An Empirical Study of Establishment of a Performance Management System and Its Effectiveness Evaluation

Friday, 3 August 2012: 10:15 AM

Shew-Fang Shieh, DBA, MS, RN
Nursing Department, Cardinal Tien Hospital, Taipei, Taiwan

Learning Objective 1: learn performance management system and its application in nursing services.

Learning Objective 2: learn how to evaluate the effectiveness of implementing a performance management system.


Operational performance of health care institution has been become a crucial issue and concerned by top management of hospital in recent years due to the changeable and competitive environment. A performance management system based on management framework of balance scorecard was established for measuring organizational performance. Since the system has been implemented, it was interesting to know the effectiveness of implementation. The purpose of the research was to examine the effectiveness of implementing a performance management system in a regional hospital.


A case study method was used in the research which was conducted in a regional hospital in Taiwan. Nursing department was chosen as the subject to measure its organizational performance from Jan. 2008 to Dec. 2010. A structured questionnaire including four dimensions based on the structure of balance scorecard was developed to collect the data. All specific measure indicators related to nursing services were categorized into each dimension of performance. A total of 123 indicators scores were collected and evaluated the outcome of goal met.


The findings of the research show that the outcome of organizational performance was satisfied, and the performance management system was effective and valuable for performance evaluation of the organization. Although some measure indicators were found not reaching the goal value, the underlying factors were analyzed and delineated new strategy.


The results of this research provide valuable reference for top management assigned to set policies regarding nursing service and quality of care in the future. It provides inspiring thought for academics that would like to explore the relationship between theory of strategy management and practice of performance management in depth.