Stakeholder Management and Management Control in an Indian Healthcare Setting

Abstract: An increasing share of healthcare supply in developing countries is provided by non-governmental organizations (NGOs). NGOs are often dependent on various stakeholders, which may result in a high number of different external demands on the organization's management control. This suggests that, in order to consider the interests of external stakeholders, the control practices may become complex. This thesis explores how the external stakeholder demands affect the management control practices in a healthcare NGO. The study is performed as a case study in a small hospital in rural India and data was collected through observation, formal interviews, documents and informal conversations during two months in India. The analysis shows that the external stakeholders that fund the organization require extensive follow-up with a focus on outcome. The internal control though is managed informally through shared belief mechanisms with a strong emphasis on religion. This is made possible as the Hospital Manager handles the relations with the funders and thus absorbs the formal requirements from the external stakeholders.