Organisations should encourage their staff to participate in the process by encouraging them to undertake regular self-assessment, track their performance against organisational goals, identify opportunities for improvement, and by benchmarking performance against both internal and external performance measurements. Engage, Encourage & Support An organisation whose employees are challenged by personal improvement will be motivated to achieve higher levels of productivity, be empowered by a sense of self-determination and will be encouraged because they believe that they are actively contributing to the overall success of the organisation.
To support their employees an organisation must empower staff sufficiently to enable them to make improvements, by providing the necessary authority to be effective in implementing change. Management also needs to recognise and reward contributions of their employees and encourage lateral thinking. This allows for the identification of opportunities for improvement and encourages staff to actively contribute as staff feel secure in their role to exercise initiative and resolve quality issues. Decision Making
Group decision making enables organisations to make the best use of their employees by fostering teamwork. Organisations that build successful teams are able to leverage upon diversity, lateral thinking and creativity, and innovation when relying upon their staff to identify problems and opportunities to resolve issues. Group decision making also encourages employees the opportunity for self-improvement through personal performance monitoring. Employees also come to believe that their ideas and contributions are valued and are more willing to actively contribute towards mprovement and the success of the organisation. Providing staff with the opportunity to engage in decision making ensures that problems can usually be dealt with effectively and efficiently, improving the overall performance of the organisation by minimising time it takes to implement change. Both teams and individuals that contribute to the decision making process take responsibility for their choices and subsequent outcomes, thus providing the motivation to achieve successful outcomes.
To encourage employees to be involved in the decision making process organisations should inspire employees to question organisational norms, delegate authority, provide regular feedback and supportive reinforcement for ideas and suggestions, and ensure that employees have a medium by which their opinions and ideas heard. The decision making process should be structured in such a way that participants will seek to actively contribute to the process and outcomes need to be seen to be implemented effectively. There are a number of ways for the decision making process to be implemented to achieve this.
Acceptable approaches include decision by consensus, majority vote, or by consensus to a two-thirds majority decision. The decision making framework should support a methodology that facilitates the process to gather momentum and achieve initial outcomes quickly. This ensures that all participants rapidly gain faith in the process and support the need for improvement through change, and are unlikely to become resistant. Momentum is also readily achieved when initial focus is provided to smaller activities that are on the critical path and decisions that provide early success prioritised.
Activities should also be prioritised based upon any interdependencies and those that are required to be completed in specific order. Those activities that secure and protect ongoing improvement should also be prioritised and decision making strategies also need to have an element of flexibility in order to avoid irremovable roadblocks. Creating an Action Plan Action plans clarify the goals and objectives that were outcomes of the decision making process, identify roles and responsibilities of individuals, and enable the tracking of milestones and identifies a sequenced orderly list of all tasks required to be completed.
The process of compiling the action plan should actively involve the employees and contributors who made the decision and who are responsible for its implementation. An action plan template may be needed to implement major changes. A template clearly defines the overall objective of the task, what steps are required, how it is to be achieved, who will be undertaking the task, the timeframes involved to achieve outcomes, as well as the benefits of the task and whom is responsible for actioning each step.
By creating an action plan employees are able to progressively monitor progress and achievement, and identify the effectiveness of the change. Open & Effective Communication Effective communication measures are necessary to ensure that employees are aware of the need for change as part of an organisations commitment to continuous improvement. Organisations with good internal communication are able to ensure that their employees are aware of the need for change, what is being changed, why it’s being changed and the results of that change.
The more information people have regarding change the more likely they are to be accepting and supportive of its implementation. Good communication methods within an organisation contribute to the role and purpose of individuals and teams, and the minimisation of waste of resources such as time, materials and effort. Employees becomes willing to accept responsibility and take initiative in performing their role, and are satisfied and productive members of the organisation who are able to establish effective workplace relationships based on honesty, trust and disclosure.
A number of formal and informal communication systems can be utilised to ensure that employees receive accurate information in a timely fashion regarding expected change likely to impact them where they might be expected to contribute in their role within an organisation. These may include: * Memos| * reports| * email/intranet| * electronic bulletin boards| * video conferencing| * chat rooms| * meetings| * conferences| * face-to-face individual communications| * face-to-face group communications|
The method of communication should be appropriate for the intended audience, the needs of the organisation, the nature and complexity of the information being communicated, and the level of understanding and knowledge of the audience. Consideration should also be made for the consequences of the communication being misinterpreted or not adhered to. Poor communication will ultimately have negative consequences upon the product of an organisation.
This may derive from issues such as too many conflicting management directives, roles and responsibilities not being clearly defined, unclear or contradictory direction, or people unable to identify the lines of authority and responsibility within their team or management structure. Addressing Sustainability Sustainable workplace policies and practices build upon the reputation of an organisation amongst both its employees and the wider community. Sustainability needs to be integrated into all levels of a workplace culture through careful planning and communication.
Organisations require staff adequately trained in implementing practices that demonstrate a socially responsible attitude. Training staff in socially responsible practices is imperative to integrating this into everyday business and achieving improved business performance. To enhance an organisation’s ability to demonstrate sustainable practices they should: * Support the implementation of change that reduces impact and waste output * Enhance relationships with external resource and client relationships * Foster innovation within the organisation * Adopt best practices and integrate cutting edge technology and processes. Optimise efficiency Knowledge Transfer Organisations make investments in their staff by providing the essential training they require to perform their job. Organisations that support ongoing staff development are investing in quality improvement by ensuring that the skills, knowledge and attitudes of their staff are of a level of competency required to perform their role. Employees who receive training from their employer feel valued and empowered with the ability to improve their personal performance. Training should be designed and targeted to promote innovation, empower employees and be relevant to the role in which they perform.
It is necessary to incorporate learning in to strategic business plans of the organisation to ensure that efforts to improve are ongoing and focused on reducing any existing skills gaps. Employees should be consulted by managers, supervisors and team leaders to ensure that the focus of any training aligns with the organisational goals and best learning methods for the employees. Training can be incorporated into workplaces using a number of different delivery methods including formal, informal, group and professional mentoring, coaching, and formalised training.
Capturing & Retaining Knowledge Insights and experience gained through business activities needs to be captured to ensure that best practices sources of information, and proven solutions are recorded and readily available. Organisations should understand the importance of facilitating knowledge transfer and the preservation of information within their environment. This ensures information is shared and transferred across the organisation, the loss of knowledge through employee turnover is minimised, and the investment of time required to train employees is reduced.
Methods to capture and share information gathered in the workplace include: * Mentoring| * Post Project Reviews| * Best Practice Transfer| * Expert Directories| * Social Software| * Community of Practice| * Knowledge Brokers| * Story Telling| * Knowledge Management Systems| Use of modern knowledge management systems (KMS) create efficiency by avoiding duplication and being able to be readily searched as the information should be stored in an indexed format. Monitor Progress
Quality improvements can also be achieved and maintained by developing strategies which ensure that systems and processes to monitor operational progress are established within an organisation. An organisation should acknowledge appropriate measures of improvement by measuring what is important to organisational success. These measures should focus on quality, flexibility, innovation, employee skills acquisition, as well as the obvious use of measures of cost as an indicator for areas that are likely to facilitate improvement.
Measures of improvement should also be able to be captured simplistically through the use of simple acquisition tools (e. g. notepads or pocket diaries) that do not impact or complicate any business workflows. (Peters, 1987) Too much complexity in gathering measurements of success can result in the loss of focus on the overall process and results tend to fail to add value to the process of continual improvement. Organisations should also understand that customer satisfaction is the ultimate ongoing measure of success.
Quality, cost, and other measures are all irrelevant if there is no market for a product, which is driven by the satisfaction of the consumer. Build and Manage Teams that Improve Productivity An organisation should strive to build teams that are able to implement change that produces results more efficiently and effectively than a group of individuals. Successful organisations are able to establish teams with members who have all the skills necessary to complete an activity and whom complement each other by maximising the strengths of its individuals, whilst minimising the impact of any weaknesses.
Members of well managed high performing teams take responsibility for their role in the overall success of the team and the organisation, and are more likely to contribute to continual improvements processes. Change Management Implementation of an organisational change management framework ensures that requirements for change are necessary, communicated to and accepted by all stakeholders, and documented and implemented in a manner that defines a new status quo. Change management is a necessary component in quality improvement because it puts controlled mechanisms in place that deter slippage and manages expectations for all outcomes.
It also facilitates the opportunity to manage retraction of change should performance outcomes not produce the desired outcomes. It also ensures that all participants instigating change have a stake in the success of its implementation. Ongoing Opportunity for Improvement Continuous improvement is a cyclical process where the monitoring, measurement, evaluation, and implementation of change is constantly analysed and critiqued to ensure that process improvements are meeting identified goals and aligning to business objectives.
It relies upon the constant collection of performance data and information to establish how well an organisation is performing. Its primary goal is to consistently improve quality through the implementation of processes that simplify activities, humanise the workplace, reduce waste, and enable all employees to work efficiently and effectively in the role. Deming popularised the ideology of continuous improvement in Japan in the post-World War II era where it culturally became known as ‘Kaizan’.
The emphasis of Kaizan places the need for analysis of the process and the output rather than solely upon the output itself. This allows for the identification of the actions required to produce an output to be assessed and applied into other processes and areas where improvements can be achieved. To ensure the success of the process, employees need to be aware of the results of their improvement efforts to promote systematic thinking and have understood the need for change in terms of the overall picture to avoid the creation of additional problems within the process.
MECHANISMS FOR EVALUATING FINANCIAL HEALTH OF HEALTH CARE ORGANIZATIONS case 3
MECHANISMS FOR EVALUATING FINANCIAL HEALTH OF HEALTH CARE ORGANIZATIONS case 3.
Pearland Medical Center reported revenues of $1,500,000,000 in 2012 and $1,250,000,000 in 2013. The revenue streams comprised 25% patient self-pay revenue, 50% third-party payors revenue, and the remaining 25% was a combination of grants from the Grant Foundation and investments. The medical center spent $15,000,000 in marketing for each of the past two years. The average hospital daily patient census was 570 in 2012 and 470 patients in 2013; patient hospital days were 202,920 in 2012 and 171,500 in 2013. Pearland Medical Center reported operating expenses of $500,000,000 in 2012; but due to layoffs and reorganization, operating expenses decreased by $200,000,000 in 2013. Depreciation expense was $50,000,000 in both years. The medical center spent $20,000,000 on research and education each year. Executive administration anticipates little growth in patient population in the coming year and will likely need to invest in new equipment. The nonprofit facility pays no shareholder dividends or taxes. Create an income statement based on the scenario. Determine the financial health of Pearland Medical Center. What were Pearland Medical Center’s net income, cash flow, total profit margin, and total profit margin excluding grants and investments for each year? Discuss your suggestions for Pearland Medical Center based on your interpretation of the income statement. Is the facility financially healthy? Should the Grant Foundation reconsider their grant? Length: 3–4 pages, excluding title page and references. Required Reading Accounting For Management. (2013). Vertical analysis (common-size analysis) of financial statements. Retrieved from http://www.accountingformanagement.org/vertical-analysis-of-financial-statements/ Albrecht, C. & Albrecht, C. (2008). The nature of financial statement fraud. Internal Auditing, 23(4), 22-27. National Health Care Anti-Fraud Association. (2016). The challenge of health care fraud. Retrieved from https://www.nhcaa.org/resources/health-care-anti-fraud-resources/the-challenge-of-health-care-fraud.aspx U.S. Securities and Exchange Commission. (n.d.) Beginners’ guide to financial statements. Retrieved from http://www.sec.gov/investor/pubs/begfinstmtguide.htm Financial statements are the primary medium for reporting the financial standing of organizations in terms of the “bottom line.” Financial statements provide information categorized as assets or liabilities. Financial statements come in four primary forms: the income statement, balance sheet, statement of cash flows, and statement of retained earnings.
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