Healthcare Performance Management Essays

Performance management can be defined as a systematic process, which helps an organization by improving the effectiveness of its

Performance Management is both a strategic (about broad issues and long-term goals) and an integrated (linking various aspects of the business, people management, individuals and teams) approach to delivering successful results in organisations by improving the performance and developing the capabilities of teams and individuals.

In the health care world finances play a significant role in the quality of care rendered to the consumer. There is no health care facility that is the same when it comes to their financial management because it is needed both internally and externally to ensure that it runs properly. Today’s health care field consist of either not-for-profit organizations, for-profit organizations and governmental, (Gapenski, 2008).

Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align

Performance management is a tool that managers use to ensure that their companies remain at the top of their competitive edge. The Chartered Institute for Personnel Development (CIPD, 2008), defines performance management as a method by which individuals and teams are managed in a way that achieves high performance at an organisational level. The individuals within the organisation share an understanding of the achievement goals of the organisation. In order to achieve this, a general strategy is created, with each individual within the organisation understanding his or her role and requirements within such a strategy

Performance management is about creating a culture that encourages the continuous improvement of business processes and of individuals’ skills, behaviour and contribution. It is a repetitive process that is continually reviewed and is both strategic and integrated. It is about broad issues and long-term goals and integrated by linking various aspects of the business, people management, individuals and teams to delivering successful results in organisations. It does this by improving performance and developing the capabilities of teams and individuals.

For any organization, effective planning and financial management is required for the sustainability of its mission and business. Moreover, management tools, such as ratio analysis are used to provide key indicators of the organization’s performance as well as comprehension of the financial trends and results over time. Financial ratios are thus used by different stakeholders in meeting their objectives, for instance managers to point out the strengths and weaknesses to allow for informed strategies and initiatives. Conversely, funders analyze financial ratios to compare organizational results to allow them to make informed decisions on mission impact and management effectiveness. Ratios are thus meaningful when compared to industry averages and historical data.

Healthcare providers strive to improve service quality by implementing various quality management programs. Customers tend to seek for higher quality of care when choosing treatments, providers, and health plans. For healthcare organizations that desire to provide high quality care and compete in the global market, choosing a quality management program to implement is critical for performance and efficiency. Many studies have been conducted to analyze the effectiveness of such programs. Lean, Six Sigma and Total Quality Management (TQM) are three programs that will reviewed by three different case studies in efforts to understand them and to compare and contrast their capabilities.

The reasons provided for failure in performance management versus performance appraisal discipline gap, accountability, measurement scarcity or overload, lack of balance and failure to assess impact. “There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance.” (Smither, 2009) The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development. “The purpose of performance appraisal must be clearly communicated both to raters and rates, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.” (Cascio, 1998)

Strategic planning and performance management are linked together; one cannot be implemented successfully without the other. The first purpose of a PM system is to help top management achieve strategic business objectives; it links organizational goals with individual goals, and thus helps to reinforce behavior that will benefit the entire organization (Aguinis, 2009). By linking individual employee work efforts with the organization’s mission and objectives, the employee and the organization understand how that job contributes to the organization.

After doing a deep analysis of processes of The Knot’s human resources management, we present a breakdown of the areas of opportunity that we found to improve the employees’ performance appraisals. The aim of this initial assessment is to figure out the current problems that have cause the employees’ unconformity.

Performance management is an ongoing process which ensures employees contribute towards achieving organisation’s goals. CIPD insist that performance management should be about ‘performance improvement’ ‘development’ and ‘managing behaviour’. They also believe ‘Performance management is a process, not an event. It operates as a continuous cycle.’ However, organisations often see performance management as an annual task

Performance management is concerned with ensuring the goals of the organisation are being consistently met. This does not only focus on the management performance but can be used to assess individual employees as well as the whole organisation. Performance management benefits the organisation as it ensures the effective delivery of the organisational goals. Organisational goals being met will then ultimately lead to greater benefits such as increased profits, motivated workforce, and improved control.

Performance management is seen as much wider concept than performance appraisal, comprising a set of strategies used by the aid of manager to direct, plan and enhance the performance of subordinates in line with achieving the ordinary target of the organisation (Fay

‘’Performance management is a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization’’ (Aguinis, 2005)