UNIT 1:Real Life Cases Related to Good Governance/Civil Society
Japan Health Care System
Japan’s health care system is considered to be one of the best structures in the world. This is primarily due to its effectiveness, efficiency and availability. It has achieved an adequate demographic structure with a fairly reasonable cost. With the longest life expectancy among all OECD countries, Japan is unabated in achieving successful healthy outcomes.
Japan has been providing universal healthcare coverage to almost all of its citizens since 1961. Derived from powerful egalitarian principles, the health system of Japan is a culmination of Employees’ Health Insurance Plans and Community Health Insurance Plans together which forms the National Health Insurance Plans.
History and Current Situation
The Government’s initial development of Universal Healthcare emerged as a measure to protect itself from its citizens radicalizing towards socialism. By the 1930s, a vast number of employees had access to healthcare which left quite a few unemployed people without it. Therefore around 1938, the central government decided to formulate a plan to ensure 100% insurance coverage for all.
With the onset of the Second World War, welfare coverage was expanded with an objective of recruiting fit soldiers but CHI (Community Health Insurance) was offered only on a voluntary basis. Post the crippling of Japan’s economy with the Hiroshima bombings, the welfare system was completely destroyed.
The LDP Prime Minister, Nobusuke Kishi, with an intention to provide universal insurance coverage enacted the National Health Insurance Act (New) in 1958 which converted all volunteer based Community Health Insurance to compulsory National Health Insurance. It was executed in 1959 and Japan attained Universal Health insurance coverage in 1961.
For the next 15 years, there was an unprecedented 10% growth rate which lead to an expansion of the breadth and depth of universal coverage. Advocates realized that the elderly had a lower income but were more susceptible to illnesses, and with their copayment to the health system remaining the same, they were proportionately spending a higher rate of their wealth on health costs. The state then decided to provide free healthcare to anyone above the age of 70. This populist policy later had quite a huge pecuniary liability on the Japanese Health System.
The recession in 1973 was characterized with a shrinking fiscal space and expanding health expenditure. Therefore in the late 1970s and early 1980s, the health care budget was reduced, free health care for the elderly abolished, and a fee controlled schedule was introduced.
After a long period of following this structure, the government’s next task was to address the inequalities in the system which was inherent due to the fragmented plans with varying premium levels.
In 2005, the government launched a fiscal policy which further cut the social security budget by 1.1 trillion yen in 5 years. This strain created a ‘health care crisis’ due to the inequality between costs and quality of health care provided.
With this, recent policies aim to combine insurance plans, promote community level integration of health care, and settle controversies on highly priced drugs. In 2015, a panel was commissioned to present its vision for health care in 2035. In this proposal, a reformed system with a goal to provide “sustainable health-care system that is responsive and equitable to each member of society.”
Japan Healthcare and Governance
Japan’s healthcare system is a very successful policy whose backbone is good governance.
Participation: It is a legal requirement for all Japanese citizens to have the health insurance provided by the state. This coverage entitles people to choose their own clinics or hospitals from any of the huge pool that are part of the structure and is therefore quite thorough. Participation by both men and women is a key cornerstone of good governance. In this context, by making health insurance a legal requirement, the state has ensured maximum participation of all its citizens.
Rule of Law: Good governance requires fair, legal frameworks that are enforced impartially. The national government sets the fee schedule and gives subsidies to local governments, insurers, and providers. It also establishes and enforces detailed regulations for the constituents. Japan’s 47 regions implement these regulations and develop regional health care delivery with their own budgets and funds received.
Transparency: Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. Therefore to keep a check on the healthcare system, there are a few key entities which are – The Pharmaceutical and Medical Devices Agency, a governmental regulatory agency which reviews Pharmaceuticals and medical devices for quality, efficacy, and safety.The Central Social Insurance Medical Council sets the SHIS Drug Price List, which is a list of pharmaceuticals and their prices covered by the SHIS. The criteria for coverage include clinical effectiveness, not costs. Non Profits work toward public engagement and patient advocacy, and every prefecture establishes a health care council to discuss the local health care plan. Under the Medical Care Law, these councils must have members representing patients.
Responsiveness: Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe. To ensure this, the State
prioritizes care coordination and develops financial incentives for providers, particularly in cancer, stroke, cardiac, and palliative care. For example, hospitals admitting stroke victims or patients with hip fractures can receive additional fees if they use post-discharge protocols and have contracts with clinic physicians to provide effective follow-up care after discharge.The government also provides subsidies to leading providers in the community to facilitate care coordination.
Consensus Oriented: One current example that can be mentioned with the scope of the word limit is that Japan currently has the highest share of elderly people in their demographic. Therefore the problem of dealing with age associated diseases is more acute in Japan. To counter this, the state has undertaken a multi sectoral approach to building societies which are sensitive to the needs of people with these chronic conditions along with their families. The aim is to improve coordination of care at the community level among medical care, long-term care and social services; promote public awareness and disease prevention; and create a safe and healthy living environment for the elderly.
Equity and Inclusiveness: A society’s well being depends on ensuring that all its members feel that they have a stake in it and do not feel excluded from the
mainstream of society. Minimizing health disparities between populations has been an objective of the national health promotion strategy since 2012. The strategy has 2 motives: ‘the reduction of disparities in healthy life expectancies between prefectures’ and ‘the increase in the number of local governments organizing activities to reduce health disparities’. Health disparities between regions are regularly reported by government; disparities between socioeconomic groups and in health care access are occasionally measured and reported by researchers.
Effectiveness and Efficiency: Good governance means that processes and institutions produce results that meet the needs of society while making the best use of resources at their disposal. Japan has various types of health insurances catering to various needs of its citizens and its residents. With the main ones being social health insure and national health insurance, the various types range from nursing health insurance, international health insurance, private health insurance, etc to a temporary health insurance for tourists which makes healthcare very efficient.
Accountability: Accountability is a key requirement of good governance. The government is required by law at both the state and national level to make sure that good-quality medical care is provided effectively by the system. Therefore, by their structure, more than 1,700 municipalities operate various components of the SIHS and coordinate and organise health promotion activities along with the provision of health services for their residents.
UNIT 2: Applications of the theories in actual organizations
Application of Principles of Management in Café Coffee Day (CCD)
Café Coffee Day is an Indian café chain owned by Coffee Day Global Ltd. which is a subsidiary of Coffee Day Enterprises Ltd.
Headquarters: Bangalore, Karnataka
No. of outlets: 1530 (as of 2015) all across the 28 states of India
Revenue: Rs. 13.26 billion
No. of Employees: 5000+
Vision: Showing the world where coffee can take us.
Mission: To find and extract the boundless potential in all that we do- just as we have for every cup of coffee.
Henry Fayol was a French mining engineer and an economist, who developed general theory of business administration that is also commonly called Fayolism.
Born: 29th July, 1841
Died: 19th November, 1925
APPLICATION OF FAYOL’s 14 SCIENTIFIC PRINCIPLES ON
CAFÉ COFFEE DAY
DIVISION OF WORK
This principle states that employees should be divided on the basis of their specialization which not only makes their work more efficient but also adds up to their utility generated from the work they perform. This principle also directs to the training of employees according to their own specific field of work.
In CCD’s case, this principle is widely applied as both in the head quarters and all the CCD shops, employees are divided according to their fields. There are employees who work on coffee and food research, there are employees looking after finances, HR and recruitment etc. Even in all the CCD outlets, there are different people appointed for different tasks, such as the cashier, the cooks, employees who are responsible for cleaning of tables, etc.
There are different training facilities for the employees as well.
AUTHORITY AND RESPONSIBILITY
This principle focuses on the hierarchy of the different levels of employees. It inculcates the authority and the corresponding responsibility which comes with it.
In the case of CCD, there is a very prominent sense of authority which can be seen from the hierarchy which flows down from the regional head to the assistant regional manager. Authority and responsibility flows from top to bottom. But in the case of responsibility and answerability, it goes from bottom to top, like the café in chare has to report to his/her immediate supervisor/ manager.
Discipline includes obeying the hierarchy and also being responsible for the proper judgement of the issue of penalties and sanctions for the employees.
It is also responsible for the right kind of behaviour in the workplace.
In the case of CCD, all the employees are clearly aware of the do’s and don’ts of the workplace. It is customary for them to abide by the rules and regulations laid down by the organization. As penalties, disciplinary actions are taken for disobeying the rules/regulations.
UNITY OF COMMAND
This principle states that one individual employee is answerable and should report to one individual supervisor only. Employees are supposed to receive the orders from their own individual supervisor only.
In the case of CCD, the jobs are properly defined and streamlined. Employees take orders and report to their immediate supervisor only and so does everyone in the authority chain.
UNITY OF DIRECTION
This principle talks about one main objective/aim for everyone working in the same organization so that everyone’s goals are aligned. It talks about one leadership under one common plan.
In the case of CCD, direction and the goal is set up by the people in the top management body and the same tasks and aims are directed down to the employees working in the coffee shops.
SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST
This principle talks about the general and common interest of the company/ organization and not the personal interest of each and every employee. According to this principle, personal interest should be set aside when working for a common goal of the company.
In the case of CCD, it has been seen that employees do work overtime whenever required for the common interest of the company. The employees are always present to carry the workload on their shoulders whenever their co workers are absent due to some inconvenience.
This principle states that the money paid to the employees should be proportionate to their work and there should be no bias when it comes to remuneration of the employees. Remuneration should be satisfactory to the employee who is receiving it.
In the case of CCD, the employees are paid on a monthly basis and they are paid according to the work they do. There has never been an injustice when it comes to the payment of CCD’s employees.
CENTRALIZATION AND DECENTRALIZATION
This principle states that the rule making authority is concentrated in the top tiers of the management body in the organization, when it comes to centralization. Decentralization talks about the dispersion of rule making authority by the superiors to their subordinates.
In the case of CCD, it is a centralized organization and all the rules are already decided by the top tier management body of the organization but according to officials, the rule making body welcomes new innovative ideas that could lead to a better functioning and efficient system.
This principle states that the hierarchy flows down from the top levels to the bottom ones and subordinates report to their immediate supervisors.
In the case of CCD, it is pretty evident that the subordinates report to their immediate supervisors and everyone follows the hierarchy of decision making.
This principle refers to a systematic arrangement of everything. There are two types of orders which include material and social. It basically states there should a social ideal environment in the working place and the material order refers to the proper arrangement of commodities in the right places for them to be sold or even used.
In the case of CCD, a very specific order is maintained in the case of social as well as material. Things aren’t usually out of place because it hinders efficiency and is time consuming.
This principle is basically a combination of fairness and justice. It deals with equality among all the employees in the eyes of the management.
In the case of CCD, no discrimination has been recorded of date. Employees are treated equally and paid according to the work they perform. There is no bias on the subject of gender, sex, race, etc.
STABILITY AND TENURE OF PERSONNEL
This principle says that all employees should be given sufficient time to accommodate in the new working place and the workers should not be transferred frequently.
In the case of CCD, it pays attention to the process of recruitment and all the employees are trained equally and perfectly for the working place.
This principle states that the workers should be given opportunity to show initiative or eagerness to perform a specific task.
In the case of CCD, it came up with a monthly engagement activity wherein the employees could showcase their talent or even share new individual ideas for better efficiency. The employees were given opportunity to showcase their eagerness for a task of their choice.
ESPRIT DE CORPS
This principle talks about the entire group of employees to come together as a team and show team spirit because it enhances the work ethic of the organization.
In the case of CCD, it does inculcate the spirit of working together as a team to not only bring more efficiency but to also bring harmony and friendliness in the workplace.
The above mentioned analysis shows that Café Coffee Day does follow almost all the Fayol’s principles and it has benefitted the organization in a positive way as CCD has become successful and has also emerged as one of the top competitors in the beverage industry.
Real life cases depicting the theories of leadership and motivation from organizational perspective
Application of leadership theories in Starbucks- A case study
Starbucks is known the world over for their chain of cafes. It is a standout from the top American organizations that is currently serving hot and cold caffeine and non- caffeine drinks to 64 nations.
Founded : March 31,1971
Founders: Jerry Baldwin, Zev Siegl , Gordon Bowker
In 2008, Howard Schultz turned into the CEO and Chairman of Starbucks and in the many years he had spent there he made sure he gave priority to his employees which he referred to as his partners.According to a leadership theory formulated in 1978, there are two leaders, transactional and transformational. Howard applies the latter. Transformational leaders inspire their team and encourage members to develop as individuals and be part of a collective team to work towards achieving objectives.
The company followed a servant-leadership style which meant their sole perspective was to serve others and fulfill their needs,
Dimensions Of Transformational leadership:
Idealized influence: This involves having the capability to manufacture certainty and gain the regard and trust of the members of the organization. By being a transformational leader , supporters will be more adaptive to changes when the need emerges.
Inspiration Motivation: With excitement and energy, a pioneer will have the capacity to propel adherents to work as a team and have visions about things that are conceivable.
Intellectual stimulation: Transformational pioneers challenge individuals from the group to take care of issues that emerge and instruct them to be inventive and imaginative by stimulating their brains. This enables individuals to voice out their thoughts and share their perspective without having the fear of being punished or judged.
Individualized Consideration: by acknowledging the differences between employees, a transformational leader knows the significance of addressing the issues of workers as needs be, tutoring and offering individualized profession guiding.
Besides this, Schultz’s leadership style spins around inspiration and motivation. He urges his staff to give input and ask advice from the workers, utilizing personal lines of correspondence like email and phone calls. In any case, what truly characterizes Schultz’s way of leading his people is empowerment, quality administration, and entrepreneurship.
Starbucks had built a solid foundation, emphasizing on the open relationship with the employees. It is additionally proactively taking great care of the employees, whereby the employees are offered a comprehensive benefits package to qualified partners working no less than 20 hours out of every week in the organization. The company is also giving flexible working hours to the employees. Furthermore, the employees are also being offered a fair and competitive wage.
To deal with the workers’ prosperity, the organization had additionally introduced the employee stock purchase plan. Under such a plan, the workers can contribute up to 10% of their base earnings to quarterly purchases of the organization’s common stock at an 85% rebate to the market value (Lee, 2008). By developing a caring workplace, not only the organization has been winning the Fortune’s 100 Best Place to Work award, but also able to lower down the employees turnover rate in the organization.
Application of motivational theory in The Walt Disney Company- A case study
Founded: October 16, 1923
Founder: Walt Disney , Roy O. Disney
The Walt Disney Company, commonly known as Walt Disney or simply Disney is an American diversified multinational mass media and entertainment conglomerate.
The organization developed bit by bit regardless of the budgetary challenges the brothers experienced throughout the years. The disney siblings did not let this hamper their endeavors and soon they settled themselves as a independent production company in hollywood.
Disney’s way to deal with employee motivation and satisfaction depends on Frederick Herzberg’s hypothesis that inspiration originates from inside the individual , as opposed to from an policy forced by the organization.
The culture of quality perfected at disney’s amusement parks couldn’t win without employee buy in. To gain worker acceptance,the idea of show business is promoted as a organizational culture. The worker isn’t hired for a job however cast for a part in the show . they are called cast members and wear costumes rather than uniforms.
Disney has 10 management principles set up that have added to the achievement of the organization. These principles are :
(1) Make Everyone’s Dreams Come True
(2) You Better Believe It
(3) Never a Customer, Always a Guest
(4) All for One and One for All
(5) Share the Spotlight
(6) Dare to Dare
(7) Practice, Practice, Practice
(8) Make Your Elephant Fly
(9) Capture the Magic with Storyboards
(10) Give Details Top Billing
Albeit all these are a basic piece of the organization, the first,fourth,and seventh standards are noteworthy for employee motivation.
“Make Everyone’s Dreams Come True” outlines the significance of enabling individuals from the association to dream and build up his or her innovative abilities. Disney encourages innovativeness in the entirety of its employees. This supports interest and is credited with a diminished turnover rate when contrasted with the business’ rivals
The fourth guideline, “All for One and One for All” features the significance of teamwork and strengthening of the workers. Cooperation is depicted as a strategy for encouraging serious dedication, enthusiasm and commitment. Since the focus at the Disney Company is to ensure that every visitor has a vital and lovely experience, it doesn’t make a difference whose “job” is to get a bit of waste. It turns into everybody’s responsibility.
The seventh rule, “Practice, Practice, Practice” traces the significance of formal and ceaseless training. At first, Disney’s underlying training programs covered just the basic essentials to keep activities going. Amid those early years, the training comprised of a first-day introduction, with some on-the-job training and a couple of recreational projects for employees. As Disney grew, more emphasis on training and the total employee environment was required.
The finely evolved practice of putting associates before profits has yielded abundance in popularity and name recognition for the organization all over the world.
UNIT 4: Application of Riggs Sala Model in MENA Countries.
The Middle Eastern and North African (MENA) countries is a region which encompasses 22 countries in the Middle East and north Africa.
A Case Study on Kuwait.
The purpose of this case study is to evaluate the stages of administrative development, i.e the bureaucratic processes and patterns from an ecological context. (Ecology: the relation between a bureaucracy and its environment.)
The Fused Prismatic Sala Model was developed by Fred W Riggs. Prior to this, he proposed the Agraria (Fused:low development, agriculture-centric society), Transitia (Prismatic:developing, transitional society) and Industria (Diffracted:developed, industrialized society) models. Compounding these models, we arrive at the Prismatic Sala model which theorizes how a nation progresses from a fused to a prismatic to a diffracted society.
Characteristics of a Prismatic Society include:
Formalism: A discrepancy between the formal laws, rules and regulations and the administrative practices.
Heterogeneity: A combination of traditional fused and modern diffracted traits.
Overlapping: Diffracted and Fused administrative structures co exist.
The following are the observable similarities between the Kuwait Administration structure and the SALA Model:
The model is characterised by the scarcity in output as compared to the inputs.Kuwait’s outputs were far below what was expected by the public, and low in comparison to the pooled financial resources.
Formalism leads to over-conformity and non-enforcement under the prismatic model. Red tapism and Proceduralism are used to forward personal agendas of the bureaucrats to a great degree, which is possible due to the lack of clarity in policies and lack of goal-oriented targets. In the case of Kuwait, non-native administrators who lack in job security systematically adhere to procedures and regulations, as opposed to the beaurocrats who who manipulate the system to benefit themselves or their families or tribes.
Unclear laws in Kuwait leave multiple exploitable loopholes which is a landmark trait in prismatic societies.
Nepotism is another hallmark of developing nations which is observed in Kuwait-particular notions dominated the beaurocratic system and led to personalized recruitment.
The element of power in the prismatic model is called the dependency syndrome, in which a disproportionally large share of the country’s production is consumed by a small, elite population, which in itself makes negligible contribution to the economic activities in the country. This was also observed in the case of Kuwait.
Now, the points of dissimilarity between the Riggs model and the Kuwait case are highlighted below:
Countries with sudden wealth don’t fit the mould of the Riggs model, since the model expects prismatic nations to have limited financial resources. This difference in Economic Ecology may cause Kuwait to develop along a different trajectory that what is suggested in the Riggs model.
Economic structures in the case of prismatic societies perform a variety of functions such as the redistribution of income. However, Kuwait doesn’t demonstrate different prices for different consumers as Riggs suggested in his Bazaar Canteen.
This model specifies that administrative dysfunctionality originates primarily from lack of resources. However, Kuwait’s sudden wealth along with its unstable administration shows that the problem lies in surplus or scarcity in capital.
There are less deviations in Kuwait’s system than is suggested in the description of prismatic elites. Agglomeration (the domination of elite over other eminent classes) and assimilation ( access of entrepreneurs by the elite) are not demonstrated in Kuwait.
Similar deviations from social structures are also observed, such as in the example of Poly-communalism. The basic assumption of multiple large communities with a few parties dominating doesn’t hold true.
As we can clearly observe, the prismatic sala model is applicable in certain generalised situations, but doesn’t explain all the observations and transitional stages that are found in Kuwait. The underlying reasoning for various phenomena fail to be captured by the sala model. We require a much more multifaceted approach to truly understand the developmental path that each economy follows.