Incentive pay plans boost managers' performance. 1987

D P Biggs

Incentive compensation, which has become commonplace in highly competitive industries, is gradually being introduced in health care settings. Although it has not been used extensively in not-for-profit hospitals, its advantages make it a natural tool for administrators who want to retain their best managers and to achieve important special objectives. Management incentives--awards based on the accomplishment of special objectives--enable boards of trustees and senior managers not only to meet difficult hospital objectives but also to attract and motivate key managers and to promote participative management and teamwork. An effective management incentive compensation program requires five support systems: strategic and operating plans; annual objectives for each manager derived from the strategic and operating plans; measureable performance standards; management action plans, which incorporate the objectives and performance standards and are used in directing each manager's efforts; and a performance evaluation system that forces tough yet reasonable evaluations. In addition to these systems, senior managers must exhibit commitment to change, and objectives must go beyond simply managing individual units well, targeting such goals as improvement of outpatient care utilization, recruitment of specialized staff physicians, and the creation of preferred provider and health maintenance organizations.

UI MeSH Term Description Entries
D010559 Personnel Management Planning, organizing, and administering all activities related to personnel. Client-Staff Ratio,Client Staff Ratio,Client-Staff Ratios,Management, Personnel,Ratio, Client-Staff,Ratios, Client-Staff
D004649 Employee Incentive Plans Programs designed by management to motivate employees to work more efficiently with increased productivity, and greater employee satisfaction. Incentive Plans, Employee,Employee Incentive Plan,Incentive Plan, Employee,Plan, Employee Incentive,Plans, Employee Incentive
D004650 Employee Performance Appraisal The assessment of the functioning of an employee in relation to work. Nurses Performance Evaluation,Performance Appraisal, Employee,Family Planning Personnel Evaluation,Appraisal, Employee Performance,Appraisals, Employee Performance,Employee Performance Appraisals,Evaluation, Nurses Performance,Evaluations, Nurses Performance,Nurses Performance Evaluations,Performance Appraisals, Employee,Performance Evaluation, Nurses,Performance Evaluations, Nurses
D005069 Evaluation Studies as Topic Works about studies that determine the effectiveness or value of processes, personnel, and equipment, or the material on conducting such studies. Critique,Evaluation Indexes,Evaluation Methodology,Evaluation Report,Evaluation Research,Methodology, Evaluation,Pre-Post Tests,Qualitative Evaluation,Quantitative Evaluation,Theoretical Effectiveness,Use-Effectiveness,Critiques,Effectiveness, Theoretical,Evaluation Methodologies,Evaluation Reports,Evaluation, Qualitative,Evaluation, Quantitative,Evaluations, Qualitative,Evaluations, Quantitative,Indexes, Evaluation,Methodologies, Evaluation,Pre Post Tests,Pre-Post Test,Qualitative Evaluations,Quantitative Evaluations,Report, Evaluation,Reports, Evaluation,Research, Evaluation,Test, Pre-Post,Tests, Pre-Post,Use Effectiveness
D006270 Health Facility Administrators Managerial personnel responsible for implementing policy and directing the activities of health care facilities such as nursing homes. Administrator, Health Facility,Administrators, Health Facility,Facility Administrator, Health,Facility Administrators, Health,Health Facility Administrator
D006740 Hospital Administrators Managerial personnel responsible for implementing policy and directing the activities of hospitals. Administrator, Hospital,Administrators, Hospital,Hospital Administrator
D006761 Hospitals Institutions with an organized medical staff which provide medical care to patients. Hospital
D006788 Hospitals, Voluntary Private, not-for-profit hospitals that are autonomous, self-established, and self-supported. Hospitals, Private, Not-for-Profit,Hospitals Privates, Not-for-Profit,Not-for-Profit Hospitals Private,Not-for-Profit Hospitals Privates,Private, Not-for-Profit Hospitals,Voluntary Hospitals,Hospital, Voluntary,Hospitals Private, Not-for-Profit,Hospitals Privates, Not for Profit,Not for Profit Hospitals Private,Not for Profit Hospitals Privates,Private, Not for Profit Hospitals,Privates, Not-for-Profit Hospitals,Voluntary Hospital
D014481 United States A country in NORTH AMERICA between CANADA and MEXICO.

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