Principles of Organizational Performance Management

Principles of Organizational Performance Management

In the contemporary medical world, performance measurement is one of the key elements that steers the improvement of quality of care provided in healthcare organizations. Such is the case given that with performance measurement, the organizations are able to understand their current performance, determine areas of improvement, and evaluate how alterations in work processes affect their performance (Flynn, Mathis, Jackson, & Valentine, 2016). Given these crucial roles, it is beyond doubt that performance measurement is an important component for spearheading quality improvement in healthcare institutions. That said, an analysis of the organizational performance management is utmost significance. In essence, this paper focuses on the same since its emphasis is on the various principles oforganizational performance management. Central to the analysis are several thematic areas, namely, performance data scorecard, processes driving outcome measures, advantages of the performance data scorecard, current trends that relate to employee engagement and a plan of improving employee engagement.By addressing these aspects, a new understanding of the organizational performance management is inevitable.

Performance Data Scorecard

Of utmost significance in organizational performance management is a performance data scorecard whose main aim is to collect and measure outcomes. A performance scorecard is a simply a structured set of performance measure clustered together per the various aspects of performance (Frost, 2017). The performance scorecard provides leaders with information about an institution’s performance and the areas that are in need of their urgent attention. Essentially, this section aims to demonstrate the same by creating a performance data scorecard for a healthcare organization in which discharge delays are common partly due to factors associated with poor employee engagement.

Patient Population

Primarily, the target audience of this scorecard is the elderly patient population. The elderly persons are the center of interest given that they form part of the most vulnerable populations served by this healthcare organization. As such, improvement of the quality of care provided to them is vital if their vulnerability is to become non-existent.

Outcome Measures

Worth noting are the outcome measures of various performance indicators related to the elderly population. The indicators of interest include performance, quality, patient safety and employee engagement.

Performance. Primarily, the outcome measures for the determination of this indicator include but not limited to discharge by noon, and number of patients admitted every morning due to evacuated bed space. Discharge by noon metric will be obtainable from the hospital Admission/ Discharge/Transfer/ Registration (ADT/REG) system.

Quality. Patient satisfaction is the outcome measure that will envision the status of this indicator. The determination of the patient satisfaction levels with the discharge process will be achievable through the patients’ feedback about the process after its completion via face-to-face interaction or phone calls.

Patient safety. Central to the measurement of this performance indicator is the 30-day all-cause readmission rates and complications. The 30-day all-cause readmission rates and complication outcome measureswill also be attainable retrospectively from the ADT/REG system.

Employee engagement.Sherwood, (2013) is of the idea that employee engagement refers to the act of employees becoming more actively involved in the processes of an organization. Primarily, employee engagement is an important element leadership that ensures involvement of employees in the organizational processes such as decision-making. Consequently, the employees’ commitment increases since they own up the decisions made, feel more appreciated and motivated to be part of the organization. The outcome measure that will reflect this indicator is staff satisfaction level, whose realization will be through a survey tool that will depict staff’s staff satisfaction level with the discharge process.

Processes that Drive Outcome Measures

The processes that drive the identified outcome measures are also worth highlighting since they are also vital in the improvement of organizational performance. According to Webb, Angus, and Finfer, (2016) the process measures are the things done by individuals for the achievement of desired outcomes. In this case, processes driving outcome measures include sensitivity of services provided (patient satisfaction), involvement in decision-making processes (staff satisfaction), time of antibiotic use (discharge by noon and patient volume) and utilization of infection prevention measures (30-day all-cause readmission rates).

Additional Indicator for Leadership Monitoring

Other than the other performance indicators, the length of hospital stay is of the essence for leadership monitoring. That is for sure because it has the capacity to influence the other performance indicators. For instance, a reduced length of stay has the potential to decrease complications as well as increase patient and staff satisfaction levels (Kelly, 2012). Given such ability, nurse leaders must therefore monitor this indicator on a regular basis.

Advantages of the Performance Data Scorecard

The performance data scorecard bears several merits that are worth mention. A case in point of such benefits is that it drives better performance of an organization. For example, it assists the leadersof a healthcare organization toidentify the areasrequiring urgent attention for the improvement of performance. Additionally, the performance data scorecard also provides feedback to other stakeholders such as employees, whoalso seek to put more emphasis in areas requiring quick address (Frost, 2017).

Secondly, the performance data scorecard will also facilitate the tracking of strategy implementation. That is for sure since a scorecard translates the strategy into concrete terms, which essentially are easy to track. Despite scorecard’s reflection of operational issues, the development of this performance tool is also in a manner that points the attention to the strategy and future direction(Frost, 2017).

Notwithstanding, possession of this performance data scorecard in place will ensure that the institution has the right outcome measures. Such is the case given that in the absence of the same, implementation of the selected group of measures will in rare circumstances yield a new focal point or steer desired actions. As such, a well-thought-out performance model is of utmost significance. That is for sure since it will assist every stakeholder in the institution to come to terms with the outcome measures that belong or does not fit in the scorecard(Frost, 2017).

Furthermore, a scorecard will also encourage a balanced performance across all entities of an organization. Despite the need to execute daily operations, implementation of the strategic initiatives that prepares the institution for the future is also not an option. As such, a right balance between the operational and strategic factors is vital for the maintenance of organizational equilibrium(Frost, 2017). Central to the realization and maintenance of such equilibrium in this healthcare facility is the performance data scorecard.

Additionally, the performance data scoreboard will also encourage good management of the institution. Such a benefit is inevitable given that scorecards ensure readily and frequent monitoring of all the identified outcome measures. With regular and thorough evaluation, gaps noted at the top-level of management would ensure leaders at this level are able to investigate extensively the issues to establish their root causes (Frost, 2017). Given these illustrations, it is beyond doubt that the performance data scorecard will come with the advantage of thorough monitoring and timely corrective actions.

Finally, the performance data scorecard will also facilitate in the realization of the missing elements for better performance. Frost,(2017)is of the opinion that the basic role of scorecards is providing a comprehensive view of how an organization is fairing on in terms of performance. In the process of monitoring the performance, the gaps in the organizational performance will stand out. Consequently, the stakeholders are able to identify the areas of deficiencies and refocus their efforts towards the same.

Current Trends of Employee Engagement in the Healthcare Organization

In the contemporary world, approximately 44% of the workforce constitutes the engaged employees. Such a proportion is low and necessitates a refocus towards the same given that employee engagement profits an organization in several ways (Editorial Staff, 2014). Given the indispensability of the unequivocal role played by employee engagement, there is need for understanding the current trends associated with this phenomenon.

Primarily, the healthcare organization subscribes to the idea of utilizing performance appraisal tools in the evaluation of the performance. The commonly used tools for performance appraisals include self-appraisals, management by objective, peer reviews, 360 degrees feedback process and behavioral anchored rating scale (BARS). As reported by Belcourt, Bohlander, Snell, and Singh,(2014), performance appraisal ensures that employees have feedback of their current level of performance in comparison to the set standards. As such, this practice in the healthcare facility in part contributes to the full engagement of employees in the organizational processes.

Besides, the healthcare organization ascribes to a communication strategy that emphasizes mostly on the horizontal communication rather than the vertical (top-down) approach. Such a culture aligns with the current communication practices seen in the contemporary organizations. In essence, the horizontal communication allows the workforce to be more effective in its operations and seeing the impacts of their contribution. Consequently, the employee engagement increases since the employees have greater motivation levels after seeing their contributions to the organization’s processes (Sherwood, 2013). Based on such an illustration, it is beyond doubt that the horizontal communication strategy translates to employee engagement in the medical facility.

Employee Engagement and Healthcare Quality

Employee engagement translates to healthcare quality in a variety of ways that are worth mention. For instance, an increased employee engagement translates into more commitment by the employee in the activities of the organization. A high commitment of this kind inevitably results in an increase of the productivity of the employees. Such is the case given that employees have a greater motivation of providing care that is safe and tailored to the needs of the patient, which amounts to higher patient and staff satisfaction levels. With high satisfaction levels in these population groups, a high healthcare quality status is inevitable since they form part of the metrics used to evaluate this entity of performance(Editorial Staff, 2014).

Notwithstanding, employee engagement also ensures that employees own up the organizational goals and objectives and work towards realizing them. That is for sure since employee engagement results in persons feeling more appreciated since they are taking part in the decision-making process. As such, they have an enhanced morale in meeting the set standards for quality, which translates to a better healthcare quality (Flynn, Mathis, Jackson, & Valentine, 2016). Based on such an outcome, it is apparent that high employee engagement significantly results in a better healthcare quality.

Adequacy of Current Tools in Providing Employee Engagement Data

Precisely, the current existent organization tools bear the deficiency of not providing adequate information about the employee engagement. For example, the utilized tools are not specific on this performance indicator, which means the leaders are reliant on other indicators such as metrics indicating quality (readmission rates) for the determination of the level of employee engagement. Moreover, the tools used are also subjective in nature, which makes them vulnerable to human bias. A befitting example of such subjective tools is the survey form used to assess the staff satisfaction levels. In essence, such subjectivity makes the tools inadequate since they are unable to gather the most accurate information of employee engagement.

Plan for Improvement of Employee Engagement

Central to the improvement of employee engagement in the healthcare facility is the development of a plan that will indicate the goals, strategies for implementation and evaluation of measures. Primarily, staff engagement is reliant on five basic factors that one needs to understand before seeking to improve this phenomenon. They include a healthy and safe work environment, great management and leadership, involvement in decision-making, support for personal development and training as well as equal role contribution (NHS Employers, 2013).

Of the essence to this plan is the overall goal of improving the staff engagement in the organization. At the heart of realizing this goalarevarious objectives that align to the identified factors influencing employee engagement. They include increasing the proportion of discharges by noon as well as patient satisfaction levels, and reduce length of stay as well as the readmission rates.

Objective Strategy Evaluation Timeline
To increase the proportion of discharge by noon by 15% Utilization of a communication strategy that emphasizes the flow of information among the various stakeholders Monitor the discharges by noon 1 month
To increase the proportion of patient satisfaction level up to more than 90% Prepare the patient fully for the discharge process starting from the admission day to discharge day Qualitative survey of patient’s experience with discharge process 1 month
To reduce the readmission rates up to less than 10% Discharge patient after full recovery from a disease Monitor the readmission rates 1 month
To reduce the length of hospital stay up to 6 days Encouraging multidisciplinary collaboration during patient care, which will ensure the discharge is within the required timeline. Calculate the average length of inpatient hospitalization 1 month


Leadership Strategies for Improvement of Employee Engagement

Leadership is an important ingredient for the institutionalization of employee engagement in any organization. That is for sure since leaders have a role to play in the institutionalization of the same by coming up with strategies that aim at improving the employee engagement. As such, the identification of these leadership best practices is of the utmost significance. A case in point of such leadership best practices is showing interest in the employee’s well-being. Such a leadership strategy enables the employees to feel appreciated by their leaders and thereby motivated to participate actively in the organizational activities (Sherwood, 2013). With such a higher participation, it is beyond doubt that employee engagement will increase significantly.

Also, the use of team building activities is another essential practice that will improve the employee engagement. Such is the case given that the team building activities enables employees to know each other, which is a primary ingredient for building a sense of engagement among the social groups in the organization. Moreover, the team building activities also ensures that the individuals learn from one another as they interact (Editorial Staff, 2014). With such possibilities, it is beyond doubt that team-building activities increase employee engagement in an organization.

Another best leadership practice is showing trust and confidence in the job done by the employees. A leadership practice of this kind will increase the morale of the employees since they feel that their contribution receive the necessary appreciation from their organizational leaders. As such, this motivates them to become involved in the processes of the institution, which translates to higher employee engagement(Sherwood, 2013).

Utilization of performance management technology is another current practice associated with increased employee engagement. According to Sherwood,(2013) such a technology allows the leadership of an institution to match employee goals with the organizational initiatives and provide feedback of the performance throughout the year. Such provisions not only motivate the employees but also enable them to reprioritize depending on the areas requiring urgent address, which are pillars of employee engagement.

Last but not the least, inclusivity of employees in the decision-making process is another evidence-based strategy that will inspire higher employee engagement. Such is the case given that the employees are able to own up the resolutions made and feel more appreciated, which are crucial elements for employee engagement (Editorial Staff, 2014). Thus, an inclusion of employees in such situations is not an option if one intends to improve their engagement.


Concisely, this paper aimed at analyzing various principles of organizational performance management. Indeed, it has achieved this sole objective by addressing several thematic areas, namely, performance data scorecard, processes driving outcome measures, advantages of the performance data scorecard, current trends that relate to employee engagement and a plan of improving employee engagement. An implication drawn from this analysisis the unequivocal role played by performance management in various organizations. As such, organizations must institutionalize tools that will come in handy during performance management. In the absence of such a consideration, institutions will continue lagging behind in the identification of priority areas that they ought to put more emphasis for the improvement of their performance.




Belcourt, M., Bohlander, G. W., Snell, S., & Singh, P. (2014). Managing human resources.

Editorial Staff. (2014). How an Increase in Employee Engagement Improves Patient CareHealthcareSource Blog. Retrieved 14 August 2017, from

Flynn, W. J., Mathis, R. L., Jackson, J. H., & Valentine, S. (2016). Healthcare human resource management.            Boston, MA, USA: Cengage Learning.

Frost, B. (2017). Measuring Performance: Seven Good Reasons to Use a Retrieved 14 August 2017, from

Kelly, P. (2012). Nursing leadership & management. Clifton Park, NY: Cengage Learning.

NHS Employers. (2013). The staff engagement toolkit. Retrieved 14 August 2017, from

Sherwood, R. (2013). Employee Engagement Drives Health Care Quality and Financial ReturnsHarvard Business Review. Retrieved 14 August 2017, from

Webb, A. R., Angus, D. C., & Finfer, S. (2016). Oxford textbook of critical care. Oxford: Oxford University Press.


(Visited 2 times, 1 visits today)