Health Care Management

PRINCIPLES OF MANAGEMENT
 Rapid organizational changes, increased regulatory and
environmental pressures, monitoring of the quality and
safety of patient care, and the impact of technology are
changing the face of how and where health care is
delivered and presenting major challenges to those who
lead health care organizations.
 The health care leader must possess a toolkit of skills to
meet these challenges.

 Management principles and skills are essential knowledge

for the healthcare quality professional who assumes such
leadership responsibility
 PRINCIPLES OF MANAGEMENT

 1.1 DEFINITION:
 management is the sum of the activities of
planning, organizing, staffing, directing,
controlling, and working to improve human and
material resources toward the achievement of
stated goals.

 Whether or not the healthcare quality

professional holds a “manager” or “director” title,
he or she is in practice a manager—of people, of
information, of time, of priorities.

Levels of management
PRINCIPLES OF MANAGEMENT

GENERAL MANAGEMENT FUNCTIONS:

1. Planning
2. Organizing
3. Directing
4. Controlling

 These functions are goal-directed,

interrelated and interdependent
 Planning
1. Planning:
 According to Mike Monahan of Healthcare
Resources Associates, “Planning is bringing the
future into the present so you can do something
about it now.”
 Forecasting (both short-range and long-range
planning)
 Planning (Cont’)
 Every organization must plan for change in order to
reach its ultimate goal.
 Effective planning helps an organization adapt to
change by identifying opportunities and avoiding
problems.
 It sets the direction for the other functions of
management and for teamwork.
 Planning improves decision-making.
 All levels of management engage in planning.
 Planning (Cont’)
 Strategic planning: is the process of developing and
analyzing the organization's mission, overall goals, general
strategies, and allocating resources.
 They answer such questions as "What is the purpose of
this organization?" "What does this organization have to do
in the future to remain competitive?"
 A strategy is a course of action created to achieve a long-
term goal.
 Goals They are the ends that the organization strives to
attain. They focus on desired changes.
 Top level managers engage chiefly in strategic planning or
long range planning.
 Planning (Cont’)
The tasks of the strategic planning process include:
 Define the mission.
A mission is the purpose of the organization. It is
why the organization exists. It directs the
organization, as well as all of its major functions and
operations, to its best opportunities. A mission
statement should be short - no more than a single
sentence. It should be easily understood and every
employee should be able to recite it from memory.
 Planning (Cont’)
 Conduct a situation or SWOT analysis by assessing
strengths and weaknesses and identifying
opportunities and threats.
 The SWOT analysis is used as a baseline for future
improvement, as well as gap analysis. Comparing
the organization to external benchmarks (the best
practices) is used to assess current capabilities.
 Planning (Cont’)
 Set goals and objectives.
Strategic goals and objectives are developed
to bridge the gap between current capability
and the mission. They are aligned with the
mission and form the basis for the action
plans.
 Develop related strategies ((tactical and
operational ).
 Planning (Cont’)
 Tactical planning provides the specific ideas for
implementing the strategic plan. It is the process of
making detailed decisions about what to do, who will
do it, and how to do it.
 operational plans are short-term plans and deal with
the day-to-day work, implemented by Supervisors.
Planning (Cont’)
 Monitor the plan.
 A systematic method of monitoring the
environment must be adopted to continuously
improve the strategic planning process.
 To develop an environmental monitoring
procedure, short-term standards must be
established.
 Feedback is encouraged to determine if goals
and objectives are feasible.
 This review is used for the next planning cycle
and review.

Planning (Cont’)
 Organizing (Cont’)
 Organizations are groups of people, with ideas
and resources, working toward common goals.
 The purpose of the organizing function is to make
the best use of the organization's resources to
achieve organizational goals.
 Organizational structure is the formal decision-
making framework by which job tasks are
divided, grouped, and coordinated.
 An organization chart displays the organizational
structure and shows job titles, lines of authority,
and relationships between departments.
 Organizing
2. Organizing and staffing:
 Identifying duties to be performed within the
framework of a common organizational goal
 Defining authority and responsibility
 Establishing chain of command (organizational
structure)
 Establishing division of labor
 Recruiting, hiring, and retaining adequate,
competent personnel.
 Organizing (Cont’)
 Organizing Function
 The organizing function deals with all those
activities that result in the formal assignment
of tasks and authority and a coordination of
effort.
 The supervisor staffs the work unit, trains
employees, secures resources, and empowers
the work group into a productive team.
 The steps in the organizing process include:
 (1) review plans, (2) list all tasks to be
accomplished, (3) divide tasks into groups one
person can accomplish - a job, (4) group
related jobs together in a logical and efficient
manner, (5) assign work to individuals, (6)
delegate authority
 Organizing (Cont’)
 Delegation:
is the downward transfer of formal authority from
superior to subordinate.
 In order to meet the organization's goals, and ensure that
all work is accomplished, supervisors must delegate
authority.
 Authority is the legitimate power of a supervisor to direct
subordinates to take action within the scope of the
supervisor's position. this power, or a part thereof, is
delegated and used in the name of a supervisor. while the
supervisor remains accountable for the outcome.
 Delegation of authority is a person-to-person relationship
requiring trust, commitment, and contracting between
the supervisor and the employee.
Organizing (Cont’)
Directing

3. Directing
 Initiating and maintaining action toward desired
objectives
 Closely intertwined with leadership

Success through:
 -- Delegation
 -- Communication
 -- Training
 -- Motivation
Directing Process

 Teambuilding
 Agreeing (Consensus Building)
 Selecting
 Training
 Leading
 Motivating
Controlling
 controlling the resources of the organization.
These resources include people, jobs or
positions, technology, facilities and
equipment, materials and supplies,
information, and money.
 Controlling
Control is the process through which standards for
performance of people and processes are set,
communicated, and applied.
 Effective control systems use mechanisms to monitor
activities and take corrective action, if necessary.
 Controlling is directly related to planning. The
controlling process ensures that plans are being
implemented properly.
 Controlling (Cont’)
 The supervisor observes what happens and
compares that with what was supposed to happen.
 Effective control systems allow supervisors to know
how well implementation is going. Control facilitates
delegating activities to employees.
 Since supervisors are ultimately held accountable for
their employees' performance, timely feedback on
employee activity is necessary.
 Controlling (Cont’)
Controlling Process:
 Coaching day-to-day ongoing instructing of
employees.
 Counseling is a process through which one
person helps another by purposeful conversation
in an understanding atmosphere.
 Disciplining Discipline is corrective actions taken
by a supervisor when an employee does not abide
by organizational rules and standards. Employees
accept fair, equitable, and consistent discipline
Controlling (Cont’)
 Evaluating
 Terminating
The last step in the discipline procedure is
termination, a most difficult and sensitive
process.
 Controlling (Cont’)

 There are four steps in the control process:

 establishing performance standards,
 measuring actual performance,
 comparing measured performance against
established standards,
 and taking corrective action.
 An example of effective controls is:
 the dashboard on a car. There are many things
that can go wrong with a car. Only the most
critical items to the car's operation are the
focus on the dashboard (oil level, engine heat,
fuel gauge, etc.).
 Variations in these items are most likely to
inflict the most damage to the car.
 They call the driver's attention to variations in
time to prevent serious damage.
 Summary
 Planning involves devising a systematic process
for attaining the goals of the organization. It
prepares the organization for the future.
 Organizing involves arranging the necessary
resources to carry out the plan. It is the process
of creating structure, establishing relationships,
and allocating resources to accomplish the goals
of the organization.
 Directing involves the guiding, leading, and
overseeing of employees to achieve
organizational goals.

 Summary (Cont’)
Controlling
involves verifying that actual performance matches
the plan. If performance results do not match the
plan, corrective action is taken.
Improving:
 Knowing or establishing objectives that relate to a
particular course of action;
 Measuring actual performance against the
objectives;
 Correcting deviations when necessary;
PRINCIPLES OF MANAGEMENT

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