Evaluation Of Strategic Change In Healthcare Management

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The directional strategies are undertaken by the hospital to improve its position and enhance its reach and ability to serve maximum number of patients' starts with the defining of its mission statement vision and goals. Healthcare centre is the leader to an evitable and just health care system through excellence, quality, compaction and trust. Some of the key value statements for the company are commitment to health and well being of those being served expectation, to achieve the highest level of excellence, understanding the vital importance of advocacy for those being served, imbibing creativity and innovation, recognising the importance of working with the patients and the community and dedication towards providing high level education to health professionals.

Health care analysis

Economic changes

Health care cost rose at twice the inflation rate from the mid 1980's to mid 1990's creating a 1 trillion pounds industry that accounted for 14% of the UK GDP. By the end of century the health care industry had grown to more than 1.5 trillion pounds or 18% of GDP. In 1995 nearly 3 quarters of English workers were insured by health maintenance organisation, preferred provider organisation and point of service plans up from only 27% in 1987("The Economy in," n.d.).

Technological changes

In the 1990's there was an increasing emphasis on outpatient care driven by the need to reduce cost and improve technology that would enable more types of care to be delivered on the outpatient basis.

The lack of capital resources with Rosemont to invest in technology enhancement, new medical renovation led to longer waiting time, patient frustration and declining enrollments. The shortage of examination rooms, clerks, nurses, waiting room space further worsened the patients' experience.

Sometimes the reason for this frustrated experience was the discourteous and uncompassionate behaviour of some of the staffs with the patients. There were some staffs that were very dedicated and loyal and compassionate but some were not interested in their jobs and used to perform below the expected levels and show negative attitude to the patients. The administration made several attempts to improve the employee morale but it was of little use as there remained a core of negative people who demoralised other staff members and angered patients.

Competitive Changes

In order to provide good quality health care at affordable and fair prices to the poor and needy patients, the hospitals both Non Profit making and profit making should go in for a strong alliance and should complement each other's competitive strengths and ensure to pass on the benefits of reduced cost, higher advanced technological developments, better quality health care to the indigent population. (DeButts, 2010)

Organisational Challenges

Establishment of cultural diversity in any organisation itself is of great value and it has been observed that organisations that embrace such initiatives have been successful and growing. A diverse workforce enables company to offer solutions in a variety of ways ranging from service, sourcing and resource allocation. The diverse workforce bring with them talents and experiences in approaching solutions to problems and are adaptable to fluctuations in markets and customer demands. This diverse workforce also enables company to serve customers globally (Greenberg, 2004). The most important advantage of such workforce is the fact that such diverse workforce enables communication of varying viewpoints thereby providing larger pool of ideas and experiences (Goessl, 2008).

It's an obvious and well known fact that when one aspect has benefits to offer and has support of a section of firm, it is bound to be opposed by some other section however small or large in nature on its belief that such an aspect or attempt will be not be in their benefit, which may or may not be true. Same applies when it comes to aspect of multi diversity in organisations.

The most common understood reason for this opposition to multi diversity practice is the fact that most of the people are comfortable with those counterparts who are like and behave like them and accepting diversity as a positive move is quite uncomfortable on their part (Jr., 1993). The other practical and important factors associated with this change is the fact that such change leads to development of encouragement of new approaches instead of old and troubling approaches.

Such a change gradual or sudden in nature for people accustomed to work in old ways become troubling and hence the resistance to change. Another critical problem with this approach is the fact that certain type or section of people might have prejudice against some section or group of people and to their discomfort that might find such a gradual change to be threatening due to one or many reasons. The reasons could range from simple disquieting acts or may be because they are of feeling that at present whatever position they are holding they might find it extremely difficult to hold on to because of open competition for position instead of present positions of may be reservation systems for positions (Fernanadez, 1991).

We need to acknowledge the right words that R. Roosevelt Thomas Jr. said in his "Beyond Race and Gender" that in order to successfully implement a cultural diversity as a successful tool one has to look beyond the simple cultural diversity aspect to an outlook of active diversity management. He truly says that management of diversity is a managerial process which is comprehensive in nature in order to ensure that this changes acts as a positive environment for all the employees experiencing it.

Diversity Challenges

Diversity management is also an inclusive process due to the fact that all employees belong to a particular cultural setup and it will include those who are among the traditionally strong cultural group in the old setup. The fact that needs to be appreciated is that diversity management is not just a job of us/them kind of management but instead it involves a approach of solution in which the solution being seeked is resource management (Jorgensen, 1993). The approach undertaken should recognise, respect and preach the fact that other people's standards and values associated with work are as valid as somebody from a completely opposite cultural set-up.

Hence management of cultural diversity id a prodigious task and it becomes more evident in areas where the cultural set-ups are more dominant. Because in such cases it has to be ensured that employees have o be made to believe and let go their old habits and ways and that too in positive way.

Assessment of Role of Compensation in an organisation

Step 1

1. Competitive Dynamics

Tackling Competition is a very important in any industry. It is the actual intellectual base of the company. Attrition rates are high and poaching is always on mind of the competitors. HealthCare Centre has structured its pay strategy very competitively so that there can be minimum poaching possible from the organisation. (HealthCare Centre Compensation Plan, 2010)

2. Organisation Culture/Values

HealthCare Centre has always been known for good team building. They have inculcated their values across the system and made sure that employees are happy so that they can serve at their best possible way to the customer.

3. Social & Political Context

With geographical diversified base and employee strength ever increasing it is now a whole circle that needs to be managed. Earlier few selected employees and personnel used to be the key to the success of the organisation. In an environment where companies have global presence it is very important that social & political context of the residing country is adopted. HealthCare Centre has been known for keeping a very healthy look towards the social context of the country in which it is present.

4. Employee Needs

HealthCare Centre in its total compensation plan tried to make sure that all necessary needs of employee and its family are met with the compensation structure of the organisation.

5. Customisation/Flexibility

HealthCare Centre has been flexible in its total compensation plan. It is upon the choice of employee to exercise the plan that deemed fit to him/her.

6. Union Presence

There is no union present in HealthCare Centre.

Ethically human appraisal system can bring in bias from the leader of the team and hence it becomes very critical that it is very well designed. There is a well designed employee appraisal program which looks into the various aspects of appraisal of any employee. Employee's engagement is another crucial factor. Employees should believe in work that they are doing and should always feel good about it. They should also understand the issues and problems confronting the company and work in harmony to overcome such obstacles.

Personnel Management

'Personnel management' has developed into 'human resource management' over the years. This has happened because organisations are now not run by only the set of few people who calls all the decision. With geographical diversified base and employee strength ever increasing it is now a whole circle that needs to be managed. Earlier few selected employees and personnel used to be the key to the success of the organisation. With evolving times and unions of workforce becoming stronger it has evolved into Human Resource Management. Before developing a culture for an organisation, it is very important to understand what culture actually means. Culture is all about dealing with your staffs rather than your customers. This leaves a very positive note on the minds of the staff as they feel respected and being cared. Professional approaches to the non-performing side of the organisation were needed and clear accountability for all employees had to be established to ensure that all projects were properly staffed and completed on time and within budget.

The success mantra for any successful leader is not to just have focus, clarity and good business plan but the ability to bring together a team of strongly motivated, determined and brave people is more important. Looking at these instances, it would be rather appropriate to classify his leadership style to be that of "bossing people around" which is a more abusive and unprofessional style of leadership. With the advent of changing technologies and growing competition, it has become imperative that employees should be motivated to learn new things and abandon old ideas. This can be done by a participative leader rather an autocratic one. Though equally risky, this kind of authoritative attitude is required in a highly centralised and structured organisation and during short decision making time.

Expatriate Compensation Strategy

In a Expatriate compensation strategy compensation is based on different competitive levels of compensation. Performance based pay is a significant amount of pay for an executive officer. This policy helps in cutting down what is famously known as agency cost. This will insure that executive officer works in best interest of the shareholder, to whom he is an agent. This also ensures that salary costs are low in the case of downturn. It helps in reduction o cost without any drastic step. It reduces retention risk and that too at minimum cost to the shareholder and it also provides management a strong incentive to maximise shareholders value. The performance form of pay includes healthy bonuses, stock options and other incentive compensations. (Compensation Strategy, 2009)

Business Strategy & Competitive Dynamics

Tackling Competition is a very important in any industry. In an industry like health care where talent is the asset for the company. It is the actual intellectual base of the company. Attrition rates are high and poaching is always on mind of the competitors.

What needs to be done?

The following action could be taken in order to resolve the problem faced by the hospital

1.) Developing the infrastructure facility so as to meet the growing demands of the out patients segment, as the hospital was designed to take care of the in patient.

2.) Establishing strategic alliances with some of the top profit making hospital.

3.) Giving better training and education to the staff so that they can be adequately utilised

4.) Offer better discounted bundle price/package to the patients so as to attract the insured patients as well. This will help increase the number of enrollments and increase the patient base.

5.) Increasing operational efficiency and reducing waiting time in the clinic.

6.) Reducing the dependency on funding and establish more ways to generate operational revenue and investing in technological advancements and providing high quality modern medical facilities to the patients.