Organizational Behavior Case Scenario Essay

Pages: 3 (1045 words)  ·  Bibliography Sources: 3  ·  File: .docx  ·  Level: Doctorate  ·  Topic: Business - Management

Organizational Behavior

Case Scenario -- Organizational Behavior

Current theories in Organizational Behavior and communication could have been utilized in order to help Pleasant Manor avoid the slowdowns and the loss of market share it experienced due to rapid changes in the external market. Unfortunately, these changes were not planned for and the theories that should have been employed were not used in order to improve Pleasant Manor's position. In order to better understand the issues with which Pleasant Manor was dealing, one has to understand the history of Medicare reimbursement changes in the late 1990s and the impact these changes had on sub-acute care, as well as the areas of communication and organizational behavior in which Pleasant Manor failed.

Medicare reimbursement changed late in the 1990s, which made filing and collecting for rehab patients more complicated. Additionally, the capitation on what could be paid out for rehab were affected through Part B of the Medicare program. In other words, companies like Pleasant Manor that were used to billing specific monthly amounts for rehab services suddenly found out that they could no longer charge that much or bill that much to Medicare. That would not have been a serious issue if the facility had not put so much of its time and effort into the sub-acute rehabilitation part of its business. However, with too many eggs in one basket, so to speak, the company found itself struggling financially as the Medicare changes took place.Get full Download Microsoft Word File access
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Essay on Organizational Behavior Case Scenario -- Assignment

Starting in 2000 Pleasant Manor lost money every year, because it could no longer bill as much for Medicare rehab and did not have enough revenue coming in from other sources. It was eventually bought out by another company, which revamped Pleasant Manor and turned it around. The only reason the other company was able to do this was because it understood where Pleasant Manor had gone wrong in the first place -- through a lack of organizational behavior planning and communication that could have kept the facility on top with only minor changes being made over the years. In Pleasant Manor's push to become the most important and valuable sub-acute rehab facility in its area, it neglected every other aspect of what it originally was. Once rehab revenues dropped, the company could not make enough money from the other areas it had to offer, because there was no focus on those areas and no extra money to make important changes to them.

One of the current theories of organizational behavior that would have helped Pleasant Manor is the rational decision-making model (Scott, 2007). While it is often used for things like urban planning, it would also have worked well for Pleasant Manor because it would have required that the company determine the direction it was going to take and then closely monitor the outcome while also remaining aware of the alternatives (Hatch, 2006; Robbins, 2004). The alternatives were where the company got into trouble with its original plan, because it failed to take into account that there was something other than an all-or-nothing approach to sub-acute rehab. Had the company used the rational decision-making model, it would have… [END OF PREVIEW] . . . READ MORE

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Organizational Behavior Case Scenario.  (2014, January 14).  Retrieved October 30, 2020, from https://www.essaytown.com/subjects/paper/organizational-behavior-case-scenario/7404054

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"Organizational Behavior Case Scenario."  Essaytown.com.  January 14, 2014.  Accessed October 30, 2020.
https://www.essaytown.com/subjects/paper/organizational-behavior-case-scenario/7404054.