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Managing effectively in the downsized organization.

Edwin Arnold1, Marcia Pulich

  • 1Management Department, Auburn University at Montgomery, Montgomery, Ala, USA.

The Health Care Manager
|April 12, 2003
PubMed
Summary

Healthcare organizations must implement new human resource strategies to ensure effective operations and performance after downsizing. Key strategies include strategic planning, selective hiring, and employee empowerment for improved organizational effectiveness.

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Area of Science:

  • Healthcare Management
  • Organizational Behavior
  • Human Resources

Background:

  • Recent years have seen significant downsizing in healthcare institutions driven by cost-saving measures and the need for organizational restructuring.
  • Effective performance in a downsized healthcare environment necessitates strategic adaptation by top management.

Purpose of the Study:

  • To outline essential strategies for healthcare institutions undergoing downsizing.
  • To guide top management in developing new approaches for effective line management post-restructuring.

Main Methods:

  • The study reviews organizational restructuring and human resource management principles in the context of healthcare downsizing.
  • It identifies critical policy areas requiring strategic implementation.

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Main Results:

  • Successful downsizing requires proactive human resource strategic planning.
  • Key initiatives include selective hiring, employee empowerment, and robust training and development programs.
  • Reducing status distinctions and enhancing information sharing are crucial for employee engagement.

Conclusions:

  • Implementing comprehensive human resource policies is vital for maintaining operational effectiveness in downsized healthcare settings.
  • A focus on performance-based pay and empowered employees can mitigate challenges associated with organizational restructuring.