Unit 2- Fundamentals of Health Management

Sub-Unit: Introduction to Health Management

Basanta Chalise

HA (NIHS), BPH (IOM), MHP&E (IOM)

MANAGEMENT

Concept of Management

Management is the essence of organizedefforts. It coordinates resources to get the jobdone to achieve goals. Resources can behuman (Man), financial (Money), physical(Machine), information (Message), technique(Method) and time (Minute).

DEFINITION OF MANAGEMENT

• Management involves getting things donethrough and with people.

• Management is the process of executing theplans and policies for the achievement of theobjectives determined by administration.

• “Management is the social process of planning,organizing, staffing, directing, coordinating andcontrolling for the determination andachievement of organizational objectives in adynamic environment.”

Principle of Management – Henri Fayol

Henri Fayol is the father of modern management.

1. Division of Work- Specialization allows theindividual to build up experience, and tocontinuously improve his skills. Thereby S/hecan be more productive.

2. Authority- The right to issue commands,along with which must go the balancedresponsibility for its function.

Principle of Management Continue..

3. Discipline- Employees must obey, but this is two-sided: employees will only obey orders ifmanagement play their part by providing goodleadership.

4. Unity of Command- Each worker should have onlyone boss with no other conflicting lines ofcommand.

5. Unity of Direction- People engaged in the samekind of activities must have the same objectives ina single plan. This is essential to ensure unity andcoordination in the enterprise.

Principle of Management Continue..

6. Subordination of individual interest to thegeneral interest - Management must see that thegoals of the firms are always paramount.

7. Remuneration- Fair Payment is an importantmotivator although by analyzing a number ofpossibilities, Fayol points out that there is no suchthing as a perfect system.

8. Centralization – Highly centralized power structure, orders should be issued only from the top.

Principle of Management Continue..

9. Scalar chain (Line of Authority) - A hierarchy isnecessary for unity of direction. But lateralcommunication is also fundamental, as long assuperiors know that such communication is takingplace. Scalar chain refers to the number of levelsin the hierarchy from the ultimate authority to thelowest level in the organization.

10. Order- A place for everything and everything inits proper place.

11. Equity- In running a business a ‘combination ofkindliness and justice’ is needed. Treatingemployees well is important to achieve equity.

Principle of Management Continue..

12. Stability of Tenure of Personnel- Employeeswork better if job security and career progressare assured to them. An insecure tenure and ahigh rate of employee turnover will affect theorganization adversely.

13. Initiative- Allowing all personnel to show theirinitiative in some way is a source of strength forthe organization.

14. Esprit de Corps- Union is strength. Thereshould be cohesiveness and team spirit.

CONCEPT OF ADMINISTRATION

• The term “Administration” is derived from the latin words “Ad” and “Ministaire”. “Ad” means “to” and “Ministaire” means “serve or care”. It thus implies to care, to serve, to look after or to manage affairs.

• Administration broadly means “getting thingsdone” and management is “the purposefuland effective use of resources-manpower,materials and finances- for fulfilling apredetermined objective”.

Administration Continue…

• “Administration has to do with getting thingsdone; with the accomplishment of definedobjectives.” Luther Gullick

• “Administration is the art and science ofguidance, leadership, and control of theefforts of a group of individuals towards somecommon goal.”

A Comparative OverviewS.N Administration Management

1 Concerned more with determination

of objectives and policies

Concerned more with

implementation of policies

2 Provides a sketch of the enterprise Provides the entire body

3 Has legislative and determinative

function

Has executive function

4 Influenced mainly by public opinion

and other outside forces

Influenced mainly by

administrative decisions

5 Mainly a top level function Lower level function

6 Involves thinking and planning Involves doing and acting

FUNCTIONS OF MANAGEMENT –POSDCORB MODEL

Luther Gullick’s POSDCoRB (1937) - “Papers on the Science of Administration”

• P –Planning

• O- Organising

• S- Staffing

• D-Directing

• Co – Co-ordination

• R – Reporting

• B – Budgeting