Samenvatting guiding questions
Week 2
Managerial perspective on business to control a healthcare organization to be efficient (doing
thing correct) and effective (doing the correct things)
Managers should regularly search for new opportunities in the current marketplace or identify ideas
that could create new markets
Entrepreneurial perspective on business:
Entrepreneurship: involves identifying new opportunities and exploiting them
Entrepreneurial mindset: way of thinking about business that emphasizes actions to take
advantage of uncertainty
Management is the process of assembling and using sets of resources in a goal-directed manner to
accomplish tasks in an organization. Management has some key parts:
Management is a process
It involves a series of activities and operations, such as planning, deciding, and evaluating
Management involves assembling and using sets of resources
It is a process that brings together, and puts into use, a variety of resources: human,
financial, material, and informational
Management involves acting in a goal-directed manner to accomplish tasks
It is an activity with a purpose and direction. The purpose/direction may be that of the
individual, organization, or a combination. It includes one’s efforts to complete activities
successfully and to achieve particular levels of desired results
Management involves activities carried out in an organization
It is a process undertaken in an organization by people with different functions intentionally
structured and coordinated to achieve common purposes
Managing has many dimensions. The four most applicable are:
Planning
Estimating future conditions and circumstances, and based on these, make decisions about
the work of the manager and all employees responsible.
o Strategic planning
Addresses strategic actions designed to achieve the organization’s long-range goals
o Tactical planning
Translates strategic plans into actions to achieve specific short-term goals
o Operational planning
Identifies actions needed to accomplish goals of units in the
organization or particular product lines in the market
Organizing
Systematically integrating resources to accomplish tasks. The purpose is
the attempt to bring order to the organization.
Directing
Process of attempting to influence other people to attain the
organization’s objectives. Involves leading and motivating those for
whom the manager is responsible, interacting with them, and
communicating in ways that acknowledge and support their efforts to
accomplish tasks and reach goals.
Controlling
Regulate the work for those for whom a manager is responsible. I.e. setting standards of
performance for employees, monitoring ongoing performance, assessing performance on
completed tasks
,An organization is a interconnected set of individuals and groups who attempt to accomplish
common goals through differentiated functions and their coordination.
Relation between management & organization: management occurs in an organizational context
Relation between managing & organizing: the object of managing is determined by the kind of
organizational approach applied
The structure of an organization can be defines as the total of the ways its labour is divided into
distinct tasks an then its coordination achieved among those tasks.
Organizing: dealing with two opposing structural requirement
o Division of labour
The division of work so that each person performs a limited number of (specialized)
tasks
Two dividing dimensions
Separate doing-thinking (differentiation – vertical direction), split up doing,
and thinking (differentiation – horizontal direction)
Vertical differentiation leads to hierarchy – horizontal differentiation leads to
functionalism
More levels lead to more organizational complexity
Coordination
Parameters to consider in designing structures:
Job specialization
Refers to the number of tasks in a given job and the worker’s control over these
Behaviour formalization
Standardization of work processes by the imposition of operating instructions, job
descriptions, rules, regulations, etc.
Training
The use of formal instructional programmes to establish and standardize in people the skills
and knowledge to do particular jobs
Indoctrination
Programmes and techniques by which the norms of the members of an organization are
standardized, so they become responsive to its ideological needs
Unit grouping
Choice of the bases by which positions are grouped together into units, and those units into
higher-order units
Unit size
Refers to the number of positions contained in a single unit
Planning & control systems
Used to standardize outputs
o Action planning systems: specify the results of specific actions before they are taken
o Performance control systems: specify the desired results of whole ranges of actions
after the fact
Liaison devices
A whole series of mechanisms used to encourage mutual adjustment within & between units
Decentralization
Diffusion of decision making power. When all power rests at a single point in an organization
it is centralized. When power is divided among many individuals it is decentralized
o Vertical & horizontal centralization
All power rests at the strategic apex
, o Limited horizontal decentralization
Strategic apex shares some power with the technostructure (standardizes work)
o Limited vertical decentralization
Managers of market-based units are delegated the power to control most of the
decision concerning their line units
o Vertical & horizontal decentralization
Most power rests in the operating core, bottom of the structure
o Selective vertical & horizontal decentralization
Power over different decisions is dispersed to various places in the organization,
among managers, staff experts and operators at various levels in the hierarchy
o Pure decentralization
Power is shared more or less equally by all members of the organization
Configurations are the basic types of organizations. These emerge from the combination of the well-
defined basic dimensions of organizations
Six basic parts of an organization:
1. Operating core
At the base of any organization its operators can be found, those people who perform the
basic work of producing the products and rendering the services
2. Strategic apex
All but the simplest organizations also require at least one full-time manager, who occupies
what is called the strategic apex, where the whole system is overseen
3. Middle line
As the organization grows, more managers are needed (not only managers of operators, also
mangers of managers). A middle line is created, a hierarchy of authority between the
operating core and the strategic apex
4. Technostructure
As the organization becomes more complex, it needs a group of analysts. They perform
administrative duties – to plan and control formally the work of others – but of a different
nature, often labelled ‘staff’. These analyst form the technostructure, outside the hierarchy
of line authority. They will try to influence what is happening in the operation
5. Support staff
Most organizations add staff units of a different kind, to provide various internal services
6. Ideology
Encompasses the traditions and beliefs of an organization that distinguish it from other
organizations and infuse a certain life into the skeleton of its structure.
‘the glue that keeps everything together’
The configurations:
Entrepreneurial organization (simple organization)
One large unit consisting of:
One or a few top managers, one of whom dominates the pull to lead
A group of operators who do the basic work
Little of the behaviour in the organization is formalized, and minimal use is made of planning, training
or the liaison devices
The absence of standardization means that the structure is organic and has little need for staff
analysts
There are a few middle-line managers because so much of the coordination is handled at the top
Support staff is minimized, in order to keep the structure lean & organization flexible
Characteristics: