Question
Read the case study below and answer the questions that follow. The customer knows best: AtlantiCare Total Quality Management (TQM) isnt an easy management strategy
Read the case study below and answer the questions that follow. The customer knows best: AtlantiCare Total Quality Management (TQM) isnt an easy management strategy to introduce into a business in fact, many attempts tend to fall flat. More often than not, its because firms maintain natural barriers to full involvement. Middle managers, for example, tend to complain their authority is being challenged when boots on the ground are encouraged to speak up in the early stages of TQM. Yet in a culture of constant quality enhancement, the views of any given workforce are invaluable. One firm thats proven the merit of TQM is New Jersey-based healthcare provider AtlantiCare. Managing 5,000 employees at 25 locations, AtlantiCare is a serious business thats boasted a respectable turnaround for nearly two decades. Yet in order to increase that margin further still, managers wanted to implement improvements across the board. Because patient satisfaction is the single-most important aspect of the healthcare industry, engaging in a renewed campaign of TQM proved a natural fit. The firm chose to adopt a plan-do-check-act cycle, revealing gaps in staff communication which subsequently meant longer patient waiting times and more complaints. To tackle this, managers explored a sideways method of internal communications. Instead of information trickling down from top-to-bottom, all of the companys employees were given freedom to provide vital feedback at each and every level. AtlantiCare decided to ensure all new employees understood this quality culture from the onset. At orientation, staff now receive a crash course in the companys performance excellence framework a management system that organises the firms processes into five key areas: quality, customer service, people and workplace, growth and financial performance. As employees rise through the ranks, this emphasis on improvement follows, so managers can operate within the companys tight-loose-tight process management style. After creating benchmark goals for employees to achieve at all levels including better engagement at the point of delivery, increasing clinical communication and identifying and prioritising service opportunities AtlantiCare was able to thrive. The number of repeat customers at the firm tripled, and its market share hit a six-year high. Profits unsurprisingly followed. The firms revenues shot up from $280m to $650m after implementing the quality improvement strategies, and the number of patients being serviced dwarfed state numbers. Source: https://www.europeanceo.com/business-and-management/total-quality-management-three-case-studies-fromaround-the-world/
Question 2 (10 Marks)
With reference to the relevant theory and the information in the case study, provide an analysis of the improvement cycle used by AtlantiCare. Make use of the relevant examples to justify your answer
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