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Importance of a performance management system
Performance management system - strengths and weaknesses
Importance of a performance management system
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One of the 12 key areas of Performance Management System by Ferera Otley wants to emphasize on the organization’s key performance measures that illustrate which of the organization’s goal have been achieved. Key performance measures are sometimes referred to as key performance indicators (KPI). KPJ believe the use of Key Performance Indicators (KPIs) helped to define critical success factors and measure progress towards major organizational goals. As KPJ venture forth, they have specific goals and priorities in strengthening the KPIs with focus on customer service; prioritizing employee development programs; enhancing policies pertaining to employment practices and people development; and making enhancements to HR-related technology.
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They firmly believe that their aspirations are achievable as a number of related healthcare activities strategies to the continuous corporate growth have been identified. such as to increase the number of specialist of hospitals and develop new hospitals, local and overseas, manufactures related health care products for local and export markets, initiate new hospitals service and support activities, develop network of community-based healthcare service, enhance continuous education and training of healthcare professionals, intensify avenue for state-of-the-art applications in information technology and telemedicine, strengthen affiliations to further develop and expand the growth of related healthcare industries and continues to strive for excellence in its healthcare delivery system through its Quality Improvement Program. For each project KPJ was stated that it will be carefully planned and evaluated to ensure compatibility with the company’s goal. The goal is “to be a progressive and premier healthcare group providing the highest quality, highest value healthcare products and services to the people we serve”. Refer to (Lutwama, Roos, & Dolamo, 2013) form their research they revealed that setting performance standards and targets posed a huge challenge in the districts. According to one of the KPJ Healthcare …show more content…
Appraisal approaches vary, they will include behavioral approaches such as rating scales, peer rating, ranking, or nomination and outcome approaches such as management by objectives and goal setting. An effective performance appraisal will assist the hospital in achieving its goal and objectives. The first step in assessing the performance of the hospital is to describe the nature of hospital service, such as present inpatient service (medicine, surgery, pediatric, maternity. Etc.) outpatient services, casualty and specific clinic. It is crucial things to emphasize the hospital performance can be evaluated in terms of efficiency, quality of care, accountability, equity and resource mobilization. In terms of efficiency it is obtained when measuring by cost and examining the relationship of costs to services provided. Hospital costs include recurrent cost (maintenance rent, utilities, catering, laundry and other treatment service provided to the patient) and capital costs (land, building, plant and equipment). In terms of Quality of care it may be accessed through the effects of an intervention on structure (hospital service), process (technical, management, diagnostic testing, and preventive medicine) and outcomes (patient recovery, follow up for treatment, and impact on health
Determined healthcare systems routinely examine their environments internally and externally to locate significant trends and forces in the present and for the future which will have an effect on their performance goals and mission efforts. These healthcare systems understand who their stakeholders are, their needs and how best to meet those expectations and needs. These systems give attention to specific efforts on accomplishing goals that acquire opportunities in the whole environment while they continue to adjust their internal structures and functions. Precise aims are dealt with by uninterrupted sequences for performance improvements. Strategic directions for systems originate from the mission and directives. Strategic directions are identified by observing key stakeholders, addressing their interests and being proactive about responding to current, as well as, future shifts and trends in the systems’ entire environment (Skinner, 2001).
The government controls and regulates healthcare somewhat because healthcare organizations are in a position to take advantage of the elderly and sick so there are regulations that protects them. It seems as though healthcare facilities are being paid less for their services today. Some critical measures for the survival of a healthcare organization are to optimize performance and quality. Finding system-wide efficiencies and cost reduction healthcare will help. In order to get better and keep high quality and performance while still raising reimbursements, it is necessary and important to involve doctors with the ideas and plans for any management strategies.
Healthcare organizations must inhere a strategy to stay ahead of their competitors so that they can maintain their patient volume. By measuring the quality of care through performance, patient satisfaction, and experience, and cost all play a role of having patients to choose your hospital. Today, many healthcare organizations have adopted the triple aim strategy of great quality, great patient experience for a reasonable cost. With the tracking of their patient experience and continuously improving the quality of care at a reasonable cost to stay one step ahead of their competitors and to maintain and increase patient volume has been successful help in the healthcare
Over the past few years, the health care service has seen many changes. The Affordable Care Act, for example, creating more insurance in order to care for the indigent and people in the most need of help. Health care is a very essential and necessary element of an individuals lives. The methods and preparation that is needed in order to provide adequate and efficient patient care to all is very critical and sometimes specific. The health care organization has ventured from focusing on input management to focusing and improving output management (White, 2011).
With the correct metrics in place information can be gathered and reported on in order to form knowledge. Data is raw numbers, information is data with context, and knowledge is the information with understanding, which leads to decisions (Hunter Whitney, 2007). Basing decisions on every metric is a waste of resources and time. As a result, Key Performance Indicators (KPIs) distill the vast amount of data into information that is pertinent to the decision making. Some KPIs could be the items per hour, visitors per day, customer retention rate, conversion rate, etc. However, not all companies need to know all of the indicators, that is why KPIs are based on the business model and needs of the company.
The person pursues healthcare service with great expectations such as quality health care, latest technological interventions and low cost for their service. Nowadays, one of the challenges facing by the health care providers is providing appropriate care and identifying their needs in a cost effective and comprehensive way without compromising the quality of care. Center for Medicare and Medicaid Services (CMS) reported “an rise in healthcare spending from $2.34 trillion in 2008 to $ 2.47 trillion in 2009, the largest one year increase since 1960” (Pickert, K, 2010). “The action to improve the American health care delivery system as a whole, in all of its quality dimensions such as efficiency, effectiveness, equitability, timeliness, patient-centeredness, and safety for all Americans” (IOM, 2011).
It is no secret that the world of healthcare is constantly changing and often times it is at a rapid
These benefits are best discovered and maximized if used in conjunction with KPIs. A KPI is a key performance indicator and they allow a company to measure and manage ...
For Key Performance Indicators (KPI) to be successful, it needs to have the following characteristics:
Performance Management is a critical component to organizational success. However, creating, developing, and maintaining a system that captures all the characteristics of an ideal performance management system should involve an ongoing collaboration between leadership and employees to achieve a successful outcome. After all, the performance and success of the organization is dependent upon the employees. Therefore, performance management should incorporate organizational goals, employee goals, and continuous feedback that reflect individual’s contribution (NorthCoast 99, 2012).
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
One of the most important resources of any organization is its employees, the human resource. This makes it very important that these resources are properly managed; so that they thrive and grow along with the organization. People stream defines performance management as “A process for establishing a shared workforce understanding about what is to be achieved at an organizational level. It is about aligning the organizational objectives with the employees’ agreed skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance work force”. The performance management process involves various stages such as goal setting, skills development, performance measuring against the set goals, mentoring/coaching to enable employees to focus and achieve their goals followed by assessment of performance and any further development plans as required. Let us look at these steps one by one.
Organisations worldwide are experiencing new challenges due to the increasing of globalization, business complexity and uncertainty in the economic climate. As the business environment becomes more knowledge based, we now see organisations in a different light. They are now knowledge driven institutes that focus on performance and continuous improvement, placing greater significance on human resources, their knowledge and capabilities. Singh (2013). Greater emphasis is now placed on performance management systems as it is seen an important and critical HR activity. However performance management is not a simple and uniform process it is a complex and lengthy process that requires total commitment from all levels of the organisation.
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and
Performance management is a continuous process that creates a working culture to encourage employees to improve their work performance and reach their full potential during their stay of employment. Performance Management also provides strategic direction, develop competency in employees and instill organization value. This paper will identify methods and affects that performance management plan has on the organization and their employees.