Performance Improvement and Management in Health & Social Care

This research task focuses on performance management in health and social care, specifically at Arden Mountain Nursing Home. It covers strategic planning tools, including the benefits and limitations of two models, and the effectiveness of the Du Pont assessment. The report also discusses economic and multifaceted achievement management models and their use in preparing for discussions with the management team. Additionally, it includes a detailed interpretation of various ratios and formulas used to evaluate the company's performance.

Performance
Improvement and
Management in Health
& Social Care

Contents
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Question No 1.........................................................................................................................4
Question No 2.........................................................................................................................8
Question No 3.......................................................................................................................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Performance management refers to the strategic method for analyzing an organization ’s
productivity. The primary goal of the respective method is to create an surroundings under which
the staff members can execute their work as effectively and efficiently as possible. In the given
research task, management of performance is supported by health and social care. It aids in the
achievement of goals such as cost and data management, accountability and patient-centered
care. The primary goal of managerial explanation is making sure about the funds that are
supplied, the acknowledgement that is truly earned and the responsibility related to the goals are
all met. This project estimate is focused on Arden Mountain Nursing Home, an authorised home
owned by Americans which is operating in England, United Kingdom. Vision of the respective
nursing home is to provide the advanced steady of person-to-person care which is possible in a
location such as home. This project report will include a memo for inner managers as well as the
benefits and limitations of two models of strategic planning (Keding, 2021). Along with this, it
also include the idea and measures the effectiveness of the Du Pont assessment along with
procedure. Finally, it will go over how to use economic and multifaceted achievement
management models to prepare for discussions with the team of management.
TASK
Question No 1
Memorandum
•Date.
•To.
•From.
•Subject: Strategic Planning tools
Performance management – The word performance management refers to a instrument or
method which is being adopted through directors for the purpose of evaluating and analysing the
whole performance of their employees (Bhattacharyya, 2020). It consists of four steps: planning,

tracking, evaluating, and enjoyable. It streamlines the employee's performance as well as their
efforts for the purpose of effectively and efficiently meet the set goals. It serves as a link between
the manager and employees, establishing a communications network that aids in the achievement
of the organization's goals.
 Strategic Planning – It is the procedure whereby a boss describes his or her vision for
the future and identifies aims and goals. It entails a series of actions in which the
objectives are realised in order for a business to attain them effectively and efficiently.
This conception is primarily concerned with incorporated different divisions of Arden
Mountain Nursing Home, which include accounting, marketing and finance, in order to
achieve its objectives (Khalid, and et.al., 2019). It is divided into three stages: strategy
development, execution and valuation. Below mentioned are the several kinds of strategic
planning:
 Tactical Planning – It is also known as short-short-run planning because it focus on the
current trading operations of different parts of the organization. It is utilized by managers
for lineation the numerous aspects of the organization that must be completed in order for
the organisation to become palmy at some factor or in the future in the time period of less
than one year. This will assist the Arden Mountain hospital ward in meeting its short-
term objectives of needing a tenancy of one year or less.
 Operational Planning – It refers to the procedure of connecting or positioning
strategical as well as plan of action aims and goals. It includes benchmarks and explains
what part of the business idea should be implemented in order to meet the objectives. It
empowers the care home manager must make strategic planning decisions.
Controlling of mission and vision
Mission – Arden Mountain Nursing Home's mission is to provide long-term services for
individuals, and the company plans to open five more infrastructure in the UK.
Vision – The vision is to deliver the advanced stage of person-centeredness in a home-like
setting.
The management's strategic planning is entirely responsible for mission and vision control. It
is instantly influenced through the idea formation. If the planning is not effectual, the
organisation will be unable to achieve its vision as well as mission. The management must

clearly convey to their superiors and make sure that every features carried out in the
organisation are managed to carry out according to help manage or not, if the results are
approximative then, it do not require any practice or action, only if the results are negative
then reparative metrics result in the enhancement of whole performance of the business
organisation are required. The management of Arden Mountain Nursing Home is required to
develop the plan of actions and line up them along with the features in order to achieve its
goals. It is the management's job to assess and review the performance of its employees so
that they're being focused on achieving objectives.
Performance tool for Arden Care Home
Balance Scorecard – It is described as a strategical managerial execution measure which allows
businesses for knowing and improving the functional processes in order to improve outer results.
It evaluates ancient performance by providing feedback to companies so that they can start
making better decisions in the future (Kober and Northcott, 2021).
Advantages
 Bringing structure to business strategy – All companies has various sections or
divisions, each with their personal method of measuring performance. It is a common
location for measuring organisational performance. It synchronises the business structure
with the strategy.
 Makes communication easier – When everyone speaks in same dialect, the dept and its
members become easier to comprehend. It assists the Adren care home in streamlining
the performance management, making it easy for the management of business
organisation for conducting or involved in planning.
 Assist better alliance – It allows all the employees working in the business organisation
for aligning the goals at diverse stages at work place.
Demerits
 Must be tailored to the company – From few instances, it takes a long period of time as
well as it must be customisable to fit into the management structure. Every company is
distinct.
 It may be complicated – It takes awhile and dedication to comprehend because there are
numerous resources that have become complicated to comprehend.

 Required lots of data – It requires a huge amount of data to also be obtained, which will
become tiresome and may interfere with work.
SWOT analysis
It is a tool or structure which can be used to evaluate an organization's strengths and weaknesses.
It focuses on the development of strategic planning and enables people to focus on their strengths
in order to create opportunities. Company's internal strengths and limitations, so although
corporate governance is considered opportunities and threats
Advantages
 Application neutrality – This evaluation is done out by defining the goal and
investigating the internal strengths and weaknesses that are either good or bad to the
achievement of the objective. The above approach is the same whether it is used to
support long term planning or opportunity assessment (Moroz, 2019).
 Multi-level analysis – It is an inter analyse framework that illustrates the strong points of
all stage or dept also assists managers in developing sound decisions.
 Simplicity – anyone with the relevant skills along with knowledge have ability to
perform the operations as it do not need any specific technical knowledge or capabilities.
Demerits
 No Coefficient component – It lacks some method for ranking importance of single
component in relation to some other. As a result, determining the effect of one factor on
its objectives becomes challenging.
 Ambiguity – It is a single framework that aids in determining strengths, weaknesses,
opportunities, and threats. As each size and high to have one influence on the problem
under consideration.
 Subjective analysis – It is critical that the business objectives are realistic, dependable,
and based on comparative data. SWOT data gathering is a subjective concept that may be
biassed because it was gathered by a person who took part in a brainstorming process.

Recommendation
Arden should choose the balance scorecard method from the two strategic planning models
discussed above because it will aid in improving the company's overall performance and
identifying departments that are lacking. This will allow the manager to make more informed
decisions while also contributing to the registered nurse home's aims and goals. It is a
comprehensive study of the performance of the company that provides guidance on how to
achieve the goals. It enables the hospital ward to define its actual quality as well as areas where it
falls short, such as in finance or advertising.
Question No 2
a) The utility of Du Pont analysis to stockholders, as well as an explanation of the intent of
each equation debated below:
Usefulness of Du Pont Analysis to shareholders:
Du Pont analysis forms basis for analysing the foundational performance of the business
organisation. It is regarded as a useful technique for cultivating different operators of
income tax return on capital. Decay of Return on equity permit the capitalist for focusing
on the main financial performance measures, allowing capability and failing to be
highlighted (Bunea, Corbos and Popescu, 2019). Du Pont analysis is calculated using the
formula Net income / Revenue. The respective investigation will assist the entity's
investors along with the stakeholders in determining which financial activities contribute
the highest number of changes in Return on Equity. Du Pont evaluation includes financial
leverage, assets turnover ration along with the net profit margin.
Explanation on purpose of each formula along with calculations and interpretation comparing
industry average:
Total Margin:
Total margin explores a sales profits in relation to the expenses. The total margin ratio
believe income through the entire origins, as opposed to operating margin ratios, which only
consider income from business operations (Uyar, and et.al., 2021). below mentioned is the
formula which is being used for the purpose of calculating the total margin:

Industry’s total margin has been 3.50 %
Interpretation:
Gap of Arden Mountain Nursing Home is found as negative in comparison to the sector, it
means company is underperforming in process of reaching the value in the market or that
their operating expenses overspend they established for the fiscal year.
 Asset Turnover Ratio:
The return on assets ratio is used to compare the selling profitability of a firm to the
worth of its assets. Major goal of analysis of respective ratio is to assess the organization's
efficiency in generating revenue through the use of assets (Fleming and George, 2021). The
equation for asset turnover is described as under:
Interpretation:

The achievement of nursing home is found as lower when compared to the industry turnover
ratio, indicating that they will be not successfully utilising the assets in the business (Thomas
and Rabiyathul Basariya, 2019). As a result, their industry performance is poor, and they
must be supervised and efficacy and performance.
 Equity Multiplier:
The intent of the equity ratio is to determine the hazards that exists in the organization's
capital model in the form of stocks and bonds, and how much of business's assets are funded by
equity rather than debt. The capital multiplier formula is as follows:
Interpretation:
The capital part of business organisation is high, at 6.99 times the business average of
2.50 times, indicating that the organisation have used finances through equity more than liability.
When compared to other competitors, the registered nurse home's risk will be lower.
 Return on Equity:
The intent of return on capital is to determine the sum of wealth that remains with the
business after paying dividends to shareholders, which includes payments made towards both
equity and debt holders. The following is how the return on assets will be measured:

Interpretation:
The care home has already been going to perform well in comparison to the sector, with a
3.08 percent improvement, indicating that they are allocating their resources and assets wisely. It
also helps the company improve its market position in comparison to its competitors.
b) Interpretation of ratios along with brief explanation on purpose of each formula with
calculation and comparison with industry average:
 Return on assets:
the major goal of this calculation is showing the position which explain how well the the
business organisation is providing return on investment to its stakeholders. Below mentioned is
the formula of calculating the same:
Interpretation: The industry ratio is 5.20 percent also the nursing home ratio is 2.31 percent,
indicating that the management is not utilising the assets effectively and must improve in order
to grow.
Current Ratio:
The main objective of the current ratio is to determine if an organisation can repay its
current liabilities with the assets it owns (Cammett and Sasmaz, 2021). The formula is as
follows:

Interpretation: The care home rate was take down by .63 times through sector,
indicating that their total assets are insufficient for returning the current liabilities.
Cash in hand days:
The goal is to determine how many days the organization will constantly
paying the expenses related to the expenses through the cash on hand. Below
mentioned is the respective formula:
Interpretation:
The market rate is 22 days and it has been concluded that the nursing home has a cash in
hand period of 30 days, demonstrating their position in achieving their operational costs.
 Average collection period:
The aim is of achieving how much time a company needed to collect
money from about there debtors. Below mentioned is the respective formula:

Interpretation: The manufacturing ratio is 19 days, which really is nicer than that
of the industry's, that is more than five days through industry norms, indicating
that their funds are being obstructed for a longer period of time, which may have
an impact on their working capital cycle.
 Debt ratio:
The goal is to assess the risk in the company's capital structure. The
formula for calculating it is as follows:
Interpretation: When compared to the industry, the nursing home's debt equity ratio is higher,
increasing the risk percentage in their capital structure and increasing their fixed cost in terms of
interest.
 Fixed asset turnover ratio:
The goal is to determine whether the company's assets are being used in an
efficient manner that contributes to sales (Luk, 2020). The asset turnover ratio
formula is

Interpretation:
The turnover ratio of an industry's development are nearly identical, indicating that they are
meeting the manufacturing standard of utilising their financial assets invested in the company.
Question No 3
Critically evaluate the use of non-financial and multidimensional models of performance
management
Performance management is an important aspect of business administration that is
frequently overlooked in the great scale of things. Businesses are soon realized that trying to
simplify their workforce's economic output is a critical component to making sure their market
success. Every company that has serious ambitions to prosper in their target audience and have
robust operating effectiveness on a regular basis has an aspirations as well as stringent operations
that govern how it conducts actions and timetables on a regular basis. A company can use
performance management models for the purposed of aligning their employer's working and
thought patterns forward towards the accomplishment of the company's broad vision and
operations, which not only enhances their achievement and also assist inculcate a positive job
culture within the organization. Performance management governs the system in two broad
ways: the wide structures that will be formed under it and the various purposes that will be
primarily fulfilled under it, as listed below.
 Financial models – These achievement management methods are geared forward into
financial daily operations and aspects that are mainly used to analyze and assess the
performance of the business and its assets, as well as economic employee satisfaction
criteria such as salary analysis and compensation package design. Balance sheets, income
reports, and accounting records are frequently used to study not just to existing business
achievement but also the current state of revenue and profit generation, as well as the
robustness of assets currently held by the business. The several benefits that a company's
working population is confined to are also scheduled using performance measurement
models and frameworks, as the bonus that is to be viewed to staff or their commission on

performance is estimated using complicated arithmetic metrics using performance
appraisal and HR management systems.
 Non-financial models – Aside from focusing solely on the financial aspects of the
business, achievement management is responsible for key roles in the broader area of
human resource management, as well as aiding in the as a whole process of employee
interaction. Accomplishment management is closely related to non-financial aspects of
the company because it helps collect data that are usually overlooked in favour of
financial metrics, such as the level of boosting brand and good hints that are trying to
convert in to the sales, and the existing brand point of view that the company received
among the general public.
Because the external environment has become increasingly intrusive in the modern
business landscape, and focusing solely on sales revenue creation is no longer a viable business
model, non-financial performance management models are critical for its survival. Some non-
financial models are widely used and have multifaceted roles, as they not only aid in procedures
such as performance evaluation but also in efficient human resource management practises;
examples include the balanced scorecard and the achievement spire.
A balance score card is a strategy formulation performance metric that is used to
concentrate on improving a few internal business practises and the external outcomes that result
from them. Financial measures are widely used by businesses in the United Kingdom to measure
and provide feedback to employees (Glinskaya, and et. al., 2022). Businesses can analyse their
customer service using their internal version of balanced scorecards. There are numerous
advantages to using balanced scorecard approach, including the ability to consolidate
knowledge / analysis into a single report rather than dealing with various tools. Accounting
systems have several advantages and disadvantages, which are listed below:
 Bring structure to the business strategy- Different departments within a company may
have metrics for measuring performance and also what measurements they consider to be
substantial. As a consequence, while different departments and leaders can still use
balanced scorecards to personalise their metrics, there is no set permanent structure that
can be understood across the workplace. It provides a common area for everyone in the
workplace to measure success (Moores and et. al., 2022).

 Connect the individual employee to the organisational objectives- Balanced
scorecards assist employees in "keeping their eyes on the prize," so to speak, in terms of
objectives. Individual employees may find it beneficial to their own performance when
they can see a larger purpose behind the objectives and goals they are attempting to
achieve.
 Improved measurement and reporting- Balanced scorecards demonstrate the value of
making achievement simpler to evaluate. Balanced scorecards can be used to categorise
specific business goals and key indicators. It also assists the organisation in creating a
more effective dashboard for reports and other metrics. It can help to quickly resolve key
objectives and concerns.
While there are numerous advantages to implementing a balanced scorecards system in
the workplace, there are some potential disadvantages and roadblocks to balanced scorecards that
are listed below:
 Must be tailored to the organisation- Balanced scorecards are expected to provide a
model from which to work; however, each organisation that uses the system will require
customization. It may take longer, and while examples are helpful, they cannot be
replicated exactly due to the unique needs of each business.
 Require a lot of the data- Generally, balanced scorecards require team members and
managers to report information, which entails logging data. Many organisations dislike it
because it is time-consuming and can interfere with doing the necessary work to meet
goals.
 It can get complicated- Balanced scorecards require time and effort to comprehend.
There are numerous research papers and assets to perused, and it is quite simple to
become bogged down with the various ways to use this method (Zhang and Meng, 2022).
The position of the achievement hierarchy cannot be overstated when it comes to cross
and multifaceted production management systems, as its foundation is built on the fact that
focusing solely on a company's financial parameters cannot help in the measurement and
eventual enhancement of its daily operations in the target audience. Lynch and Cross' pyramid
model focuses on two major components that are critical to a competitive marketplace and the
achievement management standards that are instilled in daily operations: external effectiveness

and internal efficiency. The latter is primarily financial in nature, whereas the former advocates
for the importance of non-financial performance parameters (Aman and Seuring, 2021).
This model contends that in order to structure a firm's basic market goals and objectives,
it must first have a solid corporate vision, which helps guide the firm's future actions holistically.
The corporate vision of Arden Mountain nursing home, which sits atop this model, is to expand
to five additional locations across the UK while committing to providing excellent long-term
adult care on a global scale. This vision, according to the pyramid, will not be realised and will
not be properly measured by performance management standards unless it is met by a dual focus
on both financial and non-financial parameters, which are listed just below the corporate vision
(Korneta, 2018).
The outward efficiency of a company drives significant aspects such as kindness, that has
a serious influence on how it is interpreted by both consumers and the manufacturing media, as
well as strong brands and perspective, that can only occur when a business focuses on non-
financial commercial business processes (Perera and Perera, 2019). The manner the firm's
products and services meet the target industry, the firm's versatility to make adjustments to tough
circumstances and productivity level are all essential non-financial factors, according to the
pyramid.
The operating systems referenced in this prototype are even further explained using
individual departments variables about which their achievement is dependent. The quality of care
provided by Arden Mountain to the elderly and sick will directly affect customer satisfaction,
while the time required to provide care and the ultimate end up wasting procedures will have a
direct impact on the firm's versatility and productivity. Arden Mountain should use this method
to explain the areas of non-financial operations that need to be prioritised in order to realise its
vision.
CONCLUSION
The preceding report went into detail about essential human resource management and
business administration processes such as strategic management tools, the use of economic
information and ratios, as well as various non-financial performance management models, to
assessed the productive capacity, survivability, and existing fiscal robustness of healthcare
companies. These businesses were examined making the use of several tactical tools which

include SWOT analysis and balanced scorecards, as well as financial ratios and their
interpretations such as the debt-to-equity ratio. The study concluded with an overall view of non-
financial and multidimensional performance management models, with a particular emphasis on
balanced scorecard along with presentation pyramids.

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