Human Resource Economics for OECD Regime-myassignmenthelp.com

Question: Discuss about theHuman Resource Economics for OECD Regime. Answer: Introduction The essay intends to examine the issues associated to pay and performance. The main findings has been csonsidered with economic literature on the effectiveness of pay for performance and how the different types of consideration for performance should be determined based on incentive pay. The economic literature has been associated with efficiency theories which has emphasised on relationship between performance and pay. The efficiency with theories has been able to offer a clear idea of market environment and employees increasing productivity. This has been further identifies with several types of types of the other instances such as workplace cohesiveness, imply responsibility, loyalty and reduces risk of shrinking. The industry considered for this situation has been identified with Australian healthcare industry. The Organisation for Economic Co-operation and Development OECD has been able to publish a health system priorities report which shows that health spending continues to gr ow faster in several countries under OECD Regime. Based on Australias experience of pay for performance the growth in medical sector has been seen to be limited in nature with several scope of improvement at the same time. The Bundaberg Base Hospital scandal has resulted in Queensland government introducing new clinical practice for improvement in the payment structure for meeting specific clinical benchmarks among the clinical units. The deficiency in pay for performance and the measures for improvement of the same has been determined with application of efficiency wages theory (Econ.ohio-state.edu, 2017). Industrys current deficiency in paying for performance Pay for performance (P4P) is seen to be increasingly used to aid the work of health care providers for improving the performances. There have been several evidences on the effectiveness use of P4P implementation which has been seen to be remaining evident. The various types of floors in the program have been further able to contribute to the designing of effective program for complex undertaking of P4P model. In general, the P4P is ideally defined under set of major comprehensible ideas. The different types of concerns for the P4P have been evaluated based on selection and teaching of the test which cannot be dismissed. The sophisticated risk for the adjustment is seen to be the main outcome for the utilisation of resource measures (Ucnet.universityofcalifornia.edu, 2017). Bundaberg Base Hospital is identified as one of the Australias most recognised facility for including emergency care, general medical facilities and community health services with a total funding of $17.77 million which has been allocated for the health facility in cancer care facility. The public hospital is seen to be situated in Bundaberg, Queensland, Australia. The main base of the regional centre for the hospital is identified to take referral from outlying hospitals along with various types of focus on specialised skills. Bundaberg Hospital was seen to be facing political scandal due to negligence of one of its surgeons named Jayant Patel who was seen to be facing charges of misconduct and unlawful killing of three patients along with grievous bodily harm to the fourth patient. The aforementioned case has been identified by government of Queensland introducing clinical practice improvement in payment of the surgeons which includes the scheme for incentives among public hospital employees (Aph.gov.au, 2017). The pay for performance schemes in Australia consider whether quality improvement in physical condition can be achieved with less costly approach of public performance reporting and various types of continuing performance monitoring. The most common way of reporting of performance on various types of health care providers has been seen with using variety of indicators such as hospital readmission, infection rates and mortality rates. The other aspects of the essay have been further able to contract the selection between the subjective performance pay and effectiveness in wages to motivate the workers in a particular market setting. The optimal contract setting has been identified with combination of efficiency wages and subjective performance pay. This has been also regarded with turnover costs in the labour market. Due to this, in these particular markets the total amount of wage payment is seen to be lower and on the other hand the employment level is considered to be higher. In these specific criteria the increase in the turnover cost has been identified with higher amount of social welfare (Euro.who.int, 2017). The designing of incentive scheme to motivate the workers is identified as an important topic in both micro and macro economics. The definite consideration for the sinking efficiency wages has been able to establish the firms for feeding to pay with premium in order to motivate the workers and further serve unemployment as the main punishment device. However, one of the most identified shortcomings of the model has been considered with performance pay in having no role in motivating the workers. The ignorance of performance pay has considered that the individual performance is difficult to be measured in an objective way and the use of legally enforceable performance pay is further seen to be limited in nature (Ahha.asn.au, 2017). Given the situation that both competence wages and the performance pay able to motivate workers, doctors with contract needs to be discerned from the perspective of the organisation. The various types of differing labour markets and the use of contract also need to be evaluated. Performance evaluation Performance evaluation is considered as a constructive process for acknowledgement of the different types of performance of nonprofessional career employee. The evaluation of employees performance is still taken into consideration with determination of performance-based valuation procedure as per the additional relevant factors. It has been further discerned that the nonprofessional employee does not receive any performance evaluation and the employees performance for the period needs to be deemed as satisfactory for the purpose of salary increment. The various types of considerations made for the annual period of performance evaluation for the nonprofessional the carrier employees has been further determined with several performance evaluation techniques conducive with the HR personnel management concepts. The performance evaluation conducted by Baker, Gibbons, and Murphy has been able to focus on optimal mix of use of incentive based imperfect objective measures and perfect subjective measures for performance evaluation. The main form of the optimal mix for incentive has been based on the various types of objective measures and subjective measures. The model has been further able to depict the trade off between the strong incentives from subjective measures following inherently implicit contracts along with the non-verifiable performance measure. The various types of performance evaluation have been further considered with the differences with actual performance and the measured performance. The models of subjective performance evaluation and implicit contracts have been able to make several contributions in understanding the compensation structure. However, these models have been seen to be considered to be consistent with the anecdotal examples of various types of rigorous physical corroboration (Facultysobweb.bcit.ca, 2017). The pay for performance inside an organisation is seeking to be analogous with the various types of theories of market economies associated to maintaining analogous pricing system. The good depiction based on performance evaluation has been further able to include both negative and positive effects of externalities of the employee along with the rest of the firm. The broad depictions under the performance evaluation has been able to closely monitor the subordinates in terms of having a better incentive plan and span of control for better personal management. Paying for performance With particular focus on the health care industry the P4P is also termed as value-based purchasing. This payment model is seen to offer various types of financial incentive to the hospitals, medical groups, physicians and the other types of health care service providers for adhering specific performance measures. In addition to this, the different types of clinical outcomes such as longer survival has been seen to be difficult to measure the P4P systems which usually evaluate the process of quality, efficiency and measuring of the instances of blood pressure, lower blood pressure and counselling of the patients for various other facilities. The pay for performance this time is seen to be associated to the measures of work quality based on employers pay of measure of performance and the healthcare service provided. The preventive medication errors has been recommended with the incentives so that the profitability of the hospitals, pharmacies, clinics and the insurance companies can be associated with patient in terms of safety goals. The review of the medical literature has been further able to state that the pay for performance has been able to bring a disappointingly mixed result. In several types of large incentives schemes the doctors have practised prevention and treatment of chronic conditions. Many reports have been able to a comment that the P4P as an immediate opportunity is seen to align with the incentives along with the improvement in the performance. After the review of the various types of medical literature in 2014, the pay for performance does not change the way the doctors practice medicines. In several cases even a large incentive does not change that of a doctors practice medicine and the clinical outcomes dont improve as desired. The driving force between the marketing models can always be immediately able to fill the vacancies for reneging the promised bonuses. Henceforth, any form of subjective performance pay is not seen to be predictable and the firms need to use efficiency wages completely based on the motivation of the workers. In addition to this, the market with more amounts of jobs, efficiency wages and workers are considered to be useless in providing incentives, as the worker cannot find another job immediately after being fired. This results in subjective performance pay which is responsible for solely motivating the workers. In addition to this, the efficiency wages and the subjective performance pay is not seen to be having any use in motivating the workers. The performance pay to the owners with small magnitudes has been never observed to be consistent in nature. The feature of discontinuity shows that both efficiency with equilibrium and the performance pay equilibrium may persist at the same time but the rationale cannot be selected with plausible equilibrium. The performance is not seen to be available in the first place. The firms are considered to use efficiency wages for motivating the workers which has been identified with positive aspect. The various types of combination for efficiency wages and performance pay has been seen to be related to greater freedom in facilitating the entire personnel management policies. It has been further observed that the performance pays lesser expensive than efficiency wages from forms perspective. This is due to the fact that the performance pay is seen to discourage the various types of factors for shrinking of total waste payment whereas the efficiency wages is seen to include the increase in total waste payment. However, it needs to be further understood that the performance pay may be restricted with various types of moral hazard problem which is based on the turnover cost in the form next incurred the various types of hiring o f the workers until the next period of regenerating bonus. The different types of consideration with the upper bound on the credible bonuses have been further seen to be based on the increasing turnover cost which does not need to pay any premium on the wages. The pure efficiency with contract without any bonuses can be considered to be more acceptable among the workers as this will not lead to warning of whether wages should carry any premium on the positive values. The various types of initiatives for the P4P schemes in health care in Australia has been identified with programs such as general practice immunisation incentive scheme (GPII). The initiation of the scheme was seen to reward the general practice in order to promote, provide monitoring of the bonus payments. The practice incentive program (PIP) is considered as another medically operated Australian general practice which is conducive in ensuring that the workers are meeting the practice acquisition standards. And other pay for performance scheme has been identified with P4P scheme for hospitals. The Commencement date of this program has been seen to be taken place in 2008, which is run by Queensland health. The main facilities of this program are seen to pay for the clinical units within the public hospitals and in meeting specified clinical benchmarks. And the pay for performance scheme in Australian health care is conducive with Council of Australian government (COAG). This council has been seen to provide national partnership agreement on various types of preventive health bonus. The implicit contracts and the subjective performance evaluation with the employment relationship are seen to offer consistent implicit contracts and subjective performance evaluation. Conclusion The main depictions made from the essay has been able to highlight on the political scandal faced by Bundaberg Hospital due to negligence of one of its surgeons who was seen to be facing charges of misconduct and unlawful killing of three patients along with grievous bodily harm to the fourth patient. The aforementioned case has been identified by government of Queensland introducing clinical practice improvement in payment of the surgeons which includes the scheme for incentives among public hospital employees. This further led to introducing clinical practice improvement in payment of the surgeons which includes the scheme for incentives among public hospital employees. The designing of incentive scheme to motivate the workers is identified as an important topic in both micro and macro economics. The definite consideration for the sinking efficiency wages has been able to establish the firms for feeding to pay with premium in order to motivate the workers and further serve unemploy ment as the main punishment device. However, one of the most identified shortcomings of the model has been considered with performance pay in having no role in motivating the workers. The various types of initiatives for the P4P schemes in health care in Australia have been identified with programs such as GPII. References Ucnet.universityofcalifornia.edu. (2017). Retrieved 30 October 2017, from https://ucnet.universityofcalifornia.edu/labor/bargaining-units/rx/docs/rx_2013-2017_29_performance-evaluation.pdf Econ.ohio-state.edu. (2017).Retrieved 30 October 2017, from https://www.econ.ohio-state.edu/hyang/contract.pdf Aph.gov.au. (2017).Retrieved 30 October 2017, from https://www.aph.gov.au/binaries/library/pubs/rp/2009-10/10rp12.pdf Euro.who.int. (2017).Retrieved 30 October 2017, from https://www.euro.who.int/__data/assets/pdf_file/0020/271073/Paying-for-Performance-in-Health-Care.pdf Ahha.asn.au. (2017). Retrieved 30 October 2017, from https://ahha.asn.au/sites/default/files/docs/policy-issue/deeble_issues_brief_no_5_partel_k_can_we_improve_the_health_system_with_pay-for-performance_0.pdf Facultysobweb.bcit.ca. (2017). Retrieved 30 October 2017, from https://facultysobweb.bcit.ca/kevinw/4800/documents/Person-econ-ch_1to6.pdf