Johnson_Chapter 2 case study

Floretta Johnson Chapter 2 Case Analysis September 3, 2011

Johnson_Chapter 2 case study

Interwest Healthcare Corp is facing a dilemma concerning management needs, financial resources, and the employees motivation. The problem can be identified as corporate management and first line management are not familiar with the methods that are being utilized. It appears that the proper motivation method is needed to produce a workable solution. There are several factors that should be analyzed before a solution can be reached. First, the processed used in gathering and entering the data, should be carefully analyzed. Next, the reports, and the staffing needs needed to fully comply with the standards. These areas are vital to the healthcare firms because if any thing fail or is missing the financial resources may dry up. Brickley, Smith and Zimmerman, states that managers are interested in affecting the behavior of individuals such as employees, customers, union leaders, or subcontractors (2009 pg. 32), this in true the case of Interwest Health Corp. Managers must look at the opportunity cost involved in motivating the team to cooperate. The benefits and utility that the healthcare firms desires can be achieved with the right motivation. A behavior change must be implemented on all phases. According to Brickley etc. the economic framework model allows management a roadmap in changing the behavior to achieved the results wanted (2009, pg. 37). Management goals are to produce accuracy data that is cost effective for the firm without all the government bureaucracy. This can be accomplished if management offers various opportunities for all the stakeholders involved. An example in solving this problem maybe to allow the administration a voice in dealing with the government, while maintaining the procedures to qualify for the grants. In order to get the employees to do the job correct the first time, managers can offer incentive pay for accurate input of the data. Brickley view of the economic model is that if changes are made in the cost, then it will also change the benefits. Behavior of individuals can not be address in the same manner. Although most economists feel that the economic model offers management a great degree of latitude in changing the desire behavior of their employees, I feel that a combination of approaches can be used. My attitude is first for the economic framework model, which states people are creative maximizers of their own personal happiness (Brickley, etc., 2009). This is true because with the correct incentive I believe that a person will find the utility needed to become happy. I also think that the happy-is productive model will work. I am a firm believer that often times happy employees are more productive if they are given the resources needed to complete their task. Interwest Healthcare focus appeared to be the only- money matter models, very little emphasis was given to employees satisfaction, as a result the accuracy suffered.

Johnson_Chapter 2 case study

Reference Brickley, Smith, Zimmerman. (2009). Managerial Economics and organizational architecture 5th edition, publish by McGraw-Hill