Interactive use of performance management systems

Approximate reading time: 3-4 min. The application and use of effective health, especially public sector controls is an important challenge. This is due to both the extraordinary expansion within the services provided by that sector, to effectively and effectively respond to human health requirements and increased leadership complexity with provision of healthcare services. A study shows how the use of performance management systems affects the manager’s perception of satisfaction, the efficiency of the control system and performance related to the innovation process. An explorative empirical research study was conducted on 85 managers working in Italian health care organizations.

 

performance management systems

 

The study focused on the diagnostic and interactive use of controls and the mechanisms that support the implementation and/or adaptation of strategies in competitive environments. However, the focus is not related to diagnostic and interactive use specifically. Instead the focus is on the combination that produces the dynamic tension between diagnostic and interactive use. This study defines controls as performance management systems (PMS).

 

The use of performance management systems may provide misleading results

The empirical findings put forward that the interactive—as opposed to diagnostic—use of PMS enhances managerial satisfaction with the control system and managerial perception of effectiveness. Traditional diagnostic use of PMS is based on a hierarchy of information and authority according to the logic of feedback. On the other hand an interactive use is directly involving management at a certain level in the activities of subordinate managers at lower levels.

The study showed that it is not the control itself that is an obstacle to innovation in organizations in general (and in health organizations in particular). The issue is diagnostic use of the control mechanisms. This impedes the interaction between the control personnel and those subject to the control. This thereby limiting organizational learning and thus the possibility to develop innovative solutions.

 

References:

Demartini C., Mella, P., 2014. Beyond feedback control: the interactive use of performance management systems. Implications for process innovation in Italian healthcare organizations. The International Journal Of Health Planning And Management 29 (1), e1-e30.

Available at: http://onlinelibrary.wiley.com/doi/10.1002/hpm.2177/abstract?deniedAccessCustomisedMessage=&userIsAuthenticated=false

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