© 2006 Thomson-Wadsworth

Learning Objectives List the various groups to which an organization may be accountable. Describe why accrediting agencies are interested in the accountability of the organizations and programs that they evaluate. State reasons for measuring productivity.

© 2006 Thomson-Wadsworth Learning Objectives Differentiate among quantitative, qualitative, and outcome productivity measures. Describe how to measure productivity for various types of workers. State why fiscal accountability is necessary. Determine why it is necessary for an organization to be accountable to its employees.

© 2006 Thomson-Wadsworth Learning Objectives List various ways organizations measure accountability to their employees. Distinguish between quality control and quality assurance. Discuss the standard systems used for quality management, including quality assurance, continuous quality improvement, and total quality management.

© 2006 Thomson-Wadsworth Learning Objectives Define benchmarking. Differentiate between internal and external benchmarking.

© 2006 Thomson-Wadsworth Overview Accountability –The state of being responsible or liable for actions taken. Managers are accountable to suppliers, employees, customers, and other constituencies for what they do as well as for the work of their subordinates. Accountability includes a sense of duty to ensure that the proper services and goods are provided and individuals are treated fairly.

© 2006 Thomson-Wadsworth Overview Accountability includes a variety of measures: –Productivity measures –Financial –Human resources Benchmarking - comparison of an organization's measures with past measures, other organizations, or industry standards

© 2006 Thomson-Wadsworth Constituencies Vendors –Entitled to payment Financial backers –Should receive a reasonable return on investment –In the case of taxpayers, should receive a level of quality in service Employees –Safe work environment –Equitable treatment and 2-way communication

© 2006 Thomson-Wadsworth Constituencies Customers –External Customer - The end user of the product made by an organization. –Internal Customers - Those individuals within an organization who provide direct service to the external customers. –Captive Clientele - Customers who must use a product or a service because they have no other options.

© 2006 Thomson-Wadsworth Constituencies Professional/accrediting agencies –Provide expert judgment regarding whether goods/services are appropriate when this cannot be determined by customers –ex: Joint Commission on Accreditation of Healthcare Organizations at Commission on Accreditation for Dietetics Education at cfm cfm

© 2006 Thomson-Wadsworth Productivity –Measurement of the relationship between outputs or products and inputs such as time, money, labor, and raw material. –Productivity may be measured quantitatively, qualitatively, or in terms of outcomes.

© 2006 Thomson-Wadsworth Productivity Measuring productivity –Quantitative Measure - A type of productivity measure that focuses on the quantity of product produced.

© 2006 Thomson-Wadsworth Productivity

© 2006 Thomson-Wadsworth Productivity Measuring productivity –Qualitative Measurement – A type of productivity measure that is concerned with the accuracy and quality of what is produced. –Outcome Measurement - A type of productivity measure that determines whether the product did what it was supposed to do.

© 2006 Thomson-Wadsworth Productivity Measuring productivity (hospitals) –Occupied Beds - A measure hospitals use to quantify the work that they do; the number of patients in the facility for a 24-hour period. These data are often obtained by determining the number of patients who are physically present at a specific hour during the night (for example, 2 a.m.).

© 2006 Thomson-Wadsworth Productivity Measuring productivity (hospitals) –Adjusted Occupied Beds - A measure generated through the use of a mathematical formula to adjust the actual number of occupied beds to reflect the work that is done in the hospital for patients who are not actually admitted for 24 hours or are not in residence at the time when the occupied bed census is taken. The formula is based on the hospital’s usual activity patterns, volumes of outpatient visits, day surgeries, patient acuity, and so on.

© 2006 Thomson-Wadsworth Productivity Measuring productivity (foodservice) –Meals - A group of foods that are usually eaten together. Typically, a meal includes an entrée, a starch, a side dish, and a dessert (it may also include an appetizer and/or a salad). –The number of meals prepared is often used to quantify the productivity of cooks. –Meal Equivalents - A measure of foodservice productivity defined as the amount of all food sales divided by the average cost of a meal within the facility.

© 2006 Thomson-Wadsworth Productivity Measuring productivity (foodservice) –Qualitative measurements in foodservice: Sensory characteristics of food Food safety

© 2006 Thomson-Wadsworth Productivity Use of productivity records –Determination of staffing needs –Monitoring staff during change –Quality management

© 2006 Thomson-Wadsworth Quality Management Quality assurance –In healthcare, the focus has moved from quality control to quality assurance. –Quality Control (QC) - A method to determine if the products being made meet minimum standards of acceptability. –Quality Assurance (QA) - The process of identifying and solving problems within a department or area of an organization.

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Quality Management Continuous Quality Improvement (CQI) –The process of identifying areas in a department that can be strengthened and working to make those areas better. Total Quality Management (TQM) –The application of quality management processes throughout the organization. –This includes working on problems and strengthening areas that cross departmental lines.

© 2006 Thomson-Wadsworth Use of Outcome Data Used in public health to measure the impact of programs –Quantitative data justify funding Used to demonstrate effectiveness of MNT for diabetes, renal disease –Justifies Medicare reimbursement Used to refine foodservice forecasts

© 2006 Thomson-Wadsworth Benchmarking Benchmarking - The practice of measuring an organization’s performance and productivity against standards, either internal or external.

© 2006 Thomson-Wadsworth Benchmarking Internal Benchmarking –The process of comparing an organization’s current data on productivity with its own past records to determine how its current performance compares with past performance. –Variations alert the manager to changes –Patterns and trends guide staffing/work processes

© 2006 Thomson-Wadsworth Benchmarking External Benchmarking –The process of an organization comparing its performance and productivity with those of other comparable organizations to determine whether it is performing at, above, or below the industry standard.

© 2006 Thomson-Wadsworth Benchmarking External Benchmarking –Obstacles to meaningful benchmarking: Finding organizations similar enough to compare Competitive nature of business

© 2006 Thomson-Wadsworth Conclusion Organizations are accountable to a variety of constituencies, including those who contribute resources, both human and material, and the end users of the product. When the customer is identified as the public, the organization is often accountable to an oversight group, representing the public.

© 2006 Thomson-Wadsworth Conclusion Productivity is measured in relation to quantity, quality, and outcome. The measurement of productivity is a management tool. It is most effective when productivity is monitored in both the short term and in the long range. Discrete measures, other than productivity, are used to demonstrate fiscal accountability and accountability to staff.

© 2006 Thomson-Wadsworth Conclusion Quality management programs include quality control, quality assurance, Continuous Quality Improvement and Total Quality Management. Benchmarking is one of the processes used to measure an organization’s performance against internal and external standards.