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  • Level: GCSE
  • Subject: Drama
  • Word count: 2490

Clearly state what constitutes performance indicators? Why do people want organisations to produce these? Suggest your own type of performance indicators that Could be used with a doctor's surgery (general practise).

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ACCOUNTING AND CONTROL IN ORGANISATIONS 2003 Q. a) Clearly state what constitutes performance indicators? b) Why do people want organisations to produce these? c) Suggest your own type of performance indicators that Could be used with a doctor's surgery (general practise). d) What problems might arise when you try to use the Performance indicators that you produced in part c). a) The purpose of performance indicators is to evaluate and monitor how well a system responsible for providing a service is performing; to report this information in quantitative terms; and to direct the system's efforts and resources towards desirable goals. The fundamental problem, however, with defining what such a set of performance indicators should be made of due to there sometimes being a lack of consensus on what are desirable goals and, therefore, a lack of definition of what constitutes good performance. Performance indicators can consequently be measuring very different aspects of performance, yet they are all generally concerned with measuring the success of a venture and the success of the people who are managing it. As performance indicators are concerned with the measurement of the success of an organisation, and its management, you need to look at what success is to see what constitutes one. The obvious answer is that success is earning a profit and that the greater the profit the larger the success. ...read more.


Consumers need information on performance to make various decisions when dealing with different organisations. They therefore want performance indicators to be produced to help them make purchasing decisions, choose providers and to check certain firms are accountable. Consumers also want indicators to track quality and responsiveness of the different systems of care available to them. Other people that want performance indicators produced include shareholders who can use the information to make informed decisions when buying and selling shares. Accreditation agencies are also starting to use indicators to monitor adherence to regulations and standards and to guide accreditation and program review decisions. There are many different reasons for various people to want organisations to produce performance indicators. However, performance indicators are all aimed at efforts to improve three broad areas these are quality, management and accountability. c) Physician's performance is increasingly being profiled in the United States in order to release performance data to the public and make routinely collected data available to healthcare purchasers and regulators. The UK is soon likely to follow suit with this large use of performance indicators in the health sector. These indicators are being used in an attempt to measure the performances of doctors and providers of healthcare by supplying interested parties with information on the structure, process and outcomes of healthcare. The idea of using performance indicators for general practise (GP) ...read more.


Another problem that a doctor's surgery may have when trying to implement performance indicators is the lack of consensus there is likely to be over which indicators should be used. This is because there are various stakeholders in a doctor's surgery who will often have different expectations. One stakeholder in a doctor's surgery may consider a system successful if waiting times are shortened and health and safety improved. Where as another may say the indicators are successful if costs are contained. These different values and expectations result in different choices of indicators and a greater importance given to specific indicators. In conclusion, performance indicators are a tool to measure, evaluate and monitor how successfully an organisation is performing. People want organisations to produce these for several purposes. These are including accountability, quality, improvement, planning, budgeting, marketing, contract negotiations and management, purchasing services, choosing providers, policy making, and research. The fact, however that performance indicators can be used for these various functions it does not mean that the performance measurement system will take the entire burden. There are many different performance indicators that a doctor's surgery could use. These vary from looking at patient and staff's perceptions of the doctor's surgery as well as the cost per consumer and missed appointments. Doctor's surgeries may, however, find that problems may arise when they try to use these performance indicators. Such problems include trying to satisfy a large variety of patients, loss of time, impractical costs and incomparability with other doctor surgery's performance indicators. ...read more.

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