I n t r o d u c t i o n ➤ t o ➤ t h e ➤ F i n a n c i a l ➤ M a n a g e m e n t ➤ o f ➤ H e a l t h c a r e ➤ O r g a n i z a t i o n s3 4 0 MINI-CASE STUDY✓ A➤federally➤qualified➤community➤health➤center➤is➤implementing➤ an➤electronic➤medical➤record➤(EMR)➤costing➤$35,000➤per➤physi- cian➤provider.➤Identify➤benefits➤of➤the➤EMR➤and➤ways➤the➤ben- efits➤can➤be➤estimated➤to➤calculate➤a➤benefit-cost➤ratio. information from neighboring facilities or the manufacturer. If the manager obtains the information from the manufacturer, it is a good idea to confirm it with other organizations that use the same equipment—manufacturers should be willing to provide client lists. For equipment that does not generate revenue, department managers can still project cash flow by using salary savings, utility savings, and so on. Previously incurred costs, or sunk costs, and costs that would be incurred regardless of the budget outcome should not be included in cash-flow projections. steP 20: Perform fInAncIAl AnAlysIs The twentieth step in the corporate planning process—the third step in the capital budgeting stage—is for the budget committee or the chief financial officer (CFO) to perform financial analyses on the requests. Before Medicare stopped reimbursing capital at cost, few healthcare organizations performed any significant financial analyses on equipment because in the risk- free environment of cost-based reimbursement, healthcare organizations and their lenders were guaranteed a return on capital expenditures regardless of whether they used the equipment. In a 1973 study of large hospitals, only 8 percent of the hospitals calculated the net present value of a capital expenditure before purchasing it (William and Rakich 1973). Some hospitals had two of everything in case the first broke (they preferred capital expense to labor and repair expenses). As the Medicare reimbursement for capital costs was folded into the DRG formula during the 1990s as a result of the OBRA of 1990, healthcare organizations found them- selves competing with other industries for limited capital funds. Healthcare organizations no longer had cost-based reimbursement to put up as collateral, and as a result, lending institutions required financial analyses to ensure that the capital expenditure would generate sufficient revenue to repay the loan. As a result, net present value and return on investment calculations are completed on most capital expenditures today. This section defines and explains how to calculate several analyses that are used to measure the benefit-to-cost ratio. In theory, these analyses are benefit-cost analyses, which are based on the Pareto optimality, or a condition in which changes occur only if they improve the benefits more than they increase the costs. In benefit- cost analysis, both costs and benefits are variable, as opposed to cost-effectiveness analysis, where either costs or benefits are held constant. In their simplest f ...

1. I n t r o d u c t i o n ➤ t o ➤ t h e ➤ F i n a n c i a l ➤ M a n a g
e m e n t ➤ o f ➤ H e a l t h c a r e ➤ O r g a n i z a t i o n s3 4
0
MINI-CASE STUDY✓
A➤federally➤qualified➤community➤health➤center➤is➤imple
menting➤
an➤electronic➤medical➤record➤(EMR)➤costing➤$35,000➤per
➤physi-
cian➤provider.➤Identify➤benefits➤of➤the➤EMR➤and➤ways➤
the➤ben-
efits➤can➤be➤estimated➤to➤calculate➤a➤benefit-cost➤ratio.
information from neighboring facilities or the manufacturer. If
the manager obtains the
information from the manufacturer, it is a good idea to confirm
it with other organizations
that use the same equipment—manufacturers should be willing
to provide client lists.
For equipment that does not generate revenue, department
managers can still project
cash flow by using salary savings, utility savings, and so on.
Previously incurred costs, or sunk costs, and costs that would be
incurred regardless
of the budget outcome should not be included in cash-flow
projections.

2. steP 20: Perform fInAncIAl AnAlysIs
The twentieth step in the corporate planning process—the third
step in the capital budgeting
stage—is for the budget committee or the chief financial officer
(CFO) to perform financial
analyses on the requests. Before Medicare stopped reimbursing
capital at cost, few healthcare
organizations performed any significant financial analyses on
equipment because in the risk-
free environment of cost-based reimbursement, healthcare
organizations and their lenders were
guaranteed a return on capital expenditures regardless of
whether they used the equipment. In a
1973 study of large hospitals, only 8 percent of the hospitals
calculated the net present value of
a capital expenditure before purchasing it (William and Rakich
1973). Some hospitals had two
of everything in case the first broke (they preferred capital
expense to labor and repair expenses).
As the Medicare reimbursement for capital costs was folded into
the DRG formula
during the 1990s as a result of the OBRA of 1990, healthcare
organizations found them-
selves competing with other industries for limited capital funds.
Healthcare organizations
no longer had cost-based reimbursement to put up as collateral,
and as a result, lending
institutions required financial analyses to ensure that the capital
expenditure would generate
sufficient revenue to repay the loan. As a result, net present
value and return on investment
calculations are completed on most capital expenditures today.

3. This section defines and explains how to calculate several
analyses that are used to
measure the benefit-to-cost ratio. In theory, these analyses are
benefit-cost analyses, which are
based on the Pareto optimality, or a condition in which changes
occur only if they improve the
benefits more than they increase the costs. In benefit-
cost analysis, both costs and benefits are variable, as
opposed to cost-effectiveness analysis, where either
costs or benefits are held constant. In their simplest
forms, benefit-cost analysis is the ratio of discounted
benefits to discounted costs, and cost-effectiveness
analysis is the benefits obtained for a particular cost.
The typical financial analyses for capital expen-
ditures are payback period analysis, net present value
analysis, and internal rate of return analysis. Each type
of analysis will be explained in the sections that follow.
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UNIV
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Management of Healthcare Organizations, Seventh Edition
Account: shapiro.main.eds
Individual Differences
Chapter 4

7. Learning ObjectivesDefine personality and describe its role in
the study of organizational behaviorIdentify the Big 5
dimensions of personality and describe how they are related to
key aspects of organizational behaviorDefine achievement
motivation
Learning ObjectivesDescribe MachiavellianismDifferentiate
among cognitive intelligence, emotional intelligence, and
practical intelligence, and explain their influences on behavior
in organizations
Personality
PersonalityDefinitionInteractionist perspective
PersonalityThe unique and relatively stable pattern of behavior,
thoughts and emotions shown by individuals

8. Interactionist PerspectiveBehavior is a result of both
personality and situational factors
Consider this description of the crew reactions after an
explosion and fire on the Deepwater Horizon on April 20, 2010
Interactionist Perspective
Interactionist Perspective
Copyright © 2011 Pearson Education, Inc. Publishing as
Prentice Hall
Copyright © 2011 Pearson Education, Inc. Publishing as
Prentice Hall
Interactionist Perspective
Measuring PersonalityObjective testsPaper and pencilProjective
testsPresent ambiguous stimuli
Measuring PersonalityReliability: The extent to which a test
yields consistent scores on carious occasions, and the extent to
which all of its items measure the same underlying
construct.Validity: The extent to which a test actually measures

9. what it claims to measure.
Example: Your bathroom scale
Think of your bathroom scale. If you stepped on it every
morning and it showed something vastly different, it wouldn’t
be considered reliable. But if it showed the same thing every
morning, but it wasn’t calibrated properly, it wouldn’t be valid.
*
Measuring PersonalityTest
propertiesReliabilityRepeatableValidity Measures what it
claimsPredictive validity
Think of your bathroom scale. If you stepped on it every
morning and it showed something vastly different, it wouldn’t
be considered reliable. But if it showed the same thing every
morning, but it wasn’t calibrated properly, it wouldn’t be valid.
*
Predictive Validity
Big 5 Dimensions of Personality
Extraversion
Agreeableness
Conscientiousness
Neuroticism

10. Openness to experience
Big 5 Dimensions of Personality
*
Big 5 Dimensions of Personality
Affectivity
4-*
Core Self-Evaluations
How might self-evaluations affect performance?

11. Work-related Personality AspectsMachiavellianism: Willingness
to manipulate others for one’s own purposesDo you know a
“High Mach”?
Work-related Personality AspectsAchievement motivation:
Individual’s desire to succeed and to do better than others
Work-related Personality AspectsAchievement motivation
Work-related Personality Aspects
Morning vs. evening persons
Intelligence
Intelligence TypesCognitivePracticalEmotional

12. Cognitive Intelligence
Emotional Intelligence
Test your Emotional Intelligence
Fear
Pride
Happiness
Anger
Contempt
Embarrassment
fear, pride, happinessAnger, contempt, embarrassment
*
Test your Emotional Intelligence
Flirtiness
Disgust
Flirtiness, & disgust
*

13. If you’d like to try on your
ownhttp://greatergood.berkeley.edu/ei_quiz/#2
IntelligenceHow do you think Cognitive Intelligence and
Emotional Intelligence relate? Which is more important to
success? Can you be successful if you lack one?
Intelligence
Physical AbilitiesStrengthFlexibilityStaminaSpeed
Social SkillsSocial perceptionImpression
managementPersuasion and social influenceSocial
adaptabilityEmotional awareness/control
Social skills are the single best predictor of job performance
ratings and assessments of potential for promotion for
employees in a wide range of jobs.
Social Skills

14. Social Skills, Conscientiousness, and Task Performance
Questions?
*
Coping with Organizational Life
Chapter 5
Learning ObjectivesDistinguish between emotions and
moodsDescribe how emotions and moods influence behavior in
organizationsDescribe ways that people manage their emotions
in organizations

15. Learning ObjectivesIdentify the major causes and consequences
of stressDescribe the adverse effects of organizational
stressIdentify various ways of reducing stress in the workplace
Emotions and MoodsEmotions: Overt reactions that express
feeling about eventsMood: An unfocused, relatively mild
feeling that exists as a background to our daily experiences
*
Emotions
*
Emotions
China / Hong Kong: Note that this survey was completed prior
to Hong Kong's reunification with China.

16. *
Major Emotions and Subcategories
Emotion SourcesSelf-conscious emotions: Stem from
within.ShameEmbarrassmentGuiltPrideSocial emotions: Based
on external informationPityEnvyJealousyScorn
Circumplex Model of Affect
Copyright © 2011 Pearson Education, Inc. Publishing as
Prentice Hall
Copyright © 2011 Pearson Education, Inc. Publishing as
Prentice Hall
MoodsUnfocused, relatively mild feeling that exists as a
background to our daily experiencesMore subtle and difficult to
detect than emotions
Video: Zappos and happy employees

17. Happiness and Success
Happiness and Success
Briefly discuss with a neighborWhat do you think of Zappos’
workplace? Do you think that Zappos approach makes
sense?Overall, do you think that happy people are more or less
likely to be successful in their careers?
Happiness and Success
Happier PeopleHigher Job performanceBetter jobs Perform jobs
more successfullyLess likely to resignCorrelates with Higher
Income
Better Decision QualityBetter MemoryIncreased Cooperation
Happiness and Success
Why Happier Workers More Successful?
Affective Events Theory

18. Copyright © 2011 Pearson Education, Inc. Publishing as
Prentice Hall
Copyright © 2011 Pearson Education, Inc. Publishing as
Prentice Hall
Managing Emotions in OrganizationsEmotional
dissonanceInconsistencies between emotions we feel and
emotions we expressEmotional laborEffort involved in holding
back true emotionsAnger managementWhat jobs might require
large amounts of emotional labor?
Organizational Stress
Organizational Stress: East Haven Fire Dept
StressDo you feel that your life is stressful?
Briefly discuss with your neighbor:What typically causes you
stress? School, job, finances, family, relationships?What do
you do to reduce stress?
Organizational Stress

19. Stress
Causes of Workplace Stress
Occupational DemandsMaking decisionsPerforming boring,
repetitive tasksRepeatedly exchanging information with
othersWorking in unpleasant physical conditionsPerforming
unstructured vs. structured tasks
Conflict between work and non-workRole conflict and juggling
(e.g., working parents)Sexual harassmentRole ambiguity
More Causes of Workplace Stress
WorkloadOverloadUnderloadInformation anxietyResponsibility
for othersLack of Social Support
More Causes of Workplace Stress
Most and Least Stressful Jobs
Stress’ Negative EffectsTask performance suffersDesk
rageHealth issuesStress plays a role in 50-70% of all physical

20. illness
Stress’ Health-related Effects
*
Burnout
Some Ways Organizations Manage StressEmployee assistance
program (EAP)Stress management and wellness programs
Managing Stress
IndividualsSeek social supportEat healthier dietBe physically
fitRelax and meditate
Managing Stress

21. IndividualsGet a good night’s sleepAvoid inappropriate self-
talkTake a time-outManage time wisely
Managing Time Wisely
From Steven Covey: 7 Habits of Highly Effective People
*
Chapter 11
Definition:
A person’s beliefs about what is expected of another in a

22. relationship.
Example: You go to the cleaners and drop off your laundry.
They expect you to pay for your cleaning and you expect them
to give you your clothes back clean.
*
Static 静态的
pervasive
普遍的
Tangibility 确定性
Indefinite 不确定的
Swift 快速的
Substantive 实质性的: Different points of view regarding decision
Affective 情感的: Personality clashes or interpersonal tension
性格碰撞或者人际关系紧张
Process: Conflict regarding how to operate and allocation of
roles 角色分配

23. Deviance 异常
举报
Whistle-blower:揭发者
Chapter 12
rational: 理性的 collaboration: 合作 ingratiation: 讨好 coalition-
building: 建立联盟
Reaction to empowerment depends on cultureWorkers in “low
United StatesWorkers in “high power distance” cultures avoid
亚洲）

24. Coercive:强制的
Referent:参考的 Charisma:魅力
LEADERSHIP IN
ORGANIZATIONS
Chapter 13
Impoverished: 没有创造力的

25. Imitate:模仿
Morale：士气
Commitment:承诺
Delegating：授权
ORGANIZATIONAL CULTURE, CREATIVITY, AND
INNOVATION
Chapter 14
*
Discretion 自由裁量权

26. A cognitive 认知的 framework consisting of attitudes, values,
behavioral norms行为规范, and expectations shared by
organization members.
A set of basic assumptions shared by members of an
organization.
Company Founders
Experiences with the External Environment
Sony and Betamax
Domain:领域
Intrinsic：本质的
The successful implementation of creative ideas within an
organization

27. ORGANIZATIONAL STRUCTURE AND
DESIGN
Chapter 15
Line:
Positions in an organization in which people can make
decisions related to doing its basic work.
Staff:
Positions in organizations in which people make
recommendations to others, but are not themselves involved in
making decisions concerning the organization’s day-to-day
operations.
The contemporary approach that recognizes that no one
approach to organizational design is best, but that the best
design is the one that best fits with the existing environmental
conditions.

28. Chapter 6:
*
Work-Related
Attitudes
*
Attitudes
Definition
Relatively stable clusters of feelings, beliefs and behavioral
intentions toward a specific object, person, or institution
Prejudice and Discrimination
DefinitionsStereotype: A belief about someone based on the

29. group to which that person belongsPrejudice: Negative attitudes
toward the members of specific groups, based solely on the fact
that they are members of those groupsDiscrimination: The
behavior consistent with a prejudicial attitude. The act of
treating someone negatively because of his or her membership
in a specific group.
Affirmative Action
DefinitionPolicy used to promote nondiscriminatory treatment
of women and members of minority groups in the workplace
6-*
Diversity Management ProgramsEfforts by companies to
proactively create supportive work environments for women and
minorities
6-*
Job Satisfaction
Unfolding Model of Voluntary Turnover

30. Motivation in Organizations
Chapter 7
Motivation Components
What Motivates People to Work?
Goal Setting Guidelines
For ManagersAssign specific goalsAssign difficult, but
acceptable, performance goalsVertical stretch goalsHorizontal
stretch goalsProvide feedback on goal attainment
Equity Theory

31. Possible Reactions to Inequity
Equity Theory
Managerial ImplicationsAvoid underpaymentAvoid
overpaymentBe honest and open with employees
Expectancy Theory
Group Dynamics and Work Teams
Chapter 8
Group

32. *
5-Stage Model of Group Formation
Punctuated Equilibrium Model
Social Loafing
Overcoming Social LoafingMake each performer
identifiableMake work tasks more important and
interestingReward individuals for contributing to their group’s
performanceUse punishment threats
Communication
in Organizations
Chapter 9

33. Communication Process
Verbal Media Continuum
Match the Medium to the Message
A fundamental challenge
*
Common Female Linguistic Styles
Improving Communication Skills

34. Become an Active, Attentive ListenerAvoid distractions and
focus on the speakerMake sure to understand the main
pointsAsk questions and signal understanding
Decision Making
in Organizations
Chapter 10
Top-Down vs. Empowered Decisions
Group Influences:
Benefits and ProblemsPotential benefitsPooling of
resourcesSpecialization of laborGreater acceptance
Potential problemsWasted timeDisruptive conflictIntimidation
by group leaders

35. Group vs. Individual
Decision Making
Groupthink:
DefinitionThe tendency for members of highly cohesive groups
to so strongly conform to group pressures regarding a certain
decision that they fail to think critically, rejecting the
potentially correcting influences of outsiders
Individual Decision Biases
Escalation of Commitment: Continuing to support unsuccessful
courses of action - “Sunk Costs”
IHP 450 Module Five Journal Rubric
Prompt:
Your consulting work with the physician’s group in Module
Three earned you rave reviews and now your boss has asked you
to put your skills to work in support
of a local community health center. As the Assistant to the CFO
you have been tasked with preparing a public statement on the

36. justification of purchasing the
electronic medical record.
After explaining the benefits of the EMR and making
suggestions for ways the benefits can be determined, write a
memo to the community health center’s
Board of Directors that uses your determinations to justify the
purchase of the EMR. Refer to the mini-case on page 340 of the
textbook.
Create a journal assignment that:
● Explains the benefits of the electronic medical records system
(EMR)
● Explains the ways the benefits can be estimated
● Includes a written memo to the community health center’s
board of directors that justifies the purchase of the EMR
Guidelines for Submission: You will submit two deliverables
for this assignment. Your explanation of benefits should be 1-2
pages in length with double spacing,
12-point Times New Roman font, one-inch margins, and
citations in APA style were applicable. Your written memo to
the community health center’s board of
directors should be 1-2 pages in length with double spacing, 12-
point Times New Roman font, one-inch margins, and citations
in APA style were applicable.
Critical Elements Exemplary (100%) Proficient (85%) Needs
Improvement (55%) Not Evident (0%) Value
Benefits of the EMR Assignment provides a
thorough explanation of
benefits that are clearly

37. related to the EMR
Assignment provides an
explanation of benefits that
are related to the EMR
The explanation of benefits is
incomplete and/or the
relationship to the EMR is not
clear for some of the
suggested benefits
Assignment does not list
benefits of the EMR
30
Ways the Benefits
Can Be Estimated
Assignment suggests multiple,
appropriate ways in which the
benefits can be estimated
Assignment suggests multiple
ways in which the benefits can
be estimated, however some
of the suggestions are not
appropriate
Assignment suggests only one
way in which the benefits can
be estimated

38. Assignment does not suggest
ways in which benefits can be
estimated
30
Memo: Justification Memo provides a well-
supported justification based
on sound cost-benefit
reasoning and is exceptionally
clear and concise
Memo provides a well-
supported justification based
on sound cost-benefit
reasoning
Justification is not well-
supported, and/or the cost-
benefit reasoning is not sound
Assignment does not use cost-
benefit to justify the EMR
30
Memo: Writing
(Mechanics/Citations)
No errors related to
organization, grammar and
style, and citations
Minor errors related to
organization, grammar and

39. style, and citations
Some errors related to
organization, grammar and
style, and citations
Major errors related to
organization, grammar and
style, and citations
10
Earned Total 100%