Question

As F. Nicholas Jacobs toured the Windber Medical Center facility, he was dismayed by the industrial pink-painted walls, the circa 1970 furniture, and the snow leaking through the windows of the conference room. Employees earned 30 percent less than their counterparts in the area, and turnover was steep. As Windber's newest president, Jacobs knew he was the facility's last hope, if he couldn't successfully turn around the aging facility, it would mean closing the doors forever.

Coming to Windber Medical Center in 1997, Jacobs was keenly aware that the hospital could be the next in a series of small hospitals that had fallen victim to a struggling economy. Determined to see that not happen, he began by making connections with the employees of the hospital and the community at large. Jacobs's first step was to interview the employees to find out firsthand what they wanted for the Windber community and the medical center. He also looked to members of local community groups like the local library, the Agency on Aging, and local politicians and asked these groups what they wanted from their local medical facility. When Jacobs realized that people of over 80 years of age made up a larger percentage of the population in Windber, Pennsylvania, than in all of Dade County, Florida, he made it a priority to provide more options to seniors for improving their health and quality of life. He set forth a vision of a medical center that was more of a community center, a center that would allow members of the community to exercise in a state-of-the-art facility while having access to professionals to answer health related questions. Jacobs realized that keeping people in the community both physically and mentally healthy also meant keeping the hospital financially healthy. He made the center's new preventive care philosophy clear to the public: "Work out at our hospital so you can stay out of our hospital."

Jacobs's efforts have paid off in an era when small hospitals are closing left and right, Windber Medical Center is thriving. Under Jacobs's leadership, Windber has established an affiliation with the Planetree treatment system, which integrates meditation, massage, music, and other holistic methods into traditional healthcare. Windber's wellness center, which offers fitness training, yoga, and acupuncture, among other treatments, opened in January 2000 and now generates over $500,000 annually. Gone are the pink walls and dated furniture, replaced with fountains, plants, and modern artwork. Jacobs recruited a former hotel manager to oversee food service. And despite the dismissal of about 32 employees (those used to a more traditional hospital setting had a tough time in the new environment), the staff has nearly doubled to 450 employees, and pay has improved. Windber has raised more than $50 million in public and private funding and has forged research partnerships with the Walter Reed Army Health System and the University of Pittsburgh, among others. The Windber Research Institute, Windber's heart disease reversal program, has treated about 250 patients.

Please explain in as much detail as possible each of your answers, explain your reasoning.

QUESTIONS:

Hersey and Blanchard’s Situational Leadership Theory

1. Given the information that you have, what do you think was the level of follower readiness (willingness and ability) overall of the hospital employees? What behaviors should Jacob engage in, given the followers’ readiness?

2. In you assessment did Jacob’s engage in such behaviors? Explain

Fielder’s Contingency Theory

3. Using Fielder’s Contingency Theory, which octant do you think the situation at the hospital falls into at the beginning of Jacob’s tenure? Which would be the most appropriate leadership style for this situation (Task motivated-Low LPC, or Relationship motivated-high LPC)?

4. Jacob’s scored high LPC-Relationship motivated, is this the appropriate style for your assessment of the situation? What situational factors, if any, could be changed to make the situation more favorable to Jacob’s leadership style?

Answer 1

As F. Nicholas Jacobs toured the Windber Medical Center facility, he was dismayed by the industrial pink-painted walls, the circa 1970 furniture, and the snow leaking through the windows of the conference room. Employees earned 30 percent less than their counterparts in the area, and turnover was steep. As Windber's newest president, Jacobs knew he was the facility's last hope, if he couldn't successfully turn around the aging facility, it would mean closing the doors forever.

Coming to Windber Medical Center in 1997, Jacobs was keenly aware that the hospital could be the next in a series of small hospitals that had fallen victim to a struggling economy. Determined to see that not happen, he began by making connections with the employees of the hospital and the community at large. Jacobs's first step was to interview the employees to find out firsthand what they wanted for the Windber community and the medical center. He also looked to members of local community groups like the local library, the Agency on Aging, and local politicians and asked these groups what they wanted from their local medical facility. When Jacobs realized that people of over 80 years of age made up a larger percentage of the population in Windber, Pennsylvania, than in all of Dade County, Florida, he made it a priority to provide more options to seniors for improving their health and quality of life. He set forth a vision of a medical center that was more of a community center, a center that would allow members of the community to exercise in a state-of-the-art facility while having access to professionals to answer health related questions. Jacobs realized that keeping people in the community both physically and mentally healthy also meant keeping the hospital financially healthy. He made the center's new preventive care philosophy clear to the public: "Work out at our hospital so you can stay out of our hospital."

Jacobs's efforts have paid off in an era when small hospitals are closing left and right, Windber Medical Center is thriving. Under Jacobs's leadership, Windber has established an affiliation with the Planetree treatment system, which integrates meditation, massage, music, and other holistic methods into traditional healthcare. Windber's wellness center, which offers fitness training, yoga, and acupuncture, among other treatments, opened in January 2000 and now generates over $500,000 annually. Gone are the pink walls and dated furniture, replaced with fountains, plants, and modern artwork. Jacobs recruited a former hotel manager to oversee food service. And despite the dismissal of about 32 employees (those used to a more traditional hospital setting had a tough time in the new environment), the staff has nearly doubled to 450 employees, and pay has improved. Windber has raised more than $50 million in public and private funding and has forged research partnerships with the Walter Reed Army Health System and the University of Pittsburgh, among others. The Windber Research Institute, Windber's heart disease reversal program, has treated about 250 patients.

Please explain in as much detail as possible each of your answers, explain your reasoning.

Hersey and Blanchard’s situational leadership theory suggests that according to the follower’s readiness/competence the leader should accommodate his training delivery approach.

In the mentioned case Jacobs was a very able leader and he was very much aware that a one size fits all approach will not at all for the hospital employees. At the same time he knew the situation have to change drastically to make a turnaround. His style of transformational leadership also had elements of situational awareness. Hospital employees were used to things done in traditional setting of age old fashion. Jacobs interacted with the whole employee community and understood their demands, expectations from the medical facility. An attrition rate of almost 30 % meant obviously retention was a big issue. In such a scenario developing the retention is a crucial task. Even though Jacobs introduced a system which went on to change the system forever the employee attrition rate was almost halved. As the total employee count in the hospital was around (450/2=225) and later on 32 employees had to be terminated as they were having a really hard time in managing to the new delivery structure of the medical facilities. Which means (32/225*100=14) only a mere 14% were having less ability and had to be coached extensively which was not possible for Jacobs. Eventually it is evident that most of the workforce was having great readiness and only had to be mildly guided to model them for the turnaround. Jacob interacted with almost all employees and took into account their inputs and a paradigm of situational leadership was clearly visible in his approach. Even though a clear segmentation of all the employees and then implementing required method of approach for according their readiness (able –willing, unable-wiiling, unable-unwilling, able-unwilling) was required Jacobs had to rush through his actions due to shortage o time. But he did used delegation, participation, telling properly. Interacting one on one with employees created a motivation factor as well.

At the beginning of the Jacobs tenure the hospital was lacking any coordination and path to go ahead. The employees did not trusted the leader and the task structures were not properly defined as total transformation was the need of the day, But Jacob had clear idea in his mind about how to go forward with the transformation. Leadership power or authority was quite high as most of the crucial calls regarding the medical facility could be taken by him.

I felt the situation at the medical facility demanded a relationship based leadership as the hospitality sector is based on relationship transactions. The employees needed to trust their leader in order to bring about a complete transformation in the organization. Complete trust can only be achieved by having great relation and respect for the leader. Hence I tend to believe Jacobs was quite right in his approach. He did his best to create great relationships which served him well in accomplishing his goals eventually.

Some situational factors could have been tweaked to make things a little easier for Jacobs and his style of leadership. When Jacob began his tenure at the hospital he had very little trust from his employees. If this could have been reversed then Jacob could have done his work of changing the medical facility quite earlier. Also task structures were very vague which made his job even more difficult because he was a relationship based leader.