Optimising Organisational Performance through Best Change Management Practices In Leadership, Operations and Finance: The Case of Home Instead Senior Care
Executive Summary
Home Instead Senior Care provides individualised home care, services to senior people. While the company has progressively grown its global reputation with an increased presence around the world, it faces various challenges related to leadership, finances and operations. The organisation faces difficulties in the hiring process, remuneration and compensation, stiff completion from rivals, and high operation costs, amongst other challenges. This report explored these challenges and assessed the most suitable ways for optimising the company’s organisational performance through best change management practices in leadership, operations and finance. To guide the evaluation, the researcher employs two theories two ground the study in its theoretical and historical backgrounds. The Administrative Management theory by Henri Fayol helps to explain the process of maximising organisational performance, and the Resource-Based View model explains how organisations may maximise on their resources to improve performance. From the analysis, a few recommendations are made. The hierarchy at Home Instead needs to be adaptable and flexible. Furthermore, Home Instead Senior Care can improve financial performance and operations management through embracing new technologies, planning and observing to operating budgets and business objectives, employing process improvement strategies and practising excellent communication. Don't use plagiarised sources.Get your custom essay just from $11/page
Table of Contents
Improving Organisational Performance: Theoretical Foundations. 5
The Administrative Management theory by Henri Fayol 5
The Resource-Based View Model 6
Leadership and Organisational Performance at Home Instead Senior Care. 7
Home Instead’s leadership model 7
Leadership and organisational performance at Home Instead. 8
Operations Management and Improved Financial Performance at Home Instead. 10
Summary, Conclusion Recommendations. 13
Introduction
Development in the business world is rapid. With globalisation, vast new markets have opened up, new technologies have been introduced, unique business models have been discovered, and capital flows and investor demand have become unpredictable. As such, to stay relevant in an increasingly competitive sector, organisations must carefully optimise their resources by integrating best practices when it comes to leadership, operations and financial management. In this sense, the essentiality of a systematic approach to improving and measuring organisational performance cannot be overstated. The optimal approach to enhancing organisational performance employs a framework that includes efficient leadership, operations and financial management practices to optimise resource capability, add value, and optimise organisational performance. A critical evaluation of the case of Home Instead enables a deeper understanding of such practices.
Home Instead Senior Care organisation (HISC) provides care and keeps senior citizens safe at Home instead of other places such as specialised homes. The organisation excels at providing quality, individualised care to the elderly holds promotions at the national level, and offers specialised home-care services. These strengths have made sure that the organisation has lasted for over two decades in the industry. However, the organisation faces several challenges concerning leadership, finances and operations. The organisation faces difficulties in the hiring process, remuneration and compensation, stiff completion from rivals, and high operation costs, amongst other challenges.
Given these challenges, Home Instead may improve organisational performance through a variety of ways. When it comes to leadership, it is vital that the leaders employ an effective communication strategy, establish a psychologically safe environment for workers and customers, and execute other company roles efficiently and effectively. In operations management, the hierarchy at Home Instead needs to reexamine the supply chain strategy to reduce operating costs and to optimise the available resources. For instance, proper governing mechanisms, inventory control practices, and quality control practices are sure to improve the performance of the organisation.
Improving Organisational Performance: Theoretical Foundations
The Administrative Management theory by Henri Fayol
When countries were experiencing massive growth and expansion, production shifted from homes to industries. During this time, there was significant need for efficiency to upscale productivity and make better use of the finite raw materials that were available. It is within this context that Henri Fayol propagated the administrative management theory, which focused on the efficiency of the business organisation. As Wren, Bedeian, and Breeze (2002) explained, Fayol identified five critical functional areas from which organisational performance could be traced, analysed and improved. These were planning, controlling, coordinating, organising and directing. Planning explores the sequencing and ordering of tasks. Organising explains the process of making optimal use of organisational resources to achieve goals. Directing, on the other hand, is the process of motivating and influencing employees, while controlling involves measurement of organisational performance.
Following these critical functional areas, Fayol propagated 14 principles that could act as guidelines for managers towards improving organisational efficiency. They include division of labour, authority, discipline, unity of command, direction, subordination, remuneration, centralisation, order, scaler chain, the stability of tenure, team spirit, equity and initiative. Other administrative management theorists include James Mooney and Luther Gulick (Wren et al. 2002). Together, these theorists attempted to find a rational way to design organisations. They also explored ways in which organisations could formalise their structures to meet organisational needs and goals. This theory forms the foundation of the fabric that organisations depend on for an administrative and workable core. This theory, therefore, forms the basis of any discussion about organisational management and efficiency and has been incorporated in modern times for more efficient performance in the business world.
The Resource-Based View Model
The Resource-Based View (RBV) model sees organisational resources as vital to achieving organisational goals. This approach explains to firms how to attain a competitive advantage against market competition. The foundational works that were written in the late 1980s and early 1990s contributed significantly to what is referred to as the RBV model today. Jurevicius (2013) explained that works like the Core Competence of Corporation by Prahaland and Hamel and Firm Resources Sustained Competitive Advantage by Barney J were seminal in the foundational writings of this model.
Proponents of the RBV model opine that it is more advisable and feasible to exploit new opportunities using existing organisational resources rather than seeking new skills to compete for emerging opportunities. In this regard, the RBV model places resources at the centre of any corporate strategies. For firms to improve organisational performance, proponents of the RBV explain that the firm must exploit both tangible and intangible resources. Tangible resources, according to Jurevicius (2013), are physical objects such as firm equipment, machinery and capital. On the other hand, intangible resources include anything that is not physical, but might be owned by the company. These include the company brand and intellectual properties. According to the RBV model, intangible resources provide the main competitive advantage that companies may use against their competition, as they are built over time. In this regard, the RBV model emphasises that companies make use of their resources for improving organisational performance and gaining the much needed competitive advantage.
Best Change Management Practices in Leadership, Operations, Information Systems and Finance for Home Instead Senior Care
Home instead strives to provide quality care through individualised care and training services for its clientele. HISC is built on a long-standing reputation as a reliable service care institution. The franchise consists of over 1000 locally-owned senior care homes and agencies around the globe. The company has, over the years, registered double-digit growth rates thanks to its emphasis on individualised, yet standard and quality care services. The firm’s care programmes are also supported by extensive training models that are founded on the company’s values of providing individualised and compassionate care (Academy 2018). However, as abovementioned, the firm experiences challenges with regard to staffing, remuneration, and competition from rivals. In this regard, the firm ought to pursue a myriad of change management practices in leadership, information systems and finance for improved organisational performance.
Leadership and Organisational Performance at Home Instead Senior Care
Home Instead’s leadership model
The Home Instead Senior Care franchise is now present in fourteen countries, including the United Kingdom. This model seeks to establish a global structure with local touch in the individual and local homes around the world. The leadership of Home Instead, therefore, while operating under a worldwide mandate, operates from locally established offices that enable the company to reach out to local communities and customers. In the UK, the leadership seeks to provide care for small areas, operating as small, local businesses. Home Instead in the UK has over two hundred locally owned and operated offices, employing over thirteen thousand people across the country.
At the time of research, the Home Instead UK website (2020) lists Martin Jones as the Chief executive officer, responsible for leading the entire UK operation. His role remains to establish and cement HISC as the leading provider of care for the elderly population in the UK. Katie Furey is the Director of Operations (DoO), acting as a relationship manager, as well as holding area manager responsibilities. She also supports all regional teams to ensure that they are well placed to provide services in line with the company’s vision and mission. Ruth Brown serves as the Director of Business Development (DoBD), a role that requires the holder to deliver and oversee recruitment, franchising, and mentoring. The DBD also helps to guide new home care owners through the establishment phase, mentoring and easing them into the expected business model. The Director of Finance (DoF), Tom Robinson, is tasked with the role of overseeing the accounting and finance related issues of the company. The Director of Innovations (DoI), Mark Laing, leads teams in their pursuit of new strategies and projects. Furthermore; this role is concerned with the technological growth of the company and its resources.
Leadership and organisational performance at Home Instead
An organisation may be termed as successful if it balances the demands of stakeholders such as the community, owners, and clients, with those of its employees. According to Hurduzeu (2015), leadership is the variable that binds this aspect of business together. Leadership can impact and ensure the success and growth of both the firm and the employees. Leaders also make a significant impact on the performance of team’s performance, and empirical studies point that effective leadership positively affects organisational performance (Ogbonna and Harris 2000; Knies and Tummers 2016; Madanchian et al. 2016). While leadership skills are not tangible, they boost the organisation by providing various tangible impacts on the team, including increased performance. Many leaders are born with specific leadership abilities, but most individuals can learn and improve their leadership skills.
To improve organisational performance, the leadership at Home Instead needs to be flexible and situational. Lincoln and Keller (2018) explain the situational leadership theory and define six qualities of leadership. Firstly is leaders who coaching leaders. Coaching leaders work and enhance the development of individuals. This aspect of situational leadership means these leaders are welcome to change. Furthermore, Lincoln and Keller (2018) explain that situational leaders should be able to pace set. This quality means that these leaders can set high goals for the organisation and lead by example. While this quality allows for achieving organisational goals, it should be used sparingly as it may lead to employee burnout. The democratic quality, on the other hand, gives employees the voice and fluidity to raise their concerns and manage their responsibilities. Affiliative qualities mean leaders put their employees first and focus on building their employee confidence. Fifth, situational leaders can also be authoritative, analysing problems and coming up with suitable solutions. Lastly, the coerciveness quality allows leaders to tell their employees what to do and is useful during crises.
The healthcare and business sectors are dynamic and ever-changing. As such, Lincoln and Keller (2018) pointed out that positive leadership enables a climate that rewards employees as well as customers. This type of leadership challenges the organisation and the stakeholders to achieve better results by taking calculated risks and allowing for an environment for employees to accept new challenges. The onus to create a working environment remains with an organisation’s leaders, and as such, leaders play a vital role in the shaping of the organisation. Therefore, the leadership at Home Instead should be change agents and allow for adaptation.
The political, economic, social, technological and environmental environment in the UK is evolving, and thus, the leadership at Home Instead needs to be adaptable. For instance, the Brexit situation in the country may require the leadership of the company to make various changes in its business approach and model. Economic factors also affect the profit and operational costs of a company. In this regard, the leadership at Home instead needs to make sure that the organisation adapts to such economic factors to improve economic performance. When it comes to social factors, the UK’s population and their attitude towards health is evolving. The leadership at HISC, therefore, should be aware of these changes and adapt accordingly, regarding prices and affordability of its services. Likewise, HISC, as is required for all businesses, should be committed to environmental sustainability. Therefore, the leadership at HISC has to be aware of the environmental issues regarding the business sector. In this light, the administration has done a commendable job by participating in various environmental sustainability drives in the country.
Operations Management and Improved Financial Performance at Home Instead
While HISC boasts a long-standing reputation for providing specialised care, the organisation faces a myriad of operational challenges that affect financial performance. The organisation faces challenges regarding hiring, staffing, client fees, and competition from rivals. In this regard, it is essential the organisation adopt systematic and effective operations management and decision-making approaches to improve organisational performance, including achieving and streamlining the financial issues.
The pursuit of improved organisational performance through effective operations management has been a concern for many businesses (Duarte et al. 2011). Duarte and others (2011) explained that internal factors are critical factors in determining the performance of companies, and there are a set of best practices for firms in the pursuit of optimal organisational performance. Total Quality Management (TQM) is primarily concerned with the management approach that integrates and emphasises constant improvement, meeting client needs, encouraging planning, and teamwork and goals achievement (Evans 2002). Evans observed that proper TQM techniques impact organisational performance positively. To improve operations management, Oakland (2014) opined that firstly, there should be a sequential flow of patterns and processes. This approach allows the manager or leader to track the processes and tasks, and also enables better communication. Furthermore, there should be a predictable process that company tasks go through every day.
In a separate analysis, Gunasekaran, Forker and Kobu (2000) explored the importance of analysing the operational and financial performance of companies. In their study, they noted that it is important for companies to employ a systematised process of analysing financial performance. Therefore, for this analysis, they advise that companies assess and record their financial results regularly with full-term forecasts and overall financial plans. In addition, they indicated that financial analysis is important because allows the company to assess the effectiveness of operational procedures, as well as identifying lessons for the future. In this regard, the authors recommend that continuous collaboration between technical and financial staff to improve organisational performance. When financial reports are prepared by financial experts alone, Gunasekaran and others observed that it brings inconsistencies, and as such, leads to future issues with company finances.
Home Instead can reduce resource wastage and increase financial performance by firstly, fully embracing technology. The daily processes of a home care facility such as record management can be automated by the use of software. The operations will be effective, and service delivery will improve. Second, according to Slack (2018), outsourcing is another strategy that may reduce increase financial performance. Some tasks may be outsourced to third-party specialists. While outsourcing may seem expensive in the short term, delegating specific tasks to experts pays financial benefits in the long run. Home Instead has to an extent, embraced the outsourcing strategy by allowing for volunteers. With the objective of creating a community that is aware about disorders such as dementia, these volunteers facilitate visits to the elderly from their local community. However, the outsourcing programme is yet to be fully embraced, and Home Instead will do well to maximise on its advantages with the view of maximising financial performance.
In an analysis of operations management in healthcare, Henderson (1995) observed that the healthcare sector undergoes rapid change and reforms, and as such, the role of operations managers is increasing. According to Henderson (1995), these complex and dynamic environment calls for a team effort, and the integration of systems to drive the necessary change. Besides affecting the company’s financial situation, the processes of financing, staffing, licencing, and other operational tasks also affect customer experience. In consequence, Henderson recommends that healthcare companies adhere to operating budgets and monetary objectives, employ process improvement strategies like the Six Sigma approach, practice excellent communication among the employees and other stakeholders, and embrace new technologies. Moreover, Home Instead could allow for an operations manager position, a role that could facilitate better management of company tasks and processes, and provide a useful system that could be utilised to account for the day to day operations of the company.
Summary, Conclusion Recommendations
The business world has become increasingly competitive. Therefore, to stay competitive, it is vital for businesses to assess and optimise organisational performance through best change management practices in leadership, operations and finance. Home Instead Senior Care was set up to provide specialised care for elderly citizens from their homes. With a presence in over 14 countries and over 200 local homes in the UK alone, the firm has a long-standing reputation for providing a go-to service for the elderly populations. HISC also offers training and person-centred psychological care by trained caregivers.
However, the company faces various challenges in terms of operational costs, remuneration, staffing, and competition from rivals. The political, environmental, social and economic and technological situations in the UK are volatile, making for an unforgiving, rapidly changing environment. While organisations often set up and anticipate such uncertainties, the dynamics of their negative impacts are often hard to predict. Nonetheless, with the population of elderly individuals in society increasing, opportunities abound for the firm to expand its presence and grow. Home Instead, therefore, will benefit from a systematic framework of effective leadership and operations management to increase organisational performance.
Borrowing from this analysis, Home Instead could improve operations management and financial performance by embracing a variety of strategies. In terms of leadership, is for the hierarchy of the company to adopt an adaptable, flexible leadership style that can meet both stakeholder and customer needs. Situational leadership will allow the management at Home Instead to create a favourable environment for growth. The second recommendation concerns operations management and how to maximise financial performance. Home Instead Senior Care can improve financial performance and operations management through embracing new technologies, adhering to operating budgets and monetary objectives, employing process improvement strategies like the Six Sigma approach, and practising good communication.
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