Organizational Change Management: A Case Study of Tufts NEMC
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This assignment attempts to incorporate Change management theories and framework on a hospital, NEMC. Among the theories, Ducks five stage change curve seems appropriate. This is in terms of upgrading the standards and quality of the healthcare services from an ambience of financial losses.
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Running head- MANAGEMENT Organizational change management Name of the student Name of the university Author note
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1 MANAGEMENT Executive summary Preserving the traditional values helps the companies and organizations to gain trust, loyalty and dependence from the customers. However, change is needed in terms of attracting more and more customers. For bringing the change, systematic planning is needed. Typical example of this is frameworks and theories, which helps in managing and measuring the effectiveness of the implemented changes. This assignment attempts to incorporate Change management theories and framework on a hospital, NEMC. Among the theories, Ducks five stage change curve seems appropriate. This is in terms of upgrading the standards and quality of the healthcare services from an ambience of financial losses. Partnership and strategic alliance with Tufts University is a planned and reasoned approach in terms of acquiring innovative medical treatments for the patients.
2 MANAGEMENT Table of contents Introduction................................................................................................................................3 Overview of the company..........................................................................................................3 An insight into the change management situation.....................................................................3 Discussion..................................................................................................................................5 Theoretical consideration towards change.............................................................................5 Ducks five stage change curve...............................................................................................6 Management of the proposed change...................................................................................10 The Change Path Model.......................................................................................................11 Recommendations....................................................................................................................12 Conclusion................................................................................................................................15 References................................................................................................................................16 Bibliography.............................................................................................................................18 Appendix..................................................................................................................................19
3 MANAGEMENT Introduction Managing the operations is one of the crucial activities of the companies and organizations. This is in terms of estimating the future progress, on which the business would flow. One of the major forms of management is altering the workplace terms and conditions. Theoretical considerations likeLewin’s change management model, Kotter’s eight step change management modeldevelops relevancy into the strategies and the plans. Adopting these theories, for bringing the change, is considered as intentional and planned approach in terms of improving the organizational effectiveness (Kirkland et al., 2017). This report attempts to peek into the change management strategies adopted by Tufts NEMC. Overview of the company New England Medical Centre (NEMC) is originally known as the Boston Dispensary. Founded in 1976, it has achieved accolades and glory as one of the oldest hospitals in United States. The hospital provides permanent medical facilities to the poor and community people. Presence of skilled and qualified nurses addresses the concerns of the patients regarding dental, rehabilitation, venereal diseases, lung, food and nutrition. The popular services includeemployeepaidclinictreatment,wellchildservicesandmovingx-rays (Tuftsmedicalcenter.org,2019). Innovationwasreflectedfrom theprogramsin cancer treatment, transplants and neurosurgery. 1992 was the era when maternity services initiated. Financials constraints acted as an obstacle in meeting the targets. Negative market forces adversely affected the performance of the hospitals, which did not possess affiliation. An insight into the change management situation In order to upgrade the situation, the hospital looked for partners in the mid-1990s. Referrals from the community plans were adopted for stabilizing the healthcare plans.
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4 MANAGEMENT Among the partners selected, mention can be made of CareGroup. Estimation was made that if the merger seemed productive, the hospital would be one of the first AMC owned companies operating on a non-profit basis. 2004 seemed to be a critical phase, as the hospital encountered an estimated loss of $3 million every month. However, this was not the actual story. The size was one of the other challenges for the hospital. In the markets of Boston, the hospital faced tough competition from Partners, CareGroup and Caritas. With the advent of Zane, the situation compromised of inadequate cash along with the time limit of 10 months (Tuftsmedicalcenter.org, 2019). In spite of the strategies, there were concerns regarding the payrolls. These situations hampered the performance of many employees, which compelled Zane to think of the ways and means to achieve stability in the operations. Conducting rapid diagnosis helped Zane to detect the methods for mapping the losses. In this, mention can be made of the reviews on accounts, average lengths of stay, profit functionality, cash and the savings in the supply chain. Examination of the managed care contracts resulted in the discovery of the underpayments. As a result of this, evaluation was conducted on the current management team. Cost cutting initiatives developed best practices for the hospital. Financial investments were made in terms of the establishing the brand image.Thiswasintermsofrestoringnetworksandtheproductivetalents (Tuftsmedicalcenter.org, 2019). These aspects can be related with the analysis ofknowing- doing gapfor gaining an insight into the competencies and capabilities towards adopting the changes instaffs, communication and outreach, length of stay in case of the patients, contracts, network building and strategic partnership with Tufts University. Second round planning for reducing the operational costs and efficiency plans were the main components of theagenda for change. The main activity in this stage was upgrading the reimbursement through restructuring. The parameters covered in this aspect were- managed care contracts, accounts, FTEs, supply chain, real estate, ambulatory clinics
5 MANAGEMENT and expenses behind research. Along with this, restructuring plans were made on the product lines on cardiac, cancer, surgery, general medicine, transplant, OB or GYN, paediatrics and psychiatric or neurosciences. Each of these product lines was included in the operations of the departmental units (Tuftsmedicalcenter.org, 2019). Discussion Theoretical consideration towards change Prior to bringing the change, the mindset needs to be proper. This includes the components of what is the change and what are the ways in which the change can be achieved.Withinthis,mentioncanbemadeofSigmoidCurve,whichprojectsthe relationship between the time and the outcome of the proposed changes. As per the argumentsofBradley,(2016),strategicapproachandrationalplanninghelpsinthe achievement of positive outcomes. In case of the NEMC, agenda for change is a wise approach, which proves beneficial in terms of mapping the product lines on which the change is to be achieved. Along with this, reference can be cited ofLewin’s change management model, which comprises of the steps of unfreeze, change and refreeze. NEMC revised the recruitment and selection policies for increasing the number of nursing staffs. Refreeze was conducted through the establishment of contracts, negotiations, mergers, which expanded the network and the supply chain. Bartunek, (2018) is of the view thatKotter’s eight stage change processis productive in terms of exposing the appropriate approach towards the change. For this, developing a vision and strategy is crucial in terms of adding focus into the operations. Short and long term goals help in mapping the plans and assessing its feasibility and appropriateness in terms of the identified and the specified requirements. Within this, resistance towards change is vital in terms of catering to the needs, demands and requirements of the employees. Herein lays
6 MANAGEMENT the appropriateness of the role of managers and leaders like Zane in terms of moulding them according to the organizational requirements. Along with this,Steigenberger, (2015) makesmention of the concept, “Gentile in voice”in terms of providing a flexible platform to the employees regarding voicing out the opinions regarding preservation of the core values. Conscious approach towards enhancement of traditionalism, in an ambience of change is beneficial in terms of retaining the clients and the customers. Articulation of the feedbacks and peers in the post decision making process is effective in terms of gaining the trust, loyalty and dependence from the stakeholders and shareholders. In case of NEMC, Zane needs to be praised for assessing the mission statement beforeevaluatingtheseniorstaffsforchange.Sheexposedleadershipapproachin appreciating the efforts of the physicians. However,Harrison and Lock, (2017) opine that feedbacks from the peers compelled Zane to make changes in the senior management team. She faced many criticisms from the others, while making the changes. However, her selective and rational approach towards hiring the people is praiseworthy in terms of altering the workforce diversity. . Ducks five stage change curve Changes within the workplace need to be systematic for achieving positive outcomes. Proper planning proves fruitful in terms of the averting the delays at the time of executing the operations. Here, mention can be made ofDuck’s five stage change curve, which attaches proper shape to the approach towards change and its management. As per the opinions of Anderson, (2016), adopting this curve proves beneficial in terms of convincing the employees towards the proposed change. Applying the curve on NEMC, application of the model would have been beneficial in terms of generating practical ideas for moulding the employees according to the organizational environment. In this case, the main emphasis lies on the
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7 MANAGEMENT connection between the employees and the managers. Typical evidence of this lies in Zane’s alteration of the workforce. Tackling the emotional responses of the people is accounted as the main responsibility of the managers. This is not only when the change needs to be brought into the workplace instead it is applicable in all of the business processes (Basile & Faraci, 2015). As a matter of specification,thechangecurveconsistsoffivestages-stagnation,preparation, implementation, determination and fruition. Figure 1- Duck’s five stage change curve (Source:Heckmann, Steger & Dowling, 2016) Moulding the operations into these stages enhance the experience of the employees and the managers in terms of approaching the activities. This model is effective towards governing the emotions, thoughts and ideas towards accepting the change. On the contrary, negating the change adds an interrogative parameter to the role of the managers. Within this, mergers and acquisitions attains an important position in terms of altering the workplace
8 MANAGEMENT terms and conditions. In view of these aspects, NEMC can be placed in this category, as it indulged in joint venture with CareGroup, Partners and Caritas for upgrading the standards and quality of the healthcare products and services. These aspects can be related with the “preparation stage”, as mentioned by Duck in his change management curve. As per the assumptions ofHolloway, Romme and Demerouti, (2018), incorporating latest technologies in the business operations is beneficial in terms of adding automation into the services like dental, rehabilitation, venereal diseases, lung, food and nutrition. The popular services include clinic treatment, well child services, moving x-rays, cancer treatment, transplants and neurosurgery. Stagnationphase related to the tough competition, which NEMC received from the brands in the foreign markets. The financial losses in 2004 are the typical evidence behind this. As a result of this, assessing the mission statement for making changes in the senior management team is a wise and planned approach of leaders like Zane. Considering of the external environment helped Zane to map the turbulence in the market, which can act as an obstacle in the process of altering the scenario of the workplace. Size is one of the challenges for NEMC (Tuftsmedicalcenter.org, 2019). In this context, it can be said that large firms like Partners, CareGroup, and Caritas, enriched in the network and supply chain leads to dislocated teams and intense global rivalries. In the implementation stage, the actual processes initiate. Typical components of this stage are designing the organizational structures, job descriptions, and plans and most importantly, regulating the mindset of the employees. Faster decision making, learning and innovation are the typical components for adopting the changes. However, selective and rational approach of leaders like Zane needs to be applauded in terms of making systematic progress to the proposed changes in staffs, communication outreach and strategic alliance with Tufts University (Tuftsmedicalcenter.org, 2019).
9 MANAGEMENT Determinationphase relates to the preparedness of the companies and organizations forembracingthechange.Diversity,synchronizedrequirements,industrylifecycles, knowledge management and assessment of the risks involved in the competencies are the components are the challenges, which need to be dealt with for reaching to this phase of determination. These activities can be accounted as the steps of theCausal Model Driving Change.O'Donovan, (2017) argues thatmapping the impact of the micro changes on the business environment helps in management of the challenges within a new environment. Typicalreferencecan be citedof theinitiativestowardsexpanding the parameterof communication and outreach. Within this, the activities of the presenting the financial facts and the revised targets reflects the components of the preparation stage. This is actually effective in terms of evaluating the exposed performance towards reaching closer to the targets to some extent. Fruitionis the stage when the companies and organization seems new with the implementedchanges.Majordrivebehindthisisthehardeffortsoftheemployees, employers and the managers in terms of executing the tasks according to the identified and specified requirements (Al-Ali et al. 2017). At this stage, the personnel feel confident regarding the practical application of the learnt skills into the workplace operations. In this stage, it is important for leaders like Zane to maintain consistency in evaluating the achieved results. This is in terms of averting the instances of stagnation, which can add vulnerability into the market position amidst the competitive ambience. Maintaining consistency in evaluation is effective in terms of preserving the balance between the stages for adopting the changes. For this, developing short and long term goals is a wise and planned approach towards adding focus into the business. Referring to the Elizabeth Kubler Ross’ predictable emotional stages, Duck is of the view that individuals go through different emotional phases while adopting the changes (Kovač, 2017). These are
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10 MANAGEMENT denial, anger, bargaining, depression and acceptance.However, it is the duty of the managers like Zane to control their own emotions while providing the response to change. Management of the proposed change Mere implementation of the change is not enough. Management of the change is needed in terms of achieving the estimated outcomes. Even in this aspect, theoretical considerations are vital in terms of averting discrepancies. Here, mention can be made of the Beckhard and Harris’ Change Process Model.According to this model, at the first stage, analysis is conducted on the current status of the companies and organizations. In relation to NEMC, taking into consideration the financial losses and the tough competition from the contemporariesdevelopsrelevancyinthiscontext(Tuftsmedicalcenter.org,2019). The second stage is identifying the reasons for adopting the change. Herein comparison can be developed with theunfreezing stage, as proposed by Lewin in his change management model.In case of NEMC, underfunding from federal and state government was the major causeforalteringtheworkplacescenario.Intheprocessofidentifyingthefactors, determinationof thedegreeto whichthechangeisneededisone oftheimportant components.Cummings, Bridgman and Brown, (2016) states that re-structuring the mission and vision statements helps managers like Zane in mapping the areas on which the change is needed. In this journey mapping, managers detect the gaps, which obstruct the process of acquiring changes. Based on these gaps, action plans are created for improving the focus of the business operations. Zane needs to be praised for revising the structure of the senior management level through the consideration of NEMC’s mission statement. On the contrary, Holten and Brenner, (2015), involvement of the stakeholders and shareholders in the planning process upgraded the standards and quality of healthcare services and recruitment and selection. Here, communication was an important means for conveying the message to the
11 MANAGEMENT audience. Developing the “agenda for change” added value and weightage to the process for acquiring the changes. This agenda somewhat reflects the altered dynamics of the workplace. The Change Path Model Figure- The Change Path Model (Source-Krantz, 2018) The main components of the model areawakening, mobilization, acceleration and institutionalization.AwakeningrelateswiththeunfreezingstageofLewin’schange management model. Herein lays the appropriateness of the role of managers like Zane in terms of convincing the employees towards acquiring the changes in staffs, communication and outreach of NEMC. In this, the dimension ofindulgence vs restraint, as proposed by Hofstedecanbeinfusedintothediscussion.Thenextcomponentofthemodelis mobilization, which involves the activity of detecting the potential gaps within the business operations (Doppelt, 2017).Considering the mission statement assisted Zane to discover the
12 MANAGEMENT financial gaps, which acted as a compromise for the patients regarding the necessary treatment. Accelerationcan be related to thenorming and performing stages of Tuckman’s stages of team development. At this stage, Zane made plans for strengthening the scope and arena of the supply chain network. This was through contracts and negotiations, which added flexibility to the customer base. Meetings were held with the stakeholders and shareholders, which proved beneficial for Zane in terms of implementing the proposed plans and strategies. After implementing the plans, evaluating the exposed performance assisted in conducting journey mapping from the financial crisis to the altering the scenario of the workplace. Typical evidence of this lies in partnership with New England Baptist Hospital, which increased the number of beds for the patients in NEMC (Tuftsmedicalcenter.org, 2019). Institutionalizationrelates to the activity of monitoring and measuring the changes. Reviewing the progress with the implemented changes resulted in alteration of the goal, which was to introduce separate operations for the Academic Medical Centre. This was through the provision of sub specialities. Meanwhile, the planning was also done for selling the building to Tufts University. However, this required $28 million along with additional capital, cost savings, managed care contracts. Presence of 3% market share in comparison to the 25% market share for Partners was a matter of concern for Zane. Monitoring was needed also in terms of ensuring the maintenance of proper ratio for the number of bed per patients (Tuftsmedicalcenter.org, 2019). Recommendations For adopting the change, managers and leaders like Zane needs to ensure thetype of change,which would alter the workplace dynamics. Within this, execution ofgap
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13 MANAGEMENT analysiswould be effective in terms of detecting the areas, which needs to be modified before acquiring the change. Theoretical consideration is always beneficial in terms of adopting the planned changes. Within this, mention can be made ofNadler and Tushman’s Organizational Congruence Model.Adopting this model would act assistance for Zane in terms of assessing the transformation from input and output. In this, the main focus needs to be on the systems and resources, which would contribute in promoting the workplace culture of NEMC. The collaborative approach of the employees would add value to the strategies. Using this model would enhance the awareness of managers like Zane regarding the extent of the external challenges and pressures from the contemporary brands like Partners, CareGroup, and Caritas. CollaborativeviewofthegoalandsituationwouldenableZanetoundertake appropriate decision for achieving the results of upgrading accommodation facilities and equipment for the patients. Consideration of the gaps would seem fruitful in terms of preparing the action plans for stabilizing the future courses of action. In this, conducting journey mapping with situational analysis would be beneficial in terms of assessing the need for additional resources. Applying linear view on the current status of the healthcare services would help Zane in searching for the ways for reducing the intensity of the errors, delays and lags in inventory stocks, information flows related to cancer treatment, transplants, and neurosurgery cases. Irrational and careless approach towards this direction would aggravate the complexities in the causal effects. Surveys and feedback from the clients would help managers like Zane to evaluate the effectiveness, appropriates and feasibility of the proposed strategies. Here, adoption of Feedback Model would be helpful in terms of exposing systematic progress
14 MANAGEMENT towards the adoption of change. Experimenting with the opinions of the clients and the customers would act as a cornerstone in terms of reaching to the appropriate decision for the betterment of the patients. Consideration of the internal and external environment in this experimentation would be beneficial in terms of making rational approach towards the execution of the marketing activities. Rationality is needed in theprocessofhandlingtheresponsesoftheclientsandthecustomers.This rationality, in turn, would help in gaining trust, loyalty and dependence from the clients and the customers. Frameworks are crucial in terms of providing the healthcare services according the NHS standards. Within this, reference can be cited of Quinn’s Competing Values framework, which would be effective for NEMC in terms of assessing their flexibility andcompetencytowardscontrollingtheoperationsinthemarketsofBoston. Focusing on the increasing the sales revenue and profit margin through increasing the trafficking of the audience would be beneficial in terms of gaining control over the external challenges and pressures. Evaluation of the exposed performance is needed in terms of assessing whether the activities are on the right track. In this, considering Greneir’s phases of organizational growth would be fruitful for NEMC in terms of expanding the scope and arena. Collaborating with the personnel of the contemporaries would be effective in terms of delving deeper in the root causes of the financial crisis. Implementing creativity in the strategies for providing the healthcare services would result in something different from the traditional marketing. Experimenting with the available and collected ideas would result in evolution of innovate ideas for altering the dynamics of the workplace. Conscious approach is needed in terms of dealing with the complexities. Typical example can be non-linear feedback loops. These loops would disrupt the stability in
15 MANAGEMENT the relationship between the patients and healthcare institutions and hospitals. This disruption, inturn, would possessdireconsequencesintermsof ensuring the wellbeing of the patients. The channels and systems for providing the feedbacks needs to flexible enough, so that the message of the customers reaches to the respective unit ofthehospital.Operatinginanunstableenvironmentofequilibriumaddsan interrogative parameter to the feedback systems. This unstability would be assistance in terms of assessing the chaos. Training the staffs would be beneficial in making them aware of the recent trends in healthcare. Practical demonstration of system usage would help in reducing the errors and mistakes in providing the services. Appointing one two staffs for the patients would be helpful in catering to their specific needs, demands and requirements. Flexible shifts within the duties would result in productive output. Conclusion Healthcare is one such parameter, which relates to the wellbeing of the individuals. In this, ethical approach is needed for achieving positive outcomes. This can be done through the development of frameworks, policies and programs on healthcare. Situational analysis helps the managers and leaders like Zane to detect the gaps like the financial crisis, which hampered the operations towards providing the healthcare services. Analysing the situation through different perspectives is effective in terms of checking the current situation in terms of the external pressures and challenges. Maintaining consistency in evaluation is assistance for achieving infrastructural development, which would lure the foreign investors and clients. Rationality in this approach is flexible enough for expanding the scope and arena of the healthcare institutions and hospitals.
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16 MANAGEMENT References Al-Ali, A. A., Singh, S. K., Al-Nahyan, M., & Sohal, A. S. (2017). Change management through leadership: the mediating role of organizational culture.International Journal of Organizational Analysis,25(4), 723-739. Anderson, D. L. (2016).Organization development: The process of leading organizational change. Sage Publications. Bartunek, J. M. (2018). Book Review: Annamaria Garden Organizational change in practice: The eight deadly sins preventing effective change. Basile, A., & Faraci, R. (2015). Aligning management model and business model in the management innovation perspective: The role of managerial dynamic capabilities in the organizational change.Journal of Organizational Change Management,28(1), 43- 58. Bradley, G. (2016).Benefit Realisation Management: A practical guide to achieving benefits through change. Routledge. Cummings, S., Bridgman, T., & Brown, K. G. (2016). Unfreezing change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human relations, 69(1), 33- 60. Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge. Harrison, F., & Lock, D. (2017).Advanced project management: a structured approach. Routledge.
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19 MANAGEMENT Bibliography Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change work in progress. Routledge. Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers. Hornstein, H. A. (2015). The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), 291-298. Lewis, S., Cantore, S., & Passmore, J. (2016). Appreciative inquiry for change management: Using AI to facilitate organizational development. Kogan Page Publishers. Neves, P., & Schyns, B. (2018). With the Bad Comes What Change? The Interplay Between Destructive Leadership and Organizational Change. Journal of Change Management, 18(2), 91-95. Stouten, J., Rousseau, D. M., & De Cremer, D. (2018). Successful organizational change: Integratingthemanagementpracticeandscholarlyliteratures.Academyof Management Annals, 12(2), 752-788.