What Does Decision Making Has To Do Within Organizations?

Decision making:

Decision making is an important responsibility of the board. It must make significant decisions, keeping the vision, mission and strategies of the organization in mind. However, it is advisable to delegate the power to make non-governance type decisions to the management.

Oversee organization’s activity

Boards must oversee the working of the organization but do not try to intervene in management activities. The oversight role makes the board responsible for whatever happens in the healthcare organization.

Apart from these above-mentioned roles, board has various other responsibilities. These responsibilities include:

·         Monitor the management of the organization

·         Oversee quality and finance issues

·         Set ethical standards and values and

·         Select a CEO and monitor his / her performance etc.

Among all the mentioned responsibilities, selecting a CEO and monitor his performance is most important because CEO is the person who runs and manages the day to day management and affairs of the organization.

The mission and vision of every organization is dependent on its culture, and the people whom it has to deal with. Thus, it does seem appropriate that every community and vicinity should have their own Health Care Organization with specific mission statement. The board should use every strategy available to measure and evaluate its performance, whether it is a balanced scorecard or ten measures formula. The primary goal of this performance evaluation is to govern the health care organization more effectively and thus every tool is used to achieve this goal.

Allocation of Resources

Considered in its generality, the problem of the allocation of resources in a society according to their needs seems immense. Among the resources provided by nature, there are a number which are consumed as such: water quenches our thirst, the ground we occupy etc. But there are many other goods that we consume, and which are not directly provided by nature in a suitable form. In our country, temperature of the climate is not sufficient to keep us alive, we must "produce" the driving force heat with wood, coal or fuel oil.  

In economics, the usual way to characterize an optimal situation is to use the concept of Pareto optimality. The market is a mechanism for allocating resources effectively because if markets are complete and agents' preferences are monotonic, the equilibrium leads is Pareto optimal (First theorem of welfare economics). Markets must be "complete" for the theorem to be valid. All assets in the economy entering the utility functions of agents should be traded. This condition excludes the existence of externalities and public goods.

There are pure public goods including lighthouses, fireworks, national defense. Other assets are "partially public." This is particularly the case of knowledge. That candidates for examination at the same time using a method of solving a system of equations should not, in principle, affect the quality of copies made. Market failure is a term used to describe situations where the conditions for the market lead to an efficient allocation of resources are raped so characterized. The findings of the efficiency of general equilibrium theory are no longer valid in these cases.