How will different circumstances impact performance measurement when it is based on relative rank and absolute levels?

How will different circumstances impact performance measurement when it is based on relative rank and absolute levels?
Safavi, K. S. (2006). The measurement conundrum. Journal of Healthcare

Management, 51(5), 287–290.

In the article, Safavi (2006, p. 290) asks: “Is the goal to establish relative rank or absolute levels of performance?” Safavi also states that the basic dilemma in selecting a measurement system is whether “to judge performance from the outside or to improve performance from the inside” (p. 287).

Discuss the following from the perspective of a provider:

Assuming the measurement system is intended to judge the performance from outside, evaluate the use of a standard based on relative rank and absolute levels of performance. Which one would you use? Why or why not?
Assuming the measurement system is intended to judge the performance from inside, evaluate the use of a standard based on relative rank and absolute levels of performance. Which one would you use? Why or why not?
How will different circumstances impact performance measurement when it is based on relative rank and absolute levels? Support with examples.


 

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