A REVIEW OF THE RE-STRUCTURING OF THE NELSON MANDELA ACADEMIC HOSPITAL THROUGH THE CHANGE MANAGEMENT APPROACH A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION Of RHODES BUSINESS SCHOOL By MZULUNGILE NODIKIDA Student Number:14N8245 Supervised by: KEVIN RAFFERTY Submission date: 27 March 2017 Contents CHAPTER ONE: PROBLEM STATEMENT AND PURPOSE.................................1 1.1 INTRODUCTION......................................................................................................................... 1 1.2 RESEARCH CONTEXT..................................................................................................................1 1.2.2 Theories of Change Management................................................................................... 2 1.2.2 The National Department of Health and the Eastern Cape Department of Health..........4 1.2.3 The Nelson Mandela Academic Hospital.........................................................................4 1.2.4 The Hospital Revitalization Program and the Modernization of Tertiary Services and their importance...................................................................................................................... 5 1.2.5 The Current Situation/ Outcomes of the Change.............................................................6 1.3 RESEARCH PROBLEM.................................................................................................................6 1.3.1 The Objectives of the research are:......................................................................... 6 1.4 JUSTIFICATION OF THE STUDY...................................................................................................7 1.5 LIMITATIONS............................................................................................................................. 7 1.6 DELIMITATIONS.........................................................................................................................7 1.7 OUTLINE OF THE STUDY............................................................................................................ 8 CHAPTER TWO: LITERATURE REVIEW................................................................ 9 2.1 INTRODUCTION.........................................................................................................................9 2.2 CHANGE MANAGEMENT THEORIES...........................................................................................9 2.2.1Planned Approach to Change ............................................................................................. 10 2.2.1.1 Kurt Lewin's Planned Change Approach.................................................................10 2.2.1.2Lipitt et al (1958)'s Seven Phase Model...................................................................14 2.2.1.3Kotter's (1995)8 Step Model......................................................................................15 2.2.1.4 Bullock and Batten's (1985) Four Phase Model................................................... 16 2.2.2The Emergent Approach to Change.................................................................................17 2.2.2.1Hinings and Greenwood's Model of Change Dynamics............................................. 18 2.2.2.2 Kanter's (1982) Big Three Model of Organizational Change....................................18 2.2.2.3Pettigrew's Process/ Content/ Context Model.........................................................19 2.3 CHANGE MANAGEMENT IN HEALTH.........................................................................................19 2.3.1 Lukas et al (2007)Organizational Model for Transformation Change in Healthcare Systems 20 2.3.2 Canadian Health Service Research Foundation's Evidence Informed Change Management Approach..........................................................................................................20 2.3.3 Canadian Health Infoway's Change Management..........................................................21 2.4 CRITICAL ANALYSIS AND DISCUSSION......................................................................................21 i 2.5 THE CORE ELEMENTS FRAMEWORK OF CHANGE MANAGEMENT..........................................24 2.5.1 Essential Elements .............................................................................................................. 26 2.5.2 Useful Elements....................................................................................................................27 2.6 CONCLUSION............................................................................................................................. 27 3.1 INTRODUCTION.........................................................................................................................28 3.2 RESEARCH AIM AND OBJECTIVES..............................................................................................28 3.3 RESEARCH DESIGN.....................................................................................................................28 3.3.1 Research Paradigm ............................................................................................................. 28 3.3.2 Research Method...........................................................................................................29 3.3.3Methods of Data Collection.............................................................................................30 3.3.3.1 In-depth interviews.................................................................................................30 3.3.3.2 Other data gathering methods................................................................................30 3.3.3.3 Participant Selection................................................................................................31 3.3.3.4 Data analysis................................................................................................................ 31 3.4 RESEARCH PROCEDURE FOLLOWED........................................................................................31 3.4.1 Credibility ............................................................................................................................ 31 3.4.2 Transferability .................................................................................................................... 32 3.4.3 Dependability ..................................................................................................................... 32 3.4.4 Conformability.....................................................................................................................32 3.5 ETHICAL CONSIDERATIONS....................................................................................................... 32 3.6 SUMMARY................................................................................................................................. 33 CHAPTER FOUR: RESEARCH FINDINGS............................................................ 34 4.1 INTRODUCTION.........................................................................................................................34 4.2 OVERVIEW ................................................................................................................................ 34 4.3 THE FINDINGS OF THE INTERVIEW:...........................................................................................37 4.3.1 Concept 1: Factors (both internal & external) that prompted the initiation of the change of the NMAH to a central hospital(Environmental factors).........................................................37 4.3.2 Concept 2: The mutual agreement among the hospital stakeholders for the re­ structuring of the NMAH at the time of initiation (Organizational Harmony)..........................41 4.3.3 Concept 3: The level of cooperation of influential personalities such as the political lead within the organization (Power Dynamics)..................................................................................45 4.3.4 Concept 4: The availability of sufficient human, financial and environmental resources (Organizational capacity)............................................................................................................. 47 4.3.5 Concept 5: Whether external and internal realities of the hospital were taken into account at the time of change initiation (Nature of Change)..................................................... 50 4.3.6 Concept 6: Whether there was a clear rational and readiness process to initiate the change 52 4.3.7 Short comings of the change process and any suggested improvements........................ 55 ii 4.4 CONCLUSION 57 CHAPTER FIVE: DISCUSSION AND INTERPRETATION.....................................58 5.1 INTRODUCTION.........................................................................................................................58 5.2 OVERVIEW OF THE IMPORTANCEOF CHANGE MANAGEMENT APPROACHON HEALTHCARE CHANGE INITIATIVES.......................................................................................................................58 5.3 DISCUSSION AND INTERPRETATION......................................................................................... 59 5.3.1 Environmental Circumstance............................................................................................. 59 5.3.2 Organizational Harmony.....................................................................................................59