being 3. Improving Organizational Health Conclusion Notes: References 1. Organizational Health 1.1 Organizational Performance and Employee Well-being Organizational Health refers to an organization's ability to achieve its goals based on an environment that seeks to improve Organizational Performance and support Employee Well-being [1]. Organizational Health, as a concept, reflects two perspectives: Organizational performance, based on the organization performing as an interacting system; and Employee well-being in terms of employee satisfaction and employee health. Current thinking suggests that Organizational Performance and Employee Well-being are interdependent variables that affect the other and gain from both perspectives being jointly addressed [2]. In turn the interaction between these variables affects the organization’s ability to achieve its goals. A generic model of Organizational Health is shown in Figure 1 that incorporates both perspectives, providing examples of what can be considered when assessing and improving Organizational Health.
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Copyright David Alman 2010 Page 1
Organizational Health
Improving Organizational Performance and Employee Well-being
Abstract
Organizational Health refers to an organization’s ability to achieve its goals based on an environment
that seeks to improve organizational performance and support employee well-being. While these two
perspectives are very different, a nexus between them means issues in one affect the other.
Improving organizational performance involves applying a systems thinking approach at organization,
process, and role levels, and supporting employee well-being involves addressing both employee
satisfaction and employee health (physical, mental, and social). Organizational health and employee
well-being audits provide the means whereby an organization can continuously learn how to improve
itself.
Contents
1. Organizational Health
2. Employee Well-Being
3. Improving Organizational Health
Conclusion
Notes:
References
1. Organizational Health
1.1 Organizational Performance and Employee Well-being
Organizational Health refers to an organization's ability to achieve its goals based on an environment
that seeks to improve Organizational Performance and support Employee Well-being [1].
Organizational Health, as a concept, reflects two perspectives:
Organizational performance, based on the organization performing as an interacting system; and
Employee well-being in terms of employee satisfaction and employee health.
Current thinking suggests that Organizational Performance and Employee Well-being are
interdependent variables that affect the other and gain from both perspectives being jointly addressed
[2]. In turn the interaction between these variables affects the organization’s ability to achieve its
goals.
A generic model of Organizational Health is shown in Figure 1 that incorporates both perspectives,
providing examples of what can be considered when assessing and improving Organizational Health.
motivation; and Innovation. ComCare in Building a case to invest in OHS and organisational health
also identify seven elements: Direction, Leadership; Capability; Governance; Relationship; and
Culture. ComCare’s elements similarly reflect these “soft” factors.
[4] Mckinsey & company in The Missing Link includes areas such as Accountability, Coordination &
Control, while European Network for Workplace Health 2009 Promotion also refers to the “work
organisation”. Dive dedicates a book to explaining how to improve accountability as a means of
improving organizational performance in The Healthy Organization.
[5] In Improving performance and quality of working life: A model for organizational health assessment
in emerging enterprises, Shoaf, Genaidy, Karwowski, and Huang provide an historical background to
the development of the concept of organizational health in the United States, and refer to
Organizational Health as a system of interrelated components, analogous to biological health.
[6] The description of what a “system” is, is taken from Introduction to Systems Thinking by Kim
(1999, p2).
[7]. In this article the variables used are loosely based upon those found in the concept of a Human
Activity System (HAS). The Human Activity System, as used in the article, is a system with a Purpose
and the activity of the system involves “hard” “means”, and “soft” “relations” supported by a “World
View” or sense of “meaning”. The term Human Activity System (HAS) was coined by Peter
Checkland to cover “a set of activities so connected as to make a purposeful whole” (Soft Systems
Methodology in Action), and the Human Activity System variables as used in this article are drawn
Copyright David Alman 2010 Page 22
and adapted from a discussion on system concepts by David Patching in Practical Soft Systems
Analysis. The application of a Human Activity System is applied to both actual and “notional”
systems, and separated from Checkland’s Soft System Methodology, where a Human Activity System
is applied in a quite specific way and to reflect “notional” or “ideal types” of solutions to problem
situations (refer to Systems Thinking, Systems Practice, Glossary of an HAS). In the way a Human
Activity System could be analyzed in this article, a methodology consistent with a Human
Performance System (HPS) could be applied, refer to a brief explanation of HPS by Alan Ramais in
The Human Performance System. More specifically the application of the Nine Performance
Variables matrix found in Rummler and Brache (1995). For example, in that Matrix, Goals could
equate to Purpose; Design and Management to Means; with Relations and Meaning opening out the
matrix to performance issues more associated with a Human Activity System.
[8] In Improving performance and quality of working life: A model for organizational health
assessment in emerging enterprises, Shoaf, Genaidy, Karwowski, and Huang propose a model
covering a four orientation approach to organizational health. These orientations being: the
organization, process, job, and individual. Rummler & Brache (1995) in Improving Performance: How
to manage the white space on the organization chart also view organizations as systems, identifying
three levels of performance: Organization, process, and job/performer
[9] Figure 4 is adapted from Figure 1 in Organizational climate of staff working conditions and safety –
an integrative model. A difference is that “Work Design” would also include “hard” process issues
relating to organizational performance not normally sought in climate surveys.
[10] Improving integration is referred to in Armstrong (2004 p8,9). "Horizontal" integration is treated
differently in this article, though the concept of "bundling" (i.e linking "inputs" required to achieve an
output) seems to fit with a systems thinking approach. With regard to "vertical" integration there is
consistency, and they both appear to complement the definition of Organizational Capability
described by Ulrich & Lake (1990 p40). That is, organizational capability is "a business's ability to
establish internal structures and processes that influence its members to create organization-specific
competencies and thus enable the business to adapt to changing customer and strategic needs".
[11] The term Well-being in terms of addressing employee satisfaction as discussed in Work and
Well-being by Warr & Wall (1975).
[12] The Queensland Public Agency Staff Survey (QPASS) is an example of an organizational climate
survey that seeks employee opinion. Climate surveys focus on aspects of an immediate workplace
that effect employee satisfaction such as supervisory style, participation in decisions affecting an
employee, role clarity, and workload. Survey responses can lead to changes in work practices to
improve employee satisfaction.
Copyright David Alman 2010 Page 23
[13] The wants and needs of stakeholders are reflected in Performance and Health: In search of
sustainable excellence by McKinsey and company and in The Performance Prism: The scorecard for
measuring and managing business success by Neely, Adams, and Kennerley.
[14] Williams (1994, p8) includes a definition of the aims of occupational health by the World Health
Organization (WHO) and the International Labour Organization (ILO). In that definition of
occupational health well-being covers physical, mental, and social health of workers.
[15] Systemic Unfairness is based on the concept of systemic discrimination which are practices,
laws, or attitudes, viewed as neutral and sometimes acceptable, but which entrench inequity and
disadvantage to certain groups of people (based on Responding to systemic discrimination).
[16] Material on the Psychological Contract is based on the model to be found in Employee Well-
being and the Psychological Contract of which a simplified model can be found in Managing Change:
The role of the psychological contract.
[17] This description of a social contract is based on that found in the Business Directory.
[18] The description of what a competency is can be found in A Practical guide to competencies
(2006) by Whiddett & Hollyforde. Their publication provides an explanation of what is meant by
behavioural competencies, the development of behavioural based Competency Frameworks, and
their application to areas such as Selection and Employee Performance Management.
[19] In Introduction to Stress Theory, the Cox and Mackay Model is described as four major stress
response types; Eustress, distress, boredom, and exhaustion. The latter two described here as
Hypostress and Hyperstress respectively. Their model’s dimension of “Demands” is changed to
“Conflict Intensity” and the “Performance” dimension to “Stress Response”.
[20] An identification and explanation of Occupational Stress Risk Factors can be found on the
Occupational Health and Safety Queensland website. Stress Risk Management Audits use stress
risk factors as audit criteria to identify, risk assess, and recommend action to improve the well-being
of employees.
[21] The approach to personal transformation draws from The Promise of mediation: The
transformative approach to conflict (2005). Personal Transformation involves addressing both
intrapersonal (internal) conflict and developing appropriate conflict management techniques to
manage situations. In this respect examples in Conflict Coaching: Conflict management strategies
and skills for the individual (2008) are viewed as reflecting this form of personal transformation.
Copyright David Alman 2010 Page 24
[22] In Understanding professional competence: Beyond the limits of Functional Analysis Holmes
refers to transition in terms of a promotion where a manager has to let go of past skills and behaviour
patterns, that were previously successful and now ineffective, and adopt new ways of understanding
what is involved in being a manager in the new situation. Dive (2008) in The Accountable Leader:
Developing effective leadership through managerial accountability refers to the need to identify
different levels of accountability (referred to here as Transition Levels). Other writers use alternative
terms such as “Work Levels” and “Impact Levels” as is intended here under the term “Transition”.
[23] An explanation of well-being from a health and wellness perspective is provided in Sloan Work
and Family Network Glossary on Health and Wellness, definition(s) of.
[24] The description of a Hazard and a Risk, and the Risk Management Model are adapted from
Guidelines for assessing human health risks from environmental hazards. The concept of Employee
Health hazards has been added to this model to incorporate wellness aspects that fall within an
Organizational Health perspective.
[25] The Collaborative Change Management process is mentioned in Healthy Organizations from
conflict management: How conflict management helps manage change, performance and well-being.
In that Google Knol reference is made to Claremont & Davies (2005) who use the more general and
embracing term of Collaborative Conflict Management to provide examples of this approach applied
to whole groups and organizations.
[26] An explanation of Triple Loop Learning is found in the Kansas Prevention WIKI. Both Brian Dive
(2004), and Britten in Organizational learning and organizational health, view a Healthy Organization
as a learning organization.
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