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Managing the workforce reduction: hospital CEO perceptions of organizational dysfunction
Kent V Rondeau1, Terry H Wagar
1Department of Public Health Sciences, University of Alberta, Edmonton, Canada. kent.rondeau@ualberta.ca
Summary
Healthcare organizations undergoing downsizing can mitigate negative impacts by implementing progressive workforce reduction practices. How these reductions are managed is more critical for organizational effectiveness than the scale of the workforce reduction itself.
Area of Science:
- Health Services Research
- Organizational Behavior
- Healthcare Management
Background:
- Healthcare systems globally are undergoing restructuring for improved cost-effectiveness and responsiveness.
- Healthcare reforms frequently involve organizational downsizing and workforce contractions.
- Workforce reductions are often associated with negative organizational attributes and dysfunction.
Purpose of the Study:
- To investigate the link between workforce-reduction practices and perceived organizational dysfunction in Canadian hospitals.
- To identify "best practices" for managing workforce reductions to mitigate negative consequences.
Main Methods:
- Analysis of a large sample of Canadian hospitals.
- Examination of the relationships between specific workforce-reduction strategies and organizational dysfunction.
Main Results:
- The implementation of progressive workforce-reduction practices, both before and after downsizing, can mitigate organizational dysfunction.
- The methodology of workforce reduction significantly influences organizational effectiveness.
Conclusions:
- The manner in which workforce reductions are executed is a key determinant of organizational effectiveness.
- Strategic application of "progressive" practices can lessen the adverse effects of healthcare downsizing.