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Critical Thinking-Case Study
Problem Definition
As narrated by CEO, The Faith Community Hospital Problems
area described by himself in his words as follows
Problem No.1: - Poor communication within
the organization outside, and lack of a well knit system
in place.
The CEO says
“I am not sure how many of our stakeholders realize
or understand the difference among ethics, laws, beliefs,
oaths etc”.
Problem No.2: - Poor financial indicators
reflect a declining trend of performance and indicating
an accumulating loss, which may end up with heavy liabilities.
The CEO says
“Are we running a less efficient operation? Can
we reduce costs without impacting quality”?
Problem No 3: - Poor teamwork and lack
of coordination among team members result in poor performance
that may lead to quality problems.
The CEO says
“We all are in the same boat during the same storm,
but no two people are rowing in the same way or in the
same direction. In fact some don’t even have their
oars in the water.”
Problem Discussion
Faith Community Hospital is a non-profit set up and
needs transformation to a for-profit organization. In
today’s business world particularly in service
sector the companies who have non-profit operations
have found themselves locked up in a situation of No-movement
which has mainly resulted or creation of modern world
challenges like demand for quality, effective communication
and continued customer service, the research and modern
tools have made this task easier for the profit organizations
to achieve but difficult for non-profits as they lack
the momentum for transformation and are resistant to
the change, or are less resilient.
This phenomenon has been discussed in detail (William
P Ryan 1999), and the authors have discussed outsourcing
as a well acceptable option for transformation. The
symptoms of problem reflecting in the performance of
Faith Community Hospital are reflected in lack of control,
poor service quality rather inconsistent reflection
of performance and poor financial indicators shown by
increasing insurance premium rates.
Appropriate Solutions and Rationale
In a similar case study (Jon Meliones-2000) the solutions
are discussed, problems of quality management and long-term
solutions have also been discussed (Stephen R Covey-1992).
The appropriate solutions are as follows.
a) The mission statement is not enough what is needed
a system in place, a written system of standard operating
procedures described as follows.
Mission Statement
To ensure the policies and procedures are in place and
followed a system coordinator to be identified and periodic
system audits to take place with reports to Board of
Directors.
b) A Service Quality assurance System
to be implemented with a full time QA responsible person
who should not only implement the quality assurance
policies and procedure but also handle and investigate
the quality complaints, please bear in mind that it
is also a bad quality to deliver more than the required,
and is regarded as out of specifications. The quality
is to deliver only what is required and defined in the
written system.
c) A dynamic marketing plan to improve into the business
is required, the plan should take into consideration
the new business development ideas such as outsourcing,
attracting to an acceptable degree the private out patients
who can generate revenue by making use of special services
and a continuous new development programme again operated
by a permanent committee.
d) Strong communication, keeping team members well informed,
and changing people’s role making it goal oriented
will also help, and maintaining a feedback.
e) Changing paradigm by training and development, and
encourage experimentation and welcome new ideas. (Stephen
R Covey-1992) a balance in Covey’s Four Quadrants.
Works Cited
William P Ryan (1999) - The New Landscape
for Non Profits-HBR Jan-Feb 1999
John Meliones (2000)- Saving Money,
Saving Lives- HBR Nov-Dec 2000
Stephen R Covey (1992) - Seven Habits
of highly effective people-Simon and Schuster (1992).
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