1. What is organizational culture and why is it important2. How would you describe the organizational culture of Healthdyne? Using Exhibit 11.1, identify specific forces and factors that Mr. Brice could manage to change culture. 3. What do you think would change the culture of the organization and make Mr. Brice’s life easier?
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“I Can’t Do It All!”
Based in Walnut Creek, California, Healthdyne is a health maintenance organization
(HMO) that provides healthcare to the Northern California Bay Area. It serves approximately 1.2
million enrollees composed mainly of upper-class, white-collar professionals. Healthdyne
occupies a relatively small corner of the market, but is quickly gaining prominence in the area
and has developed a solid financial footing with bright prospects. It is located in a growing
community, with a 15 to 20 percent annual growth rate projected for the next five years. For the
past 20 years, Healthdyne’s former president, Amanda Huggins, has successfully carried out the
organizational mission—to provide more affordable and better quality healthcare for its
members by setting the statewide standard for excellence and responsiveness. As one of the key
players in the organization since its inception, Ms. Huggins is a recognized expert in the managed
care industry. Corporate legend has it that her motto was “It doesn’t happen without my
signature!” Upon Ms. Huggins’s retirement, Arnold Brice was recruited to take her place.
When Mr. Brice, who is the former CEO of Atlantic Healthcare, was brought in as
president, he inherited an executive staff composed of the vice presidents of the marketing,
finance, and professional services departments as well as a medical director, all of whom were
capable of fulfilling their managerial responsibilities. However, within a few weeks of joining
Healthdyne, Mr. Brice perceived a serious flaw with his staff—none of the vice presidents would
make a decision, not even on routine matters such as personnel questions, choice of marketing
media, or changing suppliers. The vice presidents frequently presented him with issues in their
areas of responsibility and requested that he make the decision. This troubled Mr. Brice. Before
long, the situation seriously impeded his efforts to engage in strategic planning for the HMO. At
a regular staff meeting, when every member of his staff had an issue that required his attention,
Mr. Brice finally blew up. The catalyst to this incident was this question from the Finance vice
president: “What font do you want this in?” Waving his arms in exasperation, Mr. Brice shouted,
which is very uncharacteristic of him, “I cannot do it all! You are going to have to make these
decisions yourselves.” The meeting broke up with the staff looking very puzzled and Mr. Brice
realizing that he had to make serious changes.
1. What is organizational culture and why is it important?
2. How would you describe the organizational culture of Healthdyne? Using Exhibit 11.1,
identify specific forces and factors that Mr. Brice could manage to change culture.
3. What do you think would change the culture of the organization and make Mr. Brice’s life
easier? Give specific examples supported by the lecture.
4. Support your case study by referencing chapter 10
Please create a 5 page minimum research style paper. Make sure you use proper APA
formatting and include at least 4 references. This case study is due by Saturday December 15th.
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