Discuss about the Leadership Of the New CEO.
The hospitals are dependent on their staffs to deliver high level of performances to the patients and sustain in the highly competitive medical industry. This is because the hospitals are dependent on their staffs, both medical and non-medical staffs to ensure high quality treatment to the patients, their core businesses operations. Organisations operating in the health sector operate under tremendous pressure which put a lot of stress on their human resources. These organisations are undergoing all-round changes in their organisational culture and workforce practices to align them with the business requirements. However, the employees resent these changes and resign, resulting in high employee turnover. This tense situation would provide the crux of the paper with Suadi Hospital System or SHS providing an apt backdrop for the study. The organisation was suffering from operational inefficiency and financial losses. The new CEO Brought about several changes and the succeeded in reducing the financial losses. However, the employees perceived the new organisational culture which was the outcome of the organisational changes brought about by the new CEO as a threat and resigned. The assignment would integrate organisational development plan and human resource development plan to deal with the situation.
The following are the components which the organisational development plan which SHS would adopt under the leadership of the new CEO to check high employee turnover:
The cornerstone strategy of an effective organisational development strategy would be building of a strong workplace communication. The situation presented in the case study clearly states that the employees of SHS viewed the changes in the organisational culture as positive and resigned. A deeper analysis of the situation would reveal that there existed gaps in communications among the staffs of different levels (Goetsch & Davis, 2014). The management succeeded in bringing about organisational changes but did not take any step to improve communication between the departments which obviously created resentment among the employees, especially the senior employees who were the pillars of service performance of SHS. The communication system as shown below should aim to link all the departments and the management. The different departments in hospitals often require to collaborate to handle critical situations like during medical operations. The surgeons having specialisations in diverse areas like cardiology, neurology and anaesthesia need to work in unison to ensure success of operations and fast recovery of patients (Binder, 2016). Thus, the management should form a strong communication channel which would form several important functions. First, the management should be able to communicate important operational information to the departments and gain feedback from them on regular basis. Secondly, the medical practitioners should be able to acquire, store, manage, share and use data about patients and diseases. Thirdly, the communication channel should enable customer care departments and the reception staffs to connect patients to appropriate staffs to solve their medical quarries (Cameron & Green, 2015).
This strong communication system would help all the departments to work in enhanced coordination. This would help the management make the employees feel more important which would enhancement their attachment to the organisation, thus reducing their tendency to resign. Thus, the communication strategy would lead to strengthening of the leadership of the apex management within SHS. This would enhance transparency between the apex management and the departmental heads, thus, paving way for the motivation and conflict management (Matos Marques Simoes & Esposito, 2014).
The second strategy which should adopted in Saudi Hospital System is motivating employees at all levels. The graph below in the second figure shows that the human health practitioners like doctors are subject to immense professional workload. The job responsibilities of the medical practitioners like doctors require them deal patients suffering from diverse ailments and medical complications. They often have to work for long hours which puts stress on their health and minds. The same has been testified by the graph shown in the third figure. Lack of communication on daily basis from, the management further creates communication gap and transparency between the management and the employees (Pugh, 2016). These lack of communication and resultant stress erodes their motivation which ultimately eats into their performances. The case study mentions that the change in organisational culture were not aligned to the human resource development. The apex management probably did not hold meetings with the employees, not even the departmental heads which created communication gap. This communication gap elevated the stress and insecurity perception among the employees which eroded their motivation. The management of the hospital should form strategies to boost motivation level among the employees (Hitka & Balážová, 2015). First, the management as pointed above should lay down a communication channel integrating all the departments and the apex management. The medical departments like cardiology and non-medical departments like HR should be able to communicate information more smoothly (ncbi.nlm.nih.gov, 2018). This increased coordination between departments would create a sense of security among the employees and motivate to work harder.
The smooth communication would make crucial information related to new treatment methods available to the departmental heads. The departmental heads as a result be able to form more concrete planning with their subordinates and also with other departments. This would enable them to perform more successful operations which would in turn earn them job satisfaction. The apex management of SHS would also be able to appraise the performance of the medical practitioners under its pay role more appropriately which enable them to promote them. The apex management would consequently be able to bring about promotional growth of the medical staffs under its payroll and retain them (Taskov & Mitreva, 2015).
motivating the staffs particularly the medical staffs, would promote more conductive employee culture that would transcend to organisational performance. It would also pave way to the next organisational development strategy, conflict management.
The third important strategy which the apex management of Saudi Hospital System should use to retain and develop its employees is conflict management. A large number of employees left SHS was in spite of the organisational changes and new organisational culture. The lack of communication and the resultant tense situation between the management and the key employees were responsible for the high rate of employee turnover post turnover (Martínez-Moreno et al., 2015). The lack of transparency between the management and the employee created a situation which forced employees to resign. The hospital management can strengthen its communication systems and motivate its employees to take more interest in the formation of strategies. This would boost the sense of belongingness among the employees and they would participate more proactively in the management. The employees as a result would express their demands and feedbacks more willingly to the upper management. The upper management would be able to communicate its inability to fulfil certain demands of employees, if the situation requires. This continuous communication and collaboration between the apex management and the employees would mitigate tension and chances of conflict. The apex management would also be able to handle conflicting situations more effectively due to increased trust between employees and the former (Carmody-Bubb, Duncan & Ree, 2015).
One must point out that conflicts or the high employee turnover among the management of the health sector bodies in Suadi Arabia and their employees are not only due to their internal environment but also due to the external market factors in a great way. Saudi (ic.gov.sa, 2018)
The figure above shows that increasing health expenditure in Saudi Arabia which means that the health sector in the country have experienced increase in inflow of patients. The health sector experiences high pressure due to increase in the number of private and public organisations. This increasing competitiveness puts immense pressure on the organisations which boils down to the medical staffs they employ. This immense job pressure which the staff experience often result in conflicts due to colliding interests. This analysis clearly shows that enhanced communication and motivation in the workplaces lead to reducing of job stress on employees and promotes performances and organisational development. Thus, conflict management would contribute to enhanced employee performances and organisational structure (Leon-Perez, Notelaers & Leon-Rubio, 2016).
The following are the methods which the apex management can use to develop its human resources and deal with the challenges of high employee turnover:
The apex management of Saudi Hospital System should install human resource management and organisational system like Electronic Health Record and Critical Need Information System. The organisational system should be aligned with the communication system of the organisation. The top managers like directors should be able to communicate with the lower level employees using the new organisational system. The lower level employees should also be able to communicate their issues to the senior managers using the system (Milofsky et al., 2017).
The human resource system would function as a formidable tool to increase employee performances. The system should enable the employees to update their performances like number of patients treated in a single day, number of patients who have recovered and so on. The departmental heads should be able to view these performances and arrange for trainings of employees if required. The continuous review and trainings of employees would make them perceive it as a management support. They would feel more motivated to perform. The apex management should be able to evaluate the performances and appraise the same. Thus, the new employee evaluation system would pave ways for career development of employees and enhance their job satisfaction level. Increase in job satisfaction is known to reduce employee turnover. Thus, the increase in employee turnover would result in increase in employee job satisfaction and reduce in employee turnover (Kearney, 2018).
The new human resource system should be aligned with performance management system to measure the performances of employees on regular basis. The managers as pointed above should be able to view the day to day productivity of the team of doctors and surgeons reporting to them. The performance management system would allow them to recognise any training needs of the doctors like training in new treatment methods. This doctors who perform would be awarded while the weakly performing medical staffs would be offered further trainings. This awarding of highly performing doctors would motivate the other employees to work harder. The low performing employees would be motivated to acquire new knowledge and skills (Mone & London, 2018). Thus, the performance management system would enable the management of SHS to motivate its employees to acquire higher levels of performances. The management through the new performance management system would be able to communicate its concern for its employees’ performance development. The performance management procedure should be clearly explained to all employees as far as parameters are concerned. These transparent parameters would enable the apex management to reduce employee conflict. This analysis shows that the performance management strategies should be aligned to the motivation, communication and conflict management goals of the company (Mostafa, Gould?Williams & Bottomley, 2015).
The apex management of the SHS should adopt training and development as important human resource development methods. The case study clearly mentions that the employees felt insecure with the outcomes of the organisational changes. The situation clearly pointed out that the management of SHS requires to involve the employees in the planning and decision making. The hospital authorities should train the employees to develop their competencies further so that they could participate in the decision making more actively. The mangers should first point out the training needs of the employees using the performance review system. They should communicate the training needs recognised to the upper management and human resources department. They would them formulate appropriate training plans to boost the skills and knowledge level of the different employees. For example, the apex management can finance, at least partially the further trainings of the occupational therapist staffs at reputed institutes like Saudi Occupational Therapy Association (saudiota.org, 2018). The doctors with limited technical knowledge can undergo a technological training. The apex management can also provide workplace health and safety trainings to employees (oshatrain.org, 2018).
The training and developments would have several positive positive implications both on the employees and the organisation, SHS. First, the organisation would be able to enhance the competencies and knowledge level of the employees by training them. These trainings would improve the sense of belongingness among the employees. They as a result would be motivated to achieve higher level of performances while treating patients (customers). Secondly, their high performances would help the organisation achieve high level of customer satisfaction and obtain a loyal base of customers. This means that those customers would obtain medical services and advices on regular basis which would generate repeat business for the hospital. Again, these satisfied patients would refer the hospital to their acquaintances and contribute towards further business generation (Nyberg, Pieper & Trevor, 2016). Thus training the employees would generate both present and future business generation for the organisation. This shows that training can enable the hospital deal with complaints, one of the issues it faced due to increase in employee turnover.
The third benefit of the training and development would be professional development of the staffs of the medical organisation, both medical and non-medical. The outcome of the second and third outcome would be increase in revenue generation and strengthening of the position of Saudi Hospital System in the highly competitive market of Saudi Arabia. This would enable the hospital management increment the pay packages of the medical and non-medical staff. The authorities would be able to acquire more highly talented medical personnel. This would enable the present staffs to diversify their work pressure which would minimise their burnout (Ireland, et al., 2017). This would automatically enable the organisation deal with the issue of high employee turnover, the fourth benefit. These employee centric policies would enable the management to gain employee support during subsequent organisational changes.
The above discussion points out two issues which Saudi Hospital System is facing namely, high employee turnover and consequent customer dissatisfaction. The plan the apex management would be taking to deal with these two issues are strengthening of communication, motivating employees, conflict management, reorganisation of the HRM system and performance management system adoption training and development of employees. The activities would aim to solve the two issues already pointed out and establish accountability throughout the organisation, thus making the system more sustainable. The management of SHS should implement the change in the organisation following the Lewin’s Change Model consisting three steps unfreezing, change and freezing. The following are the key action steps which the apex management of SHS should take deal with the issues outlined:
The unfreeze step consists of making the medical and non-medical staff ready for the change. The apex management must use the strong communication channel to communicate the need to adopt more employee centric organisational culture and align it to the business requirement of the organisation. The employees should feel important which will motivate them to provide more support towards the organisational change (Rothwell, Hohne & King, 2018).
This stage consist of finally embracing the change to gain the desired result. The apex management of the Saudi Hospital System should train the employees, both the existing and the new employees to be more cooperative towards the needs of the patients. The trainings would enable the top management to align the employees with the new human resource development plan. The employees on receiving training would feel important and develop a more perceptions towards the change. The managers should mentor the employees who feel insecure and develop negative perceptions about the outcome of the change. The senior managers should use their conflict management skills to deal with employee conflict, if the situation demands (Adler et al., 2016).
The organisations finally embrace the change and adopt the new organisational culture. The apex management of SHS must establish the newly organisational and human resource development system. The departmental heads should recognise the need for any new training of the medical and non-medical staff and provide them the required trainings (saudiota.org, 2018)..
The above analysis shows that embracing new modes of operations require employee support to be successful. The previous change towards organisational development did not have employee support and so failed to improve the working conditions. The outcomes were high employee turnover, deteriorating patient services and mounting customer complaint. The SHS apex management can reverse the scenario by establishing an efficient communication system with the employees. They should motivate them and boost their self-esteem. The apex managers, the middle level managers and HR department should then concentrate on development of the present level of skills and knowledge among the junior managers and also train them on conflict management. These activities towards employee development should be aligned with the organisational development following Lewin’s Change Model as discussed (Mone & London, 2018)..
Conclusion:
Organisations irrespective of their sizes and industry should gain employee support in order to embrace change in the direction of organisational development. The apex management should first establish a communication with the employees and motivate them to participate in the change process. The HR department along with the apex and middle level management take initiative in development of employee skill levels. These initiatives would enable the organisations to gain employee support to embrace changes to achieve more dynamic organisational culture. The employees as a result serve customers better due to their enhanced knowledge and motivation level. This would in turn generate higher degree of customer satisfaction and earn higher revenue for the companies. The discussion also shows that improved employee morale can lead to customer satisfaction and repeat business. Thus, organisations instead of forcing employees to embrace organisational changes should encourage and train them through the process.
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