1489576__HospitalStructure_R_

1489576__HospitalStructure_R_ - Changes in Healthcare...

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Changes in Healthcare 1 Running head: CHANGES IN HEALTHCARE IN THE NEW ECONOMY: STRUCTURE Changes in Healthcare in the New Economy: Structure, Operation, Strategy, and Sources of Ideas [Author’s Name] [Institution’s Name]
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Changes in Healthcare 2 Abstract The pace and the complexity of organizational structure is a major influence upon the effectiveness or otherwise of the planning approach to strategic management. The more complex and the less predictable organizational change is, the more difficult it is to anticipate and plan for future changes in a formal deterministic way. In addition, the less control the hospital has over key drivers in its organizational settings, the more likely it is that effective strategic decision making emerges from the combined action of several players both internal and external to the hospital as a firm in an incremental way.
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Changes in Healthcare 3 Changes in Healthcare in the New Economy: Structure, Operation, Strategy, and Sources of Ideas Introduction A strategy in the Art of War, which is the best-known work on ancient Chinese military strategy, said that “know yourself and the enemy, and win with ease” (Sun Tzu, at around 400 BC). But in the era of new economy where the competition is very fast and come in different patterns as in the past, knowing yourself and the enemy are not enough. An organization has to know more than in Chinese poem. In this era of knowledge-based economies, a yesterday enemy may become a today alliance. Today, you may have no enemy but tomorrow your business will be gone because of a new hi-tech enemy who makes your technology or the way you do business obsolete. A strategy that fits the fast-changing competition has been explored. The third era of strategy has been defined as a portfolio of relationships. Economies of scale and scope are well known in the past. At the present time, strategy is known as a portfolio of relationship which will focus on the economies of expertise. A question for the new strategy will be how to become a network centrality that consists of ideas and generate businesses out of those ideas before others. The successful of Cisco, Microsoft, and Intel are strengthening the concept of network centrality, using the concept of corporate venturing (Venkatraman and Subramaniam, 2002). In this era, to win the competition, knowing yourself, enemy and also having good networking are needed. The process of strategic decision making by hospitals as organizational conditions change has been analyzed by many strategists. Mintzberg (1990) identified ten different schools of thought on the process of strategic decision making. Broadly speaking, however, there are two main camps. The planners who focus on the implementation of deliberate strategies, formulated after rational consideration, and the incrementalists. The latter's approach views strategy as a
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Changes in Healthcare 4 pattern in a stream of organizational activities. This perspective views strategy as a process of
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1489576__HospitalStructure_R_ - Changes in Healthcare...

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