Importance of performance management system
Discuss about the Management System Can Be Applied To Healthcare.
The present report provides a deep insight of how performance management system can be applied to healthcare organization. To, demonstrate how PMS can be applied to organization, Emirates Red Crescent- a health organization located in UAE has been considered in the report. Performance management system (PMS) is essentially required for measuring organizational and employee performance and measurement of overall performance further helps to identify the strength and weaknesses of the organization with respect to services. In this context, Gelens et al. (2014) mentioned that a skilled workforce remains or is considered as the lifeblood of every firm because when the war of talents escalates, firms rapidly learn the importance of choosing the right people.
Particularly, in the health sector, it is highly important to have right people to develop and maintain a quality service. However, it is often observed that several organizations find themselves guilty of treating performance management as a yearly event. Scholarly studies show that a firm with an ongoing focus on performance management gain better outcome. Gruman & Saks (2011) particularly mentioned that firms where employees review their goals frequently are 40% more likely to gain above-average financial performance. Therefore, considering such aspects and new practices, the present report provides an effective performance management plan for Emirates Red Crescent. The purposes of the report is to evaluate the current PMS used by firms in health sector and develop a suitable PM plan for the organization.
A study on talent management conducted by Zaman and Lehmann (2013) reveals that performance appraisals and assessments remain as just a single piece of skill management puzzle. The author insisted on the fact that to develop an empowered as well as skilled workforce, the organizations should do more than auditing employee achievements. The firms should work following a management cycle where the judgment is never a fundamental focus; instead, ongoing support as well as improvement should be more important.
Emirates Red Crescent’s strategies: The organization works to support and serve the community in the “peacetime”. Peacetime means that the firm focuses on developing awareness programs, provide first protection, have control over the epidemics, take attention to the social issues, and provide different humanitarian assistance for the victims, needy people and other patients (Rcuae.ae 2018).
Vision: The vision of the Red Crescent is to reinforce Authority’s role in the field of humanitarian work domestically.
Mission System: “A continuous improvement to enhance service and achieve excellence”
The performance management practices at Red Crescent is not effective enough to develop a skilled workforce and achieve desired performance. This is because the organization pays more attention to service quality and people’s need but an adequate attention lack in talent management. Red Crescent believes in annual appraisal and employee performance when it comes to measure performance. However, Al Afari, and Elanain (2014) mentioned that in 2015, around 15% of doctors as well as around 13% of nurses left the jobs in UAE and to excel in their career, they joined the medical centre in U.S or Europe. The purpose of such employees is to hold administrative positions and such departures have increased awareness to wider human capital issues, which are affecting Red Crescent. Karantzas et al., (2012) has also mentioned that licensing of Broad Certified Physicians in UAE is not transparent, which leads to issues in recruiting as well as retaining staffs and further resulting in understaffed healthcare setting.
Challenges faced by healthcare organizations
According to theory X of McGregor, managers or the supervisors tend to consider a pessimistic view of their people as well as the leaders assume that they are typically unmotivated and dislike the work (?ahin, 2012). Consequently, the employees should be rewarded and promoted or penalized essentially to ensure that they complete their tasks. However, in the case of Red Crescent , the employees lack motivation and they do not find growth opportunities in the organization. To bring employee attention to the assigned tasks, the leaders under an autocratic culture guide employees to go towards the desired direction and the employees are supervised at every step. However, this practice eventually hamper’s employee attention as in every step, they need to take consent of their supervisor, which means they do not have freedom to do their work own in accordance with the situation. Such practice often created pressure on the employees at Red Crescent, UAE.
On the other side, the theory Y of McGregor implies that supervisor need to have an optimistic view about the people in the organization and where the supervisors work under a decentralized and participative management style. However, to implement workforce management practice, the organization must develop an open communication style where the employees can share their views or issues regarding the work (Kopelman, Prottas & Falk, 2012). Nonetheless, the current management practice in the organization implies that employees work under a layer of management, where the supervisors cannot be reached and approached through an open communication. Consequently, as the employees are not able to share their concerns and they grow a state of sense their employer is not listening to them. Eventually, they switch to other firms with better growth opportunities. Thus, the following appraisal system could help to enhance employee performance and resolve the encountered issues
A study conducted by Cousin et al., (2012), on managing human resource, mentions the fact that employees stick to an organization when their basic needs, wages, work culture, remuneration, scope career opportunities are met. However, Gruman, & Saks (2011) mentioned that to reward or compensate employee adequately, an employer needs a proper and fair appraisal system. Thus, following are some of the elements of an effective performance appraisal can be applied to Red Crescent.
Goals setting and revising: Every stuff needs a clear understanding of expectation for their job roles and responsibilities. As put forward by Guest (2011), employees need a clear context, which must include an understanding of where they fit into as well as how they contribute to overall success of the firm. To implement this, for example, Red Crescent could develop executive objective setting, which passes into the managers, team and individual setting. Red Crescent allows its workforce with higher sets of business goals with clear priorities and direction. This practice must ensure that employees in the organization can sense the ownership in the business through their individual goals and objectives.
Development planning: Annual appraisal is being obsolete now days; thereby, the employees need regular feedback on their performance as well as particular details on how they can enhance their performance (Zhu, Kraut & Kittur, 2012). For example, supervisors of service volunteering department at Red Crescent identifies that employees’ approaches of collecting details from the patients are not polite. Here, supervisors ask employees to change this particular approach in the feedback. Such practice helps to identify the skill gap and once it identified, the workers have clear understanding about how they need to improve if they want to excel in their career.
Emirates Red Crescent’s performance management practices
360-degree feedback: This technique includes receiving feedback regarding a employee from the people who interact with him/her (Rajput, 2015). They can be peers, subordinates, superiors, clients and the employee himself should be interviewed regarding his perception of being self as well as responsibilities towards the job. This method is effective because, the best way to review an employee’s overall performance and gain understanding about that person’s behavior, attitudes and personality. Such process could time-consuming but it is cost effective as well precise. As there are several parties are involved in the process, the chances of biasness are limited.
In order to implement compensation, some significant factors such as budget allocation, develop salary ranges, salary audits, benefits package, performance management, legal compliance and other should be considered during the implementation of compensation package.
Budget Allocation: As put forward by Boachie-Mensah and Seidu (2012) the compensation strategy must include firm’s approach to stipulating dollar into salary and benefits. Based on the budget available, Red Crescent needs to stipulate the compensation budget, the percentage of salary and incentives. For example, particularly for a budget of $1000, if almost 90% is salary and remaining 10% is benefit, the firm needs to determine that how 10% of benefits should be allocated or spent- such as 7% on the benefits of health, almost 2% particularly on the retirement and rest 1% on reimbursement.
As mentioned by Ochoti et al., (2012) developing salary range remains vital to ensure that workers’ pay is competitive with other firms in the sector. In such context, while developing the salary range, Red Crescent needs to observe market structure and industry pay roll system. More specifically, Red Crescent is financially stable in the market; it could internally perform a research to learn the market trends. The organization needs to make sure that the pay structure is slotted and it matches the job description.
Salary Auditing: It is certain that each market has become dynamic due to instability in the economy; therefore, to deal with such dynamic environment, Red Crescent could carry out a routine salary audit to make sure that salary range is reflecting the present compensation trends in a specific industry. Emirates Red Crescent , while carrying out the audit, the goal should be, to determine how competitive are the jobs what are the demands of external market. Another significant element associated with this factor is that it is necessary for the firm to focus on the current market changes to stay updates as failing to deal with the competition could lead to loss of key employees (Bernardin & Wiatrowski, 2013).
Benefit package- Besides salary, many organizations use benefit package to attract and retain employees. Hence, Red Crescent’s major goal is to be competitive with retirement, reimbursement and other associated benefit because this could be an understanding factor for the candidate who is in the dilemma of accepting or leaving a position from a firm.
Besides effective salary structure and performance management system, another significant area that organization needs to focus on is, how human resource department of the firm communicates the entire PMS process to its employees (Gruman & Saks, 2011). The human resource department of the firm needs to develop an open communication culture where, they could share organizational strategies – such as the pay structure with the employees or through such open communication, they can identify employees’ needs and demands. Once employees’ needs are internally identified, it would be easy for the management to develop performance and pay structure. Due to multiple layers in the communication, employee demands are often unheard, which eventually employee dissatisfaction.
Theory X and theory Y management styles
Employee approaches or appeal process is a significant factor, which should be considered in the performance management system. In order to avoid internal employee issue, employees should be provided with the ways to communicate with the management. This means Red Crescent could develop a direct communication approach, where the employee can directly appeal to the management or approach HR managers to share their concern. In addition, Red Crescent could develop a weekly “employee grievance sharing session” where all employees could share their personal concern with the HR executives.
As put forward by ?ahin (2012) in most of the organizations, the employee development programs are considered to completely tied to retention, leadership, job satisfaction and overall firm’s rating. To implement employee development consideration, Red Crescent could pay attention to three major elements such increased employee retention, job satisfaction and improved attitudes. The organization need to plan and implement a training and development program where these three variables should be incorporated. The firm could plan for a weekly training and development session, where in each week, the employees should be provided with skills and knowledge development programs with respect to healthcare services such as skill of approaching patients in convenient manner.
Conclusion
Above-presented analysis and discussion helps to conclude a healthcare sector in UAE have observed an increasing of employees turnover caused by limited employee growth opportunities and inadequate performance management system. Consequently, Emirates Red Crescent had to observe a vulnerable loss of key employees. Thus, by identifying the basic managerial issues with respect to PMS, appropriate performance appraisal method has been provided to the organization. However, the market environment is rapidly changing; thereby, the firm needs to think of more dynamic process to design and develop performance management system.
References
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Cousin, G., Mast, M. S., Roter, D. L., & Hall, J. A. (2012). Concordance between physician communication style and patient attitudes predicts patient satisfaction. Patient education and counseling, 87(2), 193-197.
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Rcuae.ae. (2018). Emirates Red Crescent. Emirates Red Crescent. Retrieved 12 March 2018, from https://www.rcuae.ae/home_page_en.aspx
?ahin, F. (2012). The mediating effect of leader–member exchange on the relationship between Theory X and Y management styles and affective commitment: A multilevel analysis. Journal of Management & Organization, 18(2), 159-174.
Zaman, A. U., & Lehmann, S. (2013). The zero waste index: a performance measurement tool for waste management systems in a ‘zero waste city’. Journal of Cleaner Production, 50, 123-132.
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