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Performance Improvement and Management in Health and Social Care

   

Added on  2020-12-09

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Performance Improvementand Management in Healthand Social Care
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Table of ContentsINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Critical evaluation of strategic planning model which are appropriate for organisation.............1QUESTION 2...................................................................................................................................4A. Discussion of usefulness of financial ratios for shareholders.................................................4B. Calculation and interpretation of ratios...................................................................................7C. Calculation of residual income before and after the investment.............................................8D. Benefits of using Economic Value Added concept while making financial decisions...........9QUESTION 3...................................................................................................................................9Critical evaluation of using non financial and multidimensional models of performancemanagement.................................................................................................................................9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13
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INTRODUCTIONPerformance improvement and management are two different activities which is veryimportant for all the industries such as health and social care, manufacturing, service etc. In orderto improve and manage performance it is vital for business entities to organise all the operationaland executional activities properly. For this purpose controlling and monitoring are also veryimportant in which managers analyse progress and actual status of all the operations and thenmake judgement to formulate effective strategies for business (Abdelhak, Grostick and Hanken,2014). The organisation which is selected for this report is Care Tech Holdings Plc, which is apublic sector company operating business all around England, Wales and Scotland. This projectreport covers various topics such as detailed analysis of strategic planning models, usefulness,calculation of financial ratios and residual incomes etc. Apart from this, benefits of usingeconomic value added and critical evaluation of non financial and multidimensional models ofperformance management are also covered under this assignment.QUESTION 1Critical evaluation of strategic planning model which are appropriate for organisationInternal MemorandumCare Tech Plc is a public company which provides care services to adults with learningdisabilities, people who are dealing with mental illness and individuals with autistic spectrumdisorder. In year 2017 an acquisition was made by the company and in next years it is alsoplanning for further acquisition in order to grow the business. For this purpose manager of theorganisation is being asked to prepare an internal memorandum for stakeholders which coversbenefits and drawbacks of strategic planning models which are appropriate for care sector inEngland. All the models are described below:Strategic planning models: Such types of tools which are used by business entities totake strategic decisions are known as strategic planning models. In order to deal with challengeswhich are affecting organisation's performance it is vital for companies such as Care Tech Plcto use strategic planning models. With the help of them business issues can be dealt effectivelyand their negative impact can be reduced (Adler, Glymour and Fielding, 2016). All the modelswhich could be used by Care Tech Plc are described below:Three statement model: According to this model business entities are required to1
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formulate three different types of statements which depicts actual financial position of thecompany. These are income statement, balance sheet and cash flow. With the help of all ofthem stakeholders of Care Tech Plc will be able to analyse actual performance, liquidity andprofitability of organisation. If they analyse that enterprise is not performing well then they canform strategic decisions in order to resolve the problems. All of them are linked to each other asnet profit of income statement is recorded in balance sheet and closing balance of cash flow isalso recorded in it. In order to attract new stakeholders towards the company it is very importantfor managers to make sure that whether appropriate information is recorded in the finalaccounts or not. This model helps to record different types of information such as assets,liabilities, revenues, sales, purchases, income, expenses, equities etc. in final accounts. All theseelements are used to analyse financial condition of the company and formulate strategicdecisions if it is weak (Benavides-Velasco, Quintana-García and Marchante-Lara, 2014).Following are the advantages and disadvantages of financial statement model:AdvantagesDisadvantagesWith the help of three statements model actualfinancial status of the company can bemeasured by stakeholders in order to formstrategic decisions.Financial statements are based upon marketpatterns and organisation is required to modifyaccording to the changes in the patterns whichis increases work load of accountingprofessionals.Financial statement model guide stakeholdersto make judgement regarding investing theirmoney in company.All the transactions which are recordedaccording to this model are based uponhistorical data.While organisation is willing to acquire creditthen it can help to represent actual performanceof company in front of creditors and facilitateto get it.With the help of financial statements modelonly financial issues can be measured it cannotguide to identify non financial issue.From the above analysis it has been determined that financial statement model havepositive as well as negative aspects. If these statements are formulated appropriately then it canhelp stakeholders of Care Tech Plc to assess actual performance of the company but, if these arenot formed properly according to rules and regulations then it can leave negative impact upontheir decision (Berman, 2015).2
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