Student Number:
MNG3702
ASSIGNMENT 1
SEMESTER 1
18/03/2024
Question 1
Absorptive Capacity denotes an organization's capability to recognize the value of new external
information, comprehend it, integrate it, and then see how this newfound knowledge can effectively
be applied to address business challenges.
Below are the four dimensions that determine the absorptive capacity of an organization:
Acquisition of External Information
This refers to the organization's ability to identify and obtain useful information generated from its
external environment. The sooner the information is retrieved, the greater the competitive
advantage for the organisation. The data also needs to be of quality for the organization to gain a
competitive advantage from it.
For instance, Netcare is exceptionally proficient in sourcing external information by investing in
cutting-edge medical technologies and employing highly professional and skilled people. Netcare
also gains external knowledge and input from the national healthcare system from their partnership
with the public sector in RSA.
Assimilation of Acquired Information
This refers to the ability to analyze and understand the information that has been acquired. A vital
step in internalizing the newly obtained information and knowledge throughout the organisation, is
to make sure that it is understood and interpreted correctly.
For example, Netcare exemplifies this dimension by investing in their people, infrastructure, and
technology. Netcare has 7 training campuses and is known as one of the top private trainers of
emergency medical professionals. Its ongoing training programs and team-based care models help
integrate external knowledge, medical technologies and best practices throughout its network
effectively.
Transformation of Knowledge
This refers to the ability to combine the new knowledge with prior knowledge and develop new
insights as a result. digital health solutions, which enable the company to innovate and improve
healthcare delivery.
For example, Netcare demonstrates their ability to transform and integrate new and prior
knowledge by the implementation of digital health solutions. The digitized platform records patient
health over time (prior knowledge) which can then be analysed and transformed into new
information that is used to gain new insights and make informed decisions about patient health.
Applying New Knowledge
This refers to the implementation of the transformed knowledge and new insights across the
organization to improve the overall business operations and to develop new initiatives and business
ventures.
, For example, Netcare excels in this dimension by using data analytics as guidance for clinical
decisions and improved outcomes. The customer engagement platforms they created keeps their
patients informed and enables them to take actively manage their own health and wellness
alongside healthcare professionals.
Question 2
Netcare Limited
Corporate Balanced Scorecard
Mission: To provide every patient with clinical care of the highest quality.
Balanced Scorecard Strategic Objectives for Netcare
Perspective
earning enhanced returns for the Netcare Group
Financial new product and service offerings to grow revenue
ensuring best and safest person-centred care through consistency
Customer driving above market growth
developing new products and services to promote inclusivity and access.
Learning & Growth investing and developing their workforce and communities
Internal Business optimising capacity utilisation
Processes implementing a systems leadership model
Question 3
To align individual behaviour with the strategic direction of the organisation, every employee and
functional business unit should direct their contributions towards achieving organisational goals in
alignment with the company’s vision and mission.
Companies can use the following 5 tools to achieve this:
Recruitment Process: The first step of alignment starts with the recruitment of individuals
whose values and personal goals are aligned with the company’s strategic direction and
company culture.
o Netcare achieves this by actively seeking and employing personnel that want to
provide the best and safest patient care, which is in alignment with the company’s
core purpose.
Netcare’s vision is to “strive for consistent and excellent patient care delivered by
people who are passionate about the sanctity of life, personal respect and dignity”.
o As Netcare’s core value is to care for not only their patients, but also for all their
stakeholders, they expect that employees incorporate this attitude into their
responsibilities towards patients and the company.
“They engage everyone with empathy and respond with acts of compassion in all
their interactions with patients and their families.”
, Training and Development: It is fundamental that organizations ensure that their employees
have the appropriate knowledge, skills, expertise, and attitudes that match the strategic
direction of the organization.
o Netcare invests in training their personnel to enhance their clinical skills and their
ability to use the advanced technology. They also have 7 different training campuses
across South Africa which indicates their commitment to training and development.
“Netcare also has the distinction of being a leading private trainer of emergency
medical and nursing personnel in the country”.
o Netcare not only focusses on training the medical staff, but also offers higher level
management and executives with the opportunity to expand their own knowledge
and expand their skill set by means of implementing a systems leadership model.
“They are implementing a systems leadership model where managers are
encouraged to use their energy, ideas, and skills to drive innovation across the
organization.”
Policies and Procedures: Assists with alignment of individual behaviour with the
organizational values by offering guidelines for the individual to adhere to. Policies and
procedures need to adapt to changes and might need to be reviewed occasionally.
o Netcare is committed towards consistency across in all areas of the organization and
implements policies and procedures to ensure that all stakeholders adhere to this.
“Delivering consistently excellent clinical services, ensuring best and safest person-
centred care”.
o Policies around inclusivity and diversity places focus on Netcare’s commitment to
making a difference in the overall culture of the organization.
“They focus on enhancing Netcare’s black ownership and the race and gender
diversity of their leadership.”
Process of Cascading Objectives: This can be seen as a top-to-bottom approach as goals are
communicated and assigned lower down in the organization which will align top level
objectives with the daily responsibilities of the employees.
o Netcare's strategy is straightforward and clearly communicates the desired
outcomes the company aims to achieve. This strategy is built on 6 clearly defined
pillars which all the people within the organization are aware of.
“Netcare’s strategy rests on six pillars, each with clearly defined objectives, plans
and projects that in combination will drive the outcomes their strategy is designed
to achieve.”
o Netcare creates synergy across all levels of the company to ensure that the whole
group aims to achieve the same strategic goals.
“Creating strategic and synergistic partnerships between all service platforms and
functions”.
Rewards Systems: Individuals whose behaviour and achievements are aligned with the
company strategy needs to be rewarded in various ways in an effort to encourage the right
behaviour and to act as an example for all other individuals.
o Netcare has linked their reward system with the six strategic pillars which are used
as KPI’s for each individual.
o Netcare promises enhanced returns for the Group if they achieve above market
growth which is only possible if each and every individual strives toward optimal and
highly differentiated care in South Africa.
MNG3702
ASSIGNMENT 1
SEMESTER 1
18/03/2024
Question 1
Absorptive Capacity denotes an organization's capability to recognize the value of new external
information, comprehend it, integrate it, and then see how this newfound knowledge can effectively
be applied to address business challenges.
Below are the four dimensions that determine the absorptive capacity of an organization:
Acquisition of External Information
This refers to the organization's ability to identify and obtain useful information generated from its
external environment. The sooner the information is retrieved, the greater the competitive
advantage for the organisation. The data also needs to be of quality for the organization to gain a
competitive advantage from it.
For instance, Netcare is exceptionally proficient in sourcing external information by investing in
cutting-edge medical technologies and employing highly professional and skilled people. Netcare
also gains external knowledge and input from the national healthcare system from their partnership
with the public sector in RSA.
Assimilation of Acquired Information
This refers to the ability to analyze and understand the information that has been acquired. A vital
step in internalizing the newly obtained information and knowledge throughout the organisation, is
to make sure that it is understood and interpreted correctly.
For example, Netcare exemplifies this dimension by investing in their people, infrastructure, and
technology. Netcare has 7 training campuses and is known as one of the top private trainers of
emergency medical professionals. Its ongoing training programs and team-based care models help
integrate external knowledge, medical technologies and best practices throughout its network
effectively.
Transformation of Knowledge
This refers to the ability to combine the new knowledge with prior knowledge and develop new
insights as a result. digital health solutions, which enable the company to innovate and improve
healthcare delivery.
For example, Netcare demonstrates their ability to transform and integrate new and prior
knowledge by the implementation of digital health solutions. The digitized platform records patient
health over time (prior knowledge) which can then be analysed and transformed into new
information that is used to gain new insights and make informed decisions about patient health.
Applying New Knowledge
This refers to the implementation of the transformed knowledge and new insights across the
organization to improve the overall business operations and to develop new initiatives and business
ventures.
, For example, Netcare excels in this dimension by using data analytics as guidance for clinical
decisions and improved outcomes. The customer engagement platforms they created keeps their
patients informed and enables them to take actively manage their own health and wellness
alongside healthcare professionals.
Question 2
Netcare Limited
Corporate Balanced Scorecard
Mission: To provide every patient with clinical care of the highest quality.
Balanced Scorecard Strategic Objectives for Netcare
Perspective
earning enhanced returns for the Netcare Group
Financial new product and service offerings to grow revenue
ensuring best and safest person-centred care through consistency
Customer driving above market growth
developing new products and services to promote inclusivity and access.
Learning & Growth investing and developing their workforce and communities
Internal Business optimising capacity utilisation
Processes implementing a systems leadership model
Question 3
To align individual behaviour with the strategic direction of the organisation, every employee and
functional business unit should direct their contributions towards achieving organisational goals in
alignment with the company’s vision and mission.
Companies can use the following 5 tools to achieve this:
Recruitment Process: The first step of alignment starts with the recruitment of individuals
whose values and personal goals are aligned with the company’s strategic direction and
company culture.
o Netcare achieves this by actively seeking and employing personnel that want to
provide the best and safest patient care, which is in alignment with the company’s
core purpose.
Netcare’s vision is to “strive for consistent and excellent patient care delivered by
people who are passionate about the sanctity of life, personal respect and dignity”.
o As Netcare’s core value is to care for not only their patients, but also for all their
stakeholders, they expect that employees incorporate this attitude into their
responsibilities towards patients and the company.
“They engage everyone with empathy and respond with acts of compassion in all
their interactions with patients and their families.”
, Training and Development: It is fundamental that organizations ensure that their employees
have the appropriate knowledge, skills, expertise, and attitudes that match the strategic
direction of the organization.
o Netcare invests in training their personnel to enhance their clinical skills and their
ability to use the advanced technology. They also have 7 different training campuses
across South Africa which indicates their commitment to training and development.
“Netcare also has the distinction of being a leading private trainer of emergency
medical and nursing personnel in the country”.
o Netcare not only focusses on training the medical staff, but also offers higher level
management and executives with the opportunity to expand their own knowledge
and expand their skill set by means of implementing a systems leadership model.
“They are implementing a systems leadership model where managers are
encouraged to use their energy, ideas, and skills to drive innovation across the
organization.”
Policies and Procedures: Assists with alignment of individual behaviour with the
organizational values by offering guidelines for the individual to adhere to. Policies and
procedures need to adapt to changes and might need to be reviewed occasionally.
o Netcare is committed towards consistency across in all areas of the organization and
implements policies and procedures to ensure that all stakeholders adhere to this.
“Delivering consistently excellent clinical services, ensuring best and safest person-
centred care”.
o Policies around inclusivity and diversity places focus on Netcare’s commitment to
making a difference in the overall culture of the organization.
“They focus on enhancing Netcare’s black ownership and the race and gender
diversity of their leadership.”
Process of Cascading Objectives: This can be seen as a top-to-bottom approach as goals are
communicated and assigned lower down in the organization which will align top level
objectives with the daily responsibilities of the employees.
o Netcare's strategy is straightforward and clearly communicates the desired
outcomes the company aims to achieve. This strategy is built on 6 clearly defined
pillars which all the people within the organization are aware of.
“Netcare’s strategy rests on six pillars, each with clearly defined objectives, plans
and projects that in combination will drive the outcomes their strategy is designed
to achieve.”
o Netcare creates synergy across all levels of the company to ensure that the whole
group aims to achieve the same strategic goals.
“Creating strategic and synergistic partnerships between all service platforms and
functions”.
Rewards Systems: Individuals whose behaviour and achievements are aligned with the
company strategy needs to be rewarded in various ways in an effort to encourage the right
behaviour and to act as an example for all other individuals.
o Netcare has linked their reward system with the six strategic pillars which are used
as KPI’s for each individual.
o Netcare promises enhanced returns for the Group if they achieve above market
growth which is only possible if each and every individual strives toward optimal and
highly differentiated care in South Africa.
