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The Analysis of High-performance Work and Performance Management Practices

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High-Performance Work and Performance Management Practices

The advancement in technology that has led to globalization has increased competition in the business environment. Many firms are identifying better ways to remain competitive in the market and still remain profitable. According to the research carried out by Sung & Ashton (2009), it is evaluated that high-performance management systems are critical to an organization that intends to remain competitive in the market. This is due to high-performance in the organization that leads to better management and customer care services that enhance. Sung & Ashton (2009) found that organizations that have embraced performance management practices such as employee motivation, inclusion of the employees in decision making and performance appraisals have experienced better performance than those that do not apply these practices. Enhanced performance in the organization improves the customer experience and productivity of the employees, increasing profitability and control of the market in the business environment. Customer satisfaction is key in the modern businesses due to high competition in the market.

Aims and Objective of the Study

The objective of the research carried out in this study is to analyze the findings of the report prepared by Sung & Ashton (2009) on performance management practices that are common in modern business and their effects on the organization performance. In addition, the research will identify the key management practices that are applied to St. Luke’s Hospital and Pannone Partners. The analysis of these two firms will be critical to this study as it will help in the identification of the common practices that the two organizations are taking to ensure high-performance and competitive ability in the business environment. Understanding the application of these performance practices will help in the learning process and understanding the key elements in the application of the practices to maximize performance in the organization of the workforce and competitiveness. The study is aimed at exploring the practices in businesses that encourage good performance. By identifying these performance practices, the business may improve its performance, its image in customer services. For example, the British Airways were heading for bankruptcy when performance was enhanced through organization change that motivated the employees and provided better customer services. The British Airways then, since emerged as the largest airline in the United Kingdom region. This research will identify the performance and management practices employed by St. Luke’s Hospital and Pannone Partners in enhancing better performance in the industry.

Justification of the Selected Companies

The report by the Engelberg Centre for Health Care Reforms (2012) identified two organizations for the analysis of performance management practices. These organizations are St. Luke’s Hospital and Pannone Partners. St. Luke’s Hospital is a private hospital that serves in regions such as Cedar Rapids, Iowa and other surrounding suburbs. The hospital has been cited in offering excellent customer service and better performance in the health care sector. St. Luke is also part of the Iowa Health System, which is a non-profit corporation with the largest integrated health system located in the Western Illinois region (Iowa). St. Luke’s is also recognized due to its strengths in the heart care services, newborn intensive care, and the rehabilitation of trauma affected groups. The organization has also received several awards as a leader in health care services. In addition, the hospital embarked on policies that have encouraged demostrtably better health care needs for the patients. The hospital is considered a high performing organization by embracing practices that ensure effective services and performance in the health care sector not only in the Iowa region, but also in the rest of the United States region. St. Luke’s Hospital will be used in this analysis for its better performance and management practices that have encouraged organizational growth and development.

On the other hand, Iloka (2014) explained that Pannone Partners are a legal firm that operates in the United Kingdom. In 2004, there was high growth in the performance of the Pannone Partners even though the other legal firms were making heavy losses during the same period. The firm realized a high growth in in turnover by 20% and a 22% growth in profit. This organization is suited to the study of performance practices and management practices that encourages organizational growth. It is considered that the organization is experiencing growth associated with high adoption of growth strategies such as the balanced growth strategy that has been cited as the main cause of growth in the firm. The analysis of Pannone Partners in the legal industry will be analyzed to identify the management practices that are encouraging the growth Pannone Partners is experiencing.

Performance Management

Performance management practices are regarded as the practices that the organizational management adopt to promote growth and development that enhances the achievement of the organizational goals and objectives. According to Sung & Ashton (2009), HPWPs is defined as a complementary work related practices that cover three main areas of employee involvement practices, HR practices that are focused on the human capital investment and the reward and commitment of the employees to the organization. High employee involvement in the management and decision making process in an organization encourages growth and development in the productivity of the employees in their performance. This encourages customer satisfaction, attainment of goals and objectives of the firms and development in the organization profit.

Sung & Ashton (2009) found that every successful business must ensure that there is high involvement of the employees in running the strategic objectives of the firm. Secondly, the human capital development in the firm is crucial to increasing level of expertise and professionalism in the performance of the organization. It can be promoted through training and engagement of the employees in human capital development and productivity. The reward system is the practice that the organization can embrace to increase productivity of the employees through motivation. The reward and commitment practices encourage the employees to work towards achieving a given goal that facilitates the attainment of the organizational objectives in promoting efficiency and effectiveness in the operations of the business. These practices are fundamental to the increasing competitiveness of the organization and the ability of the organization to expand its market in the competitive environment.

High Work Performance Practices In Pannone And Partners

Iloka (2014) found that Pannone and Partners have embraced performance management and work practices such as work-life balance and a high retention of high performing employees for long. The organization has embraced a well-planned practice that allows the employees to balance their duties in the organization with the family responsibilities to ensure that there is an effective work-life balance. This is an effective motivational tool that allows the employees to increase their productivity in the firm. The organization has also set an effective work-pay relationship that ensures that the efforts shown by the employees towards the organization is rewarded. The employees are fairly paid on time to ensure that they are able to afford and improve their living status.

It forms a workforce that is well compensated and more productive in service delivery. It is found out that when employees are motivated and happy, they tend to provide better customer service that is crucial to creating satisfaction to the employees, especially in the legal firms (Iloka, 2014). Furthermore, Pannone and Partners have also set in place a good organizational culture that is based on openness and effective communication between the management and employees, and between the employees and the customers. It enhances the organization’s ability to perform with a high degree of professionalism and integrity that is crucial for an organization in the legal industry. According to the argument presented by Becker & Huselid (1998), organizations that plan to remain competitive in the modern environment have to embrace management and work practices that encourage the development of their human resources through motivation and improved productivity among the employees. To achieve this growth, the organizations must ensure that there is growth through training, formulation of an attractive compensation plan and involvement of employees in an organization’s decision making process that promotes growth.

High Work Performance Practices in St. Luke’s Hospital

Engelberg Centre for Health Care Reforms (2012) added that St. Luke’s Hospital has embraced an effective and efficient work and management practices that have facilitated its growth in the health care industry. With the mission of the hospital in reducing the rate of readmission, the hospital has embraced a comprehensive care and support system that encourages the development and growth both to the organization and the patients. An inclusive support and care are important in the healing process for the patients. In St. Luke’s Hospital, the hospital involves all the stakeholders when carrying out management and operations practices in the organization that facilitates in enhancing better communication among the stakeholders in the organization. The cross-continuum participation of the stakeholders has enhanced consultation among the professionals in the hospital in order to provide services that are efficient for the patients. Cross relationship between the physicians and the patients is an effective way to ensure that the healing and treatment process is comprehensive and accurate.

In addition, Engelberg Centre for Health Care Reforms (2012) found that the hospital has embraced a patient and family-centered approach in the treatment process that ensures that the patient care is not only based on empathy. It also incorporates structures a Patient/Family Advisory Council that is responsible for the review of the hospital policies and programs so that they are aligned with a family centered approach in the treatment process. In that case, the hospital ensures that for serious cases, family members are included in the forum that identifies the best approach for treatment and support of the patient. The hospital also includes a well-established psychological support and counselling team that identifies whether the patient develops psychological depression during the treatment and admission period. This is a crucial support to the healing process for the patients. The partnership with the physicians ensures that there is effective consultation with the physicians to ensure that the appropriate treatment is administered in the hospital. Communication in the hospital is, therefore, an important tool for both the physicians as well as family and patients.

Comparison and Contrast of the Two Cases

In St. Luke’s Hospital, and Pannone and Partners, there exist several similarities that promote effectiveness in the performance of the management and the workforce. The two organizations embrace the value of employee included in the decision making process in the organization. It is considered that employees in this organization are consulted at various levels to ensure effective performance of the workforce, customer service and management. In addition, it is noted that effective communication is crucial to the running of the organization in the competitive environment. The management in the two organization values the employees by ensuring that they are not forced into performing the various tasks in the organizations. Furthermore, there is the formation of the teamwork in the operations of the workforce in the two organizations. The freedom given to the employees ensures that they are able to effectively deliver the right services. Consultations within the group is an effective measure that ensures that there is effectual in the provision of services in both cases. The relationship between the organization and stakeholders and employees with the management that extends to the employees is the main source of competitive advantage in the organization (Thomas, 2004).

However, the two organizations show some level of variability in their management and work practices that are applied. The first variation is the level of engagement of the employees where St. Luke’s Hospital is more directed towards customer satisfaction as the source of better performance in the industry while the Pannone and Partners is based on the empowerment of the workforce to achieve the organizational objectives and attain competitive advantage over their competitors. However, the difference in the workforce in employee engagement is not large an indication that the two organizations have closely related management and work practices that have encouraged effective operation and performance in the industry.


St. Luke’s Hospital, and Pannone and Partners have demonstrated an interesting approach to work and management practices that encouraged good performance in the market. Even though the two organizations are from two different industries- legal and health- they have applied similar practices that have enabled development and better performance (Becker & Huselid, 1998). It is evident that management practices are crucial in organizations that plan to attain better performance even at a time the firms are increasingly losing to their competitors. Through performance management and work practices, organizations are able to have competitive power and ability in the market promoting better performance, profitability and development (Sung & Ashton, 2009).

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