Organisational Governance and Performance Management Report

This report delves into the complexities of organisational governance and performance management within the Australian healthcare system. It begins with an overview of organisational governance, exploring various definitions and benefits, including the management of political accountability and public sectors. The report then focuses on health care reforms, examining their impact on service delivery, financial implications, and the roles of both employers and employees. It specifically highlights the National Health Reform, discussing its implementation, strategic and operational planning, and the issues that arose during the reform process, such as financial constraints and skill gaps among healthcare staff. The report also explores the critical link between strategic and operational planning, emphasizing the importance of vision, mission, and environmental analysis. Finally, it underscores the significance of stakeholder feedback in driving improvements and advancements within the health system, providing valuable insights into the challenges and opportunities within Australian healthcare governance.

Running head: ORGANISATIONAL GOVERNANCE AND PERFORMANCE
MANAGEMENT
Organisational Governance and Performance Management
Name of student
Name of University
Author note

1ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
Executive summary
There were various ways of defining the organizational governance and it included
encompassing various policies, politics, public administration, interacting with the civil society
and derive positive socio-economic outcomes. There were other benefits of managing
organizational governance such as management of political accountability, gaining a formal
oversight, management of public sectors and manage civil society and media through freedom of
information and participatory country diagnostic surveys. This had not only helped in managing
the human resources in an appropriate way but could also lead to the management of leadership
and governance through involvement of various strategic policy frameworks.
Table of Content

2ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
s
Introduction......................................................................................................................................4
Organisational Governance reforms................................................................................................4
Implementation of Governance reforms..........................................................................................5
Link between strategic and operational planning............................................................................7
Issues arisen during implementation and adverse effects of reforms..............................................8
Feedbacks obtained leading to advancement in development of health..........................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

3ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
Introduction
The topic discusses the organizational governance and management of performances
based on the different types of health and social reforms that are managed within the health and
social care organizations in Australia. The health care reforms are managed to determine the
ways of creating the most important health policies and check the changes along with
Governmental policies that are implemented for creating an impact on the delivery of health care
services to people. The laws, rules and regulations that are implemented create financial impact
according to the present health condition and age of individuals within a particular community.
The health care reforms are used to increase the number of people who are insured and ensure
that high quality health care services are delivered to the people suffering from some kinds of
diseases or illnesses through reduction of costs of services that have been delivered. The health
care reforms can create impact on both the employers and employees of the organization who
need to abide by the rules, regulations and relevant changes, which have been made by
implementing the health reforms and policies (Bao et al., 2013).
Organisational Governance reforms
The health system governance is undertaken for protecting as well as promoting good
health of people within the community through setting up of strategic direction, goals and
objectives and even changing the policies, laws, rules and regulations for ensuring successful
deployment of resources and accomplish the organizational goals and objectives with ease and
effectiveness. By enabling proper organizational governance and performance management
systems, it could be even easy for implementation of health reforms and even improve the

4ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
efficiency of setting a strategic vision, manage participation of the health care staffs, ensure
transparency, responsiveness, equity along with the values and ethics properly maintained
(Bititci et al., 2012). The health reforms are established to deliver high quality, safe and
sustainable public health system in Australia and make the health care workers understand the
vision of the organization and focus on greater accountability and transparency within the
workforce.
In Australia, the new health governance reform such as The Health Services Act is a
welcome addition that has not only helped in supporting the workforce but also has resulted in
improving the management of financial aspects along with development of string partnership,
furthermore ensuring successful delivery of Information and Communication system and support
services too (Collins et al., 2015). The Governance reforms on the other hand have lead to
making of certain changes to the way health system is governed. It is essential for ensuring
greater accountability and improves the efficiency of decision-making process, furthermore
improving the patient care and delivery of services with ease and effectiveness too (Driouchi &
Bennett, 2012). It also allowed for local participation, empowering the community and even
managed involvement in projects related to the implementation of health reforms. The
performance management approaches were undertaken to check whether the workers of the
health care organizations in Australia had been working properly or not and then implement a
health reform based on which necessary changes could be done (Keehan et al., 2012).
Implementation of Governance reforms
One of the recent governance reforms related to the health system is the National Health
Reform. The NHR agreement was managed during the year 2012 after lots of discussions

5ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
between the States and Commonwealth. It is a kind of document that sets various goals and
objectives for implementing a reform program properly and manage delivery of good quality
services to people in Australia. Previously, there were a lot of issues and concerns related to the
public health hospitals such as lack of safety and poor quality services delivered, overcrowded
emergency departments and long waiting list for management of surgeries as well (Filatotchev &
Nakajima, 2014). Blames and criticism on the Government of Australia were experienced and
had been told about lack of proper funding to meet the growing demands and preferences of the
people and poor management. A huge segment of the population started blaming the Australian
Government about a single level of management responsible for the health care services and
other responsibilities. After much debates and discussions, finally, the National Health Reform
was introduced with the involvement of Government of Australia and this further implemented
many changes in the health system with exclusion of various recommendations by the
Commission too (Keehan et al., 2012).
As a manger of a health care organization, it is my responsibility to ensure that all the
principles of the National Health Reform are supported to manage proper decision making at all
the levels of the health system, manage activity based funding for the health care organizations
and ensure successful public performance reporting. The implementation of the reform could
allow for local decision making through establishment of Local health networks for management
of hospitals and deliverance of good quality services for the people (Keehan et al., 2015). With
the implementation of this reform, various policies and procedures will be changed, furthermore
allow for managing the budgetary procedures at the hospitals and delivering the required services
to the people of Australia. The National Health Reform could also change the responsibilities of
the States and make sure that the operational processes, gaining oversight and management of

6ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
health system are done properly. By implementing the reform, it would also be easy for
managing the activity based funding and develop a national health system to select the most
appropriate coding technique, manage proper collections of data and information and even
determine the right price that should be set for the health services offered (Liaw et al., 2012).
Link between strategic and operational planning
As a manager, from my perspective, it is evident that strategic planning is an important
aspect to identify the vision, mission, goals and objectives and even make necessary plans to
become successful in the future. The strategic planning is experienced at the corporate level and
proper rules and regulations are followed to make the operational planning successful at the
functional level. The vision of the organization is to deliver good quality care services to the
people of Australia through implementation of governance reforms for proper management of
changes in policies, procedures and implementing laws, rules and regulations too (McGorry,
Bates & Birchwood, 2013). As the report focuses on the implementation of health reform, it is
the responsibility of the top-level management to manage the strategic planning process and
understand the vision, mission, goals and objectives by examining the micro and macro
environmental factors. This would help in setting priorities and develop a path to reach towards
the ultimate goal with ease. The PEST and SWOT analysis should be done for managing the
strategic planning process by identifying the strengths and weaknesses of the organization and its
introduced reform and even determine the various factors that could create impact on the
operational planning (Mir & Pinnington, 2014).
As soon as the strategic planning process is completed, the operational planning is done
to support it and determine the long as well as short term goals and objectives. The middle level

7ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
management manages the operational planning process by managing the planning process at
various levels of the organization through alignment with the strategic planning, reforms of the
health system to achieve the vision. The objectives of implementing the reform must be clearly
set, performances should be measured to check whether the organizational staffs are aware of the
changes or not and lastly maintain the quality standards (Moynihan, Pandey & Wright, 2012).
Issues arisen during implementation and adverse effects of reforms
The major issues faced during the implementation of the Governance reforms are
spending of lots of money, change in new tax and regulatory aspects and even lack of knowledge
and skills among the health care staffs. The implementation of new reforms can often be
something new for the workers of the health care organization, which they may fail to understand
properly and this can lead to further complexities. Due to the new tax and regulatory
requirements, the prices of services might change, which could further result in making the
people within the community unable to purchase the desired quality services from the health care
organizations. One such legislation could be the Affordable Care Act that had forced to
implement changes within the industry and put a lot of pressures to the health are professionals
as well (Shields et al., 2015). The health care workers faced stress and had been incapable of
handling the new reforms and adjust with the working environment consisting of changes in
policies and implementation of new health reforms.
The ACA, Australia also imposed penalty on the employers of the organization who had
failed to deliver coverage to their employees, though it had been seen that the real coverage that
employers provided had been inadequate. This kind of legislation or health reform Act does not
have a proper way of obtaining penalty, due to which, it had resulted in other complexities and

8ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
issues too (Sturmberg et al., 2012). It was also seen that though the National Health reform was
implemented and changes in policies were made, still the quality of few services from the health
system had not been satisfactory, which made the service users unsatisfied. The health care
workers were not properly trained, which made them less skilled and even suffered from lack of
knowledge and expertise to handle the services delivered properly (Too & Weaver, 2014).
Feedbacks obtained leading to advancement in development of health
As a manager, it is my responsibility to monitor the performances of the organization and
its workers consistently so that the areas of weaknesses can be overcome and the health system
can be developed. The various stakeholders involved are customers or service users, suppliers,
Government, regulatory bodies, managers, etc. It is important to gain the responses and
feedbacks of the service users to check whether they are provided with the right kinds of care
services or not and whether they have been satisfied or not (Walls, Berrone & Phan, 2012). The
suppliers must be communicated with to make an assumption and find out whether they have
been paid well for the raw materials and resources provided to manage the production of
services. The Government of Australia must support the external stakeholders to ensure that the
reforms, policies and legislations are implemented properly to ensure successful functioning of
the health care organization with efficiency. The Independent Hospital Pricing Authority or
IHPA should also provide their feedbacks and discuss about the efficient prices that should be set
for the kinds of services delivered to the service users. Based on this, the health system could be
implemented with certain changes for successful achievement of organizational vision. The
sparse population in Australia had resulted in lesser quantity of services and higher fixed costs.
The agreement of reforms had further helped in allowing the funding activities to be managed

9ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
properly and ensure that successful corporate governance is maintained to achieve the aim of
delivering good quality care services at a reasonable cost for the service users (Wu, Straub &
Liang, 2015).
Conclusion
The report focused on the most important aspects of organizational governance and
management of performances related to the implementation of National Health Reform in
Australia’s health system. The management of performances is done as well for understanding
the weak areas and make necessary changes to improve the quality of health system. The
implementation of Governance reform has been done to improve the health system, manage
proper collection of data and set right prices for the services offered to the people. The
operational planning was based on the strategic planning and it had been effective for
achievement of goals and objectives with ease and effectiveness. Few issues related to the
implementation of reform are new tax and law rules, difficulties for the workers to adjust with
the new reforms, policies, etc. Lastly, the feedbacks of various stakeholders were gathered to
implement relevant changes to the governance and ensured that the health reforms had been
implemented to improve the process of development of the health system. This would even lead
to successful advancement and improvement of the health system in Australia too.

10ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
References
Bao, G., Wang, X., Larsen, G. L., & Morgan, D. F. (2013). Beyond new public governance: a
value-based global framework for performance management, governance, and leadership.
Administration & Society, 45(4), 443-467.
Bititci, U., Garengo, P., Dörfler, V., & Nudurupati, S. (2012). Performance measurement:
challenges for tomorrow. International Journal of Management Reviews, 14(3), 305-327.
Collins, S. R., Rasmussen, P. W., Doty, M. M., & Beutel, S. (2015). The rise in health care
coverage and affordability since health reform took effect. Commonwealth Fund:
Washington, DC.
Driouchi, T., & Bennett, D. J. (2012). Real options in management and organizational strategy:
A review of decision‐making and performance implications. International Journal of
Management Reviews, 14(1), 39-62.
Filatotchev, I., & Nakajima, C. (2014). Corporate governance, responsible managerial behavior,
and corporate social responsibility: organizational efficiency versus organizational
legitimacy?. The Academy of Management Perspectives, 28(3), 289-306.

11ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENT
Keehan, S. P., Cuckler, G. A., Sisko, A. M., Madison, A. J., Smith, S. D., Lizonitz, J. M., ... &
Wolfe, C. J. (2012). National health expenditure projections: modest annual growth until
coverage expands and economic growth accelerates. Health Affairs, 10-1377.
Keehan, S. P., Cuckler, G. A., Sisko, A. M., Madison, A. J., Smith, S. D., Stone, D. A., ... &
Lizonitz, J. M. (2015). National health expenditure projections, 2014–24: spending
growth faster than recent trends. Health Affairs, 34(8), 1407-1417.
Liaw, S. T., Chen, H. Y., Maneze, D., Taggart, J., Dennis, S., Vagholkar, S., & Bunker, J.
(2012). Health reform: is routinely collected electronic information fit for purpose?.
Emergency Medicine Australasia, 24(1), 57-63.
McGorry, P., Bates, T., & Birchwood, M. (2013). Designing youth mental health services for the
21st century: examples from Australia, Ireland and the UK. The British Journal of
Psychiatry, 202(s54), s30-s35.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.
Moynihan, D. P., Pandey, S. K., & Wright, B. E. (2012). Prosocial values and performance
management theory: Linking perceived social impact and performance information use.
Governance, 25(3), 463-483.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... &
Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts, Practices,
Strategies. Cambridge University Press.