Good Performance Management Systems: Essay Example

Introduction:

Performance management is a comprehensive process that ensures that ensures that the performance of individuals and teams of employees works towards achieving the business goals and objectives (Demartini, 2013). In this regard, an operational system governing performance and employees’ behavior is put in place. The system establishes a mutual understanding on what is to be achieved and develops an approach on how the set goals will be achieved. The process combines key elements of good human resource management practices such as, learning and skills development, performance appraisal, and organizational development.

Relevance of performance management systems:

The initiative focuses on achieving high levels of organizational performance, while linking all aspects of the business and all the stakeholders. This attribute makes the system integrated. Performance management relates to every organizational activity based in the context of human resources policies, tradition and culture, and communication systems. Therefore, a performance management system must be strategic, that is, it should address broad organizational issues and long-term goals (Walburg, 2006).
Veteran Affair Community-based Outpatient Clinic is one entity that offers a clear description of a performance management system. With the demand to improve medical services and achieve a projected organizational growth and production output of at least 15 percent annual increment, the management designed a management system that encompasses the components of a practical performance management system (Kominski, 2014). As a result, the clinic stands to be the most competitive across Los Angeles, with the capacity to offer quality medical services on a sustainable level. Moreover, the clinic is ranked among the best outpatient medical faculties across the region, and has attracted some of the best medical practitioners from across the United States. Therefore, a performance management system is an essential organization management tool that defines productivity and effectiveness towards achieving the organizational goals and objectives.
The systems in place focus on performance improvement between individuals and teams, and cumulatively across the organization. To attain this effectiveness, continuous training and skill development is paramount. Therefore, the system in place must put into account capacity building and employees’ skill development. The system also functions to address employees’ behavior, encouraging employees to maintain sound work relationships that promotes better working and effectiveness. Despite the fact that these systems give the awkward feeling, among employees, that their activities are always under a spotlight, this is the only way that employees’ strength and weaknesses can be highlighted (Demartini, 2013).
A viable system should be clear, with concise job descriptions relating to each job position. Considering that the job descriptions highlight the employees’ goals and objectives, it is essential that the employees’ goals must be aligned with the organizational goals. Consequently, the system institutes priorities for both the employees and the organization. As Mukherjee (2012) espouses, a successful system must also provide a clear and open communication path between managers and the employees. In this sense, the managers receive input from the employees, giving the freedom of discussion, and establishing a framework for managers to respond. The communication path ought to be recurrent and with continuous feedback attributes, both formal and informal with positive and constructive functions.
Moreover, a sustainable system must also provide employees with sufficient resources and opportunities for professional development. Courses, workshops, seminars, conferences, mentoring, and refresher courses should be offered continuously. Besides, the system should provide relevant information relating to employment decisions, promotions, remunerations, and terminations. Moreover, such a system must be user friendly (Walburg, 2006).
This report will focus on the performance management systems in Veterans Affair Community- based Outpatient Clinic based in Saint Augustine, Florida. The paper will lay emphasis on two job positions, a Medical Administrator and a Scheduler, defining their evaluation approaches and compensation plans. Moreover, the author will shed light on the importance of providing employees’ benefits to these two positions.

Job evaluation approach:

In defining job evaluation, this systematic procedure determines the value of a job position against other job positions within an organization. The adopted evaluation approach compares the job descriptions by analyzing the relevance of the responsibilities towards organizational goals and objectives. It is through this evaluation that the relative work rational pay is established for the purposes of pay equity, that is, equal pay for equal work (Cadwell, 2000)
As highlighted by Demartini (2013), four approaches of job evaluation have been described classification, ranking, factor comparison, and point method. In the classification approach, the jobs are ranked according to an existing hierarchy or structure that defines job descriptions and job titles. Due to differences in duties and responsibilities, the wage rates remain different. The ranking method is the simplest approach, and compares jobs depending on their overall importance to the organization. The value of a job is based on the skills required and responsibility.
The factor comparison method is a matrix of factors that compares different responsibilities and their hourly rates depending on the skills and responsibilities appertaining to the position. In the point method, a number of compensable factors are projected as the key factors in assessing the worth of a job such as, skill, responsibilities, effort, and working conditions. To each of these factors a point score is attached which ultimately contributes to the wage or salary (Murkherjee, 2012).
The Veterans Affairs Clinic utilizes both the ranking method and the factor comparison methods. Concerning the ranking method, the position of a Medical Administrator is ranked higher than that of a Scheduler. This ranking becomes a subset of the factor comparison evaluation. The administrator is tasked with comprehensive responsibilities that aim towards managing, directing, and coordination of medical services within the clinic (Simons, Leroy & Savage, 2013).
Knowledge about the medical practice, laws, policies, and regulations is among the relevant qualifications. In reference to the Medical Scheduler position, the individual executes simple clerical duties that coordinate the smooth running of operations, from booking appointments to database management. The employee must possess office management skills as the major job requirement. Knowledge about the medical practice is not a must.
The advantage of these approaches is that equitable pay is offered according to the range of responsibilities, that is, more responsibilities come with a higher pay. With a higher level of skill and expertise and more duties to execute, the administrator earns more as compared to the scheduler. Therefore, the value of the job is expressed in financial terms. Considering that the pay factor for each position is entrenched on subjective judgements, there are no definite standards for job ranking or in job factor comparisons. Consequently, the main demerit in this approach is that the females working in this facility are often disadvantaged, factoring that more females take the Scheduler position as compared to males (Kominski, 2014).

Compensation plans:

The table below summarizes the compensation plans between the aforementioned positions. The Medical Administrator position is accorded more priority than the Scheduler due to the high level of skill and professional certification required. The plan considers several factors that determines the pay depending on the skill, effort input, responsibility, and the general working conditions. All the payments are quantified in United States dollar (USD).

Table1: Compensation plans (Kominski, 2014)

Importance of employee benefit plans:
The Veterans Affairs Clinic offers housing, travel, health, benevolence, and retirement benefits to all its employees. These benefits, however, arise with skill and responsibility. The more the responsibilities and the level of skill, an employee is entitled to more benefits. There is equitable pay for the services offered. This fact provides a financial safety net for the employee, while the clinic works towards achieving its financial goals thus fostering a sustainable business model. In this regard, employees strive towards self-improvement, particularly in augmenting their education, skills and job experience (Simons, Leroy & Savage, 2013).
With a concrete employee remuneration and benefit plan, it is easy for the Veterans Affairs Clinic to offer reasonable pay and allowances to its employees while monitoring its financial and budgetary control. Therefore, the pay schemes commensurate with the services offered and the ultimate contribution to the business goals and objectives. As a result, both the employer and the employee operates in a mutual balance that safeguards the rights of both parties, while the collective goals and objectives are accomplished (Bacal, 2012).
As Walburg (2006) emphasizes, it is worth noting that with substantial employee benefits, the Veterans Affairs clinic has managed to assign emotional values such as satisfaction, loyalty, commitment, and engagement towards the employer. Subsequently, to the clinic management, competitive benefits have proved critical in attracting and employee retention towards long-term careers.

Conclusion:

While performance management systems remain complex to establish and monitor, it is essential to note that these processes are vital tools that define the overall efficiency and organizational productivity. As demonstrated by Veterans Affairs Community-based Clinic, a viable performance management system stands to be the most reliable instrument that organizational managers can utilize in gauging the strengths and weaknesses of the current management approaches (Marquis & Huston, 2006).

References:

Bacal, R. (2012). Manager's guide to Performance management. New York: McGraw-Hill.
Cadwell, C. M. (2000). Performance management. New York: American Management Association.
Demartini, C. (2013). Performance management systems: Design, diagnosis and use. Heidelberg: Physica-Verlag
Kominski, G. F. (2014). Changing the U.S. health care system: Key issues in health services policy and management. San Francisco, CA: Jossey-Bass, a Wiley Brand.
Marquis, B. L., & Huston, C. J. (2006). Leadership roles and management functions in nursing: Theory and application. Philadelphia: Lippincott Williams & Wilkins.
Mukherjee, J. (2012). Designing human resource management systems: A leader's guide. Thousand Oaks, Calif: SAGE Publications.
Simons, T., Leroy, H., & Savage, G. T. (2013). Leading in health care organizations: Improving safety, satisfaction, and financial performance. Bingley, U.K.: Emerald Group Publishing Limited.
Walburg, J. (2006). Performance management in health care: Improving patient outcomes: an integrated approach. London: Routledge.