Managing a City's Health Benefits

Introduction

Managing is city health benefit plan is never an easy task for city management especially when city is facing financial crisis. The city under discussion was located near beach with around 37,000 residents who were financially very strong and lived here in the city for many years. In recent times, the city has been facing financial difficulties and the city management found it difficult to manage the health benefit plan of the city. The city faced many health issues, and the annual cost of health insurance rose to a very high level, and it had to find a way to solve the issue. The city management had the option of going to third party insurance companies to provide health insurance to employees.

One important aspect the city management had to consider is the presence of three unions who represented the workforce of the whole city. Since the overall labor laws of the city were not labor friendly, so unions played a very vital role in the decision making of labor force policies. The city had a council manager form of government with mayor elected at large. The mayor wanted to introduce new fiscal reforms and privatization measures in order to bring good changes in the city. Change in health care benefit plan was also a part of this strategy (Kathryn G. Denhardt & Eugene Miller, 2000).

Satisfiers and Dissatisfiers

Major workforce of the city has been living in the city for last few years, and they have a great association with this city. They have a sense of pride and loyalty to the city. This pride and loyalty is a result of many factors. Workforce motivation is dependent on different variables, and this city has been able to provide its employees with all the facilities and privileges one want. These variables include achievement, recognition, work itself, responsibility, and advancement. Unfortunately, the city management has failed to produce very labor friendly policies. Although it takes care of their issues and health plans but workforce welfare is least important for the government and often unions have to interfere and play their role for the protection of employee rights.

On the other hand, there are certain factors, which are termed as dissatisfiers that reduce workforce satisfaction. In this case, if employee's preference for health care is not protected, it may be a dissatisfier for the employees. Work force of the city wanted that they should be provided the same health care benefits as they have been receiving in the past and there must not be any elimination in the benefits provided to them, so this aspect is important for the motivation of employees.

One important factor that also plays a very vital role in the motivation of the workforce is the style and effectiveness of communication from the leadership. Effective leaders know how to handle issues and convey the matter to the workforce and other stakeholders. In this case, it was important for the management to convey all the issues ...