Managerialism in Healthcare Organizations: A Critical Analysis of Leadership and Ethical Tensions

This paper discusses the importance of managerialism in healthcare organizations, with a critical analysis of leadership and ethical tensions. It also discusses the application of organizational theory to reduce tensions between professional team members and managers. The case study of Medicare Australia is used to illustrate these concepts.

Running Head: Managerialism 1
Human Service Organization

Managerialism 2
Contents
Introduction.................................................................................................................................................3
Review of managerialism within the organisation.......................................................................................3
Application of organisational theory to tensions between professional team members and managers
within the organisation ...............................................................................................................................3
Critical analysis of leadership within the organisation ................................................................................4
Evidence of understanding of leadership role.............................................................................................5
Evaluation of ethical tensions inherent in that professional role................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

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Introduction
This paper will show the importance of managerialism in the healthcare organization. Medicare
Australia is the organization that provides health care services to the people of Australia. There
are various applications of organizational theory that helps in reducing the stress or tensions
between professional team members and managers within the organization. The role of
leadership is huge in the organization as it gives the proper guidance to the followers for
completing the task within time frame. The critical analysis of leadership within the Medicare
will be elaborated under this paper with evidence of ethical tensions inherent in that professional
role in the organisation.
Overview of the organization
Medicare is operated by the department of human services and it is the publicly funded universal
health care system in Australia. It is considered as the primary funder of health care in Australia.
It was founded in 2005 and the national office of Medicare Australia is situated in Canberra. The
annual budget of Medicare according to the year of 2010 was A$ 856.6 million.
Organizational culture of Medicare
The organizational culture of Medicare is effective as it take care of various departments by
listening their queries. However, the organizational culture of human services department is
hierarchal organization structure in which top authorities keep control over all departments.
Medicare Australia is also follow the hierarchical structure in which the top management of the
Medicare focus on each department and provide the best services regarding health care to the
public of Australia (Boulware et. al., 2016).

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Review of managerialism within the organisation
The managerialism is an importance concept that helps business to attract number of customer
towards the services of the company (Klikauer, 2015). In the context of Medicare Australia, the
role of managerialism is vital as it provides the reliance on utilization of professional managers
in administrating an activity for the health care. Medicare Australia offers the services at the 75%
rebate for the Medicare Schedule fee which is connected with the services as well as procedures
for the private hospitals (Dalal, 2017). It has three components like hospital, medical and
pharmaceutical. The review of the managerialism within the organization is defined below:
Proper health care services
The key component of Medicare includes the free treatment for the patients in public hospitals.
The management of the company is efficient to manage the services in an appropriate manner in

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which the Medicare offers rebate on the payments of medicines and health care. There is a list of
medicines and services which should be rebated by the organization and these are listed under
Medicare Benefits Schedule (Centers for Medicare & Medicaid Services (CMS), 2016).
Managerialism in the Medicare is efficient as it provides the proper guidance about the activities
in which the manager of the organization provides the subsidisation of the costs of an enormous
variety of medicines which cover under the Pharmaceutical Benefits Scheme.
Improves the lives and functioning of individuals
Proper planning of the services is enabled organization to expand the level of services so that
huge range of people of Australia gets the advantages of the public services regarding health
care. (Joosten, Bongers and Janssen, 2009). There is need to recognize the global demographics
amendments will lead the company in to a huge number of older customers representing
complicates health and social care as they live longer with chronic illnesses.
Planning, monitoring and evaluating the services
Managerialism is referred as the new public management that has considered as the successful
organizational technique for controlling the public servants. The management of the company is
creating the market where the services of the company can be provided in easiest way to increase
the welfare around the Australia. The management of Medicare Australia plan monitor and
evaluate the human services in a sophisticated manner to increase the potential of the workers of
the company so that they can continue to provide health care services to the clients (Aryee,
Walumbwa, Seidu and Otaye, 2016).

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Application of organisational theory to tensions between professional team members and
managers within the organisation
There are various organizations a theory that facilitates Medicare to handle the tensions between
the professional team members and the mangers within the organization. This section is
elaborated the conflicts between the practice of sales marketing manager and the other managers
within the organization. The integral theory has potential to manage the issues of the
organization in an appropriate manner (Duckett and Willcox, 2015). There are some weaknesses
of company such as lack of health care services in rural areas and not proper coverage of
medicines under Pharmaceutical Benefit Scheme. Violence in the workplace due to
misunderstanding about the task and less of control on anger are the major tensions of human
services organization that has become the issues of low working.
Integral theory
Integral theory is effective as it endeavours to place a huge diversity of theories into one single
framework. It has been posited by this theory that the evolution is limited to the external forms of
reality but it has the potential to reach in the interior spaces of namely and reality in the
development of consciousness and culture. The model of integral theory is mandatory for all
professionals. The role of integral theory in Medicare Australia is huge as it provides the
manager with the conceptual framework to identify the bonding between the components of the
organization and look the organization as a entire that has a place within the broader
environment (Jiang, Chuang and Chiao, 2015). With the use of this theory, the employee of the
company can easily engaged with the work and provides the superior services to the organization
by being the leader. Practice and knowledge of the integral theory will assist the growth of the
leader and increasing the human skills required for management of organizations in the global

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society. The role of integral theory in resolving the tensions between the professional team
members and the mangers within Medicare Australia re defined below which will give better
understand to understand the importance of it within the organization.
Maintain the gap between the professional team members and the managers
The integral theory is facilitated in maintain the gap between the professional team members and
the managers within the Medicare. The role of sales marketing team is different from others as
they are prepared to bring the target market and collect the plan applications. There can be
conflict arise between them as it is not possible that the perception of all members within the
organization should be same (Drummond, Sculpher, Claxton, Stoddart, & Torrance, 2015). This
can be the major issues of conflicts and the integral theory provides the proper information about
this and helps to remove the conflicts between them which arise due to lack of communication.
Understanding the WIIFM Factor
It is vital for the managers to understand the other professional WIIFM (What’s In It for me)
situation which is integral for the management of Medicare. It is necessary for to understand the
motivation of others to weighing in. It would be helpful for the sales marketing manager to avoid
the issues which will be helpful to achieve the objectives within the organization. at the same
time, the theory suggests that support management practices involve the diversity within the
management in which it says that if someone approach issue from the opinion of taking the
action that will facilitates others best attainment of their aims. It will helpful for the organization
with regard to resolving conflict (Mossialos, Wenzl, Osborn, and Sarnak, 2016).
View conflict as an opportunity

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It is fact that there is every conflict has the potential for a great learning opportunity. It has been
analyzed that disagreement has inherent potential for development as well as growth. Integral
theory addresses the conflicts in more efficient manner and in the context of tensions between
professional team members and managers within the organization. it shows that the divergent
positions defined properly and it can inspire innovation as well as learning in ways such as minds
cannot imagine (Chen, Normand, Wang, and Krumholz, 2011).
Critical analysis of leadership within the organisation
The role of the leadership in the human service organization is huge as it provides the proper
guidance to the employees of the organization to provide upper quality services for welfare. In
the context of Medicare Australia, it has been found that that leadership within the organization
is effective as there are number of functions on which the entire team of Medicare is working. To
accomplishment the task in an appropriate manner, the head of Medicare Australia is Seema
Verma handled and maintained the entire structure in more appropriate manner to provide the
services of it all over Australia in effective way. Leadership is critical to good public governance
involving planning, efficiency and transparency (Medicare Payment Advisory Commission and
Book, 2012). Medicare provides the card by which the residents of Australia get advantages in
case of any issues regarding personal health. The critical analysis on leadership within the
Medicare is defined below.
Leadership as a function and a relationship
Leadership is considered as the co-ordinating function in which informal leaders have an
effective position and status in the organization. The leaders of Medicare are coordinated with
their followers and provide them proper guidance regarding training and development so that the

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employees can understand their value and know that the public health care is the prime motive of
the company (Peikes, Chen, Schore and Brown, 2009).
Leadership and employee health
The role of the leadership in the human service organization is huge as it emphasises the policies
and the regulations of Medicare Australia. The leaders of the Medicare are active in observing
and analysing the latest program regarding healthcare in Australia. There are some government
programs that are focused at enhancing health services and outcomes for external groups such as
indigenous Australia, rural people and those with continuous illness and older Australians
(Osborn, Squires, Doty, Sarnak and Schneider, 2016). It has been found that $805 has been
invested by Australian Government for Indigenous Chronic Disease Package for the purpose of
improving the health care system of Australia. The main focus of the Medicare’s leader is to
increase the attention towards the latest amendments and proposal in health care in Australia so
that company can get benefitted in an appropriate way.

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Evidence of understanding of leadership role
The work of sales and marketing in human service organization is huge as work tasks are often
varied and complex in this role. The involvement of leadership role in the area of sales and
marketing in the human service organization is wide. However the positions of the manager in
human service organization are complex. The daily activities of the manager are entirely
different from one day as they have to adjust number of terms at once which will not be repeated.
It has been found that the bonding between responsibility and power, along with the relationship
between managerial work and clinical work are quite unclear (Çiçek and Ozer, 2011). However,
there are number of leadership features which should be entailed in the organization such as
commitment, positive attitude, ability to delegate works and communication. In the context of
profession of sales and marketing, the manager needs to work within a culture of acceptance and
exception of work stress. There are three kinds of behaviours that have accepted by the leaders of
the Medicare such as task oriented behaviour, relations oriented behaviour and change oriented
behaviour. It has been evidenced as per the contingency theory in the context of leadership that
there is no single way to lead the different behaviours without any conflicts. In this context, it is
required for the leaders of Medicare to focus on decision making approach, Path goal theory and
leader member exchange theory (Komives, 2016). The leaders of Medicare have the feature of
transformation a leadership in which they inspire their followers and other employee of the
organization to do work with vision of the company. Intellectual stimulation is involved under
the leadership of Medicare by which the leader of the Medicare encourage innovation as well as
creativity. It is required for the organization to keep focus on the latest technologies and
activities so that amendments in the organizational structure can be done in more significant
manner (Bolman and Deal, 2017).

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Evaluation of ethical tensions inherent in that professional role
The basic values of the human service profession involve welfare of all people and respecting the
dignity, honouring cultural diversity, honesty, genuineness and self determination. In my
profession of sales and marketing, there are some ethical tensions inherent such as moral
dilemmas. Ethical dilemmas are defined below in the retaliation of professional role of sales and
marketing in Medicare Australia.
Self-determination
Self-determination is the ethical issues that are faced by the profession of sales and marketing in
Medicare where the obligation of the social worker to respect a right of client to self
determination conflicts with the realization. It shows that the clients are engaging to commit
actions that will hamper others (Kingstone, 2018).
Dual relationship
There are major issues regarding ethical in the profession role is dual relationship as it is
important for the leader of the organization to have the multi role for performing in an efficient
manner. On the other hand dual relationship is where the social worker has a compulsion to
handle an exclusive professional relationship with a client.
Moral Beliefs
The social workers are more bounded to provide leadership in the areas where struggles take
place. In the context of organization, there is an expectation of the social worker to resolve the
tensions between the operational and technical factors of management and the transformational
style of leadership. The workers have to keep patience to following the professional role as it is

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very hard to control the patience them who do not understand about the values of lives. Along
with that tensions can take place between organizational goal and organizational survival.

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Conclusion
In the limelight of above discussion, it can be concluded that the managerialism is effective
approach that need to be considered in any human service organization. Medicare Australia as a
human service organization has been taken to describe the entire concept of the management in
this report. An application of organisational theory to tensions between professional team
members and managers within the organisation has been described to define the role of manager
in effective way. Integral theory has been taken to evaluate the role of it in reducing the tensions
within the organization. The employee of the company can easily engage with the work and
provides the superior services to the organization by being the leader. Along with that the leaders
of Medicare have the feature of transformation a leadership in which they inspire their followers
and other employee of the organization to do work with vision of the company.

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