BMZ2025 Entrepreneurial Management in Healthcare (BMZ2025)
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Maastricht University (UM)
Week 2: Organizing and Managing. All articles elaborated on the basis of the learning objectives.
Week 2: Organizing and Managing. All articles elaborated on the basis of the learning objectives.
maastricht university bmz2025 entrepreneurial management in healthcare
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BMZ2025 Entrepreneurial Management in Healthcare (BMZ2025)
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Week 2: Organizing and managing
What is a business perspective? (Managerial and Entrepreneurial perspective on business) – Hitt
Business perspective
- Managerial perspective on business
o To control a health care organization to be efficient (= doing things correct) and
effective (= doing the correct things)
- Entrepreneurial perspective on business
o To innovate a health care organization in order to create new opportunities or solve
problems differently
Lecture Mark Govers. (2019).
What is (a) organization and management, and the relation between both? And what is organizing
and managing, and the relation between both? – Hitt; Marcus; Mintzberg
Organization and management
- Organization (= an interconnected set of individuals and groups who attempt to accomplish
common goals through differentiated functions and their coordination)
- Management (= the process of assembling and using sets of resources in a goal-directed
manner to accomplish tasks in an organizational setting)
- Relation: management occurs in an organizational context
Organizing and managing
- Organizing (= systematically integrating resources to accomplish tasks)
- Managing (= the process of completing managerial activities)
o Manager (= anyone who has designated responsibilities for carrying out managerial
activities)
- Relation: organizing is, next to planning, directing, and controlling, a function which
managers perform
Hitt, Black & Porter. (2012). Management. Chapter 1.
What is meant with structures of organizations? – Marcus; Mintzberg
Structure of an organization (= the total of the ways in which its labor is divided into distinct tasks
and then its coordination achieved among those tasks)
Mintzberg. (1998). The structuring of organizations.
Organizational structure (= defines tasks, competencies, and responsibility and sets out the pattern
of relationships between positions)
- Is about formal relationships
Task division (= the splitting up of activities into separate tasks that are then either assigned to
individuals or to other units such as departments)
- Vertical task division (= tasks, authority and responsibility are divided amongst the various
hierarchical levels) (separate doing and thinking)
o Factors which influence the division of tasks
Cost factors: Tasks must be arranged in such a way that efficient functioning
and production is possible (tasks must be efficient)
Managerial factors: The way in which tasks are structured and divided must
lend itself to management of the organization. Supervision of the various
tasks and how they are executed is required (tasks to be controlled)
, Individual factors: Jobs must have a certain amount of appeal for individuals.
Variety, responsibility and decision-making power all come into play (tasks
must appeal to people)
Societal motives: Society makes demands that must be complied with when
tasks are structured (tasks in compliance with laws)
Example: health and safety precautions
- Horizontal task division (= tasks, authority and responsibility are split up across the
hierarchical level of an organization) (split up doing and thinking)
o Main forms
Internal differentiation (= involves searching for tasks that have something in
common) (same tasks together)
Advantages
o Efficient use of the manpower available because it can be
put to use in a greater number of activities, creating greater
capacity
o Higher skill levels and more efficient routines
o Greater opportunities for automation
Disadvantages
o Coordination problems due to splitting up of the work
processes
o Repetition and monotony
o Little flexibility for individuals since they perform a limited
number of processes each
Internal specialization (= involves grouping the activities carried out by a unit
on the basis of the end result) (grouping activities)
Product division
o Example: different product units A, B, and C
o Example: departments cardio, pulmonology
Market division
o Example: retail and wholesale
o Example: specialized eye clinic
Geographical division
o Example: Europe, Asia, and America
o Example: subsidiaries in Maastricht, Heerlen
Task delegation (= involves handing over tasks and the associated responsibility and authority to
lower levels)
- Centralization (= if the power to make decision is concentrated in one place, usually at the
top)
- Decentralization (= the decision-making powers will be distributed over a greater number of
positions, including those lower down the organizational structure)
Span of control (= how many employees a manager can effectively manage)
- Horizontal dimension (= the number of direct subordinates a manager supervises) (span
width/span breadth)
o Determined by the factors
The manager’s qualities: Dependent on the personality characteristics and
the expertise of the manager as well as the time available
The qualities of the employees: What matters here are the personality
characteristics and the expertise of the staff
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