Council of Cooperative Health Insurance: Performance Management Proposal

Background

This performance management system (PMS) illuminates the strategic and integrated processes that will be employed by the Council of Cooperative Health Insurance (CCHI) to not only assess employees and develop their capabilities and competencies, but also to improve their performance and apportion rewards (Decramer, Smolders, & Vanderstraeten, 2013). Additionally, the PMS shows how employee performance will be measured and managed with the view to enhancing organizational effectiveness and improving outcomes for employee motivation and development (Dewettinck & van Dijk, 2013).

The main objectives of this PMS include: enabling employees to move toward the attainment of optimal standards of work performance; helping employees to identify the knowledge and competencies required to perform optimally in work-related settings and achieve professional growth; and promoting a collaborative communication approach and a transparent appeal mechanism.

Organizational Strategy

Purpose

The CCHI is an autonomous government agency established in 1999 to regulate the health insurance in Saudi Arabia by overseeing the implementation of the health insurance system, supervising and controlling health insurance companies, and coordinating health service providers (Vision & Mission, 2016). The agency employs less than 200 employees, with available literature demonstrating that most of these workers need specialist training in health insurance to achieve effectiveness in meeting the needs of the market (The Report, 2014).

Vision

The guiding vision of CCHI is “to provide the cooperative health insurance coverage for all targeted population in a way [that maintains] their rights” (Vision & Mission, 2016, para. 1). This vision underscores the need for employees to provide client-focused and results-oriented services in a way that respects the rights and freedoms of various customers.

Mission

The agency aims to not only ensure the introduction of competent health insurance companies and certified health care organizations into the public and private domains of the Saudi economy but also to ensure that these entities are coordinated and supervised well to facilitate them in providing superior and more inclusive health insurance services to the beneficiaries of the Act. Additionally, CCHI intends to “form a binding relationship with a society based on a [strategic] partnership with all the parties involved” (Vision & Mission, 2016, para. 2). The agency’s overarching objective, therefore, is to regulate, coordinate, and supervise the health insurance industry in the country by bringing players together to ensure efficient delivery of services.

Systems

Results

Employee results are defined in this PMS as all the job-related outcomes that directly and indirectly assist the agency to provide client-focused and results-oriented services to the target population. Results can also be defined as “what needs to be done or the outcomes an employee must produce” (Aguinis, 2009, p. 15). These outcomes will be measured as performance standards in key areas such as employee’s overall impact to the organization, employee’s ability to implement best practices, employee’s ability to meet and surpass customer/client expectations, employee’s ability to complete assigned roles and responsibilities, employee’s aptitude to work in teams and interprofessional settings, and employee’s ability to ensure customer satisfaction and minimal complaints in work-related settings (Bracken & Church, 2013).

The PMS underscores the need to measure these outcomes as a vital component of evaluating the value of employees and management activities in assisting the agency to assume a proactive and client-focused approach in regulating the health insurance system in Saudi Arabia. Additionally, the need to measure employee results is consistent with the views of many scholars who argue that the outcomes of work (employee results) enable organizations to evaluate how well they are meeting their strategic objectives and satisfying customers (Decramer et al., 2013). Drawing from these expositions, this PMS outlines a multi-dimensional model that will be used to measure employee results based on the outcomes indicated above. The model utilizes the following levels of measurement:

1. unacceptable;
2. minimally successful;
3. fully successful;
4. exceed expectations;
5. outstanding.

Appraisals

In performance management literature, appraisals are defined as continuous or fixed assessment processes that aim to evaluate “the extent to which the desired behaviors have been displayed and whether the desired results have been achieved” (Aguinis, 2009, p. 22). This pm uses an appraisal system that attempts to link the goals and objectives of employees to those of the agency with the view to reinforcing employee behaviors that are consistent with the achievement of its mission of regulating, coordinating, and supervising the health insurance industry in the country by bringing players together to ensure efficient delivery of services.

Employee appraisals will be conducted using a three-tier system (employees, respective line managers/supervisors, and peers) that will enable the parties involved to take full ownership of the assessment process. The line manager or supervisor will be expected to complete his or her appraisal form based on own evaluations of the level to which the employee has been able to achieve the goals and objectives stated in the development plan. The employee will then be asked to self-report their perceptions by completing an appraisal form, after which peers or other subordinates will be asked to rate the employee according to the same standards contained in the development plan. All the assessments will utilize a three-point Lickert-type scale using the following ranking levels:

1. needs improving;
2. good;
3. excellent.

It will be up to the line managers and/or supervisors to determine if the appraisals will be done continuously or after a fixed period (e.g., biannually or annually). The three-tier system not only enables managers to note discrepancies between self-rated views and the views of others regarding a particular employee but also minimizes employees’ defensiveness during the appraisal process with the view to enhancing their satisfaction with the PMS (Bracken & Church, 2013). Although the three-tier appraisal model may be time-consuming, it will enhance the perceptions of precision and fairness by using three sources of information and allowing the employee to become an integral part of the appraisal process, hence enhancing acceptance of the system.

Compensation and Benefits

Compensation is defined in this PMI as “all forms of pay going to employees and arising from their employment” (Nazir, 2010, para. 4). Because CCHI is a governmental agency, employees will receive financial rewards based on their job group, merit, and level of experience as espoused in Saudi labor regulations. CCHI’s HR office and management will take a proactive stand to ensure employees get fair and competitive financial remuneration of their services based on the parameters set by the government and labor agencies, including those regulating annual increases.

CCHI will use the benefits program to not only enrich employees’ lives but also to boost their engagement, performance and job satisfaction (Nazir, 2010). The benefits program will include rewarding employees with non-financial incentives (e.g., branded cell phones, training workshops and seminars, and extra leave days) due to their exemplary performance in key indicators of customer service, teamwork, leadership, and capacity to implement best practices that are critical in enabling the agency to perform its core functions of regulating, coordinating, and supervising the health insurance industry. The key indicators will be assessed by competent HR representatives during the appraisal period. The measures that will be used to assess the indicators include “excellent”, “very good”, “good”, “average”, and “poor” (Singh, 2012).

Implementation Factors

Communication Plan

It is important to develop an effective communication plan to ensure that managers and employees of CCHI can access and understand all the relevant information regarding the performance management program (Wibisono & Khan, 2010). The communication plan contained in the PMS is embedded in the need to ensure that CCHI’s employees develop an adequate understanding of their performance and what they need to do to meet the agency’s objectives as spelled out in the appraisals. Additionally, the plan will aim to communicate “the supervisor’s expectations and what aspects of work the supervisor believes are most important” (Aguinis, 2009, p. 6).

The communication plan will ensure that employees’ appraisal results are not exposed to third parties by using private techniques (e.g., one-on-one communication, secure work emails, and cell phones) to communicate directly to workers, rather than displaying their results on notice boards or the agency’s official website.

CCHI’s HR office will establish an effective communication strategy (e.g., use of office emails and sensitization meetings) to ensure that employees develop an adequate understanding of the purpose, intentions, and the processes used by this PMS to assess their performance. Additionally, formal communication strategies will be used to inform employees on when the appraisals are to be conducted and how feedback will be provided. The HR office must use trustworthy communicators when addressing employee performance issues to not only create a positive attitude during the appraisal and feedback processes but also to enhance the capacity for employees to accept the outcomes (Turk, 2016). The professionals engaged in rolling out this program must provide facts and use multiple channels of communication to minimize cognitive biases (Singh, 2012).

All issues touching on the performance review will be addressed professionally using a two-way transparent and inclusive communication approach that will locate employees at the center of the whole process to enable them to vent their past grievances and develop a high level of confidence in the PMS (Vo & Stonton, 2011). Lastly, e-trainings, e-tutorials, and open character workshops will be used to ensure an optimal understanding of the issues involved.

Appeal Process

This PM recognizes the fact that CCHI’s employees have the right to question judgmental and administrative issues arising from the process of assessing their performance in work-related settings. For example, employees may question the validity of the assessment measures used or issues touching on whether the policies and procedures governing the agency were followed as required (Buckingham & Goudall, 2015). If an employee has valid concerns related to the performance evaluation process, they will be required to liaise with the HR department within seven working days to register the complaint by completing the evaluation appeal form.

Any appeal received by the HR department will be conducted with diplomacy and impartiality by not only aspiring to construct and provide the best possible information but also ensuring that confidentiality and respect for the employee are maintained (Decramer et al., 2013).

The first step of the appeal process will entail undertaking a confidential investigation to gather important information from the employees, the supervisor, and other interested parties. After the presiding HR representative reviews all the relevant facts, policies and procedures, he or she will be required to post a recommendation for resolution to relevant parties in the appeal. If the negotiated settlement is declined by the parties, the appeal will proceed to the second step of the appeal process to be handled by a special performance evaluation committee consisting of a facilitator from the HR office, employee labor representatives, and representatives of the agency’s board (Wibisono & Khan, 2010).

Here, the committee will be given seven working days to review all the issues relating to the case and then make a ruling based on the evidence collected from the parties to the appeal. If the negotiations do not bear fruit in this stage, the appeal will be referred to as the senior management of the agency for redress. The agency’s senior management (third step) will be expected to make a final and binding decision on the appeal.

Employee Development Considerations

CCHI will always strive to provide its employees with career and personal development opportunities using innovative techniques that comply with state labor regulations and standards. Being an autonomous governmental agency, CCHI is obliged to operate within the frameworks and regulations for employee development provided by the state. However, the agency will employ innovative and organization-specific approaches to ensure the personal and professional development of its employees.

CCHI has realized that most of its employees lack the skills and competencies required to work in the health insurance sector (The Report, 2014). To address this gap, the agency intends to liaise with the government to ensure that a resource pool is provided to facilitate employees to study health insurance courses at universities through scholarships. CCHI will also liaise with the government and education stakeholders to facilitate the development of a prospectus in health insurance and related studies. Such a prospectus will address the deficits being experienced about the development of competencies and skills in health insurance (The Report, 2014).

The agency is committed to providing its employees with sabbatical leaves and tuition financing to trigger professional knowledge advancement in critical skill areas. The loans are easily accessible to employees and are repaid with extremely low interest to ensure that more employees take advantage of the opportunity (The Report, 2014). Once the employees complete their academic courses, they are reintegrated into the agency and promoted to boost performance, motivation, and engagement.

A major component of this PMS relates to not only identifying areas where employees are deficient in knowledge and skills but also advising them on what they need to do to bridge the gap (Aguinis, 2012). The agency will take active steps to ensure that employees receive adequate feedback that will enable them to individualize their career trajectories and address the knowledge gaps identified in the performance review process (Dewettinck & van Dijk, 2013). Additionally, CCHI will attempt to provide in-house training opportunities to its employees to cover for the deficits identified in the performance review.

Lastly, the agency plans to use the outcomes of its performance reviews to develop an organizational culture that will ensure that employees are facilitated to realize their personal and career objectives. Once the main employee issues are identified in the performance reviews, it will be possible to develop and implement a culture that will locate learning and career development at the core of the agency’s operations.

References

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Wibisono, D., & Khan, M.K. (2010). The conceptual framework of a knowledge-based performance management system. Gadjah Mada International Journal of Business, 12(3), 393-414. Web.