Document Detail


Incentive pay plans boost managers' performance.
MedLine Citation:
PMID:  10280978     Owner:  NLM     Status:  MEDLINE    
Abstract/OtherAbstract:
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.
Authors:
D P Biggs
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Publication Detail:
Type:  Journal Article    
Journal Detail:
Title:  Health progress (Saint Louis, Mo.)     Volume:  68     ISSN:  0882-1577     ISO Abbreviation:  Health Prog     Publication Date:  1987 Mar 
Date Detail:
Created Date:  1987-04-17     Completed Date:  1987-04-17     Revised Date:  2007-11-15    
Medline Journal Info:
Nlm Unique ID:  8500263     Medline TA:  Health Prog     Country:  UNITED STATES    
Other Details:
Languages:  eng     Pagination:  60-2, 74     Citation Subset:  H    
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MeSH Terms
Descriptor/Qualifier:
Employee Incentive Plans*
Employee Performance Appraisal
Evaluation Studies as Topic
Health Facility Administrators / standards*
Hospital Administrators / standards*
Hospitals / standards*
Hospitals, Voluntary / standards*
Personnel Management*
United States

From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine


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