Quality Management in Healthcare

Question by professor: What happens with reward systems under CQI?

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Student: Hamala Sharma

Employee involvement and motivation are critical factors for the effective and successful implementation of the CQI program (Mosadeghrad, 2015). Managers need to create a system that manages and develops the capabilities of individuals, promotes fairness and equality, encourages and empowers people to be grown, helps people accomplish the organization’s goals, and recognizes their effort and achievement. (Mosadeghrad, 2015). Reward and recognition systems can play a critical role in an organization with a strong CQI program, such as increasing motivation and participation, increasing innovation and creativity, and stronger commitment. Managers need to create a rewards system that is connected to the organization’s goals for quality improvement and become part of the employee standard evaluation plan for continuity and sustainability, with in-between recognition and rewards as needed. Employees should also know the expected outcomes and be rewarded for the effort and success (Mosadeghrad, 2015; Edgman-Levitan et al., 2017).

There are financial and non-financial ways to reward and recognize employees, such as employee of the month, extra pay or bonus, regular recognitions, etc. An example of financial incentives will be the Integrated Healthcare Association (IHA), which ran a statewide pay for performance bonus program that paid contracted physicians a bonus based on evaluation of common measures (Edgman-Levitan et al., 2017). Sometimes, straightforward communication and sharing of successful CQI stories throughout the organization using new letters, lunch and learn, etc., can recognize an individual or team and help create a culture of quality improvement. Leaders also need to review how a reward and recognition program is beneficial in the short and long run and can be maintained, especially in the financial reward system. Reward systems should not pit one group against another, discourage cooperation or success or use to judge others (Marker and Morganstein, 2004).


Edgman-Levitan, S., Shaller, D., Campione, J., Zema, C., Abraham, J., & Yount, N., (2017) The Agency for Healthcare The CAHPS Ambulatory Care Improvement Guide: Practical Strategies for Improving Patient

Marker, David A., and Morganstein, David R. (2004). Keys to Successful Implementation of Continuous Quality Improvement in a Statistical Agency. Journal of Official Statistics, Vol. 20, No. 1, pp. 125–136.

Mosadeghrad, A. M. (2015). Developing and validating a total quality management model for healthcare organizations. TQM Journal, 27(5), 544-564.

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