Part 1 - Kaplan?s Goal and Rationale in Adopting TPSDr. Gary Kaplan rattling much believed in the corporate culture of Virginia Mason medical Center (VMMC) and in the case study states that it was the collaborative aggroup approach that attracted him to VMMC. However, when he took over as CEO in 2000, the medical center was losing money for its first time in history. Kaplan had to move VMMC to start out a learning presidency that could be lean, and compete within a very competitive fabrication during a period of poor economic conditions. Transforming any organization is a formidable task and in VMMC?s situation, there were two major impediments. First, VMCC had well entrenched practices of doing things the way they concord always been done referred to as ?routines?.1 From the heuristic perspective, the routines and minor incremental changes to the routines had worked well for the VMMC through the years with the physicians retaining their sense of entitlement and autonomy without much involvement in setting organizational goals and little fatality to work for the greater good rather than themselves. However, now there was a change in the economic and competitive surround that required a new business model that could aline to its environs. Second, VMMC was a large facility and large organizations can be slow to change and become learning organizations.
The technological environment in health care had changed rapidly and Kaplan recognized that VMMC had become inefficient. For example, improvements were needed in overall layout of the facility?s preaching areas and in vital services as lab and pharmacy. chthonic contingency theory, technology and task interdependence factors best describes why VMMC had become stagnant ? the homogeneous and stable environment of the former(prenominal) was gone and VMMC was not adapting to the new environment. 2 Kanter believes that larger companies...
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