Performance Improvement & Management in Health & Social Care Analysis

This report provides a comprehensive analysis of performance improvement and management within the context of health and social care, focusing on Arden Mountain Nursing Home as a case study. It includes a memorandum addressing strategic planning tools such as the Balanced Scorecard and SWOT analysis, weighing their respective benefits and limitations. The report further examines the utility of DuPont analysis for stakeholders, dissecting its formulas—total margin, asset turnover ratio, equity multiplier, and return on equity—and comparing the nursing home's performance against industry averages. It interprets these ratios, offering insights into the organization's financial health and operational efficiency. Finally, the document discusses the application of financial and multifaceted achievement management models in preparation for management team discussions. Desklib provides access to this report, along with numerous other solved assignments and study resources for students.

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