A Social Capital Model of High Performance Work Systems

Abstract

In this paper we explore a causal mechanism through which high performance work systems affect performance outcomes. We propose a model in which a particular type of high performance work system – a relational work system – enhances organizational performance by creating a framework that encourages the development of social capital between employees who perform distinct functions. In a nine-hospital study of patient care, we show that the adoption of a relational work system predicts high levels of social capital among doctors, nurses, physical therapists, social workers and case managers in the form of relational coordination, in turn predicting quality and efficiency outcomes for patients. Results suggest that social capital models of high performance work systems are a promising counterpart to models that focus on employee skills or commitment.