Describe how the following example illustrates one or more of the system characteristics that contribute to dynamic complexity.Describe the influence of dynamic complexity and system relationships on managerial decision-making. Example: Medical Associates is a for-profit medical group of 40 physicians that operates two facilities and offers services in several medical specialties, including cardiology; ear, nose and throat; family medicine; gastroenterology; general surgery; pediatrics; and obstetrics and gynecology. Medical Associates is open six days a week in each location from 8:00am until 6:00pm. Plans are being developed to extend its hours to 9:00pm two days a week. For several years Medical Associates discounted its listed fees by 3 percent to 5 percent for its managed care contracts, but a few years ago, it had to accept larger discounts to remain in the networks of health plans. Lower reimbursement led Medical Associates to change its staffing from relying solely on registered nurses (RNs) to hiring medical assistants (MAs) as well. Currently, all physicians assigned to primary care services are assigned one RN or MA to assist with patient care. Physicians assigned to surgery are assigned one RN for every two physicians. As RNs retire or reassign, they have been replaced with MAs. On five recent occasions, when an RN assigned to a senior physician resigned, the senior physician demanded that the RN assigned to a junior physician be reassigned to him and that a new MA be hired to fill the vacancy with the junior physician. This ad hoc system of job switching has subsequent resignation of two RNs who did not want to be reassigned….Confusion exists around staff reporting relationships and who has the authority to change job assignments. (Seidel and Lewis 2014, 215) Share on Facebook Tweet Follow us Sample Answer Dynamic Complexity in Medical Associates: An Analysis System Characteristics Contributing to Dynamic Complexity The example of Medical Associates illustrates several system characteristics that contribute to dynamic complexity, particularly in the context of healthcare management. Dynamic complexity refers to situations where cause-and-effect relationships are not immediately apparent, leading to unintended consequences over time. In this case, the following characteristics are evident: 1. Interconnected Relationships: The relationships between different staff roles (physicians, RNs, and MAs) exemplify interconnectedness within the system. When a senior physician demands the reassignment of an RN from a junior physician, it disrupts the established workflow and creates tension among staff members. This decision affects not only the immediate parties involved but also the overall performance of the medical group, highlighting how one change can ripple throughout the organization. 2. Feedback Loops: The situation creates feedback loops that perpetuate dynamic complexity. For example, the senior physician’s demand for a reassignment reflects the power dynamics at play, and when RNs feel undervalued or pressured to change roles, they may resign, leading to further staffing shortages. This cycle can create a continuous loop of dissatisfaction and turnover, affecting the quality of patient care and operational efficiency. 3. Uncertainty and Ambiguity: The ad hoc system of job switching has led to confusion regarding reporting relationships and authority. When roles and responsibilities are unclear, it creates uncertainty among staff, which can hinder effective decision-making and collaboration. This ambiguity can lead to frustrations among employees, impacting their morale and willingness to remain in the organization. Influence of Dynamic Complexity and System Relationships on Managerial Decision-Making Dynamic complexity and system relationships significantly influence managerial decision-making in several ways: 1. Need for Holistic Understanding: Managers must adopt a systems thinking approach to comprehend how various elements within the organization interact. Decisions made in isolation may lead to unintended consequences, as seen with the reassignment of RNs and the subsequent resignations. A holistic understanding allows managers to anticipate potential outcomes and mitigate negative impacts. 2. Balancing Short-Term and Long-Term Goals: Managers at Medical Associates face the challenge of balancing immediate staffing needs against long-term organizational health. While hiring MAs may address short-term staffing shortages due to lower reimbursement rates, it may also lead to long-term issues related to employee satisfaction and retention if RNs feel marginalized or undervalued. 3. Emphasizing Communication: The confusion surrounding staff reporting relationships underscores the need for clear communication protocols within the organization. Managers must create an environment where roles are well-defined and employees feel comfortable voicing concerns. Effective communication can help prevent misunderstandings that arise from dynamic complexity and improve team cohesion. 4. Adaptive Leadership: Given the dynamic nature of the healthcare environment, managers need to be adaptive leaders who can respond flexibly to changing circumstances. They must be prepared to reevaluate staffing strategies and role assignments based on real-time feedback from staff and patients, ensuring that decisions align with the organization’s overall mission and values. Conclusion The situation at Medical Associates exemplifies how dynamic complexity arises from interconnected relationships, feedback loops, and uncertainty within a healthcare setting. Understanding these characteristics is crucial for managers as they navigate decision-making processes that impact both staff and patient care. By adopting a systems thinking approach, emphasizing clear communication, and remaining adaptable, managers can better address the complexities inherent in their organizations and foster a more effective working environment. This question has been answered. Get Answer