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Related Experiment Videos

CEO performance appraisal: review and recommendations.

J F Newman1, L Tyler, D M Dunbar

  • 1Institute of Health Administration, J. Mack Robinson College of Business, Georgia State University, Atlanta, USA. hadjfn@langate.gsu.edu

Journal of Healthcare Management / American College of Healthcare Executives
|February 24, 2001
PubMed
Summary

High-quality CEO performance appraisal (PA) is crucial but challenging. Linking CEO pay to organizational success and community health status is recommended for effective PA.

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Area of Science:

  • Healthcare Management
  • Organizational Behavior

Background:

  • CEO performance appraisal (PA) is vital yet complex.
  • High-level executive PA faces quality challenges.
  • PA serves legal, social, communication, and compensation purposes.

Purpose of the Study:

  • To identify problems in current CEO PA.
  • To explore contemporary approaches for improving CEO PA.
  • To outline a framework for effective healthcare CEO PA.

Main Methods:

  • The article reviews challenges and current strategies for CEO PA.
  • It identifies three core evaluation areas: organizational success, community health status, and professional role fulfillment.
  • Recommendations are provided for implementing annual CEO PA systems.

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Main Results:

  • CEO PA is inevitable, complex, political, and impactful.
  • Three key evaluation areas are proposed for healthcare CEO PA.
  • Linking PA outcomes to CEO incentive compensation is a primary goal.

Conclusions:

  • Effective CEO PA requires strategic considerations and a structured annual process.
  • Tying CEO compensation to organizational effectiveness and community health is strongly recommended.
  • This approach aims to enhance both executive performance and organizational outcomes.