Conflict in the Capital Budgeting Process at University Medical Center: Let\'s A

Question

Conflict in the Capital Budgeting Process at University Medical Center: Let's All Just Get Along-Case for Chapter 10 Windsor Westbrook Sherrill and Callie E. Heyne Introduction: The Challenge of Limited Resources In health care organiza intricately tied to one another. This is particularly the case in the process of making capital purchase decisions. A good capital budgeting process ensures optimal allocation of resources and helps management and physicians work toward improved services. If clinicians and health services that are responsive to a competitive health care environment, capital bud acquisition decisions must be managed in a way that minimizes conflict and maximizes organizational resources. tions, the business interests of clinicians and management are managers are to be partners in creating programs and services geting and capital Long-term investment decisions should provide a level of unity within the organization. An effective capital budgeting process must manage the interests of the numerous constituencies in the health care organization, while coming to an agreeable way to allocate scarce resources. The process can be inherently filled with conflict. Clinicians expect participation in decision making from the health care organization, especially in areas of clinical equipment purchases (White & Griffith, 2010). To achieve optimal outcomes, physicians and managers must be allies in making capital decisions. Different interest groups in the organization have different objectives. Primary care physicians might favor increased funding for ambulatory care, while surgeons might desire more operating or diagnostic tools. Various departments apply themselves for scarce organizational resources, particularly funding for capital purchases. In an environment of scarce resources, units of the o the interests of various groups are not managed in the capital budgeting process, conflict will inevitably result. for and compete among rganization compete for funding. If 588

Explanation / Answer

1. Majority rule approach is an approach where anything is implemented which is chosen by the majority of the people. The capital budgeting process implemented at UMC follows a majority approach to conflict management. Although they accept proposals from all the units, finalization of the capital purchases depends on which proposal gets the maximum approvals from the members of the budget review panel. It is difficult to meet the demands of all units and hence the most important capital purchases are given the first priority. This can lead to dissatisfaction among the units whose proposals have been rejected for that particular cycle and can lead to resentment. To reduce conflicts among the stakeholders UMC can evaluate the needs of the units and estimate the dependence levels on the investment. Suppose there are two units and they are requesting the management to provide equipments, the panel can look into the aspect regarding the quantity and see can if the management can buy one equipment each and meet the demand from the patients. Also in this cycle if the purchase is it not possible, assurance has to be given that the next cycle this purchase will be made if it is necessary. Also it has to be communicated to the concerned unit on why their proposal has not been taken for that particular cycle and has to be discussed on how to manage their work flow with the existing resources. In terms of having the clinical stakeholders, each unit staff leaders are already present which gives a good scope for them to listen to why their proposal has been accepted or rejected.

2. One needs to anticipate the repercussions of denying a unit’s proposal. Choosing of language which does not trigger anger in the people to which the rejection is communicated. In case the rejected party has some concerns over the rejection they have to be given an opportunity to communicate it to the management. This will make them feel their concerns are heard if not implemented. This can minimize destructive behavior from the rejected party. In case of rejection for that particular cycle, assurance can be given that their request can be met in the coming cycle. Also if a proposal has been accepted the reasons for acceptance like how it will impact the organization on the whole has to be communicated and transparency has to be maintained.

3. Whether the proposal has been accepted or rejected cordial relationships have to be maintained with everyone.

Listen to the concerned carefully and ensure to build trust with all the stakeholders.

Try to resolve the conflict by putting aside our concerns and focus on the big picture what is good for the organization.

Try to be accommodating and ensure effective utilization of resources.

4. Listen to the concerned party and do not rubbish their concerns. If they are showing their resentment definitely their concern is valid and it is necessary to evaluate how to address them. Try to have mediators incase the confrontation can lead to issues. Check for alternate non financial ways to please the dissatisfied leaders

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