Healthco Case Study

Improved Essays
A significant issue at Healthco is the lack of communication between management and employees. The managers are not effectively communicating with the clerks, this is shown through Healthco employees being informed of policy rate changes 15 minutes before the offices closed on the day before the rate rise, because of this the clerks lacked the knowledge to inform and answer any questions members had regarding the new policy rates, this caused the members to become aggressive and abusive towards the clerks, moreover causing a decline in members. Additionally, due to there being similar incidences in the past and the decline in membership caused a decrease in employee moral and motivation. This issue carries over and extends to the management …show more content…
Employee’s say that they have been doing it “that way for so long”, and “the CEO can’t see a reason to change.” The lack of employee input and their inability to contribute to the organisation has lead to a decrease in employee moral and several employees leaving the company due to them not being allowed to use their initiative. This style of management resembles Taylor’s Principles of Scientific Management (1914). Frederick Winslow Taylor wanted to improve labor productivity by analysing work in a scientific manner, in order to find the "One Best Way" to perform a task. As the CEO believes he has found the one best way he is not willing to even consider change, as he believes that his way is superior to the other employees ideas. Employees also feel that Healthco is “stuck in the dark ages” as employees efforts often go unnoticed by superiors, saying that they only hear feedback from supervisors when they do something wrong, because their lack of recognition employees feel under …show more content…
This way of thinking very much aligns with The Principles of Scientific Management (Taylor, 1914), as Taylor believed in money as the major incentive to work. All of these issues above also relate to Hofstede 's cultural dimensions (1989), more specifically the Power Distance aspect of his theory. The CEO has all the power in Healthco, this is shown through the lack of communication between the CEO, supervisors and clerks, and the management style adopted by Healthco, however the lower ranked employees of Healthco do not accept this, and believe that the power is disputed unequally. Moreover, this issue with the company’s Power Distance it highlights the imbalance between corporate culture and organisational

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