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Journal of Contemporary Management

On-line version ISSN 1815-7440

Abstract

OKANGA, B  and  DROTSKIE, A. Strategic prerequisites for effective healthcare management control. JCMAN [online]. 2015, vol.12, n.1, pp.544-570. ISSN 1815-7440.

Over the decades, most authors have interpreted management control to be only limited to setting standards, measuring and comparing actual performance with expected performance, and correcting deviations. However, while using confirmatory factor analysis as a principal technique in quantitative research method, this paper proves that the effectiveness of such a three-tier framework is influenced by a combination of certain management control pillars and prerequisites such as employee empowerment, information technology and embracement of a culture of knowledge management. Although x2 statistics and the root mean square error of approximation (RMSEA) did not indicate good model fitness, on a sample of 416 respondents drawn through multi-stage sampling from 4776 managers and primary healthcare coordinators in the entire South African public healthcare system, the modification indices, and standardised regression weights and the squared multiple correlation co-efficient (r2) confirmed the null hypothesis that the integration of such prerequisites in a healthcare management control framework predicts improvement in compliance with established healthcare standards and effective use of different control techniques. Results indicated that all these edify identification of all deviations and the determining of remedial measures that can be undertaken for improving the entire performance of a public healthcare setting.

Keywords : healthcare; management control; performance improvement; prerequisites.

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