Theory of Management in Health Care



             In the early 1960s Drucker read Abraham H. Maslow's theory of management, which is based on the belief that each person has specific needs. He "became an immediate convert" (Drucker, 1999a, p. 17). Essentially, this means that different groups of employees have to be managed differently, and that the same group of workers has to be managed differently at different times (pg. 21). However, stressed Drucker, "one does not 'manage' people. The task is to lead people. And the goal is to make productive the specific strengths and knowledge of each individual (pg. 21-22). .

             In these days of global competition, such a leadership style is essential to point individuals in the most productive directions. One also has to prepare for continual change. In the past, management commitments for the future were based on the question, "What is most likely happen?" Now, it is necessary to plan for uncertainty by asking "What has already happened that will create the future?" (Drucker, 1995, pg. 40). All organizations, especially ones in the healthcare field, have to look at such factors as demographic trends; changes in industry, market structure, values, science and technology already in place but yet to have full impact; and trends in the economy and structure of society. They must then convert these "what is most likely to happen" into opportunities for the organization based on its strengths and competence. Further, it must develop the knowledge and people to be able to respond to these opportunities.

             Global society is in the midst of a major transformation, where knowledge is the primary resource if, and only if, it is integrated into a task. For managers, this dynamics of knowledge requires building change into the organizational structure. The organization must commit itself to continually creating something new (Drucker, 1995, pg. 79). As a result, management must emphasize continuous improvement or kaizen, exploit its knowledge to develop the next generation of applications from its successes and learn to innovate in a systematic process.

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