TBL Application 3

The Southern Health Network (SHN) is responsible for all hospitals in the Illawarra. One
small regional hospital focusing on rehabilitation services has undergone many changes over
the past decade. These changes have resulted as successive governments attempt to keep
the hospital open in the face of challenges relating to aging buildings and equipment,
soaring staff costs and strong community sentiment to keep their hospital open. Further, a
recent series of articles published by the Illawarra Mercury and the Sydney Morning herald
have suggested staff are being treated unfairly, forced to do too much overtime, and are
expected to do menial work beneath the requirements of their requisite professional duties.
The media have unanimously attacked the Directors lack of control and direction, writing
similar stories. The latest inflammatory article pictured the hospitals Deputy Director in a
hostile standoff with her staff. The caption read: Ailing local hospital unable to heal itself.

As a result of this, and other issues, changes to SHN management have just been
implemented. The Director of Nursing responsible for overall management, and reporting to
the SHN executive, has been promoted to a more senior position at another hospital. The
Deputy Director at the local hospital has been promoted to the Directors position and a
new Deputy appointed also from within the ranks. The Director of Nursing and her Deputy
are responsible for managing senior medical staff such as Doctors, allied health staff such as
social-workers and physiotherapists etc., nursing staff, admin staff and cleaners. Often these
allied staff are coupled together into functional teams for problem-solving and clinical
services. Problems have now arisen with some staff as morale is low and many staff are de-
motivated due to a lack of resources, a negative realignment of personal values with
organisational goals, reduced incentives, a lack of belief in the organisation and themselves,
and an aging workforce. Other measures taken have seen an abolishment of the staff social
club, a hold on all training for 12 months, and a reduction in paid overtime.

While the former Director Pat is clearly a Theory Y manager, her replacement Jo is
much more Theory X oriented. Staff responses to the new appointment have been generally
negative although much of the discussion has been behind closed doors. Of particular
concern to staff is the social club. Almost all staff were members of the club, and social
occasions were held regularly with good attendance. Club members feel that the loss of
their long-term patron Pat will sound the death knell of the whole organisation.