Background
Performance management guarantees that business objectives are realized. The Royal Middlesex Hospital (RMH) may benefit from performance management to enhance performance and address human resource concerns. Any organization’s operational and strategic planning incorporates performance management. It makes establishing objectives, tracking progress, and evaluating performance easier. It also allows employees to get regular performance feedback. A well-executed performance management system may boost productivity, morale, and resource management.
Several key elements are necessary for effective performance management. Setting performance targets/goals, monitoring performance, offering feedback, and taking remedial action are all part of this. Balanced Scorecard management connects a company’s operations to its vision and strategy. It monitors the performance of financial, customer, internal business processes, and learning and development.
Key performance indicators (KPIs) track an organization’s progress toward specific objectives, measuring performance in relation to its organizational goals. To fulfill its goals, the hospital must concentrate on its Key Result Areas (KRA). Patient safety, patient experience, employee happiness, financial success, and other vital areas are among RMH’s KRAs.
Challenges Faced by the Organization
Performance management issues plague the Royal Middlesex Hospital. It has seen an increase in demand for its services, which has resulted in a decrease in the financial surplus over its first two years. As a result, the hospital is under pressure to manage its finances while maintaining high-quality services (Armstrong, 2021). Staff satisfaction has declined over the last year, according to the hospital’s most recent employee attitude survey, despite the hospital’s commitment to equal opportunities, leadership and development initiatives, and nursing and midwifery training.
Despite the hospital’s nursing and midwifery education programs, this occurs. The long wait times and the perception that the wards are filthy may explain this. The RMH has a higher turnover rate than comparable hospitals in London, which may be attributed to low wages and limited opportunities for advancement. When compared to other hospitals of a comparable size, the RMH has a higher level of absenteeism among its employees. This is probably due to poor performance management and a high proportion of employee dissatisfaction.
The hospital has an evaluation and performance management system in place; however, it is seldom used. As a consequence, performance management suffers. The majority of workers believe that being promoted is determined by how long they have been with the firm and how much they agree with their management (Armstrong and Armstrong, 2021). Furthermore, there is little control over job-specific competencies.
Current Performance Management System
The performance management system currently in place at RMH is neither as effective nor as efficient as it could be. There is inconsistency in the application of the staff assessment and performance management program, and employees get the impression that advancement is dependent on length of service and getting along with their boss (Fotovatfard and Heravi, 2021). The team leaders possess a significant amount of technical competence, but they lack the requisite managerial abilities. This results in a lack of responsibility, which in turn implies that inadequate measures are not taken to correct poor performance.
Performance Targets
Setting clearly defined performance objectives and goals is an absolute must if RMH is going to see any kind of improvement in its work. These goals must be formulated with reference to the distinctive needs of the medical facility, and they should be shared with the entire personnel (Fotovatfard and Heravi, 2021). The performance goals that the hospital sets should be reasonable and attainable, and they should be consistently monitored and evaluated.
Resource Management
The management of resources is a crucial component of delivering services, requiring the effective allocation and distribution of all relevant resources, including human, material, and financial assets. RMH needs to design a resource management strategy that is regularly updated and communicated to the workforce to ensure the efficient use of available resources (Fotovatfard and Heravi, 2021). The plan should define the roles and responsibilities of key personnel, outline the available budget for resources, and establish the criteria for allocating funds.
Customer Service
At the RMH, there should be a policy that emphasizes the importance of customer service as an essential component of service delivery and that it should be treated with utmost importance. The hospital should establish performance goals for customer service that align with the institution’s values and vision for the future of the hospital. These goals must be presented to every team member and monitored and evaluated consistently (Fotovatfard and Heravi, 2021). In addition to this, the hospital has to guarantee that all of the personnel receive training in customer service and that the standards for customer service are maintained.
Financial Viability
It is essential to exercise caution when managing a service’s financial viability, as it is a crucial component of delivering the service. The hospital needs to establish performance goals for the financial sustainability of the institution that are reasonable and doable (Fotovatfard and Heravi, 2021). In addition to this, the hospital must ensure that all employees are informed of the available budget as well as the criteria used to distribute funds.
The hospital must establish clear performance objectives and goals across all key facets of service delivery. These goals must be set in accordance with the specific requirements of the healthcare organization and communicated to all staff members (Schleicher et al., 2018). Additionally, the hospital must ensure that all employees receive the necessary training and continue to maintain high standards of customer service. Additionally, the healthcare facility must develop a strategy for allocating its resources and ensure that every staff member is aware of both the available budget and the criteria for allocating funds.
Achieving Performance Targets
Tracking Progress
It is essential to monitor one’s progress toward achieving performance targets or goals to confirm that one’s organization is heading toward its objectives. It is vital to keep a close track of the organization’s development and evaluate it on a regular basis to pinpoint any areas that may need improvement and ensure the organization is on the right path to achieving its objectives (Boerma et al., 2018). Monitoring progress enables the organization to evaluate if its resources are being utilized effectively and efficiently. This, in turn, enables the organization to make changes promptly, should such adjustments be required.
RMH should track its progress toward achieving its resource management goals to ensure the organization is on the right path to accomplish its objectives. To ensure that resources, such as employees, infrastructure, and financial resources, are utilized as productively and efficiently as possible, regular evaluations of these resources are necessary (Armstrong, 2021). The monitoring should also include monthly budget assessments to verify that the organization is on track to achieve its financial goals, ensuring that the tracking is effective.
RMH should monitor progress toward meeting customer service goals to ensure the organization is on pace to achieve its objectives. Customer service criteria, such as response times and customer satisfaction levels, should be reviewed on a regular basis to ensure that they are satisfied (Boerma et al., 2018). Regular assessments of customer service training should also be included in the monitoring to ensure that all workers are effectively taught in customer service.
The RMH must monitor its financial performance regularly to ensure it achieves its goals. This oversight should include monthly reviews of the budget to verify that the organization is on track. Additionally, it should frequently assess the criteria used for awarding cash to make sure resources are being utilized both effectively and efficiently.
The organization must track its progress in meeting financial targets to ensure it is on the right track. Monitoring should include doing frequent budget assessments to determine whether or not the company is on track to meet its financial objectives. It should also include frequent assessments of the criteria for allocating funds to ensure that existing resources are used in the most productive and time-saving manner feasible.
Improving Cost-Effectiveness through Comparison
It is essential to evaluate the RMH’s performance in comparison to that of other organizations in order to enhance the cost-effectiveness of the services that are provided. This can be achieved by examining the performance measures used by the RMH and comparing them with those of comparable organizations (Fotovatfard and Heravi, 2021). For instance, the Royal Melbourne Hospital is able to evaluate its rates of employee satisfaction, staff absenteeism, and staff turnover in comparison to those of comparable organizations.
By analyzing these measures, the RMH can determine the areas in which it outperforms other organizations and those in which it underperforms compared to them. The results of this study can then be applied to the development of plans and policies that can be implemented to enhance the RMH’s cost-effectiveness. Performance management offers a number of opportunities for enhancing the cost-effectiveness of service delivery at the hospital, which includes a number of different approaches.
To begin, if the hospital were to perform an employee attitude survey, it would be able to gather significant information about the status of staff morale and the degree to which employees are satisfied with their jobs. This will give the hospital the data it needs to identify areas of unhappiness and underperformance, allowing the hospital to implement adjustments that will enhance the organization’s performance as a whole (Neumann et al., 2018).
Second, implementing a performance management system based on competencies enables employees to be rewarded and recognized for their accomplishments, while also facilitating the identification of underperforming employees and providing the necessary support and guidance to help them improve their performance. This will guarantee that workers are assessed fairly and that their performance is tracked and managed efficiently. It will also ensure that evaluations are completed in a timely manner.
Thirdly, the hospital can ensure that high levels of employee motivation are maintained and that employees are held accountable for their performance by integrating a performance management system that recognizes and rewards employees for achieving their goals and objectives.
Because of this, workers will have a greater sense that they are respected and appreciated, which will contribute to a decrease in employee turnover and an increase in job satisfaction (Burlea-Schiopoiu and Ferhati, 2020). In conclusion, the hospital is in a position to ensure that employees receive the direction and support they need to reach their full potential, and that their performance is effectively monitored and managed, by instituting a system that requires regular performance reviews.
Key Performance Indicators
KPIs are key metrics that are used to evaluate the accomplishments of an organization or a project. The staff turnover rate is an indicator that determines how often employees quit their positions at the institution (Burlea-Schiopoiu and Ferhati, 2020). A low level of work satisfaction, which may in turn lead to a drop in productivity, is reflected in an employee turnover rate that is high. The RMH has to keep a close watch on the turnover rate of its employees and take active measures to bring it down.
The next indicator concerns the proportion of employees who fail to report for work. Excessive absenteeism may result in lost output as well as an increase in costs due to the necessity for agency personnel. At the hospital, it should be monitored, and measures should be made to reduce absenteeism (Armstrong, 2021). Another KPI measures employees’ levels of satisfaction with their employers (Burlea-Schiopoiu and Ferhati, 2020).
A high level of staff satisfaction indicates both a good working environment and a commitment to providing exceptional patient care. The RMH must prioritize maintaining high levels of employee satisfaction. One approach to assess the usefulness of this statistic is to look at how effectively the job assessment system now in use at the Royal Middlesex University performs. It is possible that doing so will be advantageous in identifying any potential system issues as well as any components that require upgrading.
Patient satisfaction is the KPI, which assesses the extent to which patients are pleased with the hospital. It is an indication of a dedication to delivering outstanding patient care when there is a high degree of patient satisfaction. It is important for the RMH to work hard to achieve and maintain a high level of patient satisfaction. Performance in terms of money is a KPI that assesses how well the hospital is doing financially (Armstrong, 2021). If the hospital is able to maintain a solid financial performance, it shows that it is able to serve its patients with high-quality treatment and services.
It is important that the RMH does all it can to maintain its solid financial performance (Fotovatfard and Heravi, 2021). These KPIs will offer the organization a clear view of the hospital’s overall performance. By monitoring these KPIs, the hospital can identify areas for improvement and take appropriate action. Furthermore, these KPIs may be used to assess the performance of any initiatives or projects performed by the hospital.
The figure above illustrates the key healthcare KPIs and indicators for operations, revenue, engagement, and the contact center. Patient wait time, staff-to-patient ratio, and patient follow-up are all examples of operations. Revenue is comprised of the patient lifetime value and the patient churn rate. Patient satisfaction and the patient-to-worker ratio are examples of engagement. First contact resolutions and average hold time are included in the contact center. All of these KPIs and measures may be used to assess and improve the efficiency of healthcare operations, revenue, engagement, and contact center operations (Fotovatfard and Heravi, 2021). They are crucial for evaluating and enhancing healthcare performance.
The RMH NHS performance management system needs to be upgraded to ensure that personnel are performing to the required levels and that the organization is meeting its goals. To do this, set clear performance goals and objectives, develop a competency-based approach, conduct frequent performance reviews, provide feedback and assistance, and implement a rewards and recognition plan (NHS Improvement, 2021). The Royal Middlesex may ensure that its goals are achieved, its workers are satisfied, and its performance is enhanced by implementing a performance management system. This will enable the hospital to become a model employer while also enhancing the quality of care provided.
Proposed Performance Appraisal System
The first step in implementing a performance management system is to establish performance management objectives. These objectives should be clearly defined and measurable. For example, the objectives for the Royal Middlesex could be to improve employee satisfaction, reduce staff turnover, decrease waiting times, increase ward cleanliness, and enhance the quality and consistency of job performance.
Once the objectives have been established, the next step is to establish performance standards. These standards should be specific and measurable and should be linked to the objectives. For example, standards for improving employee satisfaction could include increasing employee engagement levels, reducing staff absence levels, and enhancing communication between staff and management (Fotovatfard and Heravi, 2021).
Additionally, it is necessary to implement a performance management system. This system should encompass a job evaluation system, a performance appraisal system, and a system of rewards and recognition. The job evaluation system should be used to determine appropriate levels of pay for each job position. The performance appraisal system should be used to measure and evaluate employee performance. The rewards and recognition system should be used to reward employees for meeting or exceeding performance standards.
Performance monitoring and evaluation are done regularly to ensure that the performance management system is functioning properly. Keep track of employee performance and provide frequent feedback by utilizing this input to make critical improvements to the performance management system, ensuring its effectiveness. To ensure staff performance, competency-based evaluations should be used, which entail evaluating employees based on their performance rather than their tenure or management experience.
Staff can achieve their performance goals with regular feedback and assistance. This should include both positive and constructive feedback, as well as assistance and coaching, to help individuals develop their skills. Motivate and engage employees by implementing a rewards and recognition program. This could include awards for meeting goals and recognizing outstanding performers. Finally, a pleasant work environment motivates employees to do well. Providing a supportive work environment, praising success, and providing opportunities for growth and development may help.
The above figure of a scoreboard is a visual representation of an organization’s success, providing a glimpse into its performance across various operational areas. It reveals the organization’s financial, customer, and internal operations health at a glance. Each viewpoint is divided into objectives, metrics, targets, and activities that illustrate what is vital and how the company is going. The scoreboard helps identify areas of success and those that need improvement, allowing for timely and effective modifications to ensure long-term success (NHS Improvement, 2021). It acts as a reminder to keep on course and achieve the organization’s goals and objectives.
Reference List
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