HRMT19012: Analyzing Performance Management at Royal Perth Hospital

This report examines the current reward practices at Royal Perth Hospital and their impact on employee performance, particularly within the emergency department. It discusses existing strategies like employee recognition, fringe benefits, and compensation, highlighting their limitations in addressing the high-pressure environment. The report proposes alternative reward practices, including improved work-life balance, work flexibility, and promotion opportunities, to enhance employee motivation and engagement. It concludes with recommendations for HR managers to improve performance management, such as offering vacations, supporting employee families, and prioritizing employee well-being. Desklib offers a platform for students to access similar solved assignments and study resources.

Running head: PERFORMANCE MANAGEMENT
Performance Management
Name of the Student:
Name of the University:
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Executive Summary
This paper has elaborated on the existing reward practices of one of the popular
hospitals present in the Australian region. It has discussed on the implications of those reward
practices on the overall employee performance. Furthermore, few alternative reward practices
have been indentified that could be used to manage the employee performance in the hospital.
Lastly, there are some recommendations made for the part of the Human Resource managers
that they can be used in the management of the employee performance.

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Current reward practices in Royal Perth Hospital......................................................................2
Employee recognition............................................................................................................2
Fringe benefits........................................................................................................................3
Favorable compensation.........................................................................................................4
Alternative reward practices......................................................................................................5
Work life balance...................................................................................................................5
Work flexibility......................................................................................................................6
Promotion...............................................................................................................................6
Recommendations..................................................................................................................7
Conclusion..................................................................................................................................8
Reference....................................................................................................................................8

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Introduction
The current business scenario especially the healthcare sector is witnessing huge
growth in the present time. With the increase in the demand for the healthcare, more hospitals
are coming up. However, healthcare sector is one of those sectors, which cannot recruit
extensively like other sectors. This is mainly due to the reason that doctors and other health
professionals are not available in abundance and there are various factors that should be
considered in the recruitment process. This is leading to the increased pressure among the
existing healthcare employees. The pressure is more in the emergency department due to the
reason that doctors and the healthcare professionals should always be ready for every
situation and there is no fixed time schedule for them. This is causing stress among them and
an effective human resource strategy is required for them.
Royal Perth Hospital is one of the largest and busiest hospitals in the Australian
regions. They cater to huge number of in and out patients on daily basis with having more
than 4500 employees in different departments. However, in this case also, they are facing the
issues of disengagement and demoralization of the staffs in the emergency ward due the
presence of huge work pressure. This report will discuss about the existing reward practices
in Royal Perth Hospital and their implications on the employee performance. In addition,
some alternative reward practices will also be discussed in this report, which could also be
used in managing the employee performance. Some recommended steps will also be
discussed in this report.
Discussion
Current reward practices in Royal Perth Hospital
Employee recognition

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There are various reward practices initiated by Royal Perth Hospital for their staffs in
the emergency department. One of the major reward practices identified is the recognition of
the contribution of the staffs in the emergency ward. Recognizing the contribution of the
staffs in the emergency department is important due to the reason that it will motivate them to
perform much better. According to Harrison (2013), employee recognition is important in
order to acknowledge the contribution of the staffs in their workplace. According to the
authors, everyone tends to get motivated if their jobs and works are recognized in public.
However, on the other hand, strategy of employee recognition initiated by Royal Perth
Hospital is having limitation. This is due to the reason that in the emergency deportment, jobs
are being done based on the urgency rather than the extent to which the job of the employees
will be recognized.
Moreover, in the short term, employee recognition will have positive impact on the
performance of the employees but in the long term and especially in the emergency
department, it will have limited impact. Staffs working in the emergency department stay in
huge work pressure and thus mere recognizing their work will not motivate them further.
According to various reports, Australian healthcare sector is going through huge workload
and there are various instances where doctors are continuously working for straight 24 hours.
In these cases, recognizing their contribution will not fetch any positive result.
Fringe benefits
Another reward practice initiated by Royal Perth Hospital is providing fringe benefits
to their staffs in the emergency department. This includes providing added extrinsic benefits
to the staffs apart from the basic extrinsic benefits to them. Some of the fringe benefits
practiced by Royal Perth Hospital are providing medical assurances to the staffs, which are
higher compared to the staffs in other departments. Another benefit provided by them to their

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staffs in the emergency department is free transportation. The hospital is providing free
transportation to their staffs, which are having dual benefits for them.
One of the major benefits for them is the availability of the staffs in the department at
any point of time. As the hospital is responsible for the transportation, they can make their
staffs available in case of any emergencies. On the other hand, this is also creating positive
impression among the staffs regarding their workplace. According to Mosadeghrad and
Ferdosi (2013), providing of fringe benefits to the employees will enhance the organizational
commitment of the employees in the healthcare sector. Thus, in the emergency department,
organizational commitment is much more expected and important. Staffs should be
committed enough to deal with unprecedented situations, which are not decided earlier.
However, in this case also, Royal Perth Hospital is having limited advantage from the
initiation of the fringe benefits. According to the reports, doctors in Australia are having huge
workload and in spite of getting various benefits, they are remaining demoralized. This is due
to the reason that doctors in the emergency department are in the need of more inclusive
mechanism of performance management rather than offering added fringe benefits to them.
Favorable compensation
Compensation is the basic requirement for the staffs in the workplace. Providing
favorable compensation also helps in motivating the staffs in their workplace along with
maintaining their organizational commitment. Royal Perth Hospital being one of the major
regional hospitals in the Australia offers best in the industry perks for their staffs in the
emergency department. According to Schulz, Chowdhury and Van de Voort (2013),
employee performance and employee compensation are having direct relationship. The more
favorable will be the compensation, the more will be the level of engagement and motivation

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among the staffs in their workplace. Thus, in the case of the emergency department in the
organization, staffs will be more motivated to deal with their work challenges effectively.
However, in the case of the Royal Perth Hospital, doctors and other official are
already getting favorable compensation for their respective job profiles. However, only the
compensation will not be able to reduce the workload from them. This aspect of performance
management will also have only short term impact and in the long term, staffs will get further
motivated with the increase in their compensation given how much pressure they need to
undertake.
Alternative reward practices
The current reward practices of Royal Perth Hospital are mostly effective in the short
term rather than in the long term. Therefore, there should have some alternative reward
practices, which will have more effectiveness in managing the staffs in the emergency
department.
Work life balance
According to the reports, Australian healthcare sector is posing huge challenges
especially for the staffs in the emergency sector. This is mainly due to the reason that doctors
and other officials have to work on huge pressure and with having less assistance and human
resources. In certain cases, doctors have to work for 24 hours in the emergency department at
a stretch. It is affecting their personal life as well as their professional effectiveness.
Therefore, one of the key strategies will be having favorable work life balance for the staffs.
Doctors should have fixed schedules and officials should be more in the emergency
department to initiate shift based working. Moreover, it is also to be considered that Royal
Perth Hospital should take care of the personal life of the staffs and providing them to have

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enough personal space. This will reduce the monotonous situation faced by the doctors in
their workplace. According to Isaacs (2016), initiation of the proper work life balance will
help the staffs in the emergency department to stay motivated. This will also help them to
stay focused and energized in their workplace
Work flexibility
Another effective reward system for the staffs in the emergency department will be
providence of work flexibility. This refers to the providence of the autonomy to the doctors in
taking their decisions. This will enable the doctors to design their work schedules in their
way. Thus, they will manage the work load accordingly and will not have any added pressure.
Work flexibility will also help the doctors in dealing the emergency situation in their own
way and best possible manner.
Promotion
Over other mechanism of rewards, promotion will be more effective due to the reason
that promotion will enable the officials in the emergency department to relocate themselves
other departments and in other positions. On the other hand, financial reward will only
enhance the financial benefits for the doctors and other officials. However, the key issue with
the doctors in the emergency department is the work pressure or the work load rather than the
rate of compensation. In this case, Royal Perth Hospital should also consider promotion of
the doctors and other staffs as the alternative reward mechanism. Staffs in the emergency
department will be more motivated to perform better due to the reason that the more will be
their productivity, the more will be the chances of getting promoted to other deportments in
different positions.

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According to Grabner & Moers (2013), initiation of the job promotion will help
enhance the job rotation among the employees and the employees will not face job monotony
due to the fact that they will be promoted in different positions with having different job
profiles. Thus, their effectiveness, productivity and level of motivation will be more in this
case. This reward system can also be considered as one of the key alternative strategy.
Recommendations
Rewarding employees has become a norm in near about every organization in
recent days. Below are few recommendations for the hospital management of Royal
Perth in order to improve its current reward and performance management processes:
 It can provide free vacations to the staffs every two years
 In case if any staff passes away while working for the hospital, hospital can give
his/her family member or spouse fifty percent of their salary, without considering
their length of tenure, per year for the coming decade.
 Make a rule of thanking every employee for their good work. Simply a “Good Job”
from the part of CEO could go a long way (Latham, 2013).
 Provide every staffs with primary care, complete physicals, wellness examinations,
vaccines, lab tests with little or free of cost.
 Rewarding Safety. The hospital can pay out its employees and nurses with safety
bonuses for following the safe work practices
 Offsite the activities of the employees will be a great reward. Taking the nurses and
other staffs off-site for several outdoor activities during their paid work hours will be
surely appreciated by them

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Conclusion
From the above discussion it is clear that though Royal Perth is one of the most well
known hospitals in the Australian region, it is facing issues in its HRM practices as there is an
issue of demoralization of the workers in its emergency ward because of huge work pressure.
The hospital is providing its staffs with various benefits like the fringe benefits and favorable
compensations to them. It has also initiated several reward practices in order to meet with the
issues but they are only effective for short term. Furthermore, it is to be noted that the
strategy of employee recognition that are initiated by the Royal Perth Hospital has several
limitation because in the emergency department of the hospital, the staffs does their job
depending on the urgency instead of relying on the extent to which their work will be
recognized. Hence, several alternative reward practices are suggested for the same. The
discussion has ended up with several recommendations for the part of Human Resource
Management team of the hospital so that the current reward policies and practices in Royal
Perth could be improved.

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Reference
Grabner, I., & Moers, F. (2013). Managers' Choices of Performance Measures in Promotion
Decisions: An Analysis of Alternative Job Assignments. Journal of Accounting
Research, 51(5), 1187-1220.
Harrison, K. (2013). Why employee recognition is so important. Cutting Edge PR. Harting,
D.(2010). Employees your most valuable asset. Retrieved January, 3, 2013.
Isaacs, D. (2016). Work‐life balance. Journal of paediatrics and child health, 52(1), 5-6.
Latham, J. R. (2013). A framework for leading the transformation to performance excellence
part II: CEO perspectives on leadership behaviors, individual leader characteristics,
and organizational culture. Quality Management Journal, 20(3), 19-40.
Mosadeghrad, A. M., & Ferdosi, M. (2013). Leadership, job satisfaction and organizational
commitment in healthcare sector: Proposing and testing a model. Materia socio-
medica, 25(2), 121.
Schulz, E., Chowdhury, S., & Van de Voort, D. (2013). Firm productivity moderated link
between human capital and compensation: The significance of task‐specific human
capital. Human Resource Management, 52(3), 423-439.