The “Performance Pay for MGOA Physicians" case, set in an academic medical center, illustrates the implementation of pay-for-performance as an HR strategy.
Read the case, and consider the following questions:
What physician activities or behaviors are rewarded by the plan?
What are the questions and concerns raised in this case? What other concerns (not mentioned in this scenario) could be important?
What are the intended—and unintended—consequences of the plan? What do you think are the pros and cons of this performance pay program?
What modifications, if any, would you recommend to this plan?
What insights from this situation might be applied to non-physician groups within a health care organization? Consider potential differences between physician and non-physician compensation systems.
Create a 2- to 3-page paper in which you:
Briefly summarize the compensation plan that has been developed by MGOA.
Analyze strengths and challenges related to this plan, and propose potential modifications that could address issues or concerns associated with this plan.
Explain how elements of this plan might be applied for non-physician employees, noting differences between various compensation systems.