Organizational Theory in Healthcare

The progression of the healthcare industry is inseparable from organizational development and theories – the fundamental aspects of management that help improve healthcare outcomes. The organizational system within healthcare is complex and involves changing reporting structures and relationships. Multiple types of specialists with different professional cultures work within a singular environment of a healthcare organization. As a result, this industry is often difficult to manage, and applying relevant concepts and theories will improve structural effectiveness in the field.

Currently, numerous organizational theories are implemented in healthcare. The industry is moving towards improved quality, high accessibility, and effective cost management. The main cause for it is the development of government regulations, economic forces, and employers. Classical organizational theory and organizational behavior study are some of the supporting tools in the reorganization and transformation of healthcare today. They help to manage employees and interactions between different subdivisions. The classical theory explores the effectiveness and productiveness of the company by excluding the employees’ behavioral attributes (Walston, 2017). On the other hand, organizational behavior studies focus on the influence of individuals, groups, and structures.

In addition, organizational theories contribute to the identification of motivational leverages which could contribute to the performance of healthcare employees. One such theory is Maslow’s hierarchy of needs. Maslow’s hierarchy identifies a pyramid of deficiency needs and growth needs for employees. Deficiency needs include physiological needs, safety, and security, social interaction, and esteem, while growth needs refer to self-actualization (Poirier & Devraj, 2019). In healthcare, this theory helps to identify the points of interest for workers and facilitate activities and strategies to better comply with these needs and increase employee retention.

However, during the pandemic, the role of contingency theory was more prominent in practical implementation. This theory considers the root of productivity – the leadership capability to manage critical situations and within changing environment (Walston, 2017). In hospitals, this was seen in practice as pandemic contingency planning that required decisive measures to organize and manage the inflow of patients on time. The managerial staff was supposed to designate backup units, help mobilize ventilators from smaller satellite campuses, enforce restrictions on the visiting policies and manage staff shortages. Leaders are responsible for effectively managing such issues, and timely reaction minimizes the damage to the functioning capacity of the country’s healthcare.

This also overlaps with system theory which assumes a tight connection between the components of an organization that work to reach the company’s goal. The connection is supposed to be on the level where changes within one part will influence others (Walston, 2017). In the hospital setting, the system’s central goal is the patient’s health and safety. Every department needs to do its best to achieve this goal. Therefore, the managerial focus should focus on nourishing team spirit to ensure a favorable working environment and motivate each department to excel in its specialty. In addition, the emphasis on the proper division of labor will prevail.

In conclusion, modern healthcare management and administration continue to maintain a tight connection with practical organizational development. The recent COVID-19 outbreak demonstrated that the effective use of organizational tools in healthcare would benefit the industry, the government, and human society as a whole. However, as there are numerous theories present in the field, elicitation of core principles is required. Nevertheless, the core idea that employees shape the organization and industry is unchanged and effective communication with workers is likely to ensure the stable progression of an organization.

References

Walston, S. L. (2017). Organizational behavior and theory in healthcare: Leadership perspectives and management applications. Health Administration Press.

Poirier, T. I., & Devraj, R. (2019). Using Maslow’s hierarchy of needs, pharmacy in an improved health care delivery model. American journal of pharmaceutical education, 83(8).

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