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Clinical Laboratory Management: Basic Principles and Practices

Paul Wesolowski and Susan D. Roseff

• Management, Leadership, and Administration
• A Brief History of Management Concepts
  • Classical Theory •Behavioral Theory •Quantitative Theory •Operations Management and the Integrated Theory
• Decision Making and Problem Solving
  • What Is Decision Making? •Types of Decisions •Individual versus Group Decision Making •The Problem‐Solving/Decision‐Making Process
• Management Functions
  • Planning •Organizing •Directing •Controlling •Summary
• The Evolving Models of Clinical Laboratories
  • Centralized Testing •Decentralized Testing
• The Basics of Financial Management
  • Costs •Revenue •Gross versus Net Revenue •Medicare •Managed Care •Budgeting •Operating Budget •Capital Budget •Revenue Cycle: Billing and Collecting
• A Brief History of Clinical Laboratory Finances
• Management Ethics
• SUMMARY
• KEY POINTS
• GLOSSARY
• ACKNOWLEDGMENTS
• REFERENCES
• APPENDIXES

OBJECTIVES

To familiarize the reader with the concepts of leadership, management, and administration

To define how leadership, management, and administration are similar, are different, and overlap

To place modern management ideas in their historical context

To review the four management functions: planning, organizing, directing, and controlling

To discuss how laboratory models are evolving

To review in general terms the variety of financial management concepts and philosophy

To learn in general terms the process of decision making and how a decision‐making style reflects one’s leadership style

To define relevant economic issues that influence the delivery of healthcare services and their significance to the practice of laboratory medicine

Management is the art of getting things done through people.

MARY PARKER FOLLETT

Management, Leadership, and Administration

Leadership and management are terms that are often considered synonymous. It is essential to understand that leadership is a critical part of effective management. Managers are in constant action. Almost every study of managers in action has found that they switch frequently from task to task, changing their focus of attention to respond to issues as they arise, and engaging in a large volume of tasks of short duration.

As a crucial component of management, leadership behavior stresses building an environment in which each employee develops and excels. Leadership is defined as the potential to influence and drive the group’s efforts towards the accomplishment of goals. A manager must have the traits of a leader. Leaders develop and begin strategies that build and sustain competitive advantage. Organizations require robust leadership and robust management for optimal organizational efficiency (Appendix 1.1).

Leadership differs from management; while managers lay down the structure and delegate authority and responsibility, leaders provide direction by developing the organizational vision, communicating it to the employees, and inspiring them to achieve it. Management includes focus on planning, organizing, staffing, directing, and controlling activity; leadership is mainly a part of directing the function of management. Leaders focus on listening, building relationships, teamwork, inspiring, motivating, and persuading the followers. A leader gets his/her authority from his/her followers; a manager gets his/her authority by virtue of his/her position in the organization. Managers follow the organization’s policies and procedures; leaders follow their own instincts. Management is more of a science, as managers are exact, planned, standard, and logical. Leadership is an art.

In an organization, if managers are required, then leaders are essential. Manag