Change and Culture Case Study 1
The struggling economy, the emergence of new technology and the government’s healthcare reform is pushing hospitals to seek refuge in another resulting in a merger. A merger is the consolidation of two establishments into a single legal entity (Hayford, 2012). In the health care industry, mergers are rising in numbers. Mergers transpire due to a variety of reasons; to increase in size to gain better negotiation power with managed care providers who tend to bypass smaller organizations, to penetrate new markets to attract additional customers, to improve efficiency evolving from centralized administrative practices, and to express overall value of promoting ...view middle of the document...
Effect on the New Organizational Culture
The merger of two competing hospitals, Kindred and Highland, will create a new organizational culture that will impact and challenge the values and beliefs of the staff, the vision and goals of the organization, and the daily norms of dealing with each other, the clients, and the stakeholders. Changes in the environment will produce stresses and strains inside the group, forcing new learning and adaptation. At the same time new members coming into the group will bring in new beliefs and expectations that will influence currently held expectations (Schein, 1990). Management and employees will have to adapt to a new set of policies and procedures as well as new expectations and goals as the new organization slowly evolves. Depending on the extent of reorganization, structural changes within a healthcare organization, such as merging departments or groups or realigning departments under different managers can provoke hard feelings and generate considerable resistance (Liebler & McConnell, 2008).
The values and beliefs of the staff within the organization will be challenged as new employees are added to the roster and new leaders take charge. The changes that will occur as a result of the merger will produce stress in all employees, causing some to resist the change and others to reevaluate their roles in the organizational structure. It is imperative that management gains the employees’ trust and assure each one that the effects of the changes occurring will be short-term and will contribute to the formation of a better organization. Managers must encourage staff to learn from one another maintaining an environment that remains focused on the organization’s success.
The vision and goals of the organization will be redefined as two distinct establishments are consolidated into one entity. The vision and goals of Kindred can be combined with those of Highland creating a stronger, more defined vision and goals. The new organization will be fully committed to providing high quality of care, patient safety and satisfaction, accountability, and cost-effective services. The accountability of each organization especially to the regulatory agencies must be reviewed. In a merger of a hospital, the purchaser can take over severe regulatory liabilities. It is significant to ensure that the hospital’s survey history and results such as accreditation surveys are in order (Brown, Werling, Walker, Burgdorfer & Shields, 2012).
The daily norms of dealing with each other, the clients, and the stakeholders will be disrupted as the operational and functional elements of the organization are enhanced. Successful merger takes time and changes with the daily norm that employees are accustomed with are inevitable. The culture of the entire organization rather than the managers alone is expected to have an effect on “the way things are done” in an organization (Scahill, Harrison, Carswell, & Babar, 2009). Employees need to...