Task 1 – Organising and Managing............................................................................................................... 16
1. What is a Managerial perspective and an Entrepreneurial perspective on business?..................................16
2. What is:..........................................................................................................................................................16
organization and management, and the relation between both?................................................................16
organizing and managing, and the relation between both?.........................................................................17
division of labour (DoL) and the relation between DoL and organizing and managing?..............................17
3. What is meant with organizational configurations & coordination mechanisms?...................................18
4. What are the differences and similarities between organizational configurations with regard to their
design parameters and contingency factors?...............................................................................................21
5. Which organizational configurations and coordination mechanisms are dominant in healthcare
organizations?................................................................................................................................................23
Lecture 1 – introduction course and work method........................................................................................ 23
Task 2 – Operational Management............................................................................................................... 33
1. What are business processes? What is control and its function in managing these processes?...................33
2. What is quality and safety management? (What can Health Care learn from aviation?)............................36
3. Why is quality and safety management important in Health Care?.............................................................38
, SUMMARY
Week 1 – Organizing and managing
Managerial To control a healthcare organization to be efficient (doing things right) and effective
perspective (doing the correct things)
Entrepreneurial Entrepreneurship involves identifying new opportunities and exploiting them; it is a way
perspective of thinking about business that emphasizes actions to take advantage of uncertainty
Innovate a HCO in order to create new opportunities or solve problems differently
Organization An interconnected set of individuals and groups who attempt to accomplish common
goals through differentiated functions and their coordination.
Management An activity or process; more specifically, it is the process of assembling and using sets of
resources in a goal-directed manner to accomplish tasks in an organization
>Relation The relationship between organization and management is that management occurs in
an organization(al context)
Organizing Creating parts and connections; systematically integrating resources to accomplish tasks
Managing The process of completing managerial activities; coordinating what is organized four
dimensions: planning, organizing, directing, controlling
>Relation The relationship between organizing and managing is that organizing is next to planning,
directing and controlling, a function which managers perform.
Structure of an Defined simply as the total of the ways its labor is divided into distinct tasks and then its
organization coordination achieved among those tasks; formal relationships
(De) Centralised organisation: organisations that restrict decision making to fewer
centralization individuals, usually at the top of the organisation; military – chain of command
Decentralised organisation: organisations that tend to push decision making authority
down to the lowest possible level; hospital – doctors are mainly in command
- Vertical: the delegation of formal power down the hierarchy to line managers
- Horizontal: the extent to which (in)formal power is dispersed out of the line
hierarchy to non-managers (a.k.a. operators, analysts, support staffers)
6 forms of decentralization:
1. Vertical and horizontal centralization: where all the power rests at the strategic
apex
2. Limited horizontal decentralization (selective): where the strategic apex shares
some power with the technostructure that standardizes everybody else’s work
3. Limited vertical decentralization (parallel): where managers of market-based
units are delegated the power to control most of the decisions concerning their
line units
4. Vertical and horizontal decentralization: where most of the power rests in the
operating core, at the bottom of the structure
5. Selective vertical and horizontal decentralization: where power over different
decisions is dispersed to various places in the organization, among managers,
staff experts and operators who work in teams at various levels in the hierarchy
6. Pure decentralization: where power is shared more or less equally by all
members of the organization
Functional and Functional differentiated:
process - Work can cross all parts (functions)
orientation - Focus is on the functions
- Complex structure
, - In theory very flexible (can connect parts in various ways)
- In reality often difficult to manage
Process:
- Work can only cross related functions, often linear
- Focus is on Input-Output relations
- Simple structure
- Need volume to make process flow
- In reality often easier to manage
Organizational Basic types of organizations. These emerge from the combination of the six well-defined
configurations basic dimensions of organizations
1. Strategic apex: All but the simplest organizations require at least one manager,
who occupies the strategic apex, where the whole system is overseen
2. Operating core: Its operators at the base, the people who perform the basic
work of producing the products and rendering the services
3. Midline: as the organization grows, more managers are needed - not only
managers of operators but also managers of managers. A middle line is created,
a hierarchy of authority between the operating core and the strategic apex
4. Technostructure: They perform in even more complex organizations the
administrative duties - to plan and control the work of others. They form the
techno-structure outside the hierarchy of line
authority and try to influence what is
happening in the operation.
5. Support staff: Staff units of a different kind
providing various internal services (e.g.,
cafeteria or mailroom to a legal counsel or
public relations office)
6. Ideology: A strong ‘culture’. It encompasses
the traditions and beliefs of an organization
distinguishing it from other organizations
and infuse a certain life into the skeleton of
its structure
- Entrepreneurial Organization: structure is simple; not much more than one large
unit
- Machine organization: offspring of the industrial revolution (specialization and
standardization); large technostructure to design and maintain its systems of
standardization; large hierarchy of middle-line managers emerges to control the
highly specialized work of the operating core
- Professional Organization: in relying on trained professionals to do its operating
tasks, the organization surrenders a good deal of its power to: (1) the
, professionals themselves (2) the associations and institutions that select and
train them in the first place
- Diversified Organization: a set of rather independent entities coupled together
by a loose administrative structure. (An organization divisionalizes because its
product lines are diversified)
- Innovative Organization: these industries require ‘project structures’, ones that
can fuse experts drawn from different specialties into smoothly functioning
creative teams. (dominated by the experts’ pull to collaborate)
- Missionary Organization: when an organization is dominated by its ideology, its
members are encouraged to pull together, and so there tends to be a loose
division of labor; little job specialization; as well as a reduction of the various
forms of differentiation found in the other configurations - of the strategic apex
from the rest, of staff from line or administration from operations, between
operators, between divisions, and so on
- Political Organization: form of organization characterized, structurally at least,
by what it lacks; when an organization has:
○ No dominate part
○ No dominant mechanism or coordination and
○ No stable form of centralization or decentralization
Coordination The six coordination mechanisms:
mechanisms 1. Mutual adjustment: achieves coordination of work by the simple
process of information communication. The people who do the
work interact with one another to coordinate.
2. Direct supervision: in which one person coordinates by giving orders
to others, tends to come into play after a certain number of people
must work together.
3. Standardization of work processes: specification/programming of
the content of the work directly, the procedures to be followed. It is
typically the job of the analyst to program the work of different
people in order to coordinate it tightly
4. Standardization of outputs: means the specification
not of what is to be done but of its results. In that way, the
interfaces between jobs is predetermined.
5. Standardization of skills: Here the worker rather than the work or
the outputs is standardized. He or she is taught a body of
knowledge and a set of skills which are subsequently applied to the
work (takes place outside the organization)
6. Standardization of norms: the worker shares a common set of
beliefs and can achieve coordination based on it
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