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Importance of Organizational Theory on Strategic decision Making
Introduction
Strategic decisions have great impact on healthcare decision making as it gives the benefits of synergy (Parayitam, Phelps & Olson, 2007). New demands and competitive forces require healthcare organization to think carefully about their strategic decisions. A good strategy means to meet the patient needs and patient access through appropriate quality of care (Young & Ballarin, 2006). Hence, it is important to make strategies with the collaboration of organizational theories. Organizational Theory (OT) is a group of theories and models that attempt to explain an organization 's functional activity in relation to the environment. The major driving force behind the
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It provide competitive advantages to the organization (Kalakota & Robinson, 2003). Information technology (IT) permits and requires changes in communication and interaction patterns within and between organizations (Mathiassen & Sorensen, 2011). The implementation of IT gives an opportunity to forward and backward the information within and across the boundaries of an organization. These boundaries change the operating environment of the organization (Bartoz, 2008). Hence, it is essential to understand external trends that promote performance which is known as Contingency Theory (Rider, 2009., Yukl, 2006). This theory depicts an importance of accepting technologies and innovation in highly competitive markets provide cost effectiveness and efficiency (Levasseur, 2004). It focuses on external determinants of organization structure and behaviour. Contingency means one thing depends on other things (Daft, 2013). It become very important to an organization as it continuously promote widespread technological innovation and radical shifts in design in which organizational systems are increasingly interacted because implementation of IT not only improve the communication system, but also establish good record keeping system (Warsaba, 2006). Hence, using IT in QCHS helps to reduce wait time in some extent for counselling through online intake assessment
Determined healthcare systems routinely examine their environments internally and externally to locate significant trends and forces in the present and for the future which will have an effect on their performance goals and mission efforts. These healthcare systems understand who their stakeholders are, their needs and how best to meet those expectations and needs. These systems give attention to specific efforts on accomplishing goals that acquire opportunities in the whole environment while they continue to adjust their internal structures and functions. Precise aims are dealt with by uninterrupted sequences for performance improvements. Strategic directions for systems originate from the mission and directives. Strategic directions are identified by observing key stakeholders, addressing their interests and being proactive about responding to current, as well as, future shifts and trends in the systems’ entire environment (Skinner, 2001).
A strategic planning process is developed from a SWOT analysis (Harrison, 2010). When a nurse begins to plan strategically, this entails organization, adjustment and management to strengthen operations within the healthcare organization (Nelson-Brantley & Ford, 2017). Due to an ever-changing environment within a health
The current health care system can be difficult to navigate and often medical centers need management tools to help them develop strategic plans within their organizations. The SWOT-Analysis is one strategic tool that health care centers can use to formulate a roadmap for their organizations. The SWOT-Analysis examines internal capabilities (strengths and weaknesses) and external developments (opportunities and threats) when determining a strategic plan for an organization (Van Wijngaarden, Scholten, & Van Wijk, 2012). Van Wijngaarden et al. (2012) explains for SWOT-Analysis to prove meaningful throughout an organization, it is important for stakeholders to be part of the brainstorming to identify its’ internal capabilities and external developments. However, there are a few drawbacks to the using the SWOT-analysis tool that are important for health care centers to remain cognizant of when developing their strategic blueprints. Helms and Nixon (2010) state the SWOT-Analysis can be vague and too simplistic when developing a strategic course for an organization; it can be difficult to classify variables into the four SWOT quadrants; and no definite strategic path is identified after the SWOT-analysis is completed. For these reasons, they explain it can be helpful to use additional analysis tools in addition to the SWOT-analysis. One such tool the U.S. Army Medical System uses is the balanced-score card. The balanced-score card can assist health care centers in the clarification of their strategic objectives and goals, and facilitates communication throughout the organization (Chan, 2006). Chan (2006) also reveals balanced-score cards allow for constructive employee feedback l...
According to the Case Management Society of America, case management is "a collaborative process of assessment, planning, facilitation, care coordination, evaluation, and advocacy for options and services to meet an individual's and family's comprehensive health needs through communication and available resources to promote quality, cost effective outcomes" (Case Management Society of America [CMSA], 2010). As a method, case management has moved to the forefront of social work practice. The social work profession, along with other fields of study, recognizes the difficulty of locating and accessing comprehensive services to meet needs. Therefore, case managers work with these
An organizational analysis is an important tool to become familiar with how medical businesses and organizations are able to meet standards of care, provide services for the community and provide employment to health care providers. There are many different aspects to evaluate in an organizational analysis. This paper will describe these many aspects and apply the categories to the University Medical Center (UMC) as the organization being analyzed.
PPA 660: Organization theory presented me an understanding of why organizations behave in a specific manner as well as why the individuals in those organization behave as they do. While some of the topics discussed in class seemed rudimentary at the time of lecture, such as Fayol’s principles of management and Gulick’s POSDCORB, ultimately I came to realize that this is only because these are the practices I am accustomed to observing. In hindsight, the concepts and ideas presented by Fayol and Gulick in their era were groundbreaking. At the end of the course, I was able to take away concepts of organizational culture, leadership, power, authority, motivation, group behavior and decision-making. The following are specific areas of organizational theory that I consider as my strengths of the topics discussed however, they do not represent my entire understanding of the subject matter.
The world of the healthcare environment is fast-paced and implementation of new healthcare technology requires an organization to have a strategic management plan. Subsequently, in order to start building the strategic management plan one must understand the external competitive forces that influence a strategic management plan by doing an environmental analysis, which is the first step involved with strategic planning and strategic thinking to understand the external environment (Ginter, Duncan, & Swayne, 2013, p. 40). Environmental analysis involves assessing the “trends, events, concerns in the general environment and in the healthcare industry, and the service area” (Ginter et al., 2013, p. 41). Moreover, environmental analysis attempts
In the “Case Study: Organizational Culture: Life or Death”(BOOK), eleven hospitals are examined to show the impact that cultural systems play in the life or death situation of heart attack victims. Each hospital is studied and pin pointed as to what makes them so effective. Each member of a team must share a common goal, in this study it is saving the lives of heart attack victims. This passage will demonstrate the power of a team utilizing their strengths to help patients. There are three topics that will be discussed, the values that motivate the doctors and nurses, the importance of the team’s culture coordinating with their habits, and the events that could alter their overall harmony.
According to Hatch and Cunliffe (2006), there are three major perspectives about the study of organization theory (OT): modern, symbolic interpretive, and postmodern. Each of these perspectives comes with its own assumptions and methodologies. Hatch and Cunliffe provided an introduction text about the concepts and characteristics of the three OT perspectives. Tsoukas and Knudsen also compiled a comprehensive handbook summarizing all facets of the meta-theoretical perspectives. In this post the writer will discuss the basic concepts of three perspectives, present Hatch and Cunliffe’s reasons why a multiple perspectives approach to organization theory is important, and compare Tsoukas and Knudsen’s introduction to the Hatch and Cunliffe introduction in their books.
With regard to the healthcare organization, it is essential to develop strategic plan and a clear vision so that the patient focused care will be at par with the organization process that is conducted on operational and on a daily basis.
The poor performance that the employees are exhibiting could be as a result of low motivation not just lack of ability. Since poor performance affects organizational performance, we tend to look for a quick fix. The problem needs to be diagnosed well since miss diagnoses call lead to problems in the future. Take for example the case of the employees at the water treatment plant. If it is believed that they are not making enough effort, increased pressure on their performance would likely help. But if the problem was incorrectly diagnosed and the real issue is an ability, then increasing pressure only makes the matters worse.
The contingency theory is one that accounts for the various factors and subsystems in organizations, and is used to try and prepare for any number of situations that can arise (Hatch, 2006). A situation where contingency theory was observed and determined to be a good theory to use was one involving a marketing firms. When often looking at organizational structure in marketing, there were generally four different types of organization used (Ruckert, 1985). However while these were useful, it was determined that more efficient methods could be used in the company. Three different methods were tried but it was ultimately determined that the contingency theory that was developed worked out the best. The study found the way that the theory proposed activities should be grouped was effective, and believed that some firms should adopt a similar direction (Ruckert, 1985). Through having a modernist perspective and looking at hard data to analyze problems, along with using theories, such as the contingency theory in conjuncture to be ready for any situation, I view this as an extremely efficient and effective way to run an
Traditional organizational Structure Is known as called a hierarchical structure is similar to a managerial pyamid where the hierarchy of decision making and authority goes from the strategic management at the top down to operational management and non-management employees. (Techrepublic, 2015) Challenges In spite the fulfilment of many Internet-based applications, health care company can look forward to face many problems as they try to apply these technologies to acquire their strategic visions. They will face obstruction to, and restrain on, organizational alter, as well as being unsure about the efficacy and effects of Internet-based applications. Opposition to alter can come from refusal of the need to alter, the lack to manage alter,
Organizations are established in specific ways to obtain different objectives, and the structure of an organization can help or restrain its advance toward accomplishing these goals. Organizations of different sized and types can achieve higher sales and other profit adequately by identifying their requirements with the structure they use to operate.
That reminded me from the case study the director how to plays round of the company to succeed this Colombian Memorial Hospital. External control view of leadership, situations in which external forces where the leader has limited influence determine the organization 's success. Strategy, the ideas, decisions, and actions that enable a firm to succeed. competitive advantage firm 's resources and capabilities that enable it to overcome the competitive forces in its industries. Operational effectiveness, Performing similar activities better than rivals. Intend strategy, strategy in which organizational decisions are determined only by analysis. Realize strategy, strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource limitations, and changes from managerial preferences. Strategy analysis studies of firms ' external and internal environments, and there with organizational vision and goals. Strategy formulation, decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.