Seven Business Principles and Their Application in the Health Care System

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Seven business principles such as financial management, human resource management, organizational dynamics and governance, strategic planning and marketing, information management, risk management, and quality improvement are the subject of my research as they have made a huge contribution

They are aimed at dealing with different problematic aspects, solving tasks concerning the work of the medical staff and their communication with clients, improving the service level, or filling vacant job positions. Obviously, the seven business principles are important for medical practice.

To begin with, I knew that financial management covers a system of principles, forms and methods for regulating an individual mechanism with the help of finance in order to increase the competitiveness of an economic entity. From my point of view, the goal of financial management was to achieve the required level of financial stability and solvency of the healthcare facility as an integral part of the market infrastructure. As far as I understood, the general functions of financial management were financial planning, organization, regulation, coordination, and control in the field of finance. In my further accounting essays research, I wanted to know how the financial management could be interconnected with the medical sphere and I learned that the successful implementation of the tasks facing medical organizations was determined by many objective and subjective factors that affect the efficiency of the insufficient material and financial resources in medicine. Thus, I realized that financial management acted as a means of resolving medical, social and economic questions and problems appeared and that the analysis of the financial activities of a medical organization largely determined the effectiveness of management decisions made with the aim of improving the quality and accessibility of medical care to the population (Medical Practice Management Info, n.d.).

The next principle I addressed in my research was human resource management, and it turned obvious for me that it was an approach to managing the staff of an enterprise where employees were considered to be the most valuable competitive resource needed to be motivated and developed to achieve the organization’s strategic goals. I also understood that the main aim of human resources management was to provide an organization with employees that would help it to achieve its goals (Kabene et al., 2006). I had a strong belief that the relevance of the topic of human resource management in the health care system, related to the recruitment, retention and motivation of the staff, was becoming more important because the effectiveness of the medical institution depended on the quality of the working staff, as well as on the number of professionals employed. Its number influenced the ability to serve many customers. The quality of workers, their qualifications, availability of certificates, and categories determined the level of service and the ability to provide additional services within the framework of specialization. Having analyzed the data, I found that there was a shortage of human resources in the field of health care, which was particularly acute in public health organizations, as well as in rural and remote areas of the country. The problem was related both to the aspects of payment and to the factors of motivation, development prospects, and awareness (Schwartz, 2013).

With regards to organizational dynamics and governance, I defined that it was a process of continually strengthening resources and increasing the efficiency of employees. I could also describe it as how the organization managed and contributed to organizational learning, business improvement, and strategic management. Undoubtedly, I realized that in recent times, management and organizational dynamics became more important for all organizations. The modern medical group was no exception. In fact, more attention to this topic was necessary as health care was undergoing ever closer scrutiny. For that reason, I started to search for the information related to that topic and found that rising costs, medical errors and other quality problems, potential conflicts of interest, and rising technology costs should have been the focus of management and organizational dynamics. However, in a more practical sense, I could summarize management and organizational dynamics as the need to change and to protect the new status quo in a continuous improvement cycle.

One more principle that captured my attention was strategic planning – the main function of management and the core of the subsystem control in the health sphere. Personally, I thought that planning presupposed a pre-determination of the future. It resulted in the adoption of a model of the desired and planned future state and the simultaneous determination of the ways, methods, means, and deadlines for achieving that state and planned actions. In my practice, strategic planning based on analysis and prioritization was to ensure a clear assessment of goals and activities, to determine a set of actions and decisions to achieve those goals. I gathered the data revealing that the primary task of strategic planning was to ensure innovations and changes in the health care system. I found it interesting that with scientifically reasonable planning, there was a steady positive correlation between planned and achieved results (Hernandez, 2017).

In regard to information management, I could say that initially the concept appeared as a part of management theory. Later, it acquired a completely independent meaning and turned into a promising scientific direction in the era of the information society. I tried to understand the importance of information management and realized that the industry combined the following approaches: economic, considering the issues of attracting new documented information for reasons of utility and financial costs; analytical, based on analysis of user needs for information and communication; organizational, considering information technologies and their influence on organizational aspects; systematic, considering the processing of information on the basis of a holistic, system-oriented, comprehensive approaches, the optimization of communication channels, information, costs of material resources and other expenses, and the methods of work. Thus, it was obvious for me that the general goal of information management was the production of necessary information for the organization to ensure effective management of all its resources and to create an information program and technical environment for managing the enterprise.

I knew that modern medical organizations produced and accumulated a huge amount of data. I also realized that the quality of medical care and the general standard of living of the population depended on how effectively that information was used by doctors, managers, and governing bodies. Surely, I could not disagree with the argument that information management was becoming an integral part of health care. The era of paper data carriers was replaced by large information systems aimed both at supporting internal functions and at solving the tasks of managing the medical industry. All in all, I was sure that information management led to the automation, the creation of a single electronic medical record, the application and distribution of the latest medical technologies, and the development of telemedicine.

In terms of risk, I did my search and found that it could be presented as a financial category. Therefore, the degree and magnitude of risk depended on a financial mechanism. Its impact was carried out with the techniques of financial management and a special strategy. Studying the topic, I revealed that both strategy and techniques formed a risk management mechanism. Thus, risk management was a part of financial management. I also defined that risk management focused on how an organization could reduce risk or even increase income in an uncertain economic situation. While looking for ways to improve the efficiency and quality of medical care, I realized that it was necessary to introduce the risk management system. It would allow the medical staff to identify the consequences and to develop counter-tactics aimed at limiting random events that could cause physical and moral damage to the organization, its staff, and patients. After having enhanced my knowledge on the concept of risk management, I was sure that its aim was to form an organization's resistance to accidents and losses because it enabled the staff to identify hidden sources of danger and to develop countermeasures (Miyake, 2011).

It was always obvious for me that continuous improvement was a major factor in progress. I knew that improving quality was one of the most important conditions for raising the standard of human life, which was the ultimate goal of many strategic programs at the state, regional, or enterprise levels. Evaluating possible decisions, I understood that improving the quality of objects could be carried out in two directions: technical and organizational. In the first case, the technical characteristics of facilities were increased while, in the second case, either the labor costs were reduced or the organizational level of its management reached the higher level. I concluded that the quality improvement methods could cause the reorganization of the care process and the public health system, increasing the duration and improving the quality of human life. It also contributed to the development of the capacity of health systems to achieve optimal results by identifying opportunities for introducing the best evidence-based practices and modernizing the care processes.

To conclude, this research made me realize that the seven business principles were highly important for medicine and that each component was an integral part of the existence of medical establishments. I also understood that each of the principles was responsible for certain functions and that its failure could lead to irreversible consequences and the breakdown of medicine in general. My understanding of the seven business principles was developed on the basis of my examination of the general data about each of the concept and further consideration regarding the medical sphere. I learned that everything in our life was connected. Since our world was rapidly developing as a result of scientific progress, the field of medicine also needed to enhance at the proper level. To progress, it would obviously need to interact with other spheres, such as different types of management and governance.

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