Internal Performance Management Research Articles

Integrating business model for sustainability and performance management to promote occupational health and safety—A discussion of value

The concept of business model has been around in scientific discussions for over half a century, but the adoption of business model for sustainability is much more recent. What constitutes a business model for sustainability is far from clear, and what drives the business model for sustainability to success needs further elaboration. The current paper adopts a conceptual approach to clarify the components of the business model for sustainability, focusing on the discussion of value addressed in its concept, and the interplay between the business model for sustainability and the internal performance management system. Furthermore, we connect our discussion to occupational health and safety because employee health and safety, one of the important elements of human capital, have been regarded as critical to the sustainable development of companies and society. We argue that OHS should be a fundamental cornerstone in doing business and should not be viewed as an afterthought of production and financial concerns. Therefore, OHS and employee relations should be addressed within the business model. The more important issue is the alignment of the value propositions, value creation, and value capture that underpin both the business model for sustainability and the internal performance management system. If the performance management system is decoupled from the business model, the long-term and short-term occupational health and safety advantages and the sustainable value propositions to stakeholders will not be realized.

Building a Performance Management System for Hospitals Based on Diagnosis-Related Group (DRG) Payment

With the deepening of the national medical and health system reform, various supporting reform measures are being promoted. The reform of medical insurance payment methods is an important part of the process, and payment through diagnosis-related groups (DRGs) will gradually become the main way for medical insurance to pay medical institutions. According to the analysis of the impact of DRG payment on hospital performance management, this research examines the construction and implementation of the internal performance management system (IPMS) based on DRG payment in hospitals. The IPMS based on DRG payment includes four elements: organizational management system, assessment system, communication and feedback system, and information support system. In addition, this study explores how IPMS can be implemented in hospitals, including the preparation before implementation, key points to be grasped during implementation, and considerations to be focused on.

Do external benchmarking mechanisms facilitate performance management in Malaysian local authorities?

PurposeThis paper investigates the extent to which externally led benchmarking may have facilitated performance management design and use in Malaysian local authorities.Design/methodology/approachA longitudinal qualitative study of local authorities in Malaysia was undertaken, comprising interviews with key officers during the introduction of process-based key performance indicators (KPIs), and following the imposition of benchmarking (i.e. relative performance evaluation) on local authorities. Complexity theory was used in the analysing and theorising of data.FindingsExternal benchmarking mechanisms facilitated only operational performance management, with strategic performance management merely ceremonially adopted. As the focus was on mainly operational KPIs, strategic goals were not translated into detailed action plans and outputs at departmental level. In addition, operational and strategic performance management packages were decoupled. Thus, the efforts of external actors resulted in operational controls suppressing rather than facilitating strategic processes.Research limitations/implicationsThere is a need to transition from purely externally led benchmarking to internally driven benchmarking in local government, whereby benchmarking forms part of the interactive performance management mechanisms that lead to institutional learning and improvement.Practical implicationsBenchmarking activities should be based on comprehensive analyses of performance management design and use. A reflective approach to continuously identify gaps or weaknesses in performance management systems will enable local government administrators to improve systems and processes in a timely manner to meet stakeholder needs.Originality/valueThis paper explains the impact of central government policy and benchmarking initiatives on other levels of government. We have built on previous literature by examining the connection between external benchmarking and internal performance management design and use in local government. In relation to this, and following calls for research on holistic performance management, the integration between operational and strategic performance management packages was also examined.

Boards of Directors: Assessing Their Functioning and Validation of a Multi-Dimensional Measure.

Boards of Directors that function effectively have been shown to be associated with successful organizational performance. Although a number of measures of Board functioning have been proposed, very little research has been conducted to establish the validity and reliability of dimensions of Board performance. The aim of the current study was to validate the measurement properties of a widely-used model and measure of Board performance. Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were conducted on online survey data collected from 1,546 board members from a range of Australian organizations. The analyses yielded 11 reliable factors: (1) effective internal communication and teamworking (2) effective leadership by the Chair (3) effective committee leadership and management (4) effective meeting management and record keeping, (5) effective information management (6) effective self-assessment of board functioning (7) effective internal performance management of board members (8) clarity of board member roles and responsibilities, (9) risk and compliance management (10) oversight of strategic direction, and (11) remuneration management. These dimensions to a large extent correspond to previously suggested, but not widely tested, categories of effective Board performance. Despite self-reported data and a cross-sectional design, tests of common method variance did not suggest substantive method effects. The research makes significant contributions to the corporate governance literature through empirical validation of a measure shown to reliably assess 11 discrete dimensions of Board functioning and performance. Practical and theoretical implications, study limitations and future research considerations are presented.

Performance Management in Accountable Care Organizations in the U.S. and Germany: From external reporting requirements to enabling internal performance management in physician practices

Background : USA: Performance management systems (PMSYSs) are an important tool for increasing the performance (quality, efficiency, effectiveness) of accountable care organizations (ACOs), and enable continuous improvement in affiliated physician practices. So far, there is limited knowledge about the extent of their implementation in US physician practices and about factors associated with their implementation. In addition, although performance measurement is seen as a core element of ACOs and is externally enforced, sparse information exists as to the interplay of external reporting requirements and incentives for internal PMSYSs. Germany: Whereas there are currently over 800 ACOs in the USA, Germany has only a few comparable ACO flagship projects. Also external financial and non-financial performance measurement requirements are, in comparison to the US, in an early stage. However, accountable, integrated care and performance measurement initiatives have moved up the political agenda. There may arise important insights for policy makers and health care managers from the experiences in the USA. Methods : A mixed-method approach using survey data analyses of a nationally representative sample of US physician practices (total n = 1,328; ACO practices n = 316) and case studies in the US (n=3) and Germany (n=1, Gesundes Kinzigtal) was used. Results : On average, practices affiliated with an ACO (24%) used only approximately half (53.1 points out of 100) of the measured PMSYS processes, whereas practices not participating in ACOs (76%) used even fewer PMSYS processes on average (22.6 points). Participating in an ACO was one of the strongest differentiators of US physician organizations with robust PMSYSs versus those with underdeveloped PMSYSs. Also participation in other forms of networks, such as Independent Physician Associations or Physician Hospital Organizations, and greater health information technology (HIT) capabilities and chronic disease registries were factors associated with a greater implementation of PMSYS. The use of financial and non-financial incentives offered mixed results in the survey analysis. The case studies indicate that a culture of quality drives the internal implementation and use of PMSYSs. Financial incentives play a minor role, and nonfinancial external incentives, such as public reporting, are secondary in the studied organizations. External incentives may even compete for internal PMSYS resources. Implications for the US : These findings highlight that policies to further strengthen ACOs or other networks could be a viable strategy to help physician practices strengthen their internal organizational capabilities and prepare for the new performance measurement requirements, such as the MACRA value-based payment models. External requirements have to be balanced with the strengthening of internal capabilities, such as HIT functionality. Cultural aspects and potential adverse effects of financial incentives (e.g. on intrinsic motivation) have to be considered. Implications for Germany : Although the quantitative findings are based in the US, the findings may generalize to physician practices and networks in other countries, as indicated by the German ACO case. For the advancement of performance measurement in Germany external requirements should be simplified by synchronizing initiatives and eliminating unnecessary, invalid demands, to free resources for internal PMSYS. In addition, further strengthening of networks could facilitate PMSYS implementation.

Effects of the performance management information system in improving performance: an empirical study in Shanghai Ninth People's Hospital.

Improving the performance of clinical departments is not only the significant content of the healthcare system reform in China, but also the essential approach to better satisfying the Chinese growing demand for medical services. Performance management is vital and meaningful to public hospitals in China. Several studies are conducted in hospital internal performance management, but almost none of them consider the effects of informational tools. Therefore, we carried out an empirical study on effects of using performance management information system in Shanghai Ninth People’s Hospital. The main feature of the system is that it provides a real-time query platform for users to analyze and dynamically monitor the key performance indexes, timely detect problems and make adjustments. We collected pivotal medical data on 35 clinical departments of this hospital from January 2013 until December 2014, 1 year before and after applying the performance management information system. Comparative analysis was conducted by statistical methods. The results show that the system is beneficial to improve performance scores of clinical departments and lower the proportion of drug expenses, meanwhile, shorten the average hospitalized days and increase the bed turnover rate. That is to say, with the increasing medical services, the quality and efficiency is greatly improved. In a word, application of the performance management information system has a positive effect on improving performance of clinical departments.

Review of the performance evaluation and evaluation system for hospitals at home and abroad

External evaluation of large medical institutions is key to performance management in the medical sector, which is both a major means for the government to manage such institutions and a key guideline for their internal performance management. Based on a study on the pathways of such institutions in the UK, the USA and Japan in their external evaluation of performance, the paper summarized practices of Shanghai, Shenzhen, Zhenjiang and Beijing, in an attempt to offer references for building the external evaluation system for such institutions in China. Key words: Medical institution; Performance management; External evaluation

Research on Cloud Computing-Based Virtual Logistics Enterprise Performance Management

Virtual Logistics Enterprise is a joint collaboration between multiple companies to adapt to changing market demands. These member companies have complementary resources and technologies. Cloud computing can provide dynamic resource for each member of virtual logistics enterprises mainly based on Internet-related services. Virtual Logistics Enterprise performance management can efficient and timely acquire the implementation of various companies performance objectives relying on cloud computing platform. Through cloud computing, corporate members can obtain real-time information on the implementation of the overall performance objectives virtual logistics enterprise. Virtual Logistics Enterprise Performance Management can also help member companies to improve their internal performance management. Cloud computing is efficient contact these dynamic virtual logistics enterprise members together. Virtual Logistics Enterprise member companies will be integrated in accordance with pre-set performance management objectives with the cloud computing.

Centralized resource planning and Yardstick competition

Multidivisional and decentralized firms often operate inefficiently. In most cases, central management's instruments to influence its branches' behavior are limited. Although relative performance evaluation has been argued to be of great use in defining incentive mechanisms, such approaches cannot be transferred easily to internal performance management. We approach this issue by changing the perspective of performance evaluation. Based on the recently introduced CRA-DEA model, we develop a new super-efficiency measure that enables to establish purposive intra-organizational incentive mechanisms. By means of a numerical example, analyzing the performance of a German retail bank, the applicability of our measure is shown and compared to standard DEA models. Centralized super-efficiency seems able to suit the specific needs of intra-organizational performance management.

Joining public accountability and performance management: A case study of Lethbridge, Alberta

Abstract: This article presents an in-depth assessment of how performance measurement, public reporting, and internal performance management have been merged in Lethbridge, Alberta. Business-unit managers and council members both share the view that performance measurement and reporting are useful and that performance information is credible. This finding contrasts with the more general view that performance information is not used much, despite widespread commitments to collecting it. In Lethbridge, a balance has been struck between performance measurement for management uses and council uses. The current system is driven by managers who share the view that performance measurement and reporting are useful for improving programs and providing information that can be a part of public accountability. If performance measurement is to add value in public-sector organizations, it needs to have the continued support of managers – they are key to developing the measures, collecting the information and using it, and sustaining such systems. Changes that undermine the trust that is critical to a workable compromise for performance measurement, public reporting and performance management ultimately undermine the integrity of these systems. Sommaire: Le présent article offre une évaluation approfondie de la manière dont la mesure de la performance, la présentation de rapports destinés au public, et la gestion interne de la performance ont été fusionnées à Lethbridge, en Alberta. Les gestionnaires des unités de gestion comme les membres du conseil conviennent que la mesure de la performance et la présentation de rapports au public sont utiles et que l'information sur la performance est crédible. Cette conclusion va à l'encontre de l'avis plus général selon lequel l'information sur la performance est très peu utilisée, malgré l'importance accordée à sa collecte. À Lethbridge, un équilibre a été trouvé entre la mesure de la performance à l'usage des unités de gestion et celle à l'usage du conseil. Le système actuel est dicté par les gestionnaires qui sont d'avis que la mesure de la performance et la présentation des rapports sont utiles pour améliorer les programmes et fournir des informations dans le cadre de l'obligation de rendre des comptes au public. Si la mesure de la performance doit ajouter de la valeur aux organismes du secteur public, les gestionnaires doivent continuer à l'appuyer – ces derniers sont essentiels à la mise au point des mesures, à la collecte et l'utilisation de l'information, et au maintien de tels systèmes. Les changements qui ébranlent la confiance, valeur essentielle pour parvenir à un compromis viable pour la mesure de la performance, la présentation des rapports destinés au public et la gestion de la performance, sapent en fin de compte l'intégrité de ces systèmes.

Internal performance management with UK higher education: an amorphous system?

PurposeThe purpose of this paper is to provide insights into the internal performance management of UK universities.Design/methodology/approachSemi‐structured interviews were undertaken with numerous staff within each university, attendance at key meetings and reviews of documentation. Grounded Theory was adopted to analyse the information obtained to understand how the strategy and accounting interacted with performance systems in the universities studied.FindingsAn amorphous, decoupled system was identified with poor feedback loops resulting in a lack of accountability and ownership of the system.Research limitations/implicationsThe research reported on the experiences of two universities through case study analysis. Further research is required to understand the extent to which the issues reported here are more widespread and the implications of such.Practical implicationsThe paper suggests that the challenge for policy makers/university management is to facilitate a change in the managerial weltanshauung to one where the environment is more conducive to performance management in a constructive mannerOriginality/valueThe notion of managerial weltanshauung in universities is developed and discussed in relation to nurturing performance management. The paper will be of interest to university managers and policy makers.

Significance and inspirations of the performance appraisal for directors of public hospitals

Performance appraisal is an important means for keeping hospitals on correct tracks for their medical services and their public interest nature,in addition to its importance in enhancing internal performance management within public hospitals.Since 2006,Shanghai Shenkang Hospital Development conducted performance appraisal for directors of 23 public hospitals in Shanghai.This paper highlights the importance of performance appraisal for these directors,and its significance in keeping the correct director of hospital operation. Key words: Public hospitals; Performance appraisal for hospital directors; Significance; Effects