Mergers You a Middle Manager a Healthcare

Mergers

You a middle manager a healthcare organization merged a previous competitor. Up, employee's competition enemy provided a poor quality care. The corporation, place inpatient outpatient services organization.

Surviving a merger at a large healthcare entity: Managerial concerns

Surviving a merger at a large healthcare entity: Managerial concerns

Mergers are extremely difficult and delicate periods within any organization's history. More mergers fail than succeed. Uniting an organization with two very disparate cultures makes the endeavor even more challenging, and much is at stake, given that a failure of a healthcare merger can result in serious harm to patients as well as to both organizations' reputations. "Merger failures usually revolve around people issues -- loss of key staff, culture clash, FUD: fear-uncertainty-doubt, and last but not least, poor communication and interaction between employees of the merging organizations. Many of these issues are also faced by companies participating in joint ventures and strategic alliances" (Krebs 2010).

Change resistance and fear of change amongst the workforce is inevitable, and during a merger people often fear losing their jobs as well as being forced out of their personal workplace 'comfort zones.' They also fear a loss of organizational power. An effective middle manager must convey a positive attitude about the merger, given that his or her consciously or unconsciously-expressed doubts will be used as a justification amongst subordinates to engage in change-resistant activities, such as complaining; refusing to fully implement new standard operating procedures; or refusing to 'understand' new technology or organizational constraints imposed upon employees involved in the merger.

The merger's impact upon the organization can be difficult to predict. If no effort is made to integrate the two cultures, the different branches of the organization may evolve independently. While this may allow them to keep their original strengths intact, it can also be damaging as there may be internal competition between organizational resources. This will defeat the likely purpose of the merger in the first place, as most mergers are created to make use of mutually beneficial synergies.

It is often feared that one part of the company may subsume the other. Stronger and more competitive or cutthroat organizational entities are likely to dominate the less competitive aspects of the company. The needs of each branch should be carefully balanced against one another. At present, one part of the corporation has in place several inpatient and outpatient services that the original organization does not, which fosters resource-driven competition. Even if the original entity was not inclined to compete for resources, creating a sense of equity is essential to avoid stimulating fear and a demanding mentality in one branch, and a 'circle the wagons' protective attitude in the more generously endowed organization.

When two entities merge in healthcare, the usual organizational model is a functional one, in which organizational satellites operate independently of one another, each serving a specific function under a distinct leader. There is strength in this model as different specialized branches can make decisions based upon specialized knowledge. 'Best practices' for radiology may not be same for pediatric units. However, this can foster the 'us vs. them' culture that creates an unharmonious organization. No matter what the organizational structure, there must be a sense of a larger mission. Units may be internally oriented and focused on success, but only through team-building efforts and wider organizational activities can the new entity truly function as a whole.

A better way of organizing the new unity may be a matrix structure. "The matrix organization is an attempt to combine the advantages of the pure functional structure and the product organizational structure... In a matrix organization, each project manager reports directly to the vice president and the general manager. Since each project represents a potential profit centre, the power and authority used by the project manager come directly from the general manager. Information sharing is mandatory in such an organization, and several people may be required for the same piece of work. However, in general, the project manager has the total responsibility and accountability for the success of the project" (Matrix, 2010, Visit Ask). In a matrix structure, different units can exhibit their specialized knowledge and awareness of the needs of specific population groups, yet they are still held accountable to individuals with a holistic organizational responsibility, such as a general manager.