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Performance evaluation is the critical task in heath care facility despite several challenges involved during its implementation (Yeh, Smith, Jennings & Castro, 2006). All organizations: health care facilities, governmental, non-governmental and private sector among other organizations undergo continuous changes. An effective organizational management needs a leader with relevant skills and experience in a specific practice given the current competitive environment in the service sector (Kato, & Morishima, 2002). A number of organizations take measures to initiate change in response to the innovation needs, market competition and pressure to perform. However, in healthcare facilities that takes initiatives to change, only 30%-40% succeed in achieving their goals (Ellis, & Spielberg, 2003). This paper explores challenges experienced while undertaking performance evaluation as measures to take when performance of a firm dwindles.

The changing landscape in the people’s management has called for initiation and implementation of a number of strategies aimed at improving the levels of organizational performance. The role of people as a key ingredient in realization of organizational objectives forms the main reason behind the greatest attachment to their well-being. A dissection of literature on HRM indicates that a number of companies employ various perspectives to achieve higher levels of employee satisfaction. One of the initiatives employed is performance and management evaluation which is critical to the progress and development of an organization. However, design and implementation of the employee performance management program involves several challenges. The goal setting in healthcare is challenging since it is a service offered, unlike in the production firms, less technicality in meeting performance requirements as defined in the production metrics. However, in the recent times there has been upsurge of information and service-based firms that require an added knowledge in the implementation of performance requirements. According to DeNisi & Pritchard (2006), the knowledge of service-based jobs such as healthcare, has fluid and unpredicted job patterns, which necessitate continuous improvement to remain relevant in their objectives.

Acceptable methodologies of performance evaluation pose a great challenge to its implementation. Whereas the idea of employee performance evaluation is widely accepted, the administration and delivery of the evaluation is done more effectively by some leaving a gap for those who fail at the content and delivery (Chiang, & Birtch, 2010).  Some corporate managers have removed the accountability of proper employee evaluations noting the faulty assessment systems in place across many organizational entities (Chiang, & Birtch, 2010). In situation where employee evaluation process is not clearly defined, personal interpretation and design can affect the implementation process and lead to different practices within the organization. Some leaders may assume that the concept of an employee performance evaluation is a motivator to enhance performance and may lead to artificially low performance ratings to motivate the employee to work harder (Chiang, & Birtch, 2010).

A continuous technological change is also a challenge to the implementation of performance evaluation. The previous research was focused on the types of performance evaluation strategy such as Management by Objectives (MBO) theory or the Balanced Scorecard (BSC); however, these concepts may not fully address the needs of performance evaluations based on the technology changes and increase in virtual teams. Team work and Virtual teams can be successful but only if the environment and culture supports employees through performance assessments and not specifically through the observed attendance (Brown & Heywood, 2005). It is prudent for the organization to adopt technological changes and techniques for appraisal and performance evaluations which embrace virtual employees who could not be directly observed by leadership so as to reduce inaccuracies which normally occur (Brown & Heywood, 2005).  This is because inaccuracies in performance evaluation always lead to negative impacts on the employees.

Financial challenges are also impediment to the successful performance evaluation in healthcare facilities (Wall, Gerada, Conlon, Ombler-Spain, & Warner, 2006). This is because funds are needed to carry out logical employees’ performance evaluation. However, it is noted that when good financial allocation is not set aside for this great process, then the whole process may be jeopardized. In addition, employees’ concerns and suggestions are critical as they are involved in the healthcare provision. Therefore, the result-oriented goals and performance evaluation should be taken into consideration alongside the views of the employees.

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