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  3. Vrije Universiteit Amsterdam (VU)
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  5. Management In Health Organizations (AM_470822)

Lecture notes

Very detailed summary of lectures for MHO!

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  • Module
  • Management In Health Organizations (AM_470822)
  • Institution
  • Vrije Universiteit Amsterdam (VU)

This document contains a very detailed and elaborate summary of the lectures that are given during the course MHO. I used screenshots of relevant slides, as well as other images to improve understanding. I passed my exam with an 8 with this summary!

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Document information

  • September 9, 2022
  • 80
  • 2021/2022
  • Lecture notes
  • Anne van der geest
  • All classes

Subjects

  • schools of management
  • management
  • strategy
  • swot
  • health care
  • organizational culture
  • communication
  • conflict
  • change
  • motivating during change
  • high per
  • organizational structure and design
  • groups amp teams

Written for

  • Vrije Universiteit Amsterdam (VU)
  • Health Sciences Master
  • Management In Health Organizations (AM_470822)
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Lecture 1 – Introduction
Exam: 3 open ended questions + 38 multiple choice

Recently, many hospitals are in financial trouble, closure of hospitals,
nobody seems to be responsible, management within hospital is not
functioning well
- These problems are caused by problems, which will be discussed in
this course!

Challenges in health care
- There is a need for an increase in quality and access, but at the
same reduce costs
- Changes in demographics, chronic diseases, technological
advancements  all influence and play a role in the quality of health
care
- Who is involved in all these decisions?
o Internal stakeholders
o External stakeholders
- Deliver value  not delivering enough value  competitors take
over
- Rising costs  due to innovation, aging population, imperfect
market, people want cheap insurance, providers focus on acute
diseases, not on prevention.

Management challenges
- Customized care and differentiation, personalized care (genomics)
o It’s difficult and more expensive to make care personalized
- Continuous pressure on quality of care
- Ageing population/older people become major market segment
- Increase of chronically ill people
- Lifestyle and health, prevention of disease
o Should the hospital deal with this? Or not their job?
- Globalization and commercialization of health market
- ICT changes information exchange and relation patient-doctor

Also, nasty management issues
- Failing projects
- Legal issues
- Problems with key stakeholders
- Conflicts at management level




1

,Lecture 2 – Schools of Management
Learning goals:
After this lecture, students should be able to
 Explain the historical foundations of management
 Name and explain the different schools of management theory
 Compare and contrast different schools of management theory
 Name and explain the key elements and relationships that
characterize organizations as dynamic open systems
 Explain and exemplify a manager's interpersonal, informational and
decisional roles.
 Explain the importance of mission and vision in strategy.
 Formulate a SMART goal, recommendation and/or plan of action.
 Analyze an organization’s internal and external environment.



The Main Schools of Management Theory/Historical foundations of
management
- Classical  early 20th century
- Human Relations  1940’s, importance of social interactions
- Systems  1950’s, understanding of organization as part of broader
system and also understanding organization itself as a system
- Contingency  1950’s

Management used to be trial and error. Understanding management is a
growing issue. Management should therefore have its own body of theory

Classical approach – Weber and Bureaucracy
- Bureaucracy as a form of organization that is capable of the
highest level of efficiency
- Management and bureaucracy are all about control
- Four main features
o Hierarchy of authority
o Specialization and division of labor
o System of rules (standardization)
o Impersonality  decisions are made based on rationality
- Contribution of Frederik Taylor (Scientific Management)
o Explicit emphasis on the control element of bureaucracy
- Three major assumptions:
o Management must plan and control the labor process
o Management must supervise - people don’t want to work
o Management must determine the best methods - there is one
best way to perform the work
- Contribution of Fayol and Administrative Management
o General principles of management: based on his observations
and on concepts developed by both Weber and Taylor


2

, o These principles shaped managerial practice during the last
century
 Managers have authority and responsibility over
employees
 Hierarchy between levels of managers

Thus: the organization functions like a machine to accomplish the
organizations goals in a highly effective manner
- No human aspect (only a piece in the machine and humans are not
intrinsically motivated)
- Assumption that the organization can be effective/maximized

Human relations approach: The Hawthorne studies
- Paying attention to what a worker needs as a way to improve
productivity
o Contradictory to classical school of management
- Phase 1 of the hawthorne studies: Illumination experiments 
scientific management style  effect of lightning on productivity
o Remember scientific management style: one best way to do
the work, can be as detailed as lightning
o Results of this study were inconclusive
o The level of production was influenced by other factors than
physical conditions of work
- Phase 2: Relay assembly test room  two women as test
subjects, and they ask 4 other co-workers to join
o Measuring hours of work, duration of pauses, etc. affect the
group and individual activity
o Again, it was not really the change that affected productivity
o Researchers concluded that the fact that they were being
observed explained the effect on outcome = famous
hawthrone effect
- Phase 3: Interviewing program  attempt to find out more about
the workers. More than 20.000 employees were interviewed
o Not just information on supervision and work conditions, but
also about attitudes, interpersonal relationship, and group
process
o Conclusion: satisfying for some could be dissatisfying to
other, so there is no one best way
o Some work less hard if they thought the rest of the team
would be upset by the fact, they would be highly productive,
even if they are offered extra money
- So, social relations really matter!
o Primacy of the group in structuring individual behavior
o Managers must go beyond monetary incentives and top-down
control of work
o Elton Mayo: organization development and the informal
organization



3

, o Role of peer acceptance and solidarity is an important factor to
consider by managers. Employees are not only driven by
money

The system approach
- Classical approach: emphasis on technical requirements
- Human relations approach: emphasis on the psychological and social
aspects
- Both approaches study organizations solely in terms of their internal
environment
- The systems approach reconcile these two
- Organizations are analyzed as a system, with a number of inter-




related subsystems
- Any part of the organization is affected by any other part
- Inputs come from outside, outputs go outside, with feedback loop.
So even the external environment influences organization
o So, the organization is part of a larger system

Contingency approach
- There is no one optimum state for forms of organization structures
and systems of management
o Depends on situational and contextual factors
- Aspects of classical school (structure), but also combining with
human components of human relations schools
- Can be seen as an extension of the system approach




4

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