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Related Experiment Videos

Well-designed and well-administered executive incentive plans do work.

K N Jones1

  • 1Legacy Health System, Portland, OR.

Journal of the Society for Health Systems
|January 1, 1990
PubMed
Summary

Executive incentive plans are now essential in healthcare management for driving success. This article details their growth, components, strategic impact, and benefits for improved performance.

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Area of Science:

  • Healthcare Management
  • Organizational Behavior

Background:

  • Executive incentive plans were uncommon in healthcare a decade ago.
  • These plans are increasingly vital for navigating the complex healthcare industry.

Purpose of the Study:

  • To examine the growth and components of executive incentive programs in healthcare.
  • To understand how these programs influence business strategies, performance, and organizational philosophy.
  • To outline the benefits of effective incentive program design and administration.

Main Methods:

  • Descriptive analysis of incentive plan trends.
  • Component analysis of successful executive incentive programs.
  • Exploration of the linkage between incentive programs and strategic objectives.

Main Results:

  • Executive incentive plans have seen significant growth in the healthcare sector.
  • Key components of successful programs include clear objectives and performance metrics.
  • Incentive programs effectively align executive behavior with strategic goals and enhance performance.

Conclusions:

  • Well-designed and administered executive incentive plans are crucial for healthcare organizations.
  • These programs drive performance, support business strategies, and contribute to overall success.
  • The adoption of incentive plans reflects a maturing approach to healthcare management.

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