7 pvt and public sector

Management of
Public & Private
sector Organizations
Mr.Mahesh Kumar sharma

2/12/2020 copyright www.brainybetty.com 2006 All Rights
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Objectives
Why is a managerial revolution occurring
in health care situations?
What is the role of management?
Why is it crucial?
Comparison of public vs private sector
Organization & its characteristics
Management of organizations
Management in health sector

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Causes of management revolution
Pressure for increased efficiency- ie.
Quality care at less cost
Structural changes
Health insurance coverage
Higher resource costs - personnel
Advantages in technology
Costs
&
Expectations

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Management
Management is an art of getting things
done by working with & through the people
in an organizational set up & directing the
people towards certain common goals &
objectives.
--- Koontz Theoheimen

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Management…
Management is the co-ordination of all
resources- man, money, material.
It is the synthesis of all these resources
through the process of POSDCORB in
order to attain the objectives.

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Role of management
Serves as a conversion mechanism
Resources GoalsManagement

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Why management is crucial?
Formulation of objectives of organizations
Gathering of resources
Implementation of activities effectively &
efficiently
Minimize wastage

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Defining organisations
Farnham & Horton define organisations as:
..social constructs created by groups in society to
achieve specific purposes by means of planned
& co-ordinated activities.
These activities involve using human resources
to act in association with other inanimate
resources in order to achieve the aims of the
organisation.

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Purpose of organisations
Organisations exist in order to achieve
their aims & objectives and to provide
satisfaction for their members
Organisations are structures of people
Organisations are an integral part of
society operating in both public & private
sectors

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Common factors in organisations
There are at least three common factors in
any organisation:
People
Objectives
Structure

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Basic components of an organisation

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Basic components……..
Operational core – the direct performance
of the technical or productive operations
and the carrying out of actual task
activities
Operational support – concerned indirectly
with the technical or productive process
but closely related to the actual flow of
operational work

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Basic components…..
Organisational support – the provision of services
for the whole organisation, including the
operational core but usually outside the actual
flow of operational work
Top management – concerned with the broad
objectives and policy & strategic decision
making
Middle management – concerned with the co-
ordination & integration of activities & providing
links with operational support staff

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Organization…
organizations differ in the pattern of their
ownership…
Public sector or Government organizations
Private sector organizations

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Private enterprise & Public sector
organisations
Private sector
Owned & financed by
individuals, partners, or
shareholders accountable
to their owners or
members.
Main aim is of a
commercial nature such
as profit, return on capital
employed, market
standing or sales levels
Public sector
Created by government
Do not generally have
profit as their goal but
have a political purpose

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Characteristic features of
service organisations
The consumer is a participant in the
service process
Services cannot be stored, they are time-
perishable & if they are not used they are
likely to be wasted
Services are less tangible & more difficult
to explain or communicate

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Characteristic features of
service organisations…
Benefits derived from services tend to be
associated with feelings or emotions
Work activities are people-oriented
Measurement of output is difficult & there
is unlikely to be a single, important
criterion by which to measure effective
performance

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Types of organisational authority
Traditional organisations - legitimised by
custom and long-standing beliefs in the
natural right to rule
Charismatic organisations – legitimised by
belief in the personal qualities of the leader
Bureaucratic organisations – authority is
based on the law of formal rules &
procedures and on impersonal principles

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Classifying organisations
by major purpose
Economic
Protective
Associative
Public service
Religious
Political
Educational
Military
Voluntary

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Classifying organisations according
to main beneficiaries
Mutual-benefit associations – the
membership
Business concerns – owners
Service organisations – client group
Commonweal organisations – public at
large

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Alternative classification – genotypic
function
Productive
Maintenance
Adaptive
Managerial or political
-Katz & Khan

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The open systems model of
organisations

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Environmental influences on
organisations

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Organizational Structure
 Organization chart—visual representation of a
firm’s structure that illustrates job positions and
functions

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Issues in Developing
an Organizational Structure
The Right Structure
Specialization
Departmentalization

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Specialization
 Dividing labor into
small, specific tasks
and assigning
employees to do a
single task.

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Departmentalization
The grouping of jobs into working units
usually called Departments, Units,
Groups or Divisions

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Functional Departmentalization
President
Distribution
Department
Finance
Department
Marketing
Department
Research and
Development
Department
Production
Department

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Product Departmentalization
President
Computer
Electronics
Division
Stereo
Equipment
Division
Consumer Tele-
communications
Equipment
Division
Industrial
Tele-
communications
Equipment
Division

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Geographical Departmentalization
Latin
American
Division
European
Division
Middle East
Division
Pacific Rim
Division
President
International
Operations

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Customer Departmentalization
Industrial
Foods
Consumer
Foods
Product
Manager

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Delegating Work Assignments
Delegation—act of
assigning work activities
to subordinates.
Centralization—retains
decision-making at the top
of the management
hierarchy
Decentralization—locates
decision-making at lower
levels

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Types of Organizational Structures
Line Organization
Establishes a direct flow of authority from the
chief executive to subordinates
Chain of command—set of relationships that
indicates who directs which activities and who
reports to whom

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Line-and-Staff Organizations
Combines the direct flow of authority of a
line organization with staff departments that
serve, advise, and support the line
departments
Staff manager
Line manager

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Line-and-Staff Organizations

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Committee organization—structure that places
authority and responsibility jointly in the hands
of a group of individuals rather than a single
manager
Matrix structure—links employees from
different parts of the organization to work
together on specific projects, combines
functional and product departmentalization

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Matrix structure

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Comparing the Four Organization
Structures

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Management of
organizations

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Management of organization
The tasks of a manager in an organization
are:
To create & maintain organizations which are
rational & adaptive
Economically efficient
Satisfying the needs of their members, clients
& communities.

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Management model for health care
organizations
Goals attained
Efficiently
Effectively
Planning
&
decision
making
Inputs from the
environment
Human resources
Financial resources
Physical resources
Information resources
Controlling
Leading
Organizing

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The structure of health care
organization
In public & private sector a wide range of
health care organizations are present.
Of which the main two:
Hospitals
Long term-care facility

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Classification of health care
organizations
1. Medical care
institutions
a) Inpatient care institutions
a) Hospitals
b) Nursing care institutions
b) Ambulatory care
institutions
a) General
b) Special
c) Day-care
c) Home health institutions
2. Health related
institutions
a) Intermediate care
b) Resident care
c) Halfway houses

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Health care organizations in India
PUBLIC SECTOR
PRIMARY HEALTH
CENTRES
HOSPITALS
ESI & CGHS
RAILWAY
DEFENCE
PRIVATE SECTOR
PRIVATE HOSP
POLY CLINICS
NURSING HOMES
GENERALISED
PRACTITIONERS

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Public health administration in India
Health care system in India has 3 main
links
Central
State
Peripheral

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Central level
Cab Minister
State minister
Dep. HM
DGHS
Add.DG
Deputies, Adm.Staff
MOH FW DGHS Central Council
Union HM
State HM
Dept.
health FW Med care
& hosp
PH GA

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State level
SMOH SHD
Min.HFW
DM.HFW
Director HS
Dep, Asst,
SHS Regional functional

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District Level
6 Administrative areas
Subdivision – Asst. collectors
Tehsils / Taluks - Tahsildars
Community development blocks - BDO
Municipalities & corporations
Villages
Panchayats

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Management of Hospital
Hospital is a complex organization
providing basic functions of patient care,
research, education & preventive
medicine.

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Hospital as a health team
Patient

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Organizational problems faced by hosp
Organizational co-ordination
Managing conflicts
Innovative organizational changes

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Bringing about change…
3 different approaches
Structure: org chart, budgeting methods,
rules & regulations
Technological: new physical layouts, job
description, work stds
People: alteration in attitude, motivation,
behavioral skills

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Hospital organizational chart
Board of trustees
AdministrativeMedical staff portion

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Organizational triad
1. Governing board
Legal authority over & responsibility for
institution
2. Administrator
Responsible for day to day operation of
hospital
3. Medical staff
Technical knowledge & decision regarding
pt care & treatment ; different committees

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Long term care facility – organizational chart
Owner/ board
of directors
Administrator
Business
mgr
Office
staff
House keeperNsg Dr Med Dr
Techn.
staff
Dietician
Super
visor
Attending
dr cook Dietary
help
Maid
porters
Maint. men

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57
Summary
Management: revolution, role, definition
Organization
Definition
Purpose
Factors
Components
Types: public & private
Model
Structure & development
Management of organization
Public sector management
Hospital management
Private sector management

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References
Rackich, O’Donovan; managing health care
organizations, Saunder’s
K. Park, preventive & social medicine, 19th edition
http://search.yahoo.com/search?p=management+of+pub
lic+%26+private+sector+org
http://books.google.com/books?hl=en&lr=&id=nVSctwW
vye0C&oi=fnd&pg=PP7&dq=pubilc+sector+and+privet+s
ector+management+in+india&ots
http://www.google.com/search?q=management+of+publi
c+%26+private+sector+organizations&rls

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