HRM5002

Performance Improvement and Management

in Health and Social Care

Case Study

Date for Submission: Please refer to the timetable on ilearn

(The submission portal on ilearn will close at 14:00 UK time on the date
of submission)

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Assignment Brief

As part of the formal assessment for the programme you are required to submit a
Performance improvement and management in health and social care assessment. Please
refer to your Student Handbook for full details of the programme assessment scheme and
general information on preparing and submitting assignments.

Learning Outcomes:

After completing the module, you should be able to:

1. Analyse, evaluate and apply a range of strategic planning models;

2. Calculate, interpret and critique a range of financial strategic performance measures such
as Return on Investment (ROI) Residual Income (RI) and Economic Value Added (EVA);

3. Evaluate the use of problem solving and investment appraisal models;

4. Critically evaluate the use of non-financial and multidimensional models of

performance management.

Graduate attributes:

Discipline Expertise

Knowledge and understanding of chosen field. Possess a range of skills to operate within this
sector, have a keen awareness of current developments in working practice being well positioned
to respond to change.

Maximum word count: 4,000 words

Please note that exceeding the word count by over 10% will result in a reduction in grade by
the same percentage that the word count is exceeded.

You must not include your name in your submission because Arden University operates
anonymous marking, which means that markers should not be aware of the identity of the
student. However, please do not forget to include your STU number.

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Assessment Task

This assessment is worth 100% of the total marks for the module.

Read the following case study and answer the questions that follow.

You are the manager of the CareTech Holdings PLC which is a public company operating
throughout England, Scotland and Wales. The company’s core services include care for adults
with learning disabilities, individuals who have or are recovering from mental illness, people with
autistic spectrum disorder as well as people with one or more physical impairments. They also
provide care and rehabilitation for men with acquired brain injury (“ABI”). The Group has
continued to make progress in 2017 and has raised additional funds through a share placement
for further acquisitions. Having made one acquisition in the year, the Group is considering further
acquisitions and continue the growth in 2018. A current financial assessment is required based
on the available financial statements.
The financial statements for CareTech Holdings PLC are summarised below:

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30

SEPTEMBER 2017

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Source: CareTech Holdings PLC, 2017. Annual Report and Accounts. [Online], Available at;
https://www.caretech-uk.com/~/media/Files/C/Caretech-UK/reports-and-presentations/annual-
report-2017.pdf [Access date: 02/07/2018]

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Question 1

You have been asked to prepare an internal memorandum for the shareholders - critically
evaluating the advantages and disadvantages of least two strategic planning models appropriate
to the care sector in England. The shareholders expect a recommendation as to which model you
would like to implement at CareTech Holdings PLC; with a reasoned justification for your
recommendation.
(1,300 words)
(30 marks)
(LO 1)

Question 2

a. Briefly discuss the usefulness of a financial ratio analysis to shareholders and then apply it to
CareTech Holdings PLC. This should be done using the financial statements above as a basis for
your calculations. You must briefly explain the purpose of each formula, and each step in your
calculations to make sure you have not made any errors. Discuss your findings in the context of
the following industry averages:
Profitability and Efficiency Ratios Industry Average
Gross Profit Margin (%) 36.4
Operating Profit Margin (%) 12.5
Net Profit Margin (%) 8.3
Return on Capital Employed (%) 6.2
Assets turnover 0.65
Trade Receivable days 41
Trade Payable days 32

b. Calculate and interpret the following ratios. You must briefly explain the purpose of each
formula, and each step in each calculation. Discuss your findings in the context of the following
industry averages:
Liquidity and Solvency Ratios Industry Average
Current Ratio 1.3
Gearing Ratio (%) 40.5
Interest Cover 5.4

c. A division of CareTech with capital employed of £800,000 currently earns a Return on

Investment (ROI) of 28%. It can make an additional investment of £375,000 for a five-year life with
nil residual value. The average net profit from this investment would be £40,000 after depreciation.
The division's cost of capital is 9%.

What are the residual incomes before and after the investment?

d. Discuss the benefits of using the Economic Value Added (EVA) concept when making financial
decisions.
(1,400 words)
(40 marks)
(LOs 2, 3 & Graduate Attribute)

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Question 3

You have been asked to critically evaluate the use of non-financial and multidimensional models
of performance management in preparation for a discussion with your management team. Discuss
the importance of non-financial and multidimensional performance indicators to a healthcare
organisation. You are required to circulate a discussion paper to your management team before
the meeting.
(1,300 words)
(30 marks)
(LO 4)

NOTE: All questions must be attempted and your final submission must include all
three questions (with calculations) in a SINGLE document in MS Word or as an Adobe
Acrobat pdf document.

Formative Feedback

You have the opportunity to submit a draft assignment to receive formative feedback. The feedback
is designed to help you develop areas of your work and it helps you develop your skills as an
independent learner.

If you are a distance learning student, you should submit your work, by email, to your tutor, no
later than 2 weeks before the actual submission deadline. If you are a blended learning student,
your tutor will give you a deadline for formative feedback and further details. This is to allow time
for you to reflect on the feedback and draft your final submission.

Formative feedback will not be given to work submitted after the above date

Student Guidelines

Development of academic skills:

You MUST underpin your analysis and evaluation of the key issues with appropriate and
wide ranging academic research and ensure this is referenced using the AU Harvard
system. The My Study Skills Area contains the following useful resources:

Guide to Harvard Referencing

http://moodle.bl.rdi.co.uk/guides/HarvardRef/AU_Harvard_Quick_Ref_Guide.pdf

Guide to Harvard Citation

http://moodle.bl.rdi.co.uk/guides/HarvardRef/AU_Guide_to_Harvard_Citation.pdf

You must use the AU Harvard Referencing method in your assignment.

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Word Count:

Students are required to indicate the exact word count on the title page of the assessment.
The word count excludes the title page, executive summary, tables, figures, diagrams,
footnotes, reference list and appendices. Where assessment questions have been
reprinted from the assessment brief these will also be excluded from the word count. ALL
other printed words ARE included in the word count. See ‘Word Count Policy’ on the
homepage of this module for more information.

Submission Guidance:

Assignments submitted late will not be accepted and will be marked as a 0% fail.

Your assessment should be submitted as a single Word (MS Word) or PDF file. For more
information please see the “Guide to Submitting an Assignment” document available on
the module page on iLearn.

You must ensure that the submitted assignment is all your own work and that all sources
used are correctly attributed. Penalties apply to assignments which show evidence of
academic unfair practice. (See the Student Handbook which is on the homepage of your
module and also in the Induction Area).

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 Assessment Criteria: Level 5
Level 5 reflects the continuing development in knowledge, understanding and skills from Level 4. At Level 5, students are not expected to be fully
autonomous but are able to take responsibility for their own learning with appropriate guidance and direction. Students are expected to further
develop their theoretical knowledge within a more intellectual context and to demonstrate this through more complex forms of expression which
move beyond the descriptive or imitative domain. Students are expected to demonstrate skills of analysis in both problem-solving and resolution.
Mark
Grade Generic Assessment Criteria
Bands
First 80%+ An exceptional information base exploring and analysing the discipline, its theory and any associated ethical considerations.
(1) There is sophisticated use and management of learning resources and a high degree of autonomy is demonstrated. Writing is
exceptionally well structured and accurately referenced throughout. Where appropriate, outstanding professional skills are
demonstrated. The work is original and with some additional effort could be considered for internal publication.
70-79% An excellent knowledge base within which the discipline is explored and analysed. There is a good degree of originality in the
approach. The work demonstrates confidence and autonomy and extends to consider ethical issues. Learning resources have
been managed confidently. Writing is exceptionally well structured and accurately referenced throughout. Where appropriate, an
excellent level of professional skills are demonstrated and the work demonstrates a high level of intellectual and academic skills.
Upper 60-69% A very good knowledge base which explores and analyses the discipline, its theory and any associated ethical issues. There is
second evidence of some originality and independence of thought. A very good range of learning resources underpin the work and there
(2:1) is evidence of growing confidence and self-direction. The work demonstrates the ability to analyse the subject and apply theory
with good academic and intellectual skills. Academic writing skills are good, expression is accurate overall and the work is
consistently referenced throughout.
Lower 50-59% A satisfactory understanding of the discipline which begins to analyse the subject and apply some underpinning theory. There
second may be reference to some of the ethical considerations. The work shows a sound level of competence in managing basic sources
(2:2) and materials. Academic writing skills are good and accurate overall and the work is planned and structured with some though.
Professional skills are satisfactory (where appropriate). The work lacks original thought but academic and intellectual skills are
moving into the critical domain. The work is referenced throughout.
Third 40-49% Basic level of performance in which there are some omissions in understanding the subject, its underpinning theory and ethical
(3) considerations. There is little evidence of independent thought and the work shows a basic use of sources and materials. Academic
and intellectual skills are limited. The work may lack structure overall. There are some difficulties in developing professional skills
(where appropriate). There is an attempt to reference the work.

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Marginal 30-39% A limited piece of work in which there are clear gaps in understanding the subject, its underpinning theory and ethical
Fail considerations. The work shows a limited use of sources and materials. Academic and intellectual skills are weak and there
are errors in expression and the work may lack structure overall. There are difficulties in developing professional skills (where
appropriate). The work lacks original thought and is largely imitative.
29% A poor performance in which there are substantial gaps in knowledge and understanding, underpinning theory and ethical
and considerations. The work shows little evidence in the use of appropriate sources and materials. Academic writing skills are very
below weak and there are numerous errors in expression. The work lacks structure overall. Professional skills (where appropriate) are not
developed. The work is imitative.

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