HRM5002D - Case Study: Performance Improvement & Management

This case study analyzes performance improvement and management within the health and social care sector, addressing key aspects such as strategic planning models, financial performance measures, and non-financial indicators. Task 1 explores strategic planning models like the Balanced Scorecard and budgeting, evaluating their benefits and drawbacks. Task 2 delves into financial performance analysis, including DuPont analysis and ratio analysis, to assess profitability, liquidity, and efficiency. Task 3 examines non-financial measures and performance appraisal frameworks. The study evaluates the application of these tools in a real-world context, highlighting their importance for organizational effectiveness and improvement in health and social care settings.

Performance Improvement and Management in
Health & Social Care

Table of Contents
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................7
Task 3.............................................................................................................................................10

Task 1
Strategic planning models
1. Balance Scorecard
Organizations use balanced scorecard to link higher perspectives to more detailed points.
Managers can understand how the organization works by showing how daily workouts relate to
hierarchical goals. By analyzing past temporal dimensions such as transactions and creative
ideas, points on the scorecard lead to economic and non-financial terms. The pros and cons of a
fair scorecard depend on how the organization operates its governance structure.
Balanced scorecard views business from four perspectives. The organization sets goals and
emphasizes each point of view. At this point, they strive to achieve these goals by moving and
evaluating progress towards key performance indicators.
Finance: A company usually distributes the company's activities such as transactions, benefits,
and profits. Depending on the organization's goals, the most important thing can be remembered
as the organization's fair indicator system. For example, assuming front-line development is
needed, the scorecard may include monthly offers.
Customers: Viewing company’s organization from a customer perspective can help company’s
company retain customers. This is important because retaining existing customers is cheaper
than acquiring new customers. Evaluating factors such as customer service requirements and
customer satisfaction can help company’s organization retain customers.
Internal Process: Measuring how well company’s organization creates, sells, and manages
products can help company make a profit because productivity determines productivity.
Reference cards help organizations determine where and how far they have implemented the
framework and cycle.
Authoritative Potential: The right scorecard helps organizations determine if they have the right
people, legitimate innovations, and the right culture to achieve their goals.
Benefits

The biggest advantage of using a balanced scorecard strategy is that when company look at the
four parts of company’s organization's trade show, company can actually see its operations right.
Unlike traditional methods of tracking a company's financial resilience, an appropriate scorecard
provides a complete picture of whether an organization is meeting its goals. Even though the
organization appears financially viable, customer loyalty is diminished, employees may not be
ready, or bikes may be exhausted.
Second, it is not evaluated in the short term using the appropriate control card. When an
accountant sees a major problem in the field of finance (an organization may not go so well), he
often gets a quick idea, but there is no reason to look at the long box. When using a modified
scorecard, the partner first determines the strength of short-, medium-, and long-distance
destinations.
Finally, with a lean metrics system, company can be confident that every important activity
company’s organization performs will achieve flawless results. In the long run, can company
increase the value of company’s product to help company’s organization's maximum interest?
Perhaps if the customer is happy with the item, or if the bike involved is happy with making the
item, the result will be even more surprising.
Disadvantages
There are many benefits to using a balanced scorecard in the accounting tools branch, but there
are some problems with this strategy. First, a good scorecard requires early reflection. It's not a
device that allows company to throw ideas overnight to solve a problem. Since everything is the
same, company will be ordered to hold meetings to determine what goals company’s
organization can achieve in each of the 4 regions above. If company have a clear goal, company
can start to separate it from those that are financially necessary to achieve that goal.
Second, a balanced scorecard gives company an overview of the four areas that are important
when growing and marketing company’s business, but these four areas don't paint the whole
picture. There is a limited amount of money stored on the scorecard. While all others are equal,
in order to be effectively implemented, a fair scorecard must be important to a broad
organizational development process that includes sound accounting strategies.

Finally, many organizations use measures that are not related to their own environment. This is
very important when using custom scorecards to ensure that the tracked information matches
company’s needs. Everything else, measurement is useless.
2. Budgeting
Budget is estimates of income and expenses over a period of time and are usually formulated and
revised from time to time. Financial plans can be created for individuals, groups, companies,
management, or almost anything that generates and sends cash.
A budget is a microeconomic idea that shows the compromises reached when one big thing is
exchanged for another. The main problem (or as a result of this compromise) is that
overspending means the expected profit, so fair spending indicates that revenue will rise to the
cost level, and insufficient spending means that costs increase beyond revenue.
Budget Development Process
The process begins with setting a reservation for the upcoming time frame. These assumptions
are characterized by expected trading patterns, cost patterns, and an overall economic perspective
of the market, industry, or region. Consider and monitor specific factors affecting potential costs.
Budget are distributed as a package showing the principles and methods used to implement them,
including a description of assumptions about the business segment, the associations of key
vendors that set boundaries, and specific estimation methods.
Benefits
1. The plan forces and encourages leaders to investigate problems early and completely. This not
only gives the directors insight and anxiety, but they do a lot of research before making a choice.
2. Plans are “expenditure plans” and therefore provide an important way to manage payments
and business use.
3. The plan provides the tools to periodically evaluate, test, and set management methods and
goals as rules of society as a whole.
4. Planning helps coordinate various capital and assets in the most productive channels.

5. Planning allows managers to transfer responsibilities without losing control over the business.
Defects, errors, and contact deviations can be quickly identified and quickly identified to achieve
the perfect goal.
6. The use of plans in society promotes a 'cost aware' way of thinking, encourages the successful
use of assets, and creates a profit-seeking atmosphere throughout society. Emphasize how much
money company need to spend to achieve company’s goals.
7. Provide standards, standards, or standards for evaluating the performance of offices and
individuals working for the association. Individual leaders can judge their choices and
performance, and find insightful ways to improve their performance.
8. Planning promotes profitable competition, promotes productive work and provides direction
for all members of society. Each of these positive components leads to higher returns and greater
representative profitability.
9. Plans provide a conscious and smart way to deal with social issues.
10. Almost all companies benefit the entire national economy by ensuring operational reliability,
economic use of assets and strong projected losses whenever a plan is carried out.
Disadvantages
1. Organization, planning, or evaluation is certainly not a clear science. Use approximations and
evaluations that can be inaccurate. Financial planning at its best is an indicator. No one knows
what will happen next.
2. The achievement and usefulness of the plan depends on the cooperation and support of all
board members. Everyone must adjust their efforts according to consensus. Top management
must also follow and participate in spending plans. The plan failed for several periods because
members of the board only provided empty requests for execution.
Spending planning is a tool that controls or does not control the board space. Spending plans for
managers cannot be completed, but boards should only use them to meet management
capabilities. Leaders generally feel "wrapped" by financial plans and related figures. They ignore
the understanding that spending plans are designed to provide detailed data, goals, and objectives
that can help company achieve company’s organization's goals.

4. Significant investments are required to establish a planned investment. Also, sometimes too
much money is normal for the spending plan, and if the assumptions are not met, errors in the
spending plan break. A productive planning program requires skilled people to understand the
thinking, goals, and basics of planning.
5. Overweight in a plan can result in lower-level managers and employees breaking the
framework by making basic estimates of future costs and returns and ignoring climate change in
the light of the fact that this could cause deviances from the plan. It is considered to offset the
spending plan. In a one-sided spending program, representatives tend to overestimate costs and
ignore revenues, resulting in lower costs.
6. The end of the spending period is approaching, and representatives may have to spend a lot to
“manage” spending subsidies, realizing that the actual costs are not as surprising as the financial
plan allows. These exercises have the benefit of being problematic for the organization.
Best Method
The best method among above discussed tools can be budgeting, as this tool can give measures
to control present activities based on future target set by the company as a milestone. This tool
can facilitate variance analyses, which is helpful in identifying gap in present strategy.
Task 2
DuPont Analyses
DuPont Investigation (aka DuPont Character or DuPont Model) is a material performance
analysis framework promoted by DuPont Corporation. DuPont due diligence is a valuable
procedure used to reduce various factors of profitability (ROE). Reduced return on capital allows
sponsors to focus on key performance indicators, recognizing only their strengths and
weaknesses.
DuPont's research is used to estimate a segment's profit share for organizational value (ROE).
This allows sponsors to discover that financial transactions contribute the most to the
advancement of ROE. Financial sponsors can use similar rankings to analyze the results of two

similar companies. Board members can use the DuPont exam to identify qualifications or
deficiencies that need to be addressed.
The three important economic measures that determine profitability (ROE) are labor
productivity, resource efficiency, and economic impact. Labor productivity is determined as net
income or net income divided by the absolute transaction or income. Resource efficiency is
estimated as a percentage of resource turnovers. Impact is assessed using a value multiplier equal
to the average resource allocated as a normal value.
The use of money
The Financial Impact or Value Multiplier is a circular survey of an organization's use of resource
support commitments. The organization's resources are $1,000 and the cost of ownership is
$250. The account item status tells company that the organization also has $750 in red (resource-
liabilities = cost). As organizations free up more resources to purchase resources, their share will
continue to grow.
Most organizations need to use value-added promises to finance their data and development.
Failure to exert influence can put company’s organization in a difficult position compared to its
peers. However, if company put too much effort to Increase Company’s share of company’s
financial power and increase company’s ROE, company can create an imbalance risk.
Calculation:
DuPont Analysis=Net Profit Margin × AT × EM
Where:
Net Profit Margin=Revenue
Net IncomeAT=Asset turnover
Asset Turnover=Average Total Assets
SalesEM=Equity multiplier
Equity Multiplier=Average Shareholders’ EquityAverage Total Assets
DuPont Analyses = 0.035 * 1.5 * 2.5

= 0.13125 or 13.125%
Ratio Analyses
Profitability ratios
2016:
Net profit margin = 43.057
189,711 ×100
= 22.69%
Gross profit margin = 81,125
189,711 ×100
= 42.76%
2015:
Net profit margin = 18,987
179,587 ×100
= 10.57%
Gross profit margin = 80,612
179,587 ×100
= 44.88%
The above result shows that company has improved its net profit margin but gives bad
performance in terms of gross profit margin.
Liquidity ratios
Current ratio = Current assets
Current liabilities

Quick ratio = Current assets−Stock
Current liabilities
2016:
Current ratio = 84,349
37,928 =2.22
Quick ratio = 84,349−28,571
37,928 =1.47
The result shows that company has maintained idol ratio in terms of current ratio and quick ratio;
this indicates proper utilization of funds by the company.
Efficiency Ratio
2016:
Sales to capital employed
= Sales revenue
Share capital +Reserves+non−current liabilities
= 189,711
115,719 =1.63׿
Sales per employee
= Sales revenue
Number of employees = 189,711
649 =292

Task 3
Non-financial measures
Performance appraisal frameworks play an important role in creating skills, assessing the
achievement of prestigious goals, and rewarding managers. However, many managers believe
that their existing financial structures are not working satisfactorily now. Most people are
dissatisfied with their pricing plans, according to a new study by U.S. financial authorities. They
recognized that financial measurements are primarily accounting revenues and profits that
highlight important factors such as customer, employee satisfaction, development and quality.
As a result, organizations are adopting a new performance appraisal system. For example, 33%
of financial institutions have significantly improved their performance-performance structure
over the past two years, and 39% of institutions have made significant changes within two years.
The deficit in economic development has shifted from "intangible resources" and "scientific
capital" to non-monetary measures to "adjusted scorecards" for inherent financial and non-
financial measures. This article explores the benefits and barriers of non-financial enforcement
action and provides ideas for action.
Benefits
Non-financial measures offer four distinct advantages over economically dependent pricing
systems. First, it is more closely related to the authoritative long-distance method. In general,
financial frameworks focus on the annual or introductory development of accounting standards.
We do not promote customer or candidate needs or other non-financial goals that may be related
to revenue, constant strength, and long-term life goals. For example, promoting new jobs or
expanding hierarchical opportunities can be an important key task, but it can hinder ad hoc
accounting.
By combining accounting measures with critical non-financial information about the execution
and execution of essential plans, organizations can set goals and motivate board members to use
long-term methodologies.
Second, existing standards experts argue that the driving force of many companies is not the
"hard resources" allowed in the asset statement, but rather the "intangible resources" such as

scientific capital and customer engagement. It is difficult to measure intangible resources from a
financial standpoint, but non-financial information can provide an inverse quantitative indicator
of a society's intangible resources.
One study demonstrated the ability of non-monetary “intangible” proposals to account for
differences in financial exchange estimates of US institutions. Campaign-related actions, board
functions, terms of employment, respect for quality and brand have proven very clearly to the
value of the organization, regardless of its accounting resources and obligations. By excluding
these intangible resources, financial valuation can lead managers to make wrong choices and
even make destructive choices.
Third, non-financial measures can be the best indicator of future economic performance. No
matter what your ultimate goal is to strengthen your financial advancement, your current
financial measures may not yield long-term benefits from your current choices. For example,
imagine you are interested in innovative work or customer loyalty programs. U.S. accounting
rules require the use of innovation and demo costs for the period in which they are incurred,
which reduces the benefit. However, beneficial learning generally enhances future benefits if it
can be proven.
Essentially, a commitment to consumer loyalty can improve your ultimate financial performance
by increasing revenue and loyalty to existing customers, attracting new customers, and reducing
call costs. Non-financial information can provide predictable accounting information or stock
performance by providing the missing link between these beneficial events and financial results.
For example, the results of an ad hoc investigation or customer file may indicate future interests
where nothing else can be found.
Finally, the choice of action should be based on information about administrative activities and
the degree of "use" of the action. Anxiety refers to a change in perception beyond the control of a
leader or society and moves from a change in the economy to karma (positive or negative).
Directors need to know how much their achievements have achieved. Otherwise, you don't have
the attributes you need to expand your impact on performance. Since there are many non-
financial measures are less susceptible to external shocks than accounting measures, their use can
provide a more accurate assessment of the results, increasing the perception of management.
This further reduces the risk that managers face when making compensation decisions.

Disadvantages
Although non-financial measures have many advantages, they are not without disadvantages.
The survey revealed five major barriers. For some organizations, time and money were an issue.
They found that the cost of a system that tracks a wide range of financial and non-financial
actions could outweigh the benefits. Improvements can be costly and time consuming, and the
last thing that matters is the foundation of a defective employee taking into account how to work
according to current standards. As the number of different areas that go on from time to time
increases, significant attention to data frames is needed to extract data from multiple (regularly
colliding) databases.
Multidimensional model
Two researchers and an expert studied changes in the structure of governments that balance the
financial and non-financial perspectives. Most notable is the Balanced Scorecard (BSC) by
Kaplan and Norton (1992; 1996).
New research shows that different types of BSC are commonly used. Therefore, guidelines for
the implementation of the board are being developed. This multidimensional display evaluation
(PMS) framework is tied to a hierarchical approach and needs to keep pace.
Improvement of PMS thinking should influence Key speculative dynamics (SIDM). The key
here is to consider what future venture capital activities will mean for hierarchical
implementations and important goals.
Traditional performance appraisal frameworks tend to focus on economic appraisal, especially
utility and capitalization rates. Random detection relies on verifiable data to identify the
problem, but it does not help solve the problem or indicates a potential impact on future
performance. If the deed is well reported, you can already go through the point of return.
Measurements often overlook what lies behind monetary values, such as marketing, customer
loyalty, representative trust, the appropriateness of the measured business value, and where
added or removed value is added.
Traditional performance appraisal frameworks generally focus on appraisal of performance in
terms of financial terms, especially in terms of the ratio of productivity and capital efficiency.

The advertising agency is based on verifiable information that may indicate a problem, but does
not address the problem or show any potential impact on future results. If the deed is well
reported, you can already go through the point of return. Measurements often overlook what lies
behind monetary values, such as marketing, customer loyalty, work ethic, relevance of business
practices, and where values are added or removed.
Problem: entering total value in BSC
Among these unlimited systems, the Kaplan & Norton BSC structure has the highest market
penetration rate and handles operations at different levels, from hierarchical level to private
enterprise to individual level. In any case, it provides a large number of individual quantitative
markers, but does not take into account individual perspectives or single performance
evaluations of aggregates. While the BSC shows a rational (i.e. causal) verbatim linkage, the
BSC does not have a quantitative aggregation mechanism for each perspective to handle a
different number of pointers independently referencing different components of each business
procedure not. Although organized continuously to establish a causal relationship between goals
and momentum, the BSC system does not provide the necessary help to quantify how each
perspective contributes, whether in a family member or in a higher sense. ... In fact, the
combination should be made naturally by the BSC client. This alliance is clearly subject to
significant variability in evaluation and understanding based on capacity and customer base.
Currently, the BSC structure works as a “instrument panel” because it contains a set of individual
markers (eg, different dimensions of an automated instrument cluster) that provide an important
component for tissue monitoring (business procedures). Given that businesses are integrated
(causally) according to different markers, business leaders must comprehensively assess the
current hierarchical outcomes at this point. The BSC structure excludes procedures that combine
separate perspectives, so it should be done in summary without the benefit of a formal
quantitative explanation. As a result, a clear and reliable comprehensive assessment is
impractical for those with knowledge of union guidelines.
With BSC, monitors can typically access target, driver, and specific marker component (GDI)
data for each BSC view, and can take the next step to take when the results do not meet
individual limitations. However, like all instrument clusters or automatic control panels, the total
value of this point of view is not characterized. As a result, it is difficult to respond to common

concerns about the internal or external purpose of the economy, which the BSC remembers. The
problem can be reconstructed as follows: How can you communicate your administration's
strong position on the performance and visibility of your information mix? For example, how
can you handle a request to execute a task, an application that refers to the following when
converted to BSC terminology? What is the overall value of the chosen set of tokens to the
community in terms of process interns?