Organizational strategic planning

Hemant Sule Article Critique 3

Tourigny, L., Godfrey, L., Pulich, M., (2006). Decision making in health care organizations. The Health Care Manager, 25 (2), 101 - 113.

It is well known that managers who delegate face limitations due to budget and resource constraints. Delegation is affected by organizational activities managers in healthcare need to know how the organizational strategic planning will affect their functionality and their home units. Abundance in resource can contribute to ineffective use of resource. One must scrutinize how monetary planning will influence delegation. Large portion of financial budgeting is allotted to develop the set of skills which an employee acquires on the job, through training and experience, and which increase that employee's value in the marketplace. Effective delegation requires extensive training and development of managers to help them make effective decisions. Organizations should provide guidelines or tools to recognize and select competent employees down the line of hierarchy. Career planning like "Clinical Ladder" programs can help select subordinates. Employees accepting additional responsibilities should be appealing rewards to boost the morale and tempo at work. Performance appraisal can be used as a tool for selecting delegates.

It is evident from the article that the delegation prepares the subordinate employees to assume greater responsibilities in the future. Since delegation requires letting go some of the control over the resources available, strategic decisions may be affected adversely. Delegation should be evaluated for potential risks and benefits as it influences long-term changes in the organization. Environmental responsiveness is enhanced and the implementation of a selected course of action is expedited due to delegation. Delegation can generate stiff competition among subordinates in the work environment that needs to be evaluated for healthier outcomes for the organization.

Sometimes managers may choose a course of action that is not optimal. This can happen if they do not follow a rational process through which risk is calculated. Self-defeating behavior also undermines managers' credibility. People who engage in a lot of it may be pitied, but they are never respected. Psychologists Kahneman and Tversky (1979) gave a critique of expected utility theory, which they call prospect theory. It is a descriptive model for making decision under risk and developed as an alternative model, which implies that managersvaluelosses and gains differently, and will base decisions on perceived gains rather than perceived losses. Thus, if a manager is given two equal choices, one expressed in terms of possible gains and the other in possible losses, the manager would choose the former.

To conclude, I would like to say that delegation is a healthy and safe practice if done after careful evaluation and selection of subordinates who are trustworthy, motivated, and proactive. It needs to be done in accordance with the organizational policies, procedures, values, and mission statement for optimal organizational growth. As transformational leader, the manager needs to make sure that delegates do not divert from common organizational goals as they compete and the delegates are rewarded. Delegation is a process involving mutual trust and respect and standing by the moral values associated with it. I agree with the conclusion of the authors.

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