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Interwest Healthcare Corporation Case Study Essay Sample

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Interwest Healthcare Corporation Case Study Essay Sample

Interwest Healthcare is a nonprofit organization that uses a management information system to house their patient’s intake, treatment, and release information at the 10 hospital’s owned by the company. Their chief financial officer (CFO), Vijay Singh, worries that the company will possibly face management planning issues as well as the possibility of losing their federal funding due to hospital staff members entering information into the company’s management information system incorrectly. Singh took his concerns to Cynthia Manzoni; Interwest’s chief executive officer (CEO), who agreed that a problem exists and that it is important for the company’s to maintain an accurate management information system. In an attempt to stress the importance of having an accurate management information system, Manzoni invited the corporate financial aid office, hospital administrators, and staff members to a retreat at a resort. At the conclusion of the retreat Manzoni felt that she had a guarantee that the accuracy of data entry would increase, however, six months later Singh claims the problem has not improved (Brickley, Smith & Zimmerman, 2009, p. 38).

What are the potential sources of the problem?

Interwest’s inaccuracy of the information in their management information system has several potential sources. One source of Interwest’s problem is managerial implications within the company. “Understanding what motivates individuals is critical (Brickley, Smith & Zimmerman, 2009, p. 32)”. Another potential problem is Interwest’s hospital administrators and staff members seeming to misunderstand what is good for the company. Managers must communicate goals and objectives, help employees to achieve these goals and objectives, and provide feedback on performance (Brickley, Smith & Zimmerman, 2009).

What information would you want to analyze?

There are two main problems that should take precedents when analyzing Interwest. Employee utility and employee compensation plans should be analyzed first to help improve Interwest’s situation. Analyzing their employee’s utility will determine the satisfaction that each employee expects to get from working at the hospital. Next, the company’s compensation plan should be analyzed. Knowing how employees are compensated for their work is imperative.

What actions might you recommend to increase the accuracy of the data entry?

“A manager can motivate desired actions by establishing appropriate incentives (Brickley, Smith & Zimmerman, 2009, p. 33)”. By changing how hospital administrators and staff members are compensated, Interwest can increase the accuracy of their data entry. If an employee’s compensation or bonus is directly linked to their data entry accuracy, employees will be motivated to make sure what they are inputting is accurate. By implementing the use of employee surveys, Interwest can receive constructive feedback from their employees that could help increase their date entry accuracy.

How does your view of behavior affect how you might address this consulting assignment?

The model of behavior that might affect how I address this consulting assignment is the Good-Citizen Model. Employees should have a personal yearning to take pride in their work and want to challenge themselves also placing the interest of the company first (Brickley, Smith & Zimmerman, 2009). They are employed and compensated to do a job, they should want to do their best so that they succeed by also the company succeeds. “There is no reason to have incentive pay since individuals are interested intrinsically in doing a good job (Brickley, Smith & Zimmerman, 2009, p. 36)”.


Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009). Managerial economics & organizational architecture. New York, NY: McGraw-Hill.

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