1. 1. Overview/ Introduction: The core feature of the case study is a transformational change during a consolidation of two hospitals. Both hospitals face challenges stemming from the complexity of the merge that involves different leadership styles, systems, policies, ingrained cultures and employees’ beliefs, and it bears financial constraints. Diversity and complexity impact upon two main dimensions: (a) behavioral (motivation, retention, employee relations, cultural integration) and (b) organizational (design of new systems, management practices, processes and in general O.D. issues). Both dimensions ultimately influence the organizations’ efficiency and in turn a professional delivery of health services to the community.
2. 2. Environment analysis: The two hospitals face external pressures from: (a) the shareholders to reduce costs; (b) the community to deliver high quality health services; (c) the labor market with shortage of qualified staff; also (d) political pressures demanding a restructuring; and (e) from citywide union agreements that can influence HR decisions. These external factors must be duly accounted as they impact upon behavioral and organizational dimensions and by reflection can affect the success of the consolidation.
3. 3. Problem identification: Leadership in handling the change. Internal and external complexities and challenges suggest that effective leadership, especially handling human aspects of the change, would be key for a successful consolidation process. In both hospitals employees face low motivation, uncertainty on the future, differences in leadership styles, ethical approaches, and in working cultures that add complexity to the process.
4. 4. Solutions: Firstly, an HRD multilevel analysis looking at structures, strategies, cultures, with HR working with the change agents, and the