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Organization Theory Essay

1046 words - 5 pages

Organization Theory
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1.0 Title………………………………………………………………………………………2
1.1 Organization theory………………………………………………………………………4
1.2 Strategies of the new firm…………………………………………………………….4
2.0 Organizational structure………………………………………………………………….4
2.1 Organization culture……………………………………………………………………...5
2.2 Missions, visions and values……………………………………………………………..5
2.3 Data……………………………………………………………………………………....5
Organization Theory
In this case merging takes place when the two separate hospitals come together. Here one hospital acquires the other through purchase or agreement. Differentiation is the main reasons that PRMC and BRMC may opt to come together. It helps in ...view middle of the document...

It also adds to the pool of labor. For firms that are venturing into a new market, risk is minimized or spread. Through merging a firm is cushioned against environmental adversities. PRMC and MHC should merge since they operate in the same field. Risk is in most cases unforeseen and, therefore, would use a risk analyst before merging or venturing in uncertain conditions or investment (Lencioni, 2002). The merging firms have different management and structures and this are vital in strengthening the new firm thereby giving it a form of immunity to any challenge that may be encountered. PRMC and MHC both have different facilities and in this case the most beneficial hospital was MHC. PRMC had a sporting arena, an expansion era, and offices and above all it was a referral hospital.
On the other hand, MHC has a women centre and boasts good leadership, human resources and cultural adaptation (Rovit, 2013). The merging of these two hospitals is of great importance to both facilities in the long run. There are many reasons why the hospitals have the idea of merging but the most important ones in this case are to profit and avoiding being edged out. All these facilities are looking forward to earn profits and maintain their operations in the market but without these two elements the hospitals will close. The most pressing issues in this merger are to achieve an upper hand in the competition and provide services at a profit. The stakeholders have a concern on the areas of profit sharing, new tax systems as a result of merging. Also, merging may lead to loss of jobs in some cases and this may worry the stakeholders. Challenges that face the leaders are how to adopt changes and manage the entire firm (Nohria, Joyce, & Roberson, 2003). Management requires good decision making skills while the employees and physicians require education qualifications to deal with the incoming technologies. Among the outcomes from the new firms include; increased profits, expansion across the globe and market domination.
Organization theory
Strategies of the new firm
The main strategy of the newly formed firm is acquisition. In this space, larger firms are healthier. Larger organizations are...

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