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CHAPTER 8
Leadership Development,
Succession Planning, and
Mentoring
Seminar 5
Leadership
 Essential for strategic management
 Planning and coordination
 Direct employees
 Represent mission, vision,values
Health Care Leadership
 Influence patient outcomes
 Complex environment
 Behind other industries in leadership development,
succession planning, etc.
 Constant pressure to reduce costs
 Shortage of health care executives
Leadership Development
 Manager
 Controls organizational processes
 Leader
 Set strategic direction
 Galvanize resources
 Motivate employees
Leadership Development
 Activity that improves ability to lead
 Informal
 Everyday lessons
 Formal
 Leadership development class
 Focus on individual leader
 Focus on organizational goals
Leadership Development
 Classroom instruction
 External or internal
 Degree seeking
 Professional association
 Skill-based training
 Strategy formulation, negotiation, interpersonal, finance,
HR, marketing, IT
Leadership Development
 Challenging job assignment
 Responsibility and rigor
 Team training
 Action learning
 Groups solve a specific problem
 Develop leaders while solving a real problem
Leadership Development
 360-degree feedback
 Performance survey
 Supervisors, peers, and subordinates
 Comprehensive
 Costly
 Less used in health care
 Developmental relationships
 Mentor
 Coach
Leadership Development
 Lagging in health care
 IT receiving attention, money
 Slim operating margins
 Complex organizational structures
 Physicians not on staff
 Can be a competitive advantage
Succession Planning
 Heir apparent
 Pros and cons
 “Executive cloning”
 Development internal talent pool
 Identify key positions
 Leadership development activities
Succession Planning
 Better financial performers
 Health care less likely to plan for succession
 More benefits in turbulent environments
 Groups of employees ready to lead
Mentoring
 Traditional perspective
 Modern perspective
 Developmental relationship mutually maintained by two
people
 Episodic to lifelong
 Network of mentoring relationships
End
CHAPTER 13
Performance Appraisal
Seminar 5
Performance Management
• Encompasses performance appraisal
• Integration of performance-appraisal systems
with broader HR systems
• Aligning employees’ work behaviors with the
organizational goals
• Performance definition, appraisal process,
performance measurement, and feedback and
coaching
Performance Appraisal
• Employee’s contribution is assessed
• Usually includes appraisal and feedback
• Performance feedback
– Comparison with the standards
• Affects employees attitudes
• Costly
• “Necessary evil”
Purpose of Performance Appraisal
Purpose of Performance Appraisal
• Employee development tool
– Set goals to reinforce and improve performance
– Determine career paths of employees
– Identify training needs of the workforce
• Administrative tool
– Linking rewards to performance
– Evaluating HRM policies and programs
Strategic Importance
• Organizations strive to:
1. Design jobs and work systems to accomplish
organizational goals
2. Hire individuals with the abilities and desire to
perform effectively
3. Train, motivate, and reward employees for achieving
high performance and productivity
Strategy and Performance Appraisal
• Link HR strategy with organization strategy
• HR practices more effective as a bundle
• Performance appraisal and management has
critical interdependencies
– Recruitment and selection
– Training and development
– Compensation and rewards
Strategy and Performance Appraisal
Legal and Regulatory Issues
• Joint commission
• Malpractice and wrongful discharge
• Physicians and organization liable
• Discipline and termination
• Appraisals should support decisions
• “Organizationally sensible approach”
Performance-Appraisal Methods
 Comparative methods
– Straight ranking
– Alternative ranking
– Paired comparison
– Forced distribution
Performance-Appraisal Methods
• Absolute standards
– Weighted-checklists method
– Forced-choice method
– Graphic-rating method
– Critical-incidents technique
– Behaviorally anchored rating scale (BARS)
– Behavioral observation scale (BOS)
Management By Objectives
• MBO
• Result-based evaluative program
• Goals are mutually determined by supervisors
and subordinates
• Employees are rated on the degree to which
these goals are accomplished
• Goal-setting objectives
Management By Objectives
• Promotes communication and interaction
between the superior and subordinate
• Development forces the organization and
individual units to recognize and coordinate goals
• Employees gain an understanding of work
objectives and learn what is expected of them
Health Care Performance Appraisal
• Continuous quality improvement (CQI)
• Trend to flatter organizations
• 360-degree feedback
• Team appraisals
• Total quality management (TQM)
• “Workforce focus”
Performance-Appraisal Problems
• Less than 20% are effective
• Viewed as irrelevant
• Detailed and complex
• Negative attitude towards it
• Shortcomings of older approaches
Performance-Appraisal Problems
• Comparison-based appraisal methods
– Useful in making decisions within a work unit
– Time consuming
– Small group of employees
– Based on other employee’s work
– Not based on desired outcome
– Ranking assumes equal distance
Performance-Appraisal Problems
 Absolute standards-based appraisal methods
– Only yes or no
– Does not reveal degree of behavior
– BARS very time consuming
– Fragmented appraisal methods
– Broad diversity of occupations
– Non-employee medical staff
Performance Appraisal
• Health care performance-appraisal changes
– Implement more recent management practices
– Employee empowerment
– Cross-functional teams
– Flat organizational structures
– Employees that take initiative and are team players get
rewarded