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Summary EXAMENVRAGEN OPGELOST Management in the Healthcare sector

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  • 14 oktober 2023
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Introduction


1) Salleramics: describe the evolution of Sally’s company, and the steps in her career.
Phase 1: production vs coordination
- She starts alone and does everything herself = Sally does the production  no coordination
problem because she doesn’t have to take anyone into account.
- Production = doing  coordination
- As the company grows and more employees joined the company coordination was needed
Phase 2: division of labour (with or without specialization)
- Distribution of tasks, not everyone has to know how to do every task = specialisation.
- The more specialization, the more coordination needed because everyone looks at own
specialization => more chance of making mistakes
Phase 3: structure
- Changing structure as a solution to the problem of some orders being wrong because too many
people in a small studio could not coordinate all their work through simple informal
communications.
- + creating different departments/divisions
Phase 4: ownership
- Private vs public
- First Sally owned everything  then the company is owned by investors (scaling up demands more
money). The profit is in the company now and you can use it to invest in the company again. Profits
are not enough to expand your business in a short period of time, that’s why you need investors.
- If you’re 100% owner, you can decide everything. But if you go bankrupt, it’s only you who loses
money. By working with investors, you don’t lose all of your money.

2) What is the task of a manager in a world full of specialists?
Coordination of the people, organizing the company to make the production process more efficient.

3) What is the “management paradox”?
Not participating in production process increases the efficiency of the production process. By spending
less time in the work itself, you can spend more time coordinating the work. The more coordination, the
more efficient the production process.

4) What are the 3 types of organizations that exist in society?
a. For-profit organizations = business companies that exist to make a profit. Their main goal is to
generate revenue for their owners or shareholders. Examples: corporations, partnerships, sole
proprietorships.
b. Non-profit organizations = organizations that are dedicated to a specific cause or mission, and
do not exist to make a profit. Instead, they rely on donations, grants, or other forms of funding
to support their operations. Examples: charities, foundations
c. Government organizations = organizations that are established and funded by the government
tot provide services to the public. Example: local police departments

5) Give a synonym for the for-profit sector.
Private sector / commercial sector

6) Give a synonym for the government sector.

, Public sector
7) Give one or more synonyms for the non-for-profit sector.
Non-profit sector / civil sector / social profit / plural sector / third sector

8) Why do people work together? Why create organisations?
To achieve goals none of us could achieve alone. And the goals today are too big to achieve alone.

9) Why do we need management in general?
Because people that work together need coordination. The more people who work together = more
specialization. Better management leads to better results.

10) What is the essence of management?
Coordination. Most of the innovations: organisational innovation = more/better coordination.
(technological innovation does not need coordination, but organisational innovation does!)

11) Why do we need management specifically in het healthcare sector?
To reduce growth in healthcare costs to sustainable levels. If we cannot manage it better, only rich
people will get access to healthcare.




Chapter 1: Value creation


1) Shareholder mindset: which do you prefer (USA vs Europe), and argue why.
USA: greater focus on maximizing shareholder value and generating short-term returns. The US has a
more developed and active market for corporate control, which means the companies are more
vulnerable to hostile takeovers and shareholder activism.
The European approach tends to be more focus on the long-term health and sustainability of the
company. Shareholders tend to have a more patient and collaborative approach, and are more willing to
support investments in research and development that may not generate immediate financial returns
but will build long-term value.

2) What is the difference between selling and marketing?
Selling = convincing customers to buy whatever you make. It’s a specific activity within the marketing
process.
Marketing = understanding what customers value so you can satisfy their needs. The goal is to create
value for customers and build strong customer relationships, which can lead to increased sales and long-
term success for the business.

3) What is the difference between stakeholders and shareholders?
Stakeholder = any individual or group who has an interest or concern in an organization/project.
Stakeholders can include a wide range of individuals: customers, employees, shareholders, government
agencies. Stakeholders may have a variety of interests and concerns beyond just financial returns,
including social and environmental impacts of the organization’s activities.

Shareholder = specific type of stakeholder who owns one or more shares of stock in a company. They
own a portion of the company and have a claim to a portion of the company’s assets and earnings. They
have a financial interest in the company’s success. They also have certain voting rights.

, The main difference between a stakeholder & shareholder is their relationship to the
organization/company. Shareholders have a financial interest in the company’s success, while
stakeholders may have a wider range of interest and concerns beyond just financial returns. All
shareholders are stakeholders, but not all stakeholders are shareholders.

4) Name the 3 inputs or resources that go into work.
- Manhours
- Investments
- Materials

5) What is the chief responsibility of management?
Coordination  to create an organisation to accomplish ends none of us could achieve alone

6) What is value?
Value is an abstract concept: not concrete like products or services. It refers to the benefits a product or
service provides to the customer:
- Usefulness: cost saved for customer (time, labor, materials)
- Quality
- The associated image: look and feel, emotional value, status and prestige
- Availability
- Service associated

7) Name the different mindsets for evaluating value.
a. Manufacturing
b. Marketing
c. Shareholder
d. Value chain

8) What is the manufacturing mindset of value?
 Value is seen as efficiency.
 Challenge = increase productivity
 Goal = make more things, more cheaply
o Pursuit of “best practice”
o Efficiency as a science: observe, measure, record, analyse  Taylorism
 Makes sense when demand outstrips (by far) supply (als vraag > aanbod)
o Making product affordable creates new markets

9) What is the main limitation of the manufacturing mindset of value?
Focus is only on efficiency (doing things right):
- Inward focus = “inside-out”: make & sell
- Implies giant factories: expensive, slow to switch to new models (long product cycles)

10) What is the marketing mindset of value?
 Efficiency is necessary, but not sufficient.
 Value = satisfaction of needs (customers don’t buy products, they buy satisfaction of needs)
 From “inside-out” (manufacturing mindset) to “outside-in” = “sense-and-response” to customer’s
needs
 Focus on effectiveness: doing the right things (the thing that customers valued)

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