Hospitals are Driving toward a Leaner Organization Essay

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Case Analysis: 1.1 Hospitals are Driving toward a Leaner Organization Background: To obtain sustainable organizational efficiency and service quality, many hospitals have adopted an Open Systems Perspective by using “lean management” procedures borrowed from leading car manufacturers, in an effort to “reduce and remove waste from work processes”. These processes improved organizational efficiency reduced costs and provided better patient care. i What ‘seems’ to be the Problem: Secondary Symptoms Full waiting rooms, long wait times, inefficient use of supplies and budgets, needless stress and high mortality rate is feedback from the external environment that the hospitals are not meeting the needs of their stakeholders, or fitting in …show more content…

Steven L. McShane explains that collaborative efforts between internal subsystems have proven to reduce the time, efforts and costs contributing to the primary problems. vii Hospitals can use information technology and incentives to staff to share information about where efficiencies can be realized. For example, those responsible for hospital purchases will be greatly assisted by pertinent information from those using the equipment and supplies. The strategy will be financial costly in the short to medium term as the costs associated with implementing such a system will not be compensated for until efficiencies realized over the long run exceed its cost. Furthermore, cost and effort may be required to change the organizational and departmental cultures within hospitals to foster the collaboration necessary for the exchange of information. Including hospital staff in decision making of management may also increase job satisfaction and morale. Efficiencies discovered through information sharing will take stress of budgets and savings may be allocated to areas in need of more resources. A second organizational fit strategy is to transfer resources from underutilized areas to areas in need of greater health care services. Hospitals have likely not allocated their resources

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