PalmBeach State College
CapstoneExperience Health Management HSA4948
Thispaper will focus on two leadership theories that shed light on theleadership qualities that University of Miami Hospital’s executiveslack transformational, and transactional leadership theories.Additionally, it will conduct a comparative analysis of how thesetheoretical concepts apply to Pungo District Hospital, andultimately, University of Miami Hospital where I currently work. Thispaper employs Pungo District Hospital as a yardstick because it isone of my company`s greatest competitors. Furthermore, Pungo DistrictHospital recovered from the same management problem University ofMiami Hospital is currently experiencing, which means that it canprudently follow suit. In conclusion, this paper will examine theviability of applying the same solutions to University of MiamiHospital’s problem.
Itis the opinion of Kotlyar and Karakowsky (2007) that forming ahigh-performance workforce has become increasingly important in anybusiness. Therefore, to create a high-powered workforce, leaders mustbe in a position to inspire their team members to go beyondperforming their contractual obligations. The theory oftransformational leadership was formulated by leadership expert JamesMcGregor. McGregor defined transformational leadership as a processwhere leaders and their subordinates raise one another to higherlevels of motivation and morality (Huber, 2014). According toMcGregor, a transformational leader sets clear goals, encouragesothers, has high expectations, provides support whenever necessary,and inspires people to reach for the unattainable. A transformationalleader is daring, thoughtful thinker, inspiring, visionary, andrisk-takers. Therefore, transformational leadership creates dynamicand valuable change in people within an organization with the aim ofcreating a leader out of a follower (Bass & Avolio, 2014)).
Itis the opinion of Antonakis and House (2014) that a transactionalleader is the type of leader that works by generating precisestructures whereby the subordinates are made aware of what isexpected of them, and the rewards they get for adhering todirectives. Punishments for any deviation from the expected norms arenot always outlined, but it is well understood that formaldisciplinary actions are taken against those that go againstorganizational protocols. Transactional leadership is the process ofdirecting and motivating subordinates through appealing to theirself-interest. A transformational leader believes in motivating hisor her subordinates through a system of rewards and punishments(Kotlyar and Karakowsky, 2007). When a transactional leader delegateswork, the subordinate is considered entirely responsible for it.Therefore, when things go wrong, the subordinate is consideredresponsible for the fault and is punished accordingly for his or herletdown.
Accordingto Smith (2014), effective leadership is one of the most importantelements that underwrite the success of an organization. Universityof Miami Hospital is not generating money as it is supposed to,stemming from leadership inadequacies. Because of a lack of effectiveleadership, University of Miami Hospital’s services are rated belowaverage since there are no management-set protocols or standards thatsynchronize the organization`s objectives with the activities of itshuman resource. Since the University’s Hospital services areperceived sub-standard, it has lost most of its customers to itscompetitors, which translates to a reduction in revenue all becauseof ineffective leadership.
Inits 2010 fiscal year, Pungo District Hospital (North Carolina) wentthrough the same predicament as University of Miami Hospital. In thisyear, Pungo District Hospital had 11 million dollars in expenses and9.9 million dollars in revenue. Moreover, in its 2011 fiscal year,Pungo District Hospital had 9.7 million dollars in income and 10.98million dollars in expenses (Huber, 2014). This institution, justlike the University of Miami Hospital, was slowly losing itsfinancial grip because of a decrease in the number of individuals itattracted owing to the low quality of healthcare services theyprovided which occasioned the economic catastrophe in Pungo DistrictHospital`s financial bag. In pursuit of restoring the institution`sfinancial glory, the hospital`s board decided to seek for a helpinghand from a third party. In 2011, the hospital`s board approachedVidant Health, then known as University Health Systems (UHS), todiscuss issues about taking over the hospital.
Thenegotiations transpired over three years, but in 2014, Vidant Healthmanaged to take over the running of the institution. The first thingVidant Health did was a system overhaul (Antonakis and House, 2014).They conducted a human resource evaluation drill which saw manyredundant executives dismissed. The leaders that proved to beproactive were retained but were trained on how to developtransformational and transactional leadership qualities since it isthe lack of these qualities in its executives that placed PungoDistrict Hospital between a rock and a hard place in the first place.Ever since these human resource changes were implemented, thesituation at Pungo District Hospital has upgraded financially.
Thisnarrative is relevant to this study because Pungo District Hospital`sstory is relatively similar to University of Miami’s Hospitalnarrative. Both these institutions lost their financial glory becauseof ineffective leadership. To turn the situation around, PungoDistrict Hospital had to overhaul its executive human resource. Theredundant leaders were sent packing, while those that proved to showsigns of activity were retained and trained on how to becometransformational and transactional leaders that would direct,motivate, and reward their employees for outstanding performance.From my point of perspective, I am of the opinion that thissolution`s application is viable in my institution`s problem. We arecurrently experiencing financially crippling times, but I firmlybelieve that a complete overhaul in my organization`s top executivesmight provide my system with an opportunity of restoring itself toits initial financial position.
Withan adjustment in leadership strategies, University of Miami Hospitalwill have standardized protocols and systems that intertwineorganizational goals with the activities of its human resourcepotentially improving our quality of services, thereby restoring mycompany`s initial financial triumph. Furthermore, training myinstitution`s executives on how to develop transformational andtransactional leadership qualities will bulwark University of MiamiHospital’s efforts to redeem itself since these “new crop” ofleaders will motivate, support, and reward us as their subordinates,which will, in turn, be mirrored by an improvement in revenuecollection. Therefore, I believe that this solution is viable andapplicable to the University of Miami Hospital.
Thispaper has explored the fact that for an organization to thrive in thepresent-day market conditions, it has to have effective leaders whocan lead the entire team in processes of transformation. Companieshave to change their strategies from time to time to conform to thecurrent market conditions (Kotlyar and Karakowsky, 2007). Toimplement the change process, this paper has demonstrated thattransformational and transactional qualities in a leader are vital tothe success or failure of a company. Transformational leadershipapproach creates a positive and valuable change in people within anorganization with the aim of setting up a leader out of a follower.Transactional leadership directs and motivates subordinates throughappealing to their self-interest through a system of rewards andpunishments.
Itis probable that dismissing ineffective leaders and training theremaining ones, including those that will be employed asreplacements, on developing the necessary leadership skills to driveorganizational change, would be beneficial to University of MiamiHospital. This approach proved to be successful in Pungo DistrictHospital`s predicament, so the same solution is applicable toUniversity of Miami Hospital. What this institution requires istransformational and transactional leaders to instigate and implementchanges that will enable it to thrive and survive in the present-dayunpredictable healthcare business.
Antonakis,J., & House, R. J. (2014, September). Instrumental leadership:Measurement and extension of transformational–transactionalleadership theory. TheLeadership Quarterly,25(4),746-771. doi:10.1016/j.leaqua.2014.04.005
Bass,B. M., & Avolio, B. J. (1994). Improvingorganizational effectiveness through transformational leadership.Thousand Oaks: Sage Publications.
Huber,D. (2014). Leadership&amp nursing care management.St. Louis: Saunders/Elsevier.
Kotlyar,I., & Karakowsky, L. (2007, May 01). Falling Over Ourselves toFollow the Leader: Conceptualizing Connections BetweenTransformational Leader Behaviors and Dysfunctional Team Conflict.Journalof Leadership &amp Organizational Studies,14(1),38-49. Doi: 10.1177/1071791907304285
Smith,T. (2014, December 10). Global Business Leadership. 342-357. doi:10.4324/9780203768716