Miracle Medical Center Case Study

The problems facing Miracle Medical Center, from an HR standpoint, is a myriad of issues stemming from poor employee recognition and engagement. In the short range, MMC should address of a lack of employee recognition and the manner in which performance improvement is recognized. In the long term, MMC should focus on addressing decreasing employee morale and increasing turnover rates. Management research from Luthans and Stajkovic both validate the problems facing MMC in the short run and offer methods of improvement, while the research of Saks can aid MMC in their long term planning solutions.
While the CQI program established by BCG has addressed the financial crisis impacting MMC, the subsequent management of that program has had a negative impact on employee performance. According to Luthans and Stajkovic, MMC should focus more on continual social recognition, while the MMMA award was deserved, management in the organization negatively reinforced their performance by demanding more outcomes in the coming year. While management should not allow the departments to remain stagnant in their progress towards a more efficient organization, they should be positively reinforcing the behaviors of those who are making performance improvements, while also using contingent social recognition to illicit …show more content…
Coupled with entire departments receiving bonuses for cost savings initiatives implemented by a select few on the team, many employees are losing faith in the ability for their organization to lead with equality. This shift in employee engagement, outlined in Saks’ research, is setting MMC up for an increase in burnout and subsequent turnover. When employees no longer feel their organization has their best interests in mind, the employees will no longer feel the need to prioritize the organization’s