Performance Management System

This assignment discusses the issues faced by an organization due to the lack of a performance management system and provides recommendations for improvement.

Running head: PERFORMANCE MANAGEMENT SYSTEM
PERFORMANCE MANAGEMENT SYSTEM
Name of Student
Name of University
Author’s Note

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Table of Contents
Introduction: The Management Problem.............................................................................2
The Research Question........................................................................................................3
The Research Evidence........................................................................................................4
The Stakeholders.................................................................................................................7
The Organizational Evidence..............................................................................................9
Recommendations..............................................................................................................11
Leadership Lessons............................................................................................................13
References..........................................................................................................................16

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Introduction: The Management Problem
The National Health Insurance Board had been established under National Health
Insurance Ordinance in the form of a statutory body. The main aim of the organization is to
facilitate provision of affordable, accessible as well as providing services quality health care to
all the beneficiaries according to the ones that have been specified in the ordinance. The board
usually concentrates in protecting the welfare of the Turks and Caicos Islands which has the
population of around 35,000 people (Arnaboldi, Lapsley and Steccolini 2015). The organization
did not have proper performance management program or an effective people management
program. Due to lack of performance management the organization is not able to improve the
career advancement opportunities provided to the employees. The lack of training had also
brought about an end in their career growth and skill development.
Insufficient training as well as development opportunities makes the staffs of the health
care institute dissatisfies, unfocused and demotivated. The organization had concentrated in
providing a patient- centric service along with high- quality care considering it as heir priority;
they failed to realize that the job along with quality also needs commitment (White, Dudley-
Brown and Terhaar 2016). The lack of performance measurement program did not allow the
organization to deal with issues related to the employee performance. The absence of a specific
measurement of systematic performance had made it tough for the organization to review the
performance of the employees with the use of proper set of attributes (National Health Insurance
Board. 2019). The organization had undervalued the process of performance evaluation and the
documentation of performance in a constant manner. The lack of performance measurement
program did not allow the organization to set various performance goals for the employees

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(Kerzner and Kerzner 2017). This makes the employees unaware regarding what is actually
expected from them. I am experienced in this specific field for around 3 years and I have worked
in collaboration with various organizations including several IT institutes and health care
institutes in preparing a performance management system in the organization (Papp 2018). This
has helped them to set goals for their staffs and improve their performance; it had also helped
them in increasing motivation among the staffs and improves the productivity as well as client
satisfaction within the organization.
This assignment provides various research questions related to the issues faced by the
organization, it further provides research evidence that describes the search that has been carried
out for the purpose of academic evidence (McGrath, Taenzer and Karon 2016). The report also
discusses regarding the stakeholders that are relevant to the problem, the affects to the
stakeholders had been mentioned. The report further discusses regarding the recommendations
that can be implemented by the organization in order to overcome the problem. The above
mentioned points have been discussed in details in the report.
The Research Question
The issues faced by the management had been translated to for a set of various research
questions. The problem faced by the management had been divided into various
categories; the issues in each category have been accessed and research questions were
prepared. Various points that have been considered in order to translate the management
problem into research questions are as follows
 Understanding the background: the background of the organization has been
accessed and the problems faced by the management department of the
organization due to lack of performance management system had been noted

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down. The data received from the background has been translated into research
questions.
 Relevant information: the relevant information regarding the issues faced by the
organization has been noted down by interviewing the employees and then they
were translated into research questions.
. The research questions that have been prepared are answerable in nature, the research
questions are as follows
 What are the key issues faced by the organization due to the lack of an effective
performance management system?
 What is the impact of the issues faced due to lack of performance management
system on stakeholders and staffs?
 How these issues can be resolved by the management?
 How to improve the performance of staffs in the organization and how to keep
them motivated?
The Research Evidence
Research has been carried out on the basis of the research questions that have been
provided above. The research has provided enough data that would be helpful in answering the
questions (Tsai, Jha and Gawande 2015). This part of the research describes various issues faced
by the organization due to the lack of performance management system and various concept
based on the issues faced by the organization. Some issues have been analyzed after researching
the present working principles of National Health Insurance Board are as follows
 Limited opportunities for performance improvement: the51% of employees working in
the organization face lack of opportunities for advancement in career. The organization

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does not provide proper training to their employees; this prevents them from developing
their skills and hence grows their career (Spurgeon, Clark and Ham 2017). According to
various surveys, it has been found that the professionals were not provided with proper
employee development programs like training on in-house skills, technology training as
well as opportunity for the purpose of innovation and education reimbursement (Ginter,
Duncan and Swayne 2018). Around 50% of the employees said that they were provided
with just one program on in-house skills training. This proved that other skill
development programs were ignored or not considered as a priority. Inadequate training
as well as less development opportunities dissatisfies the employees and leave the,
unfocused and demotivated.
 Incentives or appraisal: the lack of performance management prevents the organization
from keeping record of the activities or tasks performed by the employees. This prevents
the organization from knowing the encouraging factors of the employees (Wiley,
Rittenhouse and Shortell 2015). Various employees have different encouraging factors,
this need to be understood by the organization and take necessary steps to encourage the
employees (Laudon and Laudon 2016). Lack of performance management system
prevent the organization in undertaking few measures that can encourage employees
include incentives and reward and recognition which helps the organization in rewarding
the employees who perform well, different appraisal plans for employees can be decided
on the basis of their performance.
The lack of performance management system has numerous negative impacts on the
organization; it prevents the organization in carrying out various tasks and achieve their business
goals (Shanks 2016). It had also resulted in issues in managing the performances of the

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employees. The organization had been very busy in improving their working principles that they
did not invest resources and time in implementing a performance management system for
monitoring the performances of the employees as well as organization as a whole. The lack of
the system has not allowed the organization to track their growth and know their position
compared to other companies (Kwon, Kim and Martin 2016). The organization also could not
receive feedback from various employees regarding the changes that needs to be undertaken by
the organization in order to improve their operations and decrease the rate of employee turnover.
The organization could not track their performances, perform effective documenting as well as
communication their performance goals, the expectations, and the employees had no idea
regarding what the organization expects from them (Johnson and Sollecito 2018). The
organization could not collect feedbacks regarding the ways that would help them in meeting
their expectations.
The organization can tackle these issues using various measures, the measures include setting
good expectation, providing regular as well as honest feedback and ideally, improving the
overall performance of the organization (Scott, Mannion and Davies 2018). Any work that is
done by the organization requires some amount of money and when the organization does not do
the work effectively, the money incurred is completely wasted. When expectations are set they
communicate regarding what is important to the employees as well as the organization (Willis,
Saul and Bevan 2016). If clear expectations are not set employees might unknowingly proceed in
the wrong way and do various works that does not help in growing the business.
Documenting performance is an important part which can help the organization in overcoming
the issues that the company faces due to lack of performance management system. A form must
be prepared in order to document goals, feedback and assessment and confirm the fact that data

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has been shared with all the employees (Graban 2016). This is very important for various
reasons. It gives the organization evidence regarding performance dialogue that an employee can
claim otherwise. Lack of documents can cause various issues for the organization; it might also
face losses due to this. The documentation allows the organization to compile snapshot of
performance of employees (McCormack and McCance 2016). This is the only way using which
the chief executives would know that the workforce of the organization is aligned with their
strategy. The organization must review their goals yearly, in some cases the organization must
also need to reset thee goals and objectives because along with growth of the organization, the
expectations and necessities of the organization changes (Lloyd 2017). If the performance
management system is made relevant to the goals of the organization, it helps them to know how
long they need to travel or how hard they need to work in order to achieve their target (Hung,
Martinez and Yakir 2015). As a result when the goals are changed in the next year, they would
have an idea regarding how big a leap they need to take in order to reach to the next level in
improving their performance. The performance management system would also help the
organization in setting the new goals according to the requirements of the customers,
stakeholders, clients and employees.
The Stakeholders
The health institute consists of external as well as internal stakeholders; several
stakeholders among these are affected by the lack of performance management, some
stakeholders and the way they are affected due to the issues are as follows

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Stakeholders Interests Affects on the stakeholders
Professionals Some professionals include health
workers, nurses, doctors, and dais of the
voluntary health workers, community
health centers and many more. They are
responsible for providing care to various
clients; the participation may vary from
simple tasks related to patient care to the
expert professional techniques that are
necessary in situations that are acute lives
threatening.
Lack of performance management would
not allow the professionals to keep a track
on their performance and the tasks
performed by them, there would no proof if
they have performed well or not, this
would prevent them from improving their
performance in order to move forward in
their career.
Managers Managers usually monitor the work or
activities performed by the employees
belonging to different departments. They
also take care that stakeholders are
performing their part in an effective
manner.
The lack of performance management
system would prevent the management
team to monitor the activities or tasks
carried out by various employees. this also
prevents them to keep a track regarding the
individual performance of the employees,
this as a result would not allow the
employee to get rewarded on the basis of
their performance, during the time of
appraisal, it cannot be calculated that
which employees deserve more appraisal.
Incentives on the basis of performance
cannot be calculated hence the employees
who perform well would be discouraged.
Physicians Physicians are professionals that are the lack of performance management

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responsible for providing proper medical
facilities to the customers. They are also
responsible for controlling the overall cost
incurred by the enterprise up to 60% to
70%.
would not allow them to record the
activities performed by them or the amount
of contribution provided by them in the
growth of the organization, it would also
prevent them to get rewarded for their good
performance.
Table 1: affect of performance management system on stakeholders
(Source: Morgan, Ensor and Waters 2016, p. 143)
The Organizational Evidence
The organizational evidence that would be required in order to support the decision
making for the problem and the ways by which the evidences can be acquired is as follows
 Resources: the resources available in the organization, this include the ways by
which the organization maintains its track of performance, or the resources that
are present in the organization which helps in improving the honesty and loyalty
of employees and other professionals related to the (Mayne 2017). This data can
be obtained by getting access to the registers or computers where this sort of data
is maintained (Selviaridis and Wynstra 2015). This data would help the
management team to sort out the decisions that must be undertaken by the
organization in order to improve the performance of the employees.
 Working principles of the organization: gaining data regarding the working
principles of the organization, this is very important because it would help the
organization in knowing the areas that would be focused while decision making
(Badewi 2016). The working principles are important to know because they

10PERFORMANCE MANAGEMENT SYSTEM
would help in concluding the decisions that would be undertaken in order to
improve the performance; it is to be considered that the working principles must
not be affected by the decisions. The data regarding the organization’s working
principles would be obtained from the operations team functioning within the
organization (Sujan, Huang and Braithwaite 2017). The activities taking place on
regular basis within the institute must be recorded and accessed.
 Employees’ necessities: it is important for the organization to gain information
regarding the factors that motivate them or which help in boosting their
performance (Ferlie 2017). This data can be received by performing a one to one
interview where they can be asked regarding the issues faced by them and what
can be done in order to mitigate the issues.
 Problems with evaluation: the organization has various problems regarding the
evaluation of activities. In some cases similar activities occur several times and
they are not recorded by the organization, this wastes an ample amount of time
(Cherry and Jacob 2016). The issues regarding the evaluation within the institute
must be recorded which would help in the decision making of the organization.
The issues in evaluation create further problems in the performance of the
employees as well as other professionals (Laudon and Laudon 2016). This data
can be obtained from the managers or professionals belonging to higher authority
through personal interview or a group discussion where they can discuss
regarding the issues faced by them individually.

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Recommendations
The recommendations have been mentioned in the form of a formal email to the internal
stakeholders. The email with recommendations is as follows
To,
The internal stakeholders,
(Subject: recommendations regarding performance management)
Respected Sir/Maam,
This is to inform you that The National Health Insurance Board had been
facing numerous issues regarding the lack of performance management system within the
organization; this has led to no improvement in the performances of the employees and
discouragement among them, various recommendations that can be undertaken in order to
improve the overall organizational performance are mentioned in this email.
The recommendations that can be implemented by the organization are as follows
 Establishing performance standards: the organization must set of standards that
can be considered as a base that can be used in order to compare the daily
performance of the employees (Thokala, Devlin and Marsh 2016). This step
would help the organization in judging the performance of various employees as
unsuccessful or successful on the basis of the standard that has been set. This also
helps in contributing to the goals as well as objectives of the organization. The
standard that would be set must be clear and easily understandable as well as must
have measurable terms (Kwon, Kim and Martin 2016). In case the employees’
performance cannot be measured, steps must be taken to reset the standards.

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 Communicating standards: after the standards have been set it must be
communicated to the stakeholders as well as employees of the organization
(Mussen, Peacock and Watkins 2016). The standards must be explained to the
employees. This would be helpful for them to understand the roles that they have
in the organization and what the enterprise actually expects from them. The
evaluators as well as appraisers must also be communicated regarding the
standards (Mossialos, Wenzl and Osborn 2016). In case it is required the
standards can be modified at this particular stage based on the relevant feedback
received from the employees or evaluators.
 Measuring the performance: this is considered as one of the most difficult part of
the entire process (Gerrish 2016). Measuring the actual performance of employees
must be calculated which can be done by recording the day to day work carried
out by the employees on daily basis. This process involves the monitoring of
performances throughout the entire year (Ramadevi, Gunasekaran and Roy 2016).
This particular stage needs careful selection of proper techniques of measuring, it
must be considered that the personal bias is not affected by the outcome of the
entire process, it must also be noted that interference in the work of the employees
does not take place and assistance is provided to them.
 Comparing the actual performance with desired performance: the main
performance of the employees must be compared with the standard or the desired
performance (Ginter, Duncan and Swayne 2018). The comparison would depict
the deviations in the employees’ performance from the set of standards. The
comparison would show if the obtained performance is less or more than the

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standard performance. This would recall, analyze and evaluate the data that would
be related to the performance of the employees.
The recommendations mentioned above can be followed by the National Health
Insurance Board in order to introduce an effective performance management system.
Leadership Lessons
This assignment deals with a health care organization that faces numerous problems due
to the lack of performance management, it further discusses regarding the ways that can be
utilized in order to implement effective performance management. From this particular
assignment knowledge of several factors can be obtained (Mossialos, Wenzl and Osborn 2015).
These factors include importance of tracking progress and set benchmarks for various
employees, usually employees or other staffs perform better or in an effective manner when they
know the organizational goals clearly and what has to be done in order to achieve the goals
(Wang, Kung and Byrd 2018). The usage of performance management system would help in
creating benchmarks for the talent development journey of every employee. It allows in tracking
everyone’s progress along with allowing employees to know exactly what steps are to be carried
out in order to achieve their development goals. The aligning of benchmarks with the business
strategy of the organization it is ensured that all the employees are focused on the goals as well
as mission of the company (Ansoff, Kipley and Lewis 2019). One more lesson learned from this
assignment includes strategic goal setting and various development plans, an effective
performance management system helps the organization in setting goals along with allowing the
employees to set their personal goals, it helps in building character, increases productivity and
improves focus . This usage of an effective performance management system, employees would

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be encouraged to work in collaboration with their managers for setting goals as well as create a
development plan for achieving the goals (Yih 2016). From the data obtained from the system
and the analysis functions, managers would be allowed to identify the skills gaps as well as
employee competencies in a specific team; this is done in order to focus in development efforts
along with training on the areas that are mandatory or more important.
Hence it can be concluded that the usage of an effective performance management
system would help not only the employees but also the management of the organization. This
learning that is obtained from the assignment can be utilized in order to increase the performance
of the employees as well the organization as a whole (Kanamori, Sow and Castro 2015). It would
be helpful in tracking the activities done by all the employees under a team, in the aspect of
leadership style application of a performance management system would help me in gaining
knowledge regarding the employees who have worked more and are more dedicated in their
work, this would help be to reward the dedicated employees on the basis of their performances.
Some rewards include incentives and changes in appraisal structure (Boulware, Cooper and
Ratner 2016). It would be helpful in motivating the employees and encouraging them to work
effectively. This learning would be helpful in tackling management problems by keeping proper
records of work done by every employee, it would help the management of the organization to
monitor the performance of the employees and gain knowledge regarding the staffs who are
more dedicated and should be awarded along with the employees who are not enough motivated
to work effectively. This would also help the management to look for ways in order to encourage
employees (Pronovost, Armstrong and Demski 2015). Personal discussion can be carried out
with the employees who would help them to gain ideas regarding the motivational factors of the
employees and bring about the changes within the organization.

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