Health Management: Modern Approach

Introduction:

It was developed around the year 1950 & recognized the organization as a system that may be multidisciplinary and dynamic, which means it should adapt to environmental changes. This approach was an improvement upon both the classical and neo-classical approach to management.

Characteristics of the modern approach:

• Multimotivated
• Probabilistic 
• Multidimensional 
• Adaptive

There are three categories/ basic pillars:

(a) Quantitative approach/ Operational Research/ Operational Analysis 

(b) Systems approach

(c) Contingency approach

(a) Quantitative approach/ Management science approach/  Operational Research/  Operational Analysis :

It was propounded by C. W Churchman and his colleagues around the year 1950. It proposed the managers to solve their problems with the help of the mathematical and statistical formulas for example theory of probability, sampling analysis, correlation/regression analysis, time series analysis, ratio analysis,  variance analysis,  statistical quality control, linear programming, game theory, network analysis, break-even analysis, waiting line or queuing theory, cash-benefit analysis, etc.

Here the focus is on managerial decision making & can be further studied as 

1. Operational research: Advanced techniques like linear programming, waiting line, routing & distribution models are used to improve the effectiveness of decisions.
2. Management information system (MIS): By providing meaningful information about its business process using computerized information systems, organizations can bring about effective management.

Advantage:  It solves complex problems quickly. 

Disadvantage: It offers an alternative to a decision and cannot take decisions.

(b) Systems approach:

It was developed by Chester I. Bernard, Herbert A. Simon and their colleagues (1960).  

• This approach means a group of small inter-related units. 
• It is a group of different units that forms a complete unit called system. 
• The small units are themselves independent, but somehow or the other is connected with the sub-systems of the related system. 
• All the sub-systems influence one another in one or another way and if one of them fails the whole system stops working. 
• For example- a bike is a system that has many sub-systems in the form of engine, shaft, gear, wheels body, etc.
• Therefore, the success of the system depends on the cooperation and efficiency of the sub-systems.  
• The organization is also a system and its various departments are its sub-systems & if some decision is taken regarding a particular sub-system, the defect of a decision on the other sub-systems should also be considered.

Components of a system:

• Individual
• Organization (formal/ informal)
• Physical environment &
• Behaviors

Three basic elements of the organization:

1. A system: May consists of some functions, processes & components.
2. Linking process: This ensures coordination & correlations of subsystems. The process includes "decision making, balance, and communication".
3. Goals: There is a specific goal that every system is set to achieve.

Chief characteristics of the System Approach:

1. Sub-Systems: Every system is a combination of many sub-systems.
2. Holism/ Holistic: Every organization is looked upon as a whole. All the sub-systems are kept in mind while making a decision & no decision is possible in respect of any particular sub-system alone. 
3. Synergy: The organization is greater than the sum of its components.  If a work is performed collectively rather than individual, it is certainly well-performed with better results. 
4. Closed and Open System: Closed System: It remains unaffected by environmental factors. Open System: It remains constantly in touch with its environment and is influenced by it. An organization is considered as an open system. Environmental factors enter an organization as Input, converted into products through the process of various activities, walk out of the organization in the form of output ( goods, services, and satisfaction) 
5. System Boundary: A certain dividing line separates a system from its environment. In a closed system, it is rigid while in an open system, it is flexible.

(c) Contingency approach/ Situational approach:

This theory was developed by J.W. Lorsch and P.R. Lawrence (1970). 

• As per them, every type of problem in an organization cannot be solved by a single set of rules. 
• It is important to analyze every problem individually, study the various aspects & then devise different ways to solve it. 
• It is a mixture of all theories & appropriate theory is used depending upon the situation.

Features of Contingency Approach:

• Managerial action influences the environment.

• The managerial action changes according to the situations.

• There is essentially coordination between the organization and the environment.

Limitations of Contingency Approach:

• It is not sufficient to say that managerial action depends on the situation but it is essential to say what action should be taken in a particular situation. 

• A situation can be influenced by many factors and it is difficult to analyze all these factors.

References:

1. Kadri, A., 2019. IAPSM's Textbook Of Community Medicine. 1st ed. New Delhi: Jaypee Brothers Medical Publishers (P) Ltd, p.1221.
2. https://www.economicsdiscussion.net/management/modern-approach-to management/31912
3. https://www.yourarticlelibrary.com/management/modern-management-theory-quantitative-system-and-contingency-approaches-to-management/25621