Health management

IV study year

Study program: Medicine

Management. Functions.
What is management?
• Management is becoming more and more a part of our lives every day.
• Management issues are of key importance for any organization: how do
we plan to carry out work tasks, organize the institution to be efficient
and effective, lead and motivate employees and establish control
mechanisms to make sure that our plans are implemented and that will
our goals be met?
• Good management is a basic condition for starting an organization, for
progress in business and maintaining a good position on the market after
the organization achieves a certain success.
• To understand the importance of good management, consider the
following mistakes.
What is management?
• Mistake number 1
The chief of surgery brings a regular nurse to tears by angrily criticizing her
in front of others for a mistake she was not responsible for.

• Mistake number 2
Medical device maker Guidant waited three years, during which 45
malfunctions occurred and two patients died, before recalling 50,000
defective defibrillators, 77% of which had already been implanted in
patients.

* Defibrillators are devices that apply an electric charge or current to the heart to restore a normal
heartbeat. If the heart rhythm stops due to cardiac arrest, also known as sudden cardiac arrest (SCA), a
defibrillator may help it start beating again.
What is management?
Issues related to management are of key importance for every
organization:
• how we plan to complete work tasks,
• how we organize the company to be efficient and effective,
• how we lead and motivate employees,
• how we establish control mechanisms to make sure that our plans are
put into action and that our goals will be met.
Management is ...
• It has a triple function, management can be seen as:
1. A special scientific discipline that deals with the research of
management problems of certain businesses, enterprises and social
systems.
2. A complex process of managing certain jobs, undertakings or systems
in order to achieve common goals more efficiently.
3. A special group of people whose job it is to manage the execution of
jobs and tasks performed by other people, in order to effectively
achieve the intended, common goals.
Management is...
• Management is what managers do.
• Management means coordinating work-related activities so that they are done
efficiently and effectively, with people and with the help of other people.
• Coordinating work separates the function of managers from employees.
• Management means efficient and successful performance of work-related
organizational activities.
• Efficiency is getting the most out of it with minimal investment. Efficiency is
"doing the job the right way".
• Managers must use resources such as people, money and equipment efficiently,
i.e. not waste them.
• It's not enough to just be efficient...
Management is...
• Management also cares about success in order to achieve the
organization's goals.
• Effectiveness is defined as "doing the right things", ie. those
activities that help the organization achieve its goals.
• E.g. reducing the time required to install equipment for the client
and greatly reducing costs.
Definition of management
• "Management is about the efficient use of resources and enabling people to
work together to achieve specific goals."
• "Management can be defined as the art of getting things done through
people."
• "Management is the process of planning, (managing) and controlling the
efforts of the members of the organization, with the use of all other
resources, to achieve the set general goals of the organization."
• "Management is the process of planning, organizing, leading and controlling
all the efforts of the members of the organization and the use of all other
organizational resources to achieve the set goals of the organization."
• The last definition indicates that managers use all the available resources of
the organization - its financial resources, equipment, information, as well as
its people - to achieve the set goals.
Development of management theory
1. Classical school (scientific management and classical organization
theory),
2. School of behavior (behaviorism),
3. School of Management Science,
4. System approach,
5. Contingency access.
1. Classical school
• Forerunners of scientific management. it is believed that Robert Owen
(1771-1858), manager of several cotton factories in Scotland, began
studying management at the beginning of the 18th century. At that time,
the working and living conditions of the workers were very bad.
Recognizing living conditions as important to better work, he began
building better housing for workers, opened company stores where
cheaper goods could be purchased, and reduced the standard workday to
10.5 hours.
• He argued that improving the working and living conditions of workers
leads to increased production and profits.
• According to him, a manager's best investment is investing in workers.
• He believed that valuing the work of employees is an incentive for
completing tasks.
1. Classical school
• Frederick Taylor (1856-1915) and his followers laid down the principles of
scientific management.
• He broke every job down into its components and worked out the fastest
and best working methods for each part of the job. He encouraged
employers to pay productive workers more.
• Taylor's philosophy is based on 4 basic principles:
1. On the development of real management science,
2. At the scientific selection of workers, in order for each worker to
perform the task that best suits him,
3. On scientific education in the development of workers, and
4. On friendly cooperation between managers and workers.
1. Classical school
• Henry Fayol (1841-1925) is considered one of the founders of the classical
school. He proposed dividing business operations into the following activities:
1. technical,
2. commercial,
3. financial,
4. security,
5. accounting,
6. managerial activity.
• He defined management and leadership through 5 functions: planning,
organization, ordering, coordination and control.
• Max Weber (1864-1920), a German sociologist, pointed out the need for a strict
definition of the hierarchy that is governed, clearly specified regulations and
lines of authority.
1. Classical school
• Fayol's 14 principles of management:
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of management
6. Subordination of individual interest to the common good
7. Rewarding
8. Centralization
9. Hierarchy
10. Account
11. Fairness
12. Staff stability
13. Initiative
14. Team spirit.
1. Classical school
• Fayol's 14 principles serve as a framework of recommendations today,
and many current management concepts have evolved from them.
• Many characteristics of Weber's bureaucracy are evident in many large
organizations, although his model is not as popular today as it was in the
20th century.
• Too much bureaucracy is thought to take away creativity and the
organizational ability to react quickly to an increasingly dynamic
environment.
• However, some elements of bureaucracy are simply necessary to use
resources efficiently and effectively.
2. School of behavior (behaviorism)
• While the first theorists (Mayo and Munsterberg) investigated the
behavior of people in the working environment and introduced the
concept of social man, later researchers introduced a system of scientific
behavior using social sciences (psychology, sociology and anthropology).
• Abraham Maslow proposed a scale or hierarchy of needs by which people
are motivated and want to satisfy them. At the bottom of these needs is
the physiological and need for security, while in the middle are the needs
for love. At the top are the needs for self-esteem and self-validation.
• Hawthorne's Studies. Examining light on work performance, influence of
encouragement, peer pressure, acceptance, safety. Social norms or group
standards were key determinants of individual worker behavior.
• This approach and its early study provided the basis for current theories
of motivation, leadership, group behavior, and development.
3. System approach
• This approach allows management to view the organization as a whole, but
also as part of the wider external environment.
• Types: open and closed systems.
• Closed systems are not influenced by others and do not influence each
other in their environment.
• Open systems dynamically influence each other and their environment.
• Today, when we describe organizations, we think of open systems.
• A systemic approach means that decisions and actions taken in one part of
the organization will have an impact on others and vice versa.
• The systems approach says that organizations are not independent, they are
dependent on their environment for basic information.
• No organization can survive if it ignores state regulations, supplier relations,
etc.
4. Contingency access
• The manager's task is to identify the technique and approach that will
best contribute to management goals in a given situation, under certain
circumstances and at a given time.
• Experience has shown that a program that worked very successfully in
one situation can be absolutely unsuccessful in another situation.
• Proponents of this approach had only one answer to this question: the
results are different, because the situations are different.
Management functions
• By function, managers perform certain jobs or tasks while effectively and
successfully coordinating the work of others. What are the jobs or functions?
• At the beginning of the 20th century, the French industrialist Henri Fayol was the
first to propose that all managers perform five functions: planning, organizing,
commanding, coordinating and controlling.
• In the 1950s, the following functions were used: planning, organizing, conducting
personnel policy, directing and controlling.
Nowadays, 4 basic functions are used:
1. Planning,
2. Organizing,
3. Coordinating/ leading,
Management functions: planning
• If you don't have a specific goal in mind, you can go in any direction.
• If you have a specific goal, you need to plan how to achieve it/reach it.
• Since organizations exist to achieve some goals, someone must clearly define
those goals and the way to achieve them. That "someone" is management.
• Managers performing the planning function define goals, determine strategy to
achieve goals, and develop plans for integrating and coordinating activities.

• Planning is a function in management that includes defining goals, determining

strategies to achieve those goals, and developing plans for integrating and
coordinating activities.
Management functions: organizing
• Managers are also responsible for organizing work to achieve the organization's
goal.
• We call that function organizing.
• When managers build an organization, they determine what tasks should be
done, who should do them, and how those tasks should be grouped, who reports
to whom, and where decisions are made.

• Organizing is a function in management that includes defining the tasks that

need to be done, determining who should do them, how to group those tasks,
who reports to whom, and where decisions are made.
Management functions: coordinating/ leading
• In every organization there are people, and the manager's job is to work with
people and to achieve the goals of the organization with the help of people.
• It is a managerial function of leadership.
• When managers perform their main function, they motivate subordinates and at
the same time encourage individuals and teams during work, choose the most
effective communication system or solve the issue of employee behavior in every
way.

• Coordinating/ Leading is a management function that involves inspiring and

motivating employees to work hard to achieve organizational goals.
Management functions: control
• The last function in management is control.
• Since the goals are set, the plans are defined, the structural organization is
determined (organization), and the people are engaged for work, trained and
motivated (the main function), it must be assessed whether everything is working
according to plan.
• To make sure everything is going according to plan, managers need to monitor and
evaluate performance.
• Actual performance must be compared with previously set goals.
• If there is any significant deviation, comparison and adjustment is what the function
of controls entails.
• Control is a function in management that includes monitoring actual performance,
comparing actual with standard performance, and taking action as needed.