Organizational culture relates to the values and norms that are involved in the running of an organization (C. Ferrell, Fraedrich & Ferrell, 2012). Through a proper and established culture, an organization can have the capable to realize its goals and objectives. The ethics portrayed while running an organization are used in the evaluation of the organization’s corporate culture. Ethics in corporate culture can be evaluated via a number of ways. Encouraging employees to devote themselves in the running of the organization and top-level management effectively communicating with their subordinates creates a proper, ethical climate in the organization.
The case study presents an ethical dilemma that may happen in an institution such as a health organization. Dawn Prarie, a recently promoted marketing director in the hospital, is faced with the task of ensuring the hospital does not undergo more losses. In addition, the vice president of the hospital directs Dawn to ensure that profits are reflected in the balance sheet. The losses from the elderly patients are because of the recent Balanced Budget Act. Dawn’s first course of action is to fire four key people under him and assigns their tasks to their sub ordinates. He then comes up with a list of recommendations that the hospital can adapt to increase revenues while at the same time reduce costs.
Dawn’s staff proposes a strategy to separate the elderly patients into four categories. This will ensure resources are directed toward the healthy elderly rather than the uninsured and unhealthy patients. The vice president decides to destabilize the nurses union, which results to a go slow in the hospital’s operation. In addition, the nurses report this to the top management, which recommends the vice president to increase the overtime for the nurses. This results to a 50% increase in the productivity of the workforce. The only downside to this is the increase in accidents among the workers because of use of sub-standard procedures and equipment. The vice president decides to implement the segregation strategy for the elderly patients since the recommendations by Dawn have had a positive outcome.
One of the ethical issues in play in the health organization is a conflict of interest. This is seen when the vice president is focused on the destabilizing of the nurses union. In the process, the nurses slow down their work rate and report the matter to the upper management.
The agenda of the hospital, to make profits, is another ethical issue that is portrayed in the case study. This is can be illustrated by the vice president’s actions. She directs her marketing director that she needs to develop strategies, which will increase the hospital’s profit. The vice presidents concern was that no profit was being made in the elderly market. There is no indication whatsoever that vice president is concerned with health of the health patients.
The hospital’s strategy to reduce losses and increase profits brings about unequal treatment of the elderly patients as an ethical issue. The elderly patients who were designated as healthy would get most care including even tests such as prostate screening and cholesterol checks, while the rest of the patients such as the demented and dying would get the least care.
Another ethical issue is the poor, working conditions of the nurses. Lack of provision of standard equipment and procedures resulted to work related accidents. This was also caused by the incentive that anyone who worked faster or smarter would get a higher pay. In addition, instead of the vice president addressing the issue through purchase of the standard equipment, she writes a memo that only informs the staff to follow the standard procedures without any comment about the issue of sub standard equipment such as gloves.
PCA Health Care Hospitals’ Corporate Culture and Its Ethical Implications
PCA Health care hospital corporate culture is an apathetic culture. It focuses on making profits with little concern of the welfare of the patients and staff. The goal of the vice president in cutting cost is reflected in the top management, which directs her to offer overtime to the complaining workers and ensure no new hiring is done to keep the hospitals expenses low. Some of the proposed recommendations are contrary to health standards that are expected in health organizations. An example of this is prescreening of patients insurance.
For-Profit Versus Nonprofit Health-Care Facilities
Research shows that for-profit health organizations often provide low quality care, as is the case in PCA health organization. A major characteristic of the for-profit organization is that it is run as a business (Dixon, 2006). That implies that costs have to be minimized, and profits maximized. The only way that for-profit organization can be able to offer quality health services is by serving rich clientele, as opposed to the less fortunate.
Information Required For Making Decisions
Important information that would assist in making decision would include the company values and objectives, stakeholder’s recommendation on the best approach to resolve the loss problems, and an audit report on the number of relevant test that are essential for the elderly. In addition, I would consider the effect of the proposed recommendations on the health of the elderly patients. Furthermore, an audit report on the various tasks in the hospital could assist in the way labor is allocated to minimize costs.
If I were Dawn, I would make an evaluation on how the elderly patients would be affected by the proposed decisions. For this case, the uninsured and elderly sick. Furthermore, I would look for insurance agencies that can offer to support the uninsured, elderly patients in order to subsidize their cost.
Dixon, K. (2006). Nonprofit Health Care Often Better Study. Common Dreams. Retrieved from
Ferrell, O., C., Fraedrich, J. & Ferrell (2012). Business Ethics: Ethical Decision Making & Cases
(Ninth Edition). MA: Cengage Learning.