The purpose of this research is to analyse the appraisal of open system business policy model in the management of mission hospitals in the South South Nigeria, the study was motivated by the need to give possible strategies and solution through the use of open system business policy model in the management of mission hospitals in the South South Nigeria. The population of the study was 732 staff of the 10 selected mission hospitals in Edo State, Delta State, River State and Cross River State in south- south Nigeria. A sample size of 502 was determined from the population using Taro Yamane’s formula in conjunction with two-tail test. The hypotheses were tested using non parametric statistical technique which included: Friedman Chi-square and Z-test. The findings reveal that the reasons for failure in service delivery among mission hospitals in South South Nigeria are due to abortive business policies, increasing rate of changes in technology, unhealthy work environment and high bureaucratic difficulties (x2c = 496.660 > x2t= 7.815, df =3 p<0.05).There is a significant relationship between open system business policy model and the management of mission hospital in South South Nigeria (Zc= 372.422 > Zt= 1.96, a<0.05). That Open system model to large extents has assisted the mission hospitals in South South Nigeria to benefit from its environment through exchange of information, procurement of both input and economic resources, ability to adapt to changes in the environment and effective quality service to patients (Zc= 4.179 >Zt= 1.96, a<0.05). The appropriate means for improving quality of service to patient among mission hospitals in South South Nigeria are adaptation of suitable open system business policy model, enabling work environment, implementation of constant training programs and the presence of foreign professionals (expatriate) (x2c = 372.422 > x2t= 7.815, df =3 p<0.05). Environmental effect on quality service delivery to patients among mission hospitals in South South Nigeria are unstable Government policy, increasing rate of changes in technology, environmental conflict and poor innovation  (Zc= 4.186 >Zt= 1.96, a<0.05) Based on the result of the study, the following recommendations were made: Hospital Organizations should adopt a suitable open system business policy model that will enable them interact properly with their environment for exchange of information and procurement of both input and economic resources. Hospital Management should continually implementing constant staff training programme to improve synergy and cooperation in work place Hospital Management should acquire the model equipment and foreign professionals (expatriate) which will be advantageous in the production of quality of service to patients. The study concludes that with appropriate implementation of suitable open system business policy models and proper environmental consideration there will be effective and improved service quality for patients among mission hospitals in South South Nigeria, environmental prediction and adaptation, effective and improved synergy, team spirit and cooperation in work place


  • Background of the Study

A policy is considered the general guideline for decision making. Kalejaye, (1998) defines policy as the objectives, the mode of thought and the body of principle underlying the activities of an organization Business policy is a guide and roadmap to create awareness and direction to the management of any organization. It publicizes the rights and obligations of different rung of the ladder- horizontal and vertical-of the different capital human resource engagement, finance utilization etc. It ensures that organizations deliver better end product within a framework. It encourages, promotes and improves performance attainment in an organization. Policy provides the bedrock for vision and mission statement of the business organization along the corporate objectives and goal. Policy enables the business to be assessed and given an image by the way they carry out their responsibility along with their relationship with their clients/customers. It is the ‘barometer’ of playing by the rule and gives purpose to the strategy thrust of the organization. Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization (Wikipedia, 2012). It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions. It is the study of the roles and responsibilities of top level management, the significant issues affecting organizational success and the decisions affecting organization in long-run.

Tracing the history of business policy, Kazmi (2006) states that it can be traced back to 1911, when the Harvard Business School introduced an integrative course in management in view of providing general management capability. This course was based on case studies which had been in use at the School for instructional purposes since 1908 (Christensen, et. al., 1982 cited in Kazmi, 2006). However, the real impetus for introducing business policy in the curriculum of business schools (as management institutes or departments are known in the United States) came with the publication of two reports in 1959. In 1969, the American Assembly of Collegiate Schools of Business), a regulatory body for business schools, made the course of business policy a mandatory requirement for the purpose of recognition. In the last two decades, business policy has become an integral part of management education curriculum. The practice of including business policy in the management curriculum has spread from the United States to other parts of the world. The contents of the course, teaching methodology and so on vary from institution to institution. But basically, business policy is considered a capstone integrative course offered to students who have already been through a set of core functional area courses. The term “business policy” has been used traditionally though new titles such as strategic management, corporate strategy and policy and so on are now used extensively for the course. Business policy in term of hospital management provides the guideline for deploying resources and mobilizing for the efficient provision of effective health service which involves planning, organizing, controlling, directing and leading (Olumide 1997)

Open system is a system that regularly exchanges feedback with its external environment. Open systems are systems, of course, so inputs, processes, outputs, goals, assessment and evaluation, and learning are all important. Aspects that are critically important to open systems include the boundaries and external environment. Healthy open systems continuously exchange feedback with their environments, analyze that feedback, adjust internal systems as needed to achieve the system’s goals, and then transmit necessary information back out to the environment. Hospital management open business policy provides guideline that governs the hospitals interaction with its environment. A hospital cannot operate independently without the presence of its suppliers, political cum cultural, competitors, patients and religions environment. Some of the subsystems within the hospital are the Nursing department,  Laboratory department, pharmaceutics department, emergency department etc need to be highly controlled and predicted, possessing a considerable degree of self-regulation. A true open system needs to be able to cope with controllable and unexpected inputs and deal with these in predictable and contingent way (Katz 2004). (



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