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DecisionMakingProcessandPlanninginHealthcareOrganizations1 x

Running Head: DECISION-MAKING PROCESS AND PLANNING 7

Decision-Making Process and Planning

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Decision-Making Process and Planning

Most organizations have failed to accomplish their goals because they cannot constantly define some of the problems that affect the growth and development of their organizations. Subsequently, the process of decision making involves setting a problem in an organization, identifying the criteria needed to solve the problem, allocating the required resources towards the requirements required, finding the alternatives within the conditions, select the main choice, implement the chosen option, and lastly evaluate the effectiveness of the decision (Alhawamdeh & Alsmairat, 2019). Nevertheless, for an organization to achieve its goals without going through a lot of o challenges that underline the process of decision-making, and effective planning procedure should be adopted to enhance a good decision-making process for the development and growth of the organization. Thus, this report would tend to evaluate and recommend some strategic decisions needed to achieve the financial threshold in an organization.

Competencies in healthcare-based organizations are important, especially in acquitting the hospital with an effective service providing plans or ways. Essentially, health care based organizations must deploy strategic management decision making processes to provide benefits for healthcare organizations that will enable them to attain a competitive advantage within the health sector. However, it has been identified that financial challenges to be the major factors that contribute towards poor service delivery within the healthcare service industry. Therefore, a good strategic management approach ensures that healthcare organizations can find it convincing and potentially profitable when deployed in decision-making and planning processes. Strategic management and planning ensure that communication and feedback on performance against the established organization’s goals occur on a regular cadence.

Prioritized Organization’s Strategic Recommendations

Continuously, organizations in the healthcare sector find it challenging to develop a fierce strategic working plan that would enable them to provide their clients’ best health services. Consequentially, this report identifies favorable strategic recommendations that influence an organization to compete favorably with other organizations within the healthcare sector and achieve perfection in its market niche. The first strategic recommendation that an organization should prioritize is a recommendation on supporting information and capabilities. It should be the responsibility of a hospital organization’s executive management to ensure that their information system is capable and stable to hold relevant data vital for the clients. An organization enriched with a firm and supportive information system can most compete favorably with other competitors in the market place.

A supportive and capable information system gives an organization an upper hand, especially in implementing strategic objectives needed by employees and the management. Firstly, a good management hospital information system ensures improved clinical care and patient safety, which is vital for hospital organizations. Also, a formidable information system can promise quick and coordinated care for the patients, and this encourages a flexible return rate putting the hospital organization in a competitive map in terms of marketing (Arling et al., 2013). Additionally, a strategized information system helps reduce waiting time on the admission of a patient. It reduces the readmissions of patients, which may concurrently cause a bad reputation for the hospital or the healthcare provider. Significantly, a strategic supportive information system has cuts on the financial costs that hospital organizations face.

Secondly, the most prioritized strategic recommendation is on policy decisions that ensure a take on the available opportunities that offer clear support, purpose, commitment, and identifies resources available to overcome certain challenges to maintain smooth operations of businesses within the hospital (Gurbutt & Donovan, 2018). The basics of policy decisions strive to ensure that a potential set of a general plan of action is laid and used in giving fundamental guidelines to help in the decision making process in an organization, and in this case an established hospital organization. Moreover, strategic policies and conclusions in an organization provide a roadmap for day-to-day operations by ensuring maximum compliance of the regulations and laws set in a hospital to provide basic guidance that streamlines internal organization’s processes. Hospital organization without concretely established decision policies finds it challenging to achieve its market niche within the sector.

Further, recommendations on outreach and communications as a strategy imposed to provide well-informed guidance of how a given institution operates or manages its operational activities. Fairly, the public and consumers of organizations’ services would wish to be informed about a given healthcare organization’s operational achievements (Zavareh, 2017). Therefore, it would be necessary for an organization to strategically position them in the market place by reaching out to the public and providing information that will attach the people to working or accepting the institution’s services. Also, an organization should find appropriate communication channels centered at delivering financial reports and plans of the organization to the public and finding a reach out procedure that carries on the organization’s advertisements in a fundamental way that defines a wide capability of obtaining many clients (Sakaki & Jory, 2019).

Estimation of Priority Strategic Recommendation

PRIORITY ISSUE	RECOMMENDATION STRATEGY TO ADDRESS THE ISSUE	COORDINATING ORGANAZATION (Human Resource Involved) and finances	TIMEFRAME FOR COMPLETION
Health and Safety Assessment	Creation of a supportive and capable information system strategy	A team of at least four IT experts and doctors should design a plan that will enhance decision making process during an emergency or provide steps for safety encounters. Therefore, a group of ten professionals are able to work upon this strategy; IT team.	Mid Term. This strategy or issues must be addressed within a period of six months to cater for all needs required to achieve a functional, supportive and capable information system; 6 months of strategic planning.
Reaching out to the public (Public Domain Issue)	Recommend on an outreach and communication strategy.	The marketing, information, and the public relation department experts should be involved in this process. At least a team of six people. It involves using huge amounts of money to ensure that the process is achieved.	Long term projection. The time frame for this task or strategic recommendation has to be long enough for it is supposed to be stable for a long time as possible. The decision making process should be evaluated in intervals.
The Decision Making Objectives	Strategic Recommendation on Policy Decisions.	This aspect should be strategically placed and achieved by involving both of the management and the hospitals employees; doctors and nurses in the process of decision making to help achieve a uniform goal that will help the hospital grow and attain favorable marketing position in the eyes of the public.	Short Term: The policy decisions should be implemented within short period of time to harness effective decisions and plans within a short period of time instead of taking too long for the decisions to be made. At most, it should take three months.

Appropriate Financial Ratios

Net Present Value:

The change in Present Net Value (NPV) is vital in determining the recommended strategic plans’ working viability, especially in enhancing the decision-making processes in the future. In finance, the NPV ratio provides information on the differences between the present value of cash inflows and the present value of cash outflows within a given period. The financial ration is mostly used to present organizations’ financial work plans on an interval of time. Therefore, a variable strategic plan and current ensures that an organization constantly achieves maximum cash inflows than cash outflows. Significantly, NPV is crucial in budgeting processes and controls and investment planning and analyzing the profitability of a projected investment that a hospital may need to take (Clarke, n.d.).

Calculations:

NPV = (Cashflows)/ (1+r)i

Where i- initial investments

r- Discount rate

i- the time

Return on Investment (ROI):

It is a financial ratio used to establish the efficiency of an investment made by an organization. The performance of an investment is measured using ROI financial ration. Therefore, when making an organization’s policy decisions on investments, financial experts should help determine the rate at which the investment will perform and help recoup the investment funds (Clarke, n.d.). For example, if a hospital is planning to hire a renowned surgeon, it would be necessary to evaluate the surgeon’s billing amount to ensure the hospital.

Calculations:

ROI= Net Income/ Cost of Investment

Internal Rate of Return:

It is financial metrics that are used to measure the profitability of a given investment over time. The ration is crucial during capital budgeting, for it proves to provide a discounting rate that makes NPV of various projects stand or equal to zero. Significantly, the higher the IRR, the higher the cash inflow for the organization; reach out and communication strategy help in advertising the project policies of an organization and even market their investments. Overall, the most prioritized strategic recommendation is the policy decisions, followed with the development of supportive and capable information systems, and lastly, reach out and communication mobility.

Recommendations based ion Financial Ratios

The internal rate of returns is the appropriate financial analysis that individuals may use to measure the financial impacts of an organization.

Conclusion

In conclusion, the change in Present Net Value (NPV) is vital in determining the recommended strategic plans’ working viability, especially in enhancing the decision-making processes in the future. Financial ratio used to establish the efficiency of an investment made by an organization

References

Alhawamdeh, H. M., & Alsmairat, M. A. (2019). Strategic decision making and organization performance: A literature review. International Review of Management and Marketing, 9(4), 95-99. 

https://doi.org/10.32479/irmm.8161

Arling, P. A., Doebbeling, B. N., & Fox, R. L. (2013). Improving the implementation of evidence-based practice and information systems in healthcare. Healthcare Information Technology Innovation and Sustainability, 247-270. 

https://doi.org/10.4018/978-1-4666-2797-0.ch016

Clarke, R. (n.d.). Financial performance indicators (FPIs). Encyclopedia of Health Care Management. 

https://doi.org/10.4135/9781412950602.n304

Gurbutt, R., & Donovan, P. (2018). Decision making: Where is it all heading? strategic management. Decision Making and Healthcare Management for Frontline Staff, 89-110. 

https://doi.org/10.1201/9781315379890-6

Sakaki, H., & Jory, S. R. (2019). Institutional investors’ ownership stability and firms’ innovation. Journal of Business Research, 103, 10-22. 

https://doi.org/10.1016/j.jbusres.2019.05.032

Zavareh, D. K. (2017). Client perception on quality improvement in health care services and patient satisfaction. Public Health Open Access, 1(2). 

https://doi.org/10.23880/phoa-16000111