Organization and Management Theory in Healthcare

Introduction: Healthcare Organization Complexity

Healthcare organizations are generally complex and dynamic, which requires managers to offer leadership in addition to supervision and coordination of healthcare workers. The complexity and dynamism of healthcare organizations emanate from the fact that they were created to accomplish objectives that exceed the capacity of any single individual. The scope and complexity of activities conducted to provide services are so extensive that no individual staff member can function independently. Therefore, the management of these healthcare organizations must ensure that tasks are performed in the most suitable way to achieve organizational objectives through effective management of financial and human resources. The process of providing appropriate leadership to these organizations requires understanding organizational theories and management theories and styles.

Organizational theories can be defined as concepts that explain an organization and its structure. These theories are generally classified into classical or modern organizational theories. The classical organizational theories mainly focus on the formal organization and address concepts for enhancing management efficiency. The most common classical organizational theories include Weber's bureaucratic approach, Taylor's scientific management approach, and administrative theory.

Classical Organizational Theories

Taylor's scientific management approach focuses on the notion of planning work to realize efficiency, specialization, standardization, and simplification. In contrast, Weber's bureaucratic approach considers the organization as part of the wider society based on principles of structure, rationality, democracy, specialization, and predictability and stability. Administrative theory examines an organization with regard to accomplishment of tasks and includes principles of management, especially management functions and committees.

Unlike the classical organizational theories, modern theories are based on the concept that an organization is a system that needs to adapt to environmental changes. When using these theories, an organization is defined as a designed and structured procedure where people interact for specific objectives. The modern organizational theories include the systems approach, where an organization is regarded as a system of intertwined and mutually dependent subsystems, and the socio-technical approach, which is based on the belief that each organization is made of people, a technical system, and the environment. The final modern organizational theory is the contingency or situational approach, where organizational systems are interconnected with the environment and require different organizational relationships.

Modern Organizational Theories

Management theories and styles can be described as the way through which an organization manages its workers and their various work activities. Since management styles differ based on various factors such as work activities, the attributes of employees, and the organizational culture, the popularity of management styles continues to rise and fall based on the impact of changes in the modern business environment. However, management theories are similar to organizational theories (classical and modern). Therefore, the difference in management theories is similar to the differences in organizational theories, which have been previously discussed.

Management Theories and Styles

There are five common management styles that have become prevalent across the corporate environment. The first is the authoritarian management style, in which a manager at the head of the organization or business decides all policies relating to management. In essence, employees are given specific tasks to complete by the senior management when this style is utilized. On the contrary, a democratic management style deals with providing workers flexibility so the team can work and grow together.

The paternalistic management style differs in that it focuses on handling an individual's social needs based on Maslow's hierarchy of needs. The autocratic management style involves unilateral decision-making by the manager with minimal or no consideration for workers. The final management style is the laissez-faire management style, which is different from the others since employees are in control of their own areas within the business with peripheral involvement of the manager.

The most relevant organizational theory that closely resembles a typical healthcare organization is the socio-technical systems approach, which is a modern organizational theory. This theory most closely resembles healthcare organizations since the healthcare facility is made of people, the technical system, and the environment. As a result, the organization's processes and operations have been mainly geared toward the use of knowledge, tools, and techniques to generate services that promote the greater good of individuals and the environment.

Socio-Technical Systems in Healthcare

The social system—that is, individuals in the healthcare organization—utilizes the technical system (knowledge and tools) to promote the health and well-being of consumers and users, who are considered the organization's external environment. Given that the socio-technical approach most closely resembles healthcare organizations, the management theory that most closely resembles management in the healthcare setting is socio-technical management theory. Management in the organization basically entails the use of knowledge, tools, and techniques toward ensuring the well-being and health of consumers and users.

However, the organization also utilizes the systems approach management theory since it is considered a system of intertwined and mutually dependent subsystems. The organization's senior management utilizes an autocratic style for decision-making, though the unilateral decisions are made in consideration of employees. The organization's senior management makes important decisions such as hiring and development of staff, distribution and expenditure of financial resources, and service additions and reductions. However, managers consider employees during the decision-making process since they focus on ensuring patients obtain the most effective healthcare services that are suitably delivered by health workers. Moreover, these managers consider the internal and external domains of the organization when making decisions.

Conclusion

There are various organizational theories, management theories, and management styles that seek to explain concepts relating to the structure of the organization. Given the differences in these theories and styles, organizations and their management utilize them depending on the specific structure and processes of the organization. The organizational theory and management theory and style that most closely resemble a typical healthcare organization are the socio-technical approach and autocratic management style. The organization could enhance its effectiveness by adopting a paternalistic management style that balances administrative efficiency with attention to employee and patient needs.

References

"Management Theories & Styles." (n.d.). MBA Online Program. Retrieved February 28, 2015, from http://www.mba-online-program.com/management-theories-styles

"Organizational Theories." (n.d.). FAO Corporate Document Repository. Retrieved February 28, 2015, from http://www.fao.org/docrep/w7503e/w7503e03.htm

"Understanding Healthcare Management." (n.d.). Chapter 2. Retrieved February 28, 2015, from