for DR. SAMUELSON ONLY!!!!
Chapter 3
TODAY’S CONCEPT OF ORGANIZATIONAL MANAGEMENT
OBJECTIVES
Define management; differentiate between art and science
Review the basic functions of management.
Present the concept of the work setting as a total system.
Introduce the concept of clientele network and describe the application of this concept to the health care setting.
Classic Management Functions
Planning
Decision Making
Organizing
Staffing
Directing or Actuating
Controlling
History of Management
Scientific Management – emphasis on the work flow
Behavioralists and Human Relations – emphasis on workers
Structuralism – emphasis on organizational patterns
Management Process – emphasis on management principles
Quantitative or Operations Research Approach- use of mathematical models
The Systems Approach
Focuses on:
The organizational as a whole
The people in the organization
The work processes
The internal and external environment
And emphasizes interrelationships and interdependence
Formal Organization
Common purpose or goal
Shared values or common belief
Continuity of goal orientation
Specific division of labor
A system of command or authority
Classification of Organizations
Prime Beneficiary
Authority Structure
Genotypic Characteristics
Classic Bureaucracy
Prime Beneficiary
Mutual benefit, e.g. professional associations
Business concerns, e.g. owners and shareholders
Service organizations, e.g. the clients
Commonweal organizations, e.g. the public at large; community as a whole
Authority Structure
Coercive, e.g. prisons
Utilitarian, e.g. business and industry
Normative, e.g. professional associations
Mixed, e.g. utilitarian-normative health care organization
Genotype or Fundamental Purpose
Productive/economic, e.g. business
Maintenance of society, e.g. education
Adaptive functions, e.g. research
Managerial/political, e.g. government agencies
Characteristics of Classic Bureaucracy
Size
Division of labor
Specialization
Official jurisdictional areas
Rational-legal authority
CHARACTERISTICS OF CLASSIC BUREAUCRACY (cont’d)
Principle of hierarchy
Rules
Impersonality
The bureaucrat
The bureau/office/administrative unit
Consequences of Organizational Form
Size: limits on middle manager’s decision making capacity.
Organizational climate: highly normative organizations have accessible base for motivation; highly coercive organizations must deal with continual conflict.
Degree of bureaucracy: stable; predictable; less innovative
Phase in life cycle: variable degrees of innovation, goal expansion and multiplication.
The Clientele Network
Clients: primary; secondary; remote
Suppliers: resource; associates; supporters
Advisers
Controllers
Adversaries: opponents; rivals
Clients
Immediate, visible: e.g. the patients
Secondary, less visible: e.g. Students, researchers
Remote: e.g. the public at large
Suppliers
Resource suppliers, e.g. interrelated departments; external businesses selling supplies and equipment
Associates, e.g. AHIMA-sponsored communities of practice
Supporters, e.g. politically, socially, or economically powerful individuals or groups
Advisers
are external to the organization
assist the organization in using its resources
more impersonal than supporters
examples: professional association guidelines and position papers
Controllers
most are external to the organization, e.g. licensure and accrediting agencies
have power to set regulations and standards
internal controllers include the governing board and its mandates
Adversaries
Outright opponents and enemies: seek to limit the organization’s activity
Rivals and Competitors: vie for same clients and resources
Involvement
logical outgrowth of clientele network
health care organization’s leadership position
mutual concerns of health care organization and the community
raise awareness of issues
commit to leadership role during initial stages of activity
provide resources, e.g. space; staffing assistance)
develop community leadership