Similarities And Differences Between Health Care Management And Business Management
Introduction
Business management involves management of various factors of production. For example, business management involves the management of labor, capital and resources available. This is to improve productivity and to satisfy the needs of the client. Business management is important in any organization and lack of clear management affects the productivity of the organization and workers. Health care management is important in any country. Health care managements involve management of various factors that are used to improve productivity in the organization. For example, health care management involves management of factors like capital, labor and resources. There are similarities between health care management and business management. Also, there are differences between business management and health care management. This paper analyzes the similarities and differences between health care management and business management.
Similarities between health care management and business management
Health care management and business management are interlinked. This is because health care management uses principles that are similar to business management principles. Health care management involves leadership, management and administration of hospitals (Buchbinder &Shanks, 2007). There are various similarities between business management, and health care management. First, health care management and business management are related in that both focus on managing various factors like labor, capital and resources (Buchbinder &Shanks, 2007). Most managers in health care organizations focus on managing business resources. Resources are important in any health care facility. Resources are limited, and they should be managed well so as to meet the needs of the client, and improve productivity. Managers plan how to manage resources in the hospital. They use various techniques borrowed from business to manage resources. Managers should allocate resources well so as to utilize the limited resources. Managers in health care manage resources like funds, and labor. The amount of funds required to deliver health care to the clients is limited, and so managers plan how to allocate resource. The resources in health care are allocated according to the priority of the needs (Buchbinder &Shanks, 2007). In addition to managing resources, managers in health care manage capital. Capital is important in any health care facility as it helps establish new health care facilities. Capital should be managed well so as to enhance growth in the industry, and ensure customer satisfaction. Most hospitals use capital to establish new facilities.
If the capital is not managed well, then it will affect the productivity of health care facilities, and the workers. Thus, managers in health care facilities should manage capital well (Buchbinder &Shanks, 2007).Also, health care management involves management of labor. Most hospitals face labor shortage and high employee turn over. This is because the hospitals use wrong method to manage the workforce. Managers do not know the management strategies they should use to improve employee performance in health care, and employee retention. To overcome the issues, managers use management techniques similar to business techniques to manage the workforce. Hence, business management and health care management are interlinked (Buchbinder &Shanks, 2007).In business management, managers manage labor, resources, and capital. The three factors are important as they help improve productivity. Managers in business manage resources used in the business. The resources are limited, and so managers have to manage them. Also managers have to allocate the resources according to priority of needs (Buchbinder &Shanks, 2007).
The available resources are allocated to most pressing issue in the business. Lack of clear methods to manage resources affects business productivity. Managers manage resources like financial resources.Managers manage capital. Capital is important in any business and manager take time to manage it. Lack of capital affects business development, and productivity. Managers use different techniques to manage capital (Buchbinder &Shanks, 2007). Also, managers in business manage labor. Most business faces employee turn over and retention. This is because managers do not use the right skills to manage workers. This leads to high employee turn over. To overcome high employee turn over, business managers employee various strategies like motivation (Buchbinder &Shanks, 2007).Another similarity between health care managing and business management are the techniques used to manage work force (Wheeler &Grice, 2000). Managers in health care and business management use similar principles to manage workforce. Managers in business use motivation strategies and leadership strategies to manage workforce in the organization.
The performance of the workforce is determined by several factors. The performance of the workforce is determined by the motivation managers give to the work force. It is also determined by the leadership styles used to manage the workforce. Most organizations face shortage of workforce, and high employee retention because of lack of motivation and good lairdship, skills. This affects the productivity of the businesses (Wheeler &Grice, 2000). Managers use various methods or strategies to motivate the workforce. Business managers use job rotation, performance appraisal, and salaries to motivate employees. Most workers in an organization do not perform the same task for long. Most business requires workers to carry out various types of activities so as to prevent them from getting bored. Managers in a business use performance appraisal systems to measure the performance of the employees so as to motivate employees (Wheeler &Grice, 2000). This improves the productivity of the workforce. The leadership styles used in business management determines the performance of the employees. In health care, managers use various management techniques to motivate the workforce, and improve employee satisfaction. For example, most health care facilities use job rotation to motivate employees.
The workers in the health care are allowed to carry out various types of tasks. This is to improve employee productivity and reduce the rate of employee turn over. Many health care facilities have used job rotation in the nursing profession and clinical profession. The method has proved good and it has increased employee motivation and productivity (Wheeler &Grice, 2000).Also, health care management and business management are similar in that, managers have to apply ethical principles when carrying out management tasks. Managerial ethics are important in healthy care and business. Managers in business use managerial ethics or business ethics to carry out various tasks. This makes it easy for the manager to relate with other stakeholders and the client. Business ethics are important in business as they help managers in decision making processes. Using ethics managers make decisions that benefit every one in the business. This makes running of the organization smooth (Tibergien & Pomering, 2005).In health care, managers use managerial ethics. Managerial ethics are important in health care as they help health care managers interact with the client well.
This helps ensure customer satisfaction (Tibergien & Pomering, 2005). Also, they help health care managers in decision making. Health care managers are able to make ethical decisions that benefit all the members. This helps ensure customer or patient satisfaction. It also improves the working environment and productivity of the workforce. Lack of ethics in health care leads to poor relationship between the health care managers and clients. The managers are not able to deliver quality health care to clients. This leads to poor health among the clients. Thus, both business managers and health managers need managerial ethics to make clear decisions (Shortell &Kaluzny, 2006).Business management and health care management are similar in terms of functions. In business management, managers are required to carry various roles or functions. Management in business refers to the act of putting together people so as to accomplish the goals and objectives set. Management in business is made up of planning, organizing, staffing and leading. Other functions of management in business include controlling and organizing. Resourcing in business means the act of manipulating human resources, financial resources and technological resources.
Managers in business are required to carry out planning (Shortell &Kaluzny, 2006).
Planning involves deciding what needs to happen in future. Managers in business make various types of plans. They develop strategic plans and other types of plans. Planning in business is important as it help the business achieve the goals and objective set. Also, managers are required to organize activities and resources in the business like labor and organize how activities are going to be divided in the organization (Shortell &Kaluzny, 2006).In heath care, managers are carrying out various functions like leading, organizing activities and planning. Also managers carry out functions like staffing and controlling. Planning in health care is important as it helps achieve the objective and goals set (Brown, 1992). This helps improve service delivery in health care. Health cared managers make various types of plans like strategic plans. Hence, the functions of management make business management and health care management similar.
Differences between health care management and business management
There are various differences between health care management and business management. Health care management is aimed at improving delivery of health care and the quality of health care (Brown, 1992). Health care managers concentrate on improving factors that affect the quality of health care like the performance of the workforce, the availability of resources and planning of activities and resources (Brown, 1992). But, business managers are not aimed at improving health care. Business managers are aimed at improving productivity and sales. Thus, they focus on management strategies that improve productivity and increase sales. For example, business managers concentrate in improving customer satisfaction, employee performance so as to improve productivity and sales. The objective of management males the two field different (Brown, 1992).
Conclusion
Healthy care management and business management are similar in many ways. Business management and health care management are similar in that they both concentrate on managing similar factors. Health care management focuses on managing various factors like resources and labor. Managers in health care manage resources like human resources, financial resources and technological resources. The resources affect the delivery of health care services and quality of health care. Business managers focus on managing resources, capital and labor. Business managers employ various strategies to manage resources like financial resources, technological resources and labor. This is to improve productivity and increase sales.Also, health care management and business management are similar in terms of management techniques .The techniques used to manage workforce and financial resources are similar. Both fields use motivation and leadership to manage employee turn over. They also use clear communication and performance appraisal. Both are similar in terms of functions of management.
Health care managers carry out planning, organizing, leading etc. Health care managers make various types of plans so as to improve health care delivery and quality of care. Business managers carry out various functions like leading, organizing, planning, staffing etc. Hence, business management and health care management are more similar. This is because health care practitioners have borrowed management principles from the business field. The managerial principles used in health are borrowed from business field. For example, leadership principle, motivation, performance measuring and planning are borrowed from business field. Thus, the two fields are interlinked. It is hard to exclude business management principles from health care. Health care management and business management are different in terms of objectives. Health care management is aimed at improving delivery of health care and quality of care. By improving employee turn over, performance and planning. But, business management is not aimed at improving quality of care or delivery of care. It is aimed at improving productivity and sales.
Reference
Brown,M.(1992).Health care management: strategy, structure, and process. Jones & Bartlett Learning
Buchbinder,S.B.,&Shanks,N,H.(2007).Introduction to health care management.Jones & Bartlett Learning
Shortell,S.M.,&Kaluzny,A.D.(2006).Health care management: organization, design, and behavior. Thomson Delmar Learning
Tibergien,M.C.,Pomering,R.(2005).Practice made perfect: the discipline of business management for financial advisers.Bloomberg Press
Wheeler,N.,&Grice,D.(2000).Management in health care. Nelson Thornes
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