Leadership and Healthcare Administration Like

Leadership and Healthcare Administration

Like all businesses, the financial, administrative, and operational successes of healthcare organizations depend to great extent on the effectiveness of the leadership skills employed by managers.

Financial losses need to be averted and productivity needs to remain high, while at the same time ensuring the satisfaction of employees and clients. Change is an inevitable factor involved in any organization, and the health care sector is continuously changing in response to its environment. In order for health care organizations to thrive within the current healthcare delivery market in the face of challenges presented by change, health care administrators need to assess their approaches to leadership and identify where adjustments and adaptations can be made in regards to leadership.

Conceptually, leadership styles in business management retain common characteristics across industries. One fundamental similarity between all types of business organizations is exposure to challenges presented by change. Leaders that demonstrate the most effective skills devise ways to convert these challenges into opportunities and successes (Wilcox, 2003). Wilcox (2003) outlined five key practices among the most exemplary leaders which were proposed by Kouzes and Posner. These practices included: challenging the process; inspiring a shared vision; enabling the action of others; modeling the way; and encouraging the heart.

A highly effective leader changes and improves the organization through risk taking and forward thinking, and continually analyzes the organization within its environmental context in order to implement innovations that place the organization in a better position within the industry and to better serve clients and employees (Wilcox, 2003). This leader has the ability to motivate the participation of others in the pursuit of common goals, and develops trusting relationships through the collaboration of others, enabling people to act through empowerment (Wilcox, 2003). An exceptional leader also sets a standard for acceptable, ethical behavior, and provides recognition of individual and team accomplishments both publicly and privately (Wilcox, 2003). All of the qualities and characteristics outlined above are aligned with the five fundamental practices of exemplary leaders (Wilcox, 2003).

Although the health care industry shares some common, fundamental features with all businesses, healthcare organizations differ from traditional businesses in ways that require adjustments to typical leadership models (Summers & Nowicki, 2005). One key way in which healthcare organizations are different is that the usual market model of supply and demand does not apply to this context. The mission, values, and vision of healthcare organizations are based in the healing ethic, with foundations in medicine and clinical practice rather than traditional business practices (Summers & Nowicki, 2005). Moreover, the moral and ethical compass of leadership lies primarily with the clinical staff in healthcare organizations (Summers & Nowicki, 2005).

Summers & Nowicki (2003) used the analogy of farmers to illustrate how effective leaders in healthcare management operate effectively. They describe how managers "till the ground, prepare it, plant seeds, and nurture those seeds (Summers & Nowicki, 2005)." Seeds in this analogy represent the clinical staff, who need to exhibit success and achievements in order for organizations to be led towards goals. The language chosen by managers is important for the affirmation of power relationships within healthcare organizations. Managers who are effective leaders should describe themselves as "allies" to clinical staff, implying shared values even though administrators are unable to directly order or provide the core services provided through healthcare (Summers & Nowicki, 2005). Overall, language by leaders that is more aligned with medicine, healthcare, and healing rather than the language of business, proves to be more effective.

Some styles of leadership may be more effective for management in healthcare organizations. Frerichs (2001) described how passive, uninvolved management styles among financial executives in healthcare are not desirable, and that leadership styles that show proactivity and hands-on management are more in demand. Chief Financial Officers (CFO) in healthcare are required to be advocates and agents of change, willing to execute operational decision making. Doing so necessitates intense involvement in operations and their analysis in the ultimate quest for improved, cost-efficient productivity through a continual commitment to change (Frerichs, 2001).