Performance Management in Healthcare

Topic: Administration
Words: 1504 Pages: 4

The role of performance management and reward in healthcare is to ensure that employees in the sector are meeting defined standards and objectives. Incentives may be financial or non-financial and may be aimed at individuals or groups. One benefit of a well-designed performance management system is to help to motivate employees to achieve desired outcomes. It can similarly aid in identifying areas where improvement is needed and provide a framework for corrective action. Reward systems plays a key function in motivating employees but should be based on clear criteria and linked closely to performance. In performance management, the organization should communicate its objectives and reward its employees for attaining the goals.

Performance Management Components and Purpose (AC 4.1)

A performance management system in healthcare should include the following key components: objectives and measures, organizational strategy, and performance management processes. The organization’s strategy should be clear and aligned with the business’s overall goals (Brown et al., 2019). It should also be communicated to all employees to understand how their duties contribute to the organization’s success. Regarding objectives and measures, goals should be specific, measurable, attainable, relevant, and time-bound.

Furthermore, these objectives should likewise be linked to the strategic goals of the organization. Measures can be quantitative or qualitative and should accurately track progress towards objectives (Brown et al., 2019). Conversely, the purpose of performance management in healthcare is to ensure that all healthcare workers meet the standards and provide quality care to patients. Through performance management, individual workers can be held accountable for their actions, and the system can be improved by identifying and addressing problems (Brown et al., 2019). Performance management in addition, assists in ensuring that healthcare workers are properly trained and have the necessary skills to do their jobs. It can provide feedback on job performance, identify areas in which employees need improvement, and help to create a culture of accountability within the workplace.

Factors to be Considered in Performance Management (AC 4.2)

The main factors that need to be considered when managing performance are goal setting, task analysis, performance appraisal, training and development, and reward systems. Goal setting specifies desired outcomes that an organization wishes to achieve. It involves the identification of specific goals, developing action plans to achieve them, and allocating necessary resources (Madanat & Khasawneh, 2018). Task analysis is breaking down a task into individual steps to better understand and perform it. This involves identifying all the tasks required to complete a goal and determining which tasks are most important and how much time should be allocated.

Performance appraisal is a process by which individual performance is assessed and measured. This information is then used to identify areas in which an individual needs to improve their current level of performance. The appraisal may likewise be used as the basis for salary increases, bonuses, and other forms of compensation (Madanat & Khasawneh, 2018). Training and development usually refer to the ongoing process of providing employees with the necessary skills and knowledge to do their jobs, such as through on-the-job training. The development includes giving employees opportunities to grow and advance within the organization. It is vital to ensure that performance appraisal and training and development are considered when managing employee performance in a healthcare setting (Madanat & Khasawneh, 2018). Lastly, when designing and managing a healthcare system, it is essential to consider the role of reward systems in motivating behavior.

Performance Review Methods (AC 4.3)

Performance reviews are a key part of any workplace, and healthcare is no exception. There are a number of different methods that can be used to conduct performance reviews in the healthcare setting. One common method is checklists, which are used to evaluate everything from patient care to communication within the team (Brown et al., 2019). They provide a simple, standardized way to assess performance and ensure that best practices are being followed. Another method is using goal-setting tools such as scorecards or Balanced Scorecards. These tools help track progress towards specific goals and objectives and can be used to identify areas of improvement. Finally, many organizations also use 360-degree feedback reviews to improve their operations from the received reports. 360-degree feedback reviews are a performance review methodology where employees receive feedback from their superiors, colleagues, and direct reports (Brown et al., 2019). This review is often applied in the healthcare setting, where employees can provide input on their peers’ work performance. This review is beneficial because it allows for a more holistic view of an employee’s strengths and weaknesses.

Financial and Non-Financial in Reward System (AC 5.1)

There are many key components that are required to achieve an effective total reward system in a healthcare setting. The most important financial components are base pay, incentives, and bonuses (Madanat & Khasawneh, 2018). Base pay establishes a floor that employees feel they must reach, while incentives and bonuses provide an opportunity to earn more if they exceed expectations. However, non-financial components such as benefits, job security, and work/life balance are also critical to attracting and retaining talented employees. A healthy work/life balance allows employees to have time for their personal lives outside of work, while job security provides a sense of security that they will be able to keep their job. Moreover, a strong total reward system should include all of these elements to attract and retain the best talent in the healthcare industry. It is crucial to tailor the rewards to the individual employees’ needs and desires, as each employee is unique (Madanat & Khasawneh, 2018). By creating a customized total reward system, employers can ensure that they offer their employees the right financial and non-financial incentives.

Reward, Performance, and Motivation Relationship

The relationship between reward and performance is a two-way street. Employees who feel they are being recognized and rewarded for their hard work tend to be more motivated and perform better than those who do not feel appreciated. However, at the same time, good performance by employees should also result in some form of reward, whether it is a bonus, a raise, or public recognition (Nabi et al., 2017). The links between motivation and performance among healthcare employees are particularly important because of the critical role that healthcare professionals play in ensuring the well-being of patients. It is essential that hospitals and other healthcare organizations find ways to motivate their employees so that they can provide quality care for patients.

One way to achieve this is by offering employees financial rewards for good performance. Base pay rewards can motivate healthcare employees to perform better in the short term. However, incentives and bonuses are often more effective in motivating employees to achieve long-term goals. Incentives are typically linked to specific outcomes or behaviors, while bonuses are based on overall performance or a single exceptional achievement (Nabi et al., 2017). Both types of rewards can be effective in motivating employees, but they should be tailored to the individual to be most effective.

On the other hand, Non-financial rewards can motivate healthcare employees to perform better in several ways. First, they can provide a sense of satisfaction and pride in the work that is being done. This type of intrinsic motivation can lead employees to take greater ownership of their work and put more effort into doing their jobs well (Nabi et al., 2017). Second, non-financial rewards can help to create a positive work environment where employees feel appreciated and supported, thus leading to employees working cooperatively and feeling more motivated to do their best work. Finally, non-financial rewards can be an effective way to recognize individual achievement and boost morale.

Treating Employees Fairly (AC 5.3)

There are a few reasons why treating employees fairly concerning pay is important. First, fair pay is essential for maintaining a healthy workforce. Additionally, research has shown that a fair wage contributes to lower absenteeism and turnover rates and can even lead to increased profits (Nabi et al., 2017). Second, fair payment is right because people deserve to be compensated equitably for their work. Better payment will also help the healthcare institution attract and maintain the top talents, thus making more profit due to an increased and returning client base. Finally, treating employees fairly in terms of pay is a good business practice that should be embraced by any institution aiming at achieving its goals. When paid fairly, employees are more likely to be loyal and productive team members, thus serving the patients passionately.

In conclusion, performance management is essential to organizational success or growth. It ensures that employees meet goals and objectives and helps identify areas where they may need additional training or support. Conversely, goal setting, training and development, reward systems, task analysis, and performance appraisal are important factors to consider when managing performance in a healthcare setup. Additionally, non-financial rewards are essential for employee motivation because they help employees feel like their work is valuable and that they are contributing to something meaningful. In addition, financial rewards make employees believe they are fairly compensated for their work, thus effectively providing the best healthcare services to the patients.


Brown, T. C., O’Kane, P., Mazumdar, B., & McCracken, M. (2019). Performance management: A scoping review of the literature and an agenda for future research. Human Resource Development Review, 18(1), 47-82.

Madanat, H. G., & Khasawneh, A. S. (2018). Level of effectiveness of human resource management practices and its impact on employees’ satisfaction in the banking sector of Jordan. Journal of Organizational Culture, Communications and Conflict, 22(1), 1-19. Web.

Nabi, M. N., Ahmed, A. A. T., & Rahman, M. S. (2017). The empirical study on human resource management practices with special reference to job satisfaction and employee turnover at Investment Corporation of Bangladesh. Human Resource Management Research, 7(1), 54-64.

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