Service Line Management
When service line management is applied to health care, all inpatients are grouped into diagnosis-related groups, so that hospitals can easily define segments of services provided and efficiently calculate profits and losses. This ability to find out the growth and profitability of each service segment allows more coordination within the health care sector, and allows for effective strategic decision making.
Leadership in Service Line Management
Under this system, each DRG must have its management. The leader must be flexible enough to welcome new ideas and come up with creative solutions which suit today’s dynamically changing world. Moreover, he should be dedicated to achieving long term success for all his employees by challenging himself as well as his workforce to improve performance.
The system needs a transformational rather than transactional style of leadership. This leadership style would improve the effectiveness of the organization, as research shows that transformational leadership results in enhanced performance of employees. (Hall)
The case has specified 4 competencies that must be present in the leader under such a system.
Conceptual Competence
This refers to the ability of the manager to think and understand his thoughts and intentions as well as understand the thought, intentions and behaviors of his employees. In this way he can effectively manage everyone’s behavior, and motivate employees accordingly.
The leader must also have the belief that the whole is greater than the sum of its parts. Thus, he must have a holistic view of the organization, rather than viewing it as a sum of all its parts. Conceptual competence embodies the ability to see your department as a part of the organization, as well as its place in the larger society. (Porter-O’Grady, 133). Thus, he should evaluate the workings of his department based on whether it is in line with the vision and objectives of the organization.
This style of leadership would make the system more effective because the leader has a clear vision of his thoughts, the thoughts of his employees, as well as the mission of the entire organization. He can thus align all of these and ensure that all are moving in a uniform direction; towards the overall success of the organization.
In case of a health care organization, therefore, each department should focus on its specialty as being part of the entire hospital. The Intensive Care Unit, Emergency Department, and Coronary Department, for example, all have a single aim; to successfully diagnose and cure those who need medical attention. Their each functions are different, but their aim must never deviate from this central objective that guides the entire hospital.
Participation Competence
This means having the ability to create empowered and involved employees. Therefore, the leader must create an environment in which employees actively participate in decision making, discuss and explore new ideas and think of creative solutions to pending problems. Thus, the leader should give guidance, but at the same time leave room for the employees to make their own decisions.
Such participation can only be achieved through clear and open communication. The employees must be communicated clearly about their roles, responsibilities, and expectations from them. Also, they must be encouraged and motivated to actively participate in decision making. Thus, it is important to remove the fear that employees might have, that they would be revoked if they suggest a change in the status quo.
This style of leadership is imperative in the contemporary world as dynamically changing situations call for dynamic decision making, and collective views and opinions will always help under such circumstances.
Also, it is important to know the views of the lower and middle level staff as it is them who are on ground, facing the ground realities of the business. They come into contact with the customers most often, and they feel customer requirements more than anyone.
In the health care, for example, lower staff members such as nurses and receptionists are those who come into most frequent contact with the patients, and it is generally with these employees that they are open to about the problems they face in the hospitals. Motivating these employees to participate in the management by giving their views and opinions is therefore very important.
Moreover, in hospitals, doctors at junior levels need to be given the freedom of decision making, as they will be compelled, at one time or the other, to make on the spot decisions regarding their patients. These decisions might have to be made in crises and under extreme pressure. Therefore, doctors and nurses at all levels must be in the habit of dealing with situations where they have to make difficult decisions in emergencies. To foster this kind of culture, the senior manager must encourage more participation by junior level doctors.
Employee participation also has positive effects on the workforce, in that it increases levels of employee satisfaction, employee commitment and employee productivity. (Bhatti, 54-68)
Interpersonal Competence
Interpersonal Competence is increasingly being seen as one of the key factors to leadership success. The leader must have interpersonal skills to make his employees comfortable and productive. The leader should be approachable, and employees should feel free to come back to the leader with any problems they are facing. When a leader adds a personal touch in his dealings with his employees their productivity is enhanced. Hence, it increases effectiveness and allows the managers to carry out their duties in a better way.
Communication is also an integral part of establishing interpersonal competence. Communication here should focus on two important dimensions; information sharing and asking for feedback. When these two dimensions are fulfilled, performance will be enhanced. (Enos, 121)
Particularly in the health care, getting back employee feedback is very important. Junior level doctors need to keep coming back to the manager with the ground realities they face with their patients. Whenever these junior level doctors or nurses feel the need for some sort of change, e.g. new technology, they must be comfortable enough to communicate this to the senior management. Only in this way will the hospital be run in a better way, and serve its patients more effectively.
Leadership Competence
This means that the manager must have the ability to motivate and influence his employees in the right direction. Also, he must have the knowledge base required to lead his workforce.
In a health care organization, the manager should be an experienced, knowledgeable doctor. His knowledge should be a culmination of his past experiences, as well as his past studies and medical research. Only then will he be able to mentor and successfully guide his employees towards success.
Having leadership competence will enhance the leader’s ability to effectively manage his business unit, as without this competence the leader will not have loyal followers. The leader must have the ability and knowledge required to keep his team members on the right track, otherwise they will go astray.
Thus, leadership skill involves motivating employees by setting targets and providing incentives to reach those targets. Adequate and frequent feedback is a key ingredient in this formula. (Argence)
Works Cited
Argence, R. “Employee Motivation, Take The Horse To The Water…And Make It Drink” www.leadershiparticles.net. 2009. Web.
Bhatti, KK. Qureshi, TM. “Impact Of Employee Participation On Job Satisfaction, Employee Commitment And Employee Productivity” www.bizresearchpapers.com. 2009. Web.
Enos, DD. Performance Improvement: Making it Happen. CRC Press. (2000)
Hall, J. “Transformational Leadership: The Transformation of Managers and Associates” Web.
Porter-O’Grady, T. Quantum Leadership: A Textbook of New Leadership. Jones & Bartlett Publishers. (2003)