Performance Improvement and Management in Health & Social Care

This report evaluates the advantages and disadvantages of strategic planning models, Du Pont analysis, and multidimensional models of performance management in the health and social care sector. It includes a recommendation for the implementation of the Balanced Scorecard model at Arden Mountain Nursing Home. The report also discusses the utility of Du Pont analysis to investors and provides a description of each formula along with calculations and interpretation comparing industry average.

PERFORMANCE
IMPROVEMENT
AND
MANAGEMENT IN
HEALTH & SOCIAL
CARE

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Question 1:..............................................................................................................................3
Question No 2..................................................................................................................................7
a) Utility of Du Pont analysis to investors along with description on purpose of each formula
discussed below:.....................................................................................................................7
b) Explanation of ratios along with brief description on purpose of each formula with
calculation and comparison with industry average:.............................................................10
Question 3......................................................................................................................................12
Critically examine the use of multidimensional models and non financial of performance
management..........................................................................................................................12
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The report prepared above takes in account Execution the board might be characterized as
an essential that can be sued in assessing the exhibition of worker's work. The primary point of
this procedure is to give a climate in which representatives can play out their obligation in best
and productive way. Execution the board depends on wellbeing and social consideration in this
task report. It helps in accomplishing the objectives in regions like patient focused care, cost and
information the board and responsibility (Arslan and Roudaki, 2018). The fundamental reason
for the board bookkeeping is to guarantee that the assets which are given, the acknowledgment
that is merited being inspired and the responsibility with respect to the assumptions. This venture
report depends on Arden Mountain Nursing Home; an American claimed enlisted home that is
working in England. The vision of nursing home is to accomplish the most elevated conceivable
degree of individual focused care however in a home like climate. This undertaking report will
cover the update for the inward chiefs alongside the advantages and disadvantages of two key
arranging models. Notwithstanding that it will cover the suggestion and assess the helpfulness of
Du Pont investigation and its computation. At last, it will cover utilization of monetary and
multi-faceted models of execution the executives for the arrangement of conversation with
supervisory crew.
TASK
Question 1:
You have been asked to prepare a 1500-word internal memorandum for the directors of the care
home, critically evaluating the advantages and disadvantages of at least two strategic planning
models appropriate to the care sector in England. The directors expect a recommendation as to
which model you would like to implement at Arden Mountain Nursing Home with a reasoned
justification for your recommendation.
Performance Management: It is a process of communication between a manager and an
employee which occurs throughout the year. This process includes planning objective, pre-
determine goals, finding deviations and reviewing results. It is a continuous process used by

manager to evaluate overall performance of the employees (Mehralian, Nazari and
Ghasemzadeh, 2018). It uses traditional tools to create and measure organizational goal. It act as
bridge between manager and employee, to maintain coordination between them to achieve
organisational goal more effectively and efficiently. It work as measuring gap between
individual performance and its goal and provide corrective measures if there any problem. Types
of planning are discussed below to help Arden Mountain Nursing Home to maximise their profits
:
 Strategic Planning: It refers to the art of creation of business strategies, implementation
of such strategies and analysing the result of executing the business strategies, in regard
to a overall long term goal of an organization (Schwenk and Gold, 2018). This planning
mainly focuses on Integrating various department like Accounting and finance
department, marketing and human resource departments to fulfil strategic goals. These
strategies have long term effect over Arden Mountain Nursing Home's Goals. It provides
step by step direction to employee so that they can work effectively to achieve their goal.
Strategic planning follows three steps Formulation of strategies, Implementation and
evaluation.
 Tactical planning: It refers to the Achievement of long term objectives in shorter period.
It is a flexible process which can be modify according to needs. It makes planning
process less risky and more profitable for the organization. These planning processes help
Arden Mountain Nursing Home to achieve their short term objectives. This process
breakdown the long term strategies into small parts to achieve it sooner.
Operational Planning: It involves in day to day operational activities of an organization. It
provides guidance to the employees and also helps to overcome the day to day challenges faced
by workers (McCrindle and Manlhiot, 2020). It explains how or what part of strategic plan will
place into the operation during a specific period of time.
Evaluation of two models of strategic planning:
 The Balanced Scorecard: It is a most outstanding strategic method which gives
comprehensive overview of organizational timeline to manager. It consider both
approaches financial and operational to provide valuable information about how
organization has perform in past, is currently performing and is to perform in future. It is

created by people who will be involved in implementation. It helps in gaining new
revenue by cutting costs.
Advantages of Balanced scorecard:
 It provides structure to strategy: There are many approaches to analyse organizational
performance. It helps in tracking work process by keeping goal in the centre. It is a
logical structure which helps leaders of Arden Mountain Nursing Home in easy way of
understanding all areas.
 Easy to communicate strategy: A map is prepared to clearly communicate strategic plan.
It provides clear goals to employee to keep in mind while working. It helps in better
understanding the strategic plan and provides clear vision to the employees towards their
goals.
 Create balance between Departments and divisions: it provide better alignment in the
department and decrease the conflicts among them. This planning provides interrelated
objectives to department so they can provide supports to each other (Glogovac, Ruso and
Maricic, 2022). When large projects are shared among multiple divisions than BSC
provide needful structure.
 Linking of organizational strategy with individual goals: The balanced scorecard allows
employee to link their goals with the organizational goal. It provides motivation to the
employees to achieve their goal.
Disadvantages of Balanced Scorecard:
 Lack of external focus: It gives a wider internal focus but it do not provide external
image. They are only considering customers as a external, they did not include
competitors which change the business environment (Shelton and Barta, 2018).
 Strategic Planning and Direction: Effective scorecards align with your strategic
objectives and break such objectives in measurable content which is hard to
communicate. If there are many objective than it is very difficult to manage which may
not produce actual results.
 Data analysis and collection: it gives information on areas that require important, but it is
hard to identify these indicators and implement an strategy by employees. If right
information is not provided than it will increase the risk of inaccurate result.

2. SWOT Analysis: It is a very important tool which used to evaluate organization's
competitive position and to develop strategic planning. It involve in decision making
process by involving all the factor effecting to it. SWOT stands for Strength, weakness,
opportunities and threats. It includes all the internal and external factors affecting to the
performance of the company. It help Arden Mountain Nursing Home to achieve their
long term goal in more effective manner.
Advantage of SWOT Analysis:
 Easy to applied: Swot analysis is very simple to apply in any company or in any industry.
It can also used in a wide range of situation and strategic initiative. This can tell four
things about company at one time. Which decrease the time of manager to analyse these
thing separately.
 Comprehensive Data integration: There is a lots of information needed to create swot
analysis and this quantitative and qualitative information benefits to manager. This
information helps in planning, decision making and better coordinating.
 Low cost: This analyse cannot need any expensive software or consultant to come in
guide to process. The manager only needs spreadsheet which is timely filed by them. It is
not an expensive process because there is no need of any training and technical skill to
complete it. It is simple to understand by leader and others.
 Helps companies play offense and defence: It helps to uncover new profitable
opportunities and fend off newly entered competitors. It also help in creation of a plan to
boost strengths or managing threats depending on situations.
Disadvantages of SWOT Analysis:
 Lack of Clarity: If a factor has strength and weaknesses, then it is not analysed through
Swot. Manager has attached extra values to factors and Make best possible decision
addressing them.
 Subjective Analysis: It only functions as the data put into it. It will work on the basis of
given information which is impossible to receive data concerning swot. If information
are not correct than whole analysis gone wrong.
 Too many option to address: Swot analysis consist more than 3 things so that leader
involve various mangers, senior executives and employees. All the options are important
and it is very difficult to address all. Some options may left.

 Lack of prioritization: This analysis does not state the work priorities of any individual
and it is difficult to decide what to do first. It is designed to solve issues, so manager feel
presses to handle all at once.
Recommendation: It can be suggested and recommended from the over two key arranging
models ought to select the equilibrium scorecard technique it will help in working on the general
execution of the institute and survey of the office where it is inadequate. This will empower the
chief in accepting powerful choice as it will contribute in achieving the mission and goals of the
nursing home. It is the point by point investigation of organization's presentation and furnishes
with the method for achieving the targets. It empowers in characterizing the general exhibition of
the nursing home and the region where it needs, for example, in finance or in promoting office.
By assessing the exhibition, it helps in working on the general efficiency of the representatives.
This will contribute in achieving the authoritative objectives in a compelling and effective way
Question No 2
a) Utility of Du Pont analysis to investors along with description on purpose of each formula
discussed below:
 Usefulness of Du Pont Analysis to shareholders:
Du Pont evaluation is the framework that is used to evaluation the essential overall performance
of the commercial enterprise entity. It is taken into consideration to be the beneficial approach
that is used to fester a couple of drivers of go back on equity. The decomposition of ROE lets in
the investor to awareness at the vital metrics referring to economic overall performance in order
that power and weak point may be identified. The method of calculation Du Pont evaluation is
Net income / Revenue. This evaluation could help the investor and stakeholders of the entity to
decide that what economic sports are assisting the maximum to the adjustments made withinside
the ROE. The Component of Du Pont evaluation are being internet income margin, asset
turnover ratio and economic leverage (Kamble, Gunasekaran and Gawankar, 2020)
.
Explanation on purpose of each formula along with calculations and interpretation comparing
industry average:

 Total Margin:
Total margin examines the sales of the commercial enterprise as evaluate to its
expenses. The overall margin ratio considers the sales from all of the reasserts
which makes it one-of-a-kind from running margin ratios which simplest
considers sales from operation of the commercial enterprise. The formula for
calculating the total margin explained below:
= (Excess revenue over expenses / Total revenue) * 100
= (£3269404 – 3180356 / 3269404) * 100
= (89048 / 3269404) * 100
= 2.72 %
Industry’s total margin has been 3.50 %
Interpretation:
The margin of Arden Mountain nursing domestic has been negativing evaluate to
the enterprise which wishes to be advanced via way of means of the business
enterprise because it suggests that they're underperforming in phrases of reaching
the goal sales or their running charges are past the finances they have got set for
the economic year.
 Asset Turnover Ratio:
The reason of asset turnover ratio is to degree the income cost of the enterprise
relative to cost of the belongings. The reason of this ratio is to degree the
effectiveness and performance of the organization to generate sales with the assist
of belongings hired with the aid of using him. The formula for assets turnover has
been mentioned under:
= (Net Sales / Average total Assets) * 100
= (£3269404 / 2502992) * 100
= 1.31 times
Industry asset turnover ratio is 1.50 times
Interpretation:
The overall performance of the nursing domestic has been much less as evaluate
to turnover ratio of enterprise which shows they they're now no longer correctly
using the property withinside the commercial enterprise in an green manner. Due

to which their overall performance in phrases of enterprise is negative which
desires to be monitored and improvised accordingly.
 Equity Multiplier:
The cause of fairness multiplier is to become aware of the danger that's located in
capital shape of the business enterprise withinside the shape of fairness and debt
that how a good deal property of the commercial enterprise is financed through
fairness aside from debt component. The formula of equity multiplier has been:
= (Total Assets / Shareholders equity)
= (2502992 / 357842)
= 6.99 times
The industry equity multiplier has been 2.50 times
Interpretation:
The fairness part of the corporation is better that is 6. ninety-nine instances as
compares to enterprise that is 2.50 instances that suggests that entity has hired
budget from fairness extra as examine to debt. The chance finished via way of
means of nursing domestic can be decrease whilst as compared to different
competitors.
 Return on Equity:
The reason of go back on fairness it to discover the quantity of cash that's left with
the agency after the charge of dividend to the shareholders which incorporates
each charge made to fairness and debt holders. The return on equity will be
calculated as under:
= (Net income / Shareholders equity)
= (57881 / 357842)
= 16.18 %
The industry’s return on equity has been 13.10%
Interpretation
The nursing domestic has been acting properly as evaluate to enterprise that's 3.08
better and it indicates that they're making use of their workfare and belongings
withinside the proper direction. It is likewise beneficial for the enterprise to

higher their function withinside the marketplace in opposition to their competition
as properly.
b) Explanation of ratios along with brief description on purpose of each formula with calculation
and comparison with industry average:
 Return on assets:
Its purpose is to indicate that how well the business investments generates value
for their stakeholders. The formula for calculating the same is as under:
= (Net income / Average total assets * 100)
= (£57881 / 2502992 * 100)
= 2.31%
Interpretation:
Industry ratio has been 5.20% and nursing domestic ratio is 2.31% which
indicates that they may be now no longer making use of their belongings in
fruitful way and want to enhance the identical for higher growth.
 Current Ratio:
The motive of current ratio is to assess that whether or not the entity is capable of
pay off its current legal responsibility from the property they're holding. The
formula for the same is:
= (Current Assets / Current Liability)
= (608992 / 445150)
= 1.37 times
Interpretation:
The nursing domestic ratio is decrease with the aid of using enterprise with the aid
of using. Sixty-three instances which indicates that their cutting-edge belongings
aren't being good enough sufficient to pay off their cutting-edge liabilities.
Cash in hand days:
The reason is to test that for a way an awful lot days the commercial enterprise
will maintain to pay their working prices from the coins that they'd in hand. The
formula is as under:
= (Daily cost of operation exc. depreciation / Cash and cash equivalent)
= 3180356 / 105737

= 30 Days
Interpretation:
Industry common has been 22 days and nursing domestic has 30 days’ coins in
hand duration which indicates that their positioning in assembly out their
operational cost.
 Average collection period:
The purpose is to ensure that how much time the business required to collect their
sums from their debtors. The formula is
= (Receivables / Total Sales * 365 days)
= 215600 / 3269404 * 365
= 24 Days
Interpretation:
Industry ratio has been 19 days that is higher as evaluate to companies that is
extra than five days through enterprise that shows that their price range are being
blocked for better length and it is able to have an effect on without delay their
running capital cycle.
Debt ratio:
The purpose is to judge the risk in the capital structure of the business. The
formula for calculating the same is:
= Debt / Equity
= 1700000 / 357842
= 4.75 times
Interpretation:
The debt equity ratio of nursing home is better which boom the danger percent of
their capital shape and their constant fee in phrases of hobby will elevated while
as compared to enterprise that is 2.50 times.
Fixed asset turnover ratio:
The motive is to test that whether or not the belongings hired withinside the
employer is being efficaciously utilised that contributes in the direction of the
sales. The system of asset turnover ratio is
= (Net sales / Total Assets)

= (3269404 / 2502992)
= 1.31 times
Interpretation:
The turnover ratio of enterprise and organisation is nearly identical and it suggests
that they're assembly the enterprise fashionable in using their constant capital
invested with inside the business.
Question 3
Critically examine the use of multidimensional models and non financial of performance
management.
Performance management can be explained as Execution of the executives is vital field of
business organization which is in many cases disregarded in the excellent plan of the board
which is quickly changing as organizations are acknowledging at a fast speed that smoothing out
the efficiency of their labour force is an essential component to guarantee their proceeded with
progress on the lookout (Perencevich, Diekema and Edmond, 2020). Each firm which has
genuine goals to prevail in their objective market and have strong employable productivity
consistently have an aggressive vision alongside hearty missions which guide the manner in
which it embraces exercises and timetables regularly. By the support of execution the board
models, a business can adjust the working and perspectives of their work environment towards
the accomplishment of the wide organization vision and missions which constructs their
presentation as well as helps in ingraining a positive work culture in the organization. Execution
the board has two wide viewpoints which oversee the fundamental systems to be laid out under it
alongside the various purposes which is principally satisfied under it which are recorded thus.
 Non financial models: Apart from thoroughly zeroing in on the monetary parts of a
industry, execution the board is additionally answerable for assuming key parts in the
wide field of human asset the executives alongside aiding in the general course of
representative commitment (Best and Williams, 2019). Execution the board is firmly
connected with non-monetary parts of the organization as it helps measure factors which
are typically ignored in the blessing of monetary measurements, for example, the degree
of consumer loyalty that the organization can give in the objective market, the degree of

brand infiltration and new leads that is figuring out how to change over into deals and the
ongoing brand insight that it appreciates among the general masses.
Non-monetary models of execution the board are very important for its endurance as in the
advanced business scene, the outside climate has turning out to be progressively problematic and
just zeroing in on deals and income age is at this point not a maintainable plan of action (Schrag,
Hershman and Basch, 2020). Among various non-monetary models, some are generally sued and
play multi-faceted parts as they not just assistance in that frame of mind as execution
examination yet additionally help in powerful human asset rehearses, a few models being
adjusted scorecard and execution pyramid.
Balance score card is considered as an essential administration execution measurements
which are utilized to distinguish and further develop a few interior strategic approaches and their
subsequent outside results. Adjusted scorecards are extremely normal among the organizations
inside UK as they utilized it to gauge and give the criticism to association (Gostin and Salmon,
2020). Business can utilize their inner rendition of adjusted scorecards to investigate their client
administrations. There are different advantages of involving adjusted scorecards as it permit the
association to pool together information and data into a solitary report as opposed to manage the
various devices. There are different benefits and burden of adjusted scorecards which are
referenced beneath:
 Connect the respective employee towards companies objectives and aims: Balanced
scorecards help the specialists "keep their eyes in prize" so to talk in the term of targets.
Individual representative might find it help their own exhibition when labourers can see a
more prominent reason behind the item competes and objectives they are expecting to hit.
 Bring structure to the company related policies and strategy: In association different
division might have different method for estimating the presentation and what they view
as critical in the term of measurements. In this manner, with the reasonable scorecards,
different departmental and pioneer can in any case individualize their exhibition
estimation, yet it misleading in set organized which can be perceived across the working
environment. It gives normal spot to everybody at operational environment to estimating
the achievement.
 Improved reporting and measurement: It can be explained as making the exhibition more
straightforward to gauge portray the worth of balanced scorecards. The particular

business objectives and key pointers can be ordered utilizing adjusted scorecards. It
likewise assists the association with planning an additional successful reports and
different measurements. With its supportive key goals and concern can be settled rapidly.
At the point when there are advantages for execution of adjusted scorecards
framework at working environment, then there are likewise sure possible burden and
barriers to adjusted scorecards which are referenced underneath:
 It can get complex: Balanced scorecards are observed to take time and
commitment for understanding. There are the endless contextual analyses
and assets to peruse from and it is exceptionally simple to get hindered
with a few distinct ways using this technique
 Demand a lot of information: Usually the Balanced scorecards need
colleagues and through to report the data that implies logging the
information. Numerous relations could do without it as they did it
exceptionally monotonous and, it can get in approach to accomplishing the
expected work to meet objectives.
 Must be tailored to the company: Balanced scorecards is believed to give a
model from which to work from, in any case, it will in any case should be
tweaked to all association utilizing that framework. It can require up
greater investment and keeping in mind that the models are useful, and
then they can't be duplicated precisely because of one of a kind of
necessities of all business.
By means of regards to non-monetary and complex models of execution the
board, the job of implementation pyramid can't be put into words as this model's premise
is based on the way that essentially on monetary boundaries of an organization can't help
in the estimation and possible advancement of its business tasks in the objective market.
This pyramid model created by Lynch and cross spotlights on two significant parts which
are indispensable to a company's prosperity and the guidelines of execution the board
which is instilled in its everyday tasks which are outer viability and inside productivity
(Malik, Iqbal and Yadav, 2020). The last option is prevalently monetary in nature while
the previous supporters the way that non-monetary boundaries are similarly significant in
the field of execution the executives.

This model contend that to structure an relations fundamental market
objectives and targets, there must initially be the presence of a strong corporate
vision which helps guide what's in store activities of the firm in a comprehensive
way. Arden Mountain nursing home's corporate vision which has a place on this
model is the one where it endeavours to be in five additional areas across UK
while resolving to give brilliant in long haul grown-up care on a worldwide level
(Darvishmotevali and Ali, 2020). This vision as per the pyramid won't occur and
can't be as expected estimated by the principles of execution the executives except
if it is met by double spotlight on both monetary and non-monetary boundaries
which are recorded just underneath the corporate vision.
The external demand of a firm drives significant factors, for example, altruism which
straightforwardly affects how it is seen by both the clients and the media in the business
alongside the brand strength and discernment which can happen when a business centres around
business working frameworks which are fundamentally founded on non-monetary variables. As
indicated by the pyramid, the manner by which the labour and products of the firm fulfil the
objective market, the adaptability of the business to adjust to extreme circumstances and the
general efficiency are major non-monetary variables (Wan and Chin, 2021).
The operational frameworks referenced in this model are additionally making sense with
assistance of departmental variables which their prosperity relies on. The nature of medical
services that Arden Mountain will provide for the older and debilitated will move
straightforwardly to the consumer loyalty, the time taken to convey the consideration and the
possible waste exercises and methodology will straightforwardly affect the association's
adaptability and efficiency. To make its vision worked out as expected, Arden Mountain ought to
zero in on this model to comprehend the areas of non-monetary tasks which it needs to zero in
on.

CONCLUSION
The above report describes significant cycles of human asset the board and business
organization, for instance, essential administration instruments, utilization of monetary
examination and proportions alongside different non-monetary models of execution the
executives to assess the efficiency, suitability and current monetary heartiness of medical
organizations. These organization were assessed utilizing key elements, for example, SWOT
investigation and adjusted scorecards and their monetary exhibition was appropriately broke
down utilizing monetary proportions alongside their translation like Debt-to-value proportion.
The report was made with an outline on the non-monetary and multi-layered models of execution
the executives with principal centre around adjusted scorecards and execution pyramid.
Fulfilment, the time taken to convey the consideration and the inevitable waste exercises and
strategies will straightforwardly affect the company's adaptability and efficiency. To make its
vision materialized, Arden Mountain ought to comprehend the areas of non-monetary activities
which it needs to zero in on.

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