Challenges of Mid-level Management Essay Example | Topics and Well Written Essays - 1500 words - 1

Challenges of Mid-level Management - Essay Example All decisions made by administrators must be weighed carefully. This is to provide a lasting positive impact on the organization’s revenue, its staff, and patients. This is a tough duty, but one that must be carried to completion, without fail (Wheatley, 2006). One of the core issues that affect health care administrators is the conflict of interest. Here, administrators are brought or weighed down by the fact that; their relationship with financial institutions may force them to make decisions that do not cater to their patients’ desires and wants (Ransom, Maulik & Nash, 2005). This is often seen with the insurance policies that cover patients once they are in for severe cases that warrant medical attention. It is also a common occurrence to see physicians and professional doctors getting into pacts with these financial institutions, which coerce them into getting capital for their institution through patients (Wheatley, 2006). This is sometimes seen through continuous tests and procedures that are unnecessary, and prove costly to the individuals involved. It is up to the healthcare administrators to restrain and warn physicians from entering into pacts with these financial institutions. This is with a rise in the ethical dilemmas the administration is being put through and the challenge that faces mid-level management in the healthcare field, in the 21st century. Another frightening task that comes up is the need to provide appropriate medical care, over the cost of management.

Agency Theory and Corporate Governance Problem Essay

Agency Theory and Corporate Governance Problem - Essay Example It is evidently clear from the discussion that the Agency theory conceptualizes the relationship between the firm managers and shareholders as a â€Å"nexus of contract† that is bound to result to conflict due to the different interests of each group. The proposal of this theory is that firms should have independent board structures and that the equity-based compensation for top executives should be applied to curb the aggressive behavior of the management. While this theory suffers a number of weaknesses by assuming perfect organizational structures, it provides a possible approach to a solution of the corporate governance problem. On this ground, agency theory, to a great extent provides workable solutions that can harmonize the interests of both the managers and company stakeholders. Corporate structures are characterized by a separation between the owners and the management of an organization. The owners of an organization appoint managers who are better versed with manage ment knowledge to run their business for payment. The expectation of the shareholders is that the managers run the organizations to the best interests of the shareholders at all times. However, there is the risk that the management may put their goals first before those of the firm, which would be contradictory to their duties. As expected, the managers are the information bearers and have for the power to influence the firm performance and profit through their strategic initiatives. From a different angle, the shareholders have little information and hence act in good faith expecting that the management will pursue the firm interests. However, it is hard for them to establish whether the management influenced the outcomes of their firms through economic manipulation. Ultimately, the shareholders wish to submit the business risks to the experts with the sole aim of maximizing the share values for their own benefits. Contrary, the manager’s goals may be against the shareholder 's interest as they seek to maximize the benefits they accrue from the organization.