Comparison of Baldrige Criteria with ‘Managing in a Changing Global Environment’ Comparison of Baldrige Criteria with ‘Managing in a Changing Global Environment’ (Jones, 2008) In order to encourage the performance and quality of American companies, the U. S. Congress created the Malcolm Baldrige National Quality Award (MBNQA) in 1987. The program offers a certain framework of operation to companies so that they can establish guidelines in order to improve their own performance. In healthcare sector, it is mandatory to keep performance up to the mark. Therefore, many healthcare organizations adopt the criteria of Baldrige so as to improve their performance as well as their businesses.
According to Baldrige (2006), the seven criteria, upon which the basis of health care improvement depends, are the following: Process Management Work-force focus Focus on customers, patients and markets Leadership Measurement, knowledge management and analysis Strategic planning Results Many authors have debated upon the validity and effectiveness of Baldrige criteria. The reason is to identify the financial, marketing and human resource outcomes as a result of implemented guidelines of Baldrige criteria because the core objective of any organization is to improve the performance of the pre-mentioned departments.
Financial and Marketing Outcomes According to Baldrige (2006, p. 53), the purpose of identifying financial outcomes is to determine the financial health and results of the organization. It aims at understanding the financial sustainability, as well as the challenges and opportunities, which are present in marketplace. Usually, senior leadership assesses the financial performance of the organization. Appropriate financial indicators and measures include net assets, revenues, profits, budgets, cash to cash cycle, market position, financial stability, financial returns and earnings per share (Baldrige National Quality Program, 2006). The measures and indicators for tracking the marketing performance of an organization as per Baldrige criteria include market share, market position, new markets entered, measures of growth, new population served, entry into e-service for customers and patients, percentage of earnings resulting from new healthcare programs and services (Baldrige National Quality Program, 2006). Human Resource Outcomes The Human Resource outcomes of Baldrige criteria examine how well the organization is developing and maintaining learning, productive and concerned working environment for its staff.
The indicators and measures of performance for Human Resource include job rotation, job classification, support staff, administrators, work layout, working relationships among the staff of health care providers (Baldrige National Quality Program, 2006).
Jones (2008) has mentioned various strategies through which organizations could be managed in the changing global environment of business. The first step is to identify the uncertainty sources and complexity sources. It has to be examined how rapidly the environment is changing. An organization needs to conduct cost benefit analysis in order to find out how to utilize the available resources better. According to Jones, “an organization needs to evaluate the benefits and costs of different inter-organizational strategies and choose the one that allows it to secure valuable resources in the most effective way” (2008, p.
85). In order to govern and maintain the exchanges between organization and its people, Jones (2008) has put forward the concept of Transaction Cost (Jones, 2008). The concepts of Jones (2008) can be compared with Baldrige criteria as Jones (2008) argues about scanning the specific and general environment. The specific environment primarily consists of those measures which directly influence the ability of organization to preserve its resources.
However, the general environment shapes the specific environment for every business. While scanning the general and specific environments, organizations need to check the performance of major departments including Human Resource Department, Finance Department and Marketing Department. If the performance of every individual department is up to the mark, then the overall performance of organization will enhance as well. This concept was mentioned in the seven integral factors of Baldrige criteria; within the context of strategic planning, for instance, it was stressed on the importance to align the performance of all the departments along with the goal of organization (DeJong, 2009).
To improve the financial position of an organization, an organization needs to undergo various types of restructuring. Some of these restructuring measures mentioned by Jones (2008) include mergers and takeovers, franchising, outsourcing, cartels and collusion, joint venture etc. These restructuring often proves to be utterly beneficial for improvement of financial performance of an organization. Jones (2008) has put forward two types of resource interdependencies for improving marketing performance.
It includes symbiotic interdependence for customers and suppliers and competitive interdependence for rivals. If both of these aspects are considered carefully, then a number of customers will be increased and rivalry can be minimized. For improving the Human Resource outcomes, Jones (2008) has expounded that staff of every organization must be stimulated to be productive through learning and training, which, in turn, will give an opportunity for an organization to gain competitive edge over its people. References Baldrige National Quality Program.
(2006). Health care criteria for performance excellence. Gaithersburg. DeJong, D. J. (2009). Quality improvement using the Baldrige Criteria for organizational performance excellence. Am J Health-Syst Pharm, 1031-1034. Jones. (2008). Organizational theory, design, and change 5/E. New Delhi: Pearson Education India. Shortell, S. M. (1995). Assessing the impact of continuous quality improvement/total quality management: Concept versus implementation. HSR: Health Services Research 30:2 , 377-401.