Case study analysis and findings

¶ … Dr. Perry was informed by his receptionist that the staff morale at the Cromwell hospital was going low. It was suggested by the same source that the staff had no animosity to Dr. Perry but did not care to follow up with their work and were not motivated to attend to billing, cancellations and other follow up that they were expected to perform. Dr. Perry was acutely aware that he has n training in people skills; a draw back that he feels is the reason for not confronting the staff and taking decisive action. The problem was seen by the doctor as being two fold: One was that the practice was growing and the Staff, though well paid and in the top level for the situation, were despaired because of the gap in income. The paradox was that staff at a practitioner known to be hard was working better.

The problem is also the fact that the doctor has employed Assistants, Hygienists, receptionists and technicians who are indispensable for the business and expected to bring in the necessary revenue by their activities along with the doctor. Dr. Perry has already given all possible emoluments and all possible concessions to his staff. His one consideration to fetch more revenue by making the existing staff productive, or finding an alternate so that the business could use the full use of the employee ability and increase business is rooted to the use of remuneration as a means of achieving this. Dr. Perry therefore is interested in sharing some of the profits with his workers but has a dilemma as to how to go about it and what is the best approach. In reality the problem is more complex and Dr. Perry has to examine if the wages are really the issue. (Richard Ivey School of Business, n. d.)

2) Problem Identification

The issue as can be seen from a prima facie examination is that there is a concern about the organizational effectiveness. Te objective of this problem solving attempt it has to be acknowledged is simply making Dr. Perry's Clinic more effective in other words we are concerned with the organizations effectiveness. The original definition of the word effectiveness in this case was the definition that the extent to which the organization was able to achieve its stated goals. However this goal theory has fallen to disuse in a modern context. (McShane; Glinow; Ann, 2009)

The issue then could be asked if Dr. Perry did have a goal. That would open the eyes to how the institution functioned. What was the goal and mission that was set for each year to be achieved, in terms of revenue, and other achievements? What part of the revenue was set aside for improving the workplace and what was done to see that there was 'something for the staff' to look forward to? There is nothing to show that such a mission and vision statement existed for the firm. We cannot therefore blame the entire problem to be analyzed solely on the staff issue. Nothing in the given report shows that these discussed issues were also addressed earlier by Dr. Perry. The case shows that Dr. Perry was a just and very liberal employer who gave free time and understood the needs of his staff and was not cantankerous. He also is shown to be willing to take the employees into confidence and share profits and discuss issues with them. He is also thinking of making the hygienists as independent professionals. (Richard Ivey School of Business, n. d.)

The fact emerges that:

1. The doctor has not made a concrete analysis of his practice and set a road map with a through analysis of the paradigms that would have given him the idea of where his business and his staff were leading each day.

2. The doctor did not in theory find if the revenue sharing would help his cause and if he must at all share revenue with his staff.

3. The question is if the revenue shared would eat into the profit without bringing the desired result and create a liability?

4. Or are there alternate methods of motivation like converting the employees to freelancers in which case will they be retained and what will be the implications?

5. What other models can the doctor consider in order to motivate the staff without or with the revenue sharing process?

6. How can the staff be motivated and what will be the implications?

3) 8 Step Case Analysis Process

The 8 step process was outlined by the American Management Association --AMA and is considered in solving the problem of Dr. Perry. This process will use three stages and within that an eight step analysis to solve any problem. To do that for the case of Dr. Perry would mean solving the dilemma of the staffing issues.

Step 1 -- Review the case and identify the relevant facts

Dr. Perry was not unpopular with the workers. Therefore the problem lies elsewhere and not with the employer. On the other hand the doctor has a feeling of inadequacy about his people management skills. This is also considered by him to be a cause of the problem at the workplace.

a) the major problem is that the staffs are not motivated to attend to their work in a more befitting manner and they seem to show indifference.

b) This is observed for all the staff, which according to the reporter Sandi Receptionist (Richard Ivey School of Business, n. d.) was the case with the whole establishment.

c) One of the solutions that the doctor was considering was the motivation with sharing of profits with the staff thus motivation being created by the consideration. This idea was not Dr. Perry's but a sketchy recollection of a lecture and is a scheme that is not backed with full knowledge. This idea is the second problem because it has blocked all other roads and it is not complete.

Step 2 - Determining the Root Problem

There appears no concrete proof that the problem lies with emoluments alone, because it is established that Dr. Perry has already given all possible emoluments and all possible concessions to his staff. (Richard Ivey School of Business, n. d.) in other words the dentists who do better than him in the same place are hard and their staff seems to be dexterous. Is Dr. Perry too lenient? These questions if seen with the proper perspectives of employee motivation could provide the answer to the major question: "What must the doctor do to get the staff performance high?"

Step 3 - Identifying the Problem Components

1. The personnel management problem that Dr. Perry admits he has namely the lack of training in dealing with people may be the main problem although on the surface the staffs are cordial to him. (Richard Ivey School of Business, n. d.) Management could take on many dimensions and one of the problems could be that the doctor has been taken for granted by the staff. In other words nothing by way of leadership and motivation seem to stem from the Doctor. He must therefore be acquainted with principles of personnel management for which he must spend some time in study. It is doubtful if increasing remuneration alone can have an effect without the change in managerial approach by the Doctor.

2. The root problem thus is the method of increasing the productivity of the staff or creating a system that could motivate the staff into performing better. Since the process necessitates that all alternatives have to be analyzed the doctor's idea of sharing revenue is one of the alternative.

Step 4 - Generating Alternatives

The alternatives for this case can be made primarily using employee cooperation and motivation as the doctor seems to have gone a little deep into the matter with the idea. Further modern theorists who believe that the modern capitalist system has undergone vast changes and the traditional concepts of employment have all become obsolete. Employers look out for more flexibility and accommodative modes of production from employees while on the other hand the collective representation and bargaining power of employees post globalization is wanting.

Added to that, the casual labor, seasonal employment and specific purpose contract-based employment have come in vogue. The boundary between the traditional employer and the employee is slowly getting blurred. (Dundon; Rollinson, 2004) There thus ought to be a newer definition of employee relationship and the analysis of the modern development of employee relationship management. This may thus be a real solution, as it was thought of by Dr. Perry.

Alternatives for Dr. Perry

1. Go ahead with the plan for revenue sharing with or without freelancing of the staff: But revenue sharing by itself may not be the solution. The doctor ought to find out why staff like Sandi appears motivated while other is not. People are expected to manage their emotions in the workplace. They must conceal their frustration when serving an irritating customer, and so on. (McShane; Glinow; Ann, 2009) the difficulty with the staff may not be with the emoluments but with the emotions. Therefore the doctor can try a little novelty by projecting the business itself in a different manner by giving the work a new set of names. Managing emotions at work is one of the problems that all staff and worker face and at this stage the problems could be elsewhere instead of the clinic. By arranging for social interaction between his staff, especially using the week end party for appraisal the problems that the staff have emotionally could be addressed.

2. Infuse new blood and technology and replace old with new staff: The personal aptitude is important. The current staff may be lacking the zeal and aptitude for the job. Especially when the technology is changing they may have become redundant. It is therefore better to remove those who are extreme in the lethargy and replace them with new and more techno savvy persons and bringing in technology that can help in keeping transactions up-to-date and also provide for continuity. (McShane; Glinow; Ann, 2009) Competencies always create superior performance. Thus the doctor must make use of a proper recruiting firm that can test aptitude of employee before he employs the new ones. This is because with this system the doctor ought to change the data management system and use high technology. But the problem has to be gone into detail. A second strategy is to provide training so that employees develop required skills and knowledge.

3 Standardize the system by applying for standardization with ISO for example and together with that the doctor must take an evening course in management. If that is not feasible appoint an office manager. Since most of the above are possible combining 1, 2, and 3 and along with that make it a point to refurbish the clinic by giving it a new motto, and customer service system including a technology-based system and BPO facility.

4. Shut down the clinic and seek work in a hospital forgetting this business.

Step 5 - Evaluating Alternatives

1. Alternate 4 is rejected at the outset because the business is not in that deep crisis. The problem with the process of revenue sharing is that there is no indicator to show if the remuneration is the real problem. Therefore the Doctor can try a little novelty by projecting the business itself in a different manner by giving the work a new set of names. Managing emotions at work is one of the problems that all staff and worker face and at this stage the problems could be elsewhere instead of the clinic. By arranging for social interaction between his staff, especially using the week end party for appraisal the problems that the staff have emotionally could be addressed.

2. Infuse new blood and technology and replace old with new staff: The attitude of the existing personnel seem to suffer a morale crisis. There could be some problem with the current staff that may have reduced the aptitude for the job. It is therefore a good alternative to infuse new blood by removing some of the staff who are extreme in the lethargy and replace them with new and more techno savvy persons and bringing in technology that can help in keeping transactions up-to-date and also provide for continuity. Therefore this is considered to be a good alternative. The behavior of the person could be the cause of an event or an event may cause the behavior in the person. This may be an attribute and forms the basis of the 'Attribution Theory' and in analysis the decision has to be made if the event in this case the indifference is caused by lack of motivation, which is the internal factor or by other external factors like problems at the work place and therefore primarily we have to see if the behavior of the staff is mainly has an internal or external attribution. (McShane; Glinow; Ann, 2009)

3. Standardize the system by applying for standardization with ISO for example and together with that the doctor must take an evening course in management. If that is not feasible appoint an office manager.

Step 6 - Choose an Alternative

In choosing the alternative the SWOT method is used.

Alternative 1: Go ahead with the plan for revenue sharing with or without freelancing of the staff:

Strengths

Weakness

1. There could be better feeling of responsibility because revenue is also the staffs.

2. There may be an opportunity to attract better talent when the sharing of revenue is proposed.

1. There will be no permanent motivation because the increase at the end of the session may not match the expectations.

2. Customer service will suffer because the service mind will be replaced with monetary angle.

3. There is no guarantee that the problem actually is because of pay and remuneration problem although the doctor thinks so.