Comparison Between Healthcare Organizations And Other Service Organizations

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Question :


Do you believe that health service organisations are very different from organisations in other industries? Pick a different type of service organisation, such as a restaurant, a hotel, or an airline and list the ways in which health service organisations are different and the ways in which health service organisations and your chosen organisation might be the same.

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Answer :


Healthcare organizations though a type of service organization differ a lot from other service organizations. Healthcare organizations can be termed as a type of cottage industry. There can be nursing homes, hospitals, pathologies etc under healthcare services. It is a type of humanistic service organization and differs variedly from other manufacturing service organizations. In order to establish the differences of healthcare industry and other service organizations here the restaurant service is been chosen as another service organization.

1. Healthcare V/S Restaurants as Service organizations

The management aspect of both the industries is very different from each other. The goal, mission and vision of a healthcare organization like any nursing home or hospital is different from the restaurants. Any service organization functions by internal and external operations also known as backstage and front stage actions. The backstage actions of healthcare organization are different from restaurant services though both the organizations provide public services to the people. Most of the healthcare organizations do not have any target consumers but targeting a particular social strata has been the marketing policy for both hotel and restaurant business.

When the matter of profit is taken under consideration as a motif of any business organization, the profit margin of the healthcare organizations is limited and can not exceed that limit where in restaurant industries the profit reaches a wider margin.

Restaurant services can be considered as a manufacturing operation as it offers tangible goods to its customers. Healthcare services like nursing homes and hospitals do not provide such tangible goods. The pharmaceutical industry which is also a part of healthcare industry does produce medicines that can be considered to tangible goods.

The services provided by these two industries are different from each other. The restaurant does not provide clinical services neither does it focus on the health promotion. On the other hand they focus on their quality services through quality food and interaction of the frontline employees with the customers.

In health care services the frontline employees have a role but the quality of this service primarily depends upon the clinical services offered to their clients.

In restaurant services health information, education and skill development is not mandatory but in health services it is necessary to have clinical support system.

Similarities of both industries

The corporate services like management and leadership skills, workforce, HR management, financial management and building healthy public policy are necessary for the success of both the industries.

Both of the industries operate through front-stage and backstage actions. The success depends on the infrastructure and quality of the system in both industries.

Legal and administrative policies and services are required in both industries.

2. Governing the healthcare organization

In healthcare governance of the system plays an important role. The chosen professional and responsible persons define the required outcome by judging, measuring, changing and monitoring the existing practices of the organization. The governing body of the Commonwealth Medical Association is appointed by the Government of U.K. The head of the commonwealth has to perform some symbolic functions. The Commonwealth leaders collectively choose the successive governing heads of the organization (Friedberg,et al.2014) . The governing body of the said organization functions in three ways. They play an important role in establishing different policies for public benefit. By taking significant and strategic decisions they analyze the organization’s activity. Policy making and decision making are the sole responsibility of the governing body. The board of directors follows the majority voting system in order to reach any productive decision for the organization. Organization’s vision, mission, policy and aim are decided by the board members and the decision to enter in any agreement with another organization depends upon their opinion.

The strategic plan and financial aspects are overseen by the members. They protect the community asset and also focus on the non profitable aspects for the betterment of the health organization as a public service organization.

Organizational structure and design

This study concentrates on the structure and design of the hospitality management department of the Commonwealth medical Association. The hospitality management department consists of numerous frontline employees. These employees greet and help the clients with proper information. There are plenty reception counters in this healthcare organization with numerous receptionist who are at service of the patient parties. The frontline actions function under the head of this department.

Patient care managers within the nursing department of this health organization are divided into several groups. In this department there are staffs who take care of the patients directly. Senior, junior nurses are under the supervision of the nurse manager. The nurse managers make sure that the people directly looking after the patients are functioning in the proper manner (Chan, J.C. et al.2014). This management level ensures the quality work of the organization.

For the hospitality and the nursing department of the organization a board of directors is much needed in order to develop the quality of community services. Department administrators, the nurse manager and the management director can be directed to follow a certain codes with the help of the directorial board can further smoothen the functioning of the department.


The healthcare organizations function in a different way from other public service organizations and The Commonwealth Medical Association also maintains its quality work with the help of its existing governing procedure and a few subtle changes in the organizational structure and design of the nursing managerial department it can continue achieving its success as a worldwide popular name in this sector.