ABSTRACT
Performance Management is the effective use of resources, as measured by quantifying processes and outcomes using indicators that gauge the performance of an organization in particular areas. For a practical illustration of how a Performance Management strategy can redefine the constraints of cost, availability, and quality of healthcare offered by a healthcare organization, consider the following scenario. In following the hospital's mission, the Performance Management Committee decides to reduce overall medication errors by requiring the clinics' physicians to verify patient response to drugs. It also commissions the development of web-based patient educational materials for the hospital's patient information portal that describe the importance of complying with prescriptions. Performance Management is one of many management solutions available to the executive management of healthcare organizations. Although it is not the final word in quality management, when properly executed, Performance Management appears to be better than many of the alternatives.
