Relationship Case Study Discussion Question
When an organization is going through good times the leader may find that relationships flourish, morale is high, loyalty is apparent, and turnover is low. However, in health care finances are tight and budgeting can be challenging.
R.K. the CEO of Quality Hospital was promoted from within, he was the former lab manager. He was soft spoken, had a big heart, and was well liked in the organization. The employees were excited when he was promoted to the CEO position. Morale was high and there was a great deal of trust in his leadership.
Upon taking over the CEO role, he soon realized the organization was hemorrhaging, losing a lot of money in the physician offices. He knew this was a problem that he was going to have to deal with. However, it was budget time and cuts had to be made. The budget went through five rounds of reductions and it was still not a balanced budget. The only cut that seemed reasonable was to forgo raises that year. The organization had always given an annual across the board pay increases in March and employees were expecting them. He held budget forums to explain to the employees what he felt was the only option to getting a budget. One employee asked if administration was going to take a pay increase to which he responded “no”. He told the employees that when we could we would make it up to them. The employees responded “we are with you”, “thanks for sharing the reasons”, “we want this hospital to survive”, etc. There were no public negative comments. The CEO walked out of the meeting feeling so much relief, because he did not want morale to be impacted.
The following year the organization was doing better financially, so he gave everyone a one-time bonus in the amount their raise would have been in the previous year. This bonus was delivered the first of December. Many employees used this bonus to buy gifts for families of employees who were going through difficulties. There was sheer joy in the organization and patient satisfaction and employee satisfaction scored indicated that the organization was moving in the right direction.
How did relationships that the CEO had built have an impact in this case?
If the CEO did not have a good relationship with employees how could the outcome have been different in this case?
Describe a time when the relationships you have built helped you land the perfect job, or helped you get through a tough time in your professional life, or helped your organization move forward.
What are you going to do to build good relationships in your professional life? What behaviors, traits, and skills will you use exhibit?