Interwest Healthcare is a nonprofit organization that owns I 0 hospitals located in three western states. Cynthia Manzoni is Interwest’s CEO. Vijay Singh, Interwest’s CFO, and the administrators of the I0 hospitals report to Manzoni.
Singh is deeply concerned because the hospital staffs are not being careful when entering data into the firm’s management information system. This data involves information on patient intake, treat n1ent, and release. The information system is used to compile management reports such as those relating to the costs of various treatments. Also, the system is used to compile reports that are required by the federal government under various grant pro grams. Singh reasons that without good information, the management and government reports are less useful and potentially misleading. Moreover, the federal government periodically audits Inter west and might discontinue aid if the reports are deemed inaccurate. Thus, Singh is worried about the managerial implications and the potential loss of federal funds.
Singh has convinced Manzoni that a problem exists. She also realizes the importance of an accu rate system for both management planning and maintaining federal aid. Six months ago, she invited the hospital administrators and staff members from the corporate financial office to a retreat at a resort. The purpose was to communicate to the hospital ad ministrators the problems with the data entry and to stress the importance of doing a better job. The meeting was acrimonious. The hospital people ac cused Singh of being a bureaucrat who did not care about patient services. Singh accused the hospital staffs of not understanding the importance of accu rate reporting. By the end of the meeting, Manzoni thought that she had a commitment by the hospital administrators to increase the accuracy of data entry at their hospitals. However, six months later, Singh claims that the problem is as bad as ever.
Manzoni has hired you as a consultant to analyze the problem and to make recommendations that might improve the situation.
1. What are the potential sources of the problem?
2. What information would you want to analyze?
3. What actions might you recommend to in crease the accuracy of the data entry?
4. How does your view of behavior affect how you might address this consulting assignment?
Analyzing Managerial Decisions
The potential problem sources at the Interwest Healthcare is the failure of the management to offer effective communication on the significance of accurate data entry. Also, another source can be the technology in use. Data systems are meant to manage and analyze data, but at times might experience glitches or inadequately set up to meet the organizational goals (van Deursen, Buchanan and Duff 32). Additionally, another source of problems could be the lack of flow information through the various levels of management where the top management does not gather relevant insights from the employees.
As a consultant, the first piece of information to analyze would be a comparative analysis of the recent reports of the hospital. Also, the review would include the content recorded in the files. Such information can be significant in identifying the source of inaccuracies and developing the mitigation strategy. Additionally, the details gathered can help Singh to explain to the various stakeholders where the discrepancies exist….