Management Unit 2

8/13/2019 Management Unit 2

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THEORIES

OF

MANAGEMENT


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INTRODUCTION

Administer-Latin word

ad+ministraire to care for or to

look after people-to manage affairs.

Administraireserve


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ADMINISTRATION

ORGANIZATION MANAGEMENT


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ADMINISTRATION

DEFINITION:

It is the organisation and direction of humanand material resources to achieve desired

ends. -pfiffner&presthus

it is the direction, co-ordination and control

of many persons to achieve purposes orobjectives. -LD White


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contd

It has to do with getting things done;

with the accomplishment of defined

objectives -Luther gullick

It is the activities of groups co-operating

to accomplish common goals-Herbert


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NATURE OF ADMINISTRATION

It is universal

It is holistic

It is intangible

It is continuous & on going process

It is goal oriented

It is social& human

It is dynamic

It is creative & innovative


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MANAGEMENT

DEFINITION: The process by which a co-operative group directs action

towards common goals - Joseph

It is the distinct process consisting ofplanning,organising,actuating,activating &controlling,performed to determine and accomplish the objectives bythe use of people and resources -George

It is the process and agency which directs &guides theoperations of an organisation in realizing established aims-O Tead


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contd

The art of getting things done

through people.

Working with and throughindividual and groups to

accomplish organizational goals

-parker follet


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DEFINITION OF

NURSING MANAGEMENT

The co-ordination and

integration of nursing resources byapplying the management process to

accomplish nursing care and service

goals and objectives


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concept

of

management

earlymanagement

approaches

modernmanagement

approaches

BEHAVOURAL SYSTEM CONTINGENCYSCIENTIFICADMINIS

TRATIVE

HUMAN

RELATION


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ADMINISTRATION & MANAGEMENT

FLEXIBILITY IN

CERTAIN

SITUATION

DELEGATION

OF

RESPONSIBILITY

& AUTHORITY

EFFECTIVE

COMMUNICATION

HUMAN

RELATIONS &GOOD MORALE

EXECUTION &

CONTROL OF

WORK PLANS

COST

EFFECTIVENESS

PHILOSOPHY


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PRINCIPLES

OFADMINISTRATION

ONENESS

SPECIALISM

& THE WHOLE

SELF-

ADMINISTRATION

HIERARCHY

ANDREGIMENTATION

MORALE BUREAUCRACY


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FUNCTIONS OF ADMINISTRATION

POSDCORBLUTHER GULLICK P --- planning

o --- organising

s --- staffing d --- directing

co --- co-ordinating

r --- reporting

b --- budgeting


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Contd

Planning- Working out the things thatneed to be done & the

methods for doing them toaccomplish the purpose set for the

enterprise.Organizing- Establishment of the formal

structure of authoritythrough which work sub-divisions are arranged,designed & co-ordinate for thedefined objective.


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ContdStaffing - The whole personnel function

of bringing in & training the staff,&maintaining favourable conditions ofwork.

Directing- Continuous task of making

decisions & embodying them inspecific & general orders &instructions,& serving as the leaderof the enterprise.

Co-

Ordinating-All important duties ofinterrelating the various parts of

the work.


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Contd

Reporting -Keeping the executive

informed as to what is going

on, which includes keeping

himself & his subordinates

informed through records,research & inspection

Budgeting -All that goes with budgeting

in the form of fiscalplanning, accounting &

control


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PRINCIPLES OF MANAGEMENT

Division of work

Authority

Discipline

Unity of command

Unity of direction

Subordination of individual interest to

general interest

Remuneration


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Contd

Centralisation or decentralisation

Scalar chain

Order

Equity

Stability&Tenure

InitiativeEsprit de corps


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THE MANAGEMENT PROCESS

ORGANIZING

CONTROLLING

PLANNING

STAFFING

DIRECTING


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CO-ORDINATION

It is the integration, synchronization ororderly pattern of group efforts in the

institution/organization towards the

accomplishment of common objectives. to

ensure harmonious & smooth working of an

organization with a number of its divisions,

departments or units the activities in all

areas are required to be pulled together,unified & blended so as to give them a

commonners & purposes.


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DEFINITION OF CO-ORDINATION

It is the orderly synchronization or orderlypattern of group efforts to provide theproper amount, timing,& directing ofexecution resulting in harmonious & unified

actions to a stated objectives. IT is the adjustment of the parts of each

other & of the movement & operation ofparty in times so that each can make inmaximum contribution to the product of thewhole. -Terry


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Contd

It is the balancing & keeping the team

together by ensuring a suitable allocation of

working activities to the various members,&

seeing that these are performed with dueharmony among the members them selves.

-Brech


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NEED FOR CO-ORDINATION

Diverse & specialised activities

Empire building

Personal rivalries & prejudice

Conflict of interest


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IMPORTANCE OF CO-ORDINATION

Quintessence of management

Creative force

Unity of direction

High employee morale


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PRINCIPLES OF CO-ORDINATION

a. As the thinking function of management

proceeds the doing function, co-ordinationEndeavour must start at the planning stage ,

otherwise it becomes impossible to secure

co-ordination of activities & efforts in theexecution of work.

b. There is need for importance of direct

personal contact in removingmisunderstanding & conflict between

departments.


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Contd

c. Co-ordination is a continual activity

that permeates through each

managerial function.

d. There should be an integration of all

efforts, actions & interests towardscommon purpose.


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TYPES OF

CO-ORDINATION

TYPES OF

CO-ORDINATION

TYPES OF

CO-ORDINATION

INTERNAL

PLANNING

ORGANIZING

DIRECTION

CONTROL

EXTERNAL

3 INTERESTING PARTIES

OTHER ENTERPRISES

GOVERNMENTAL REGULATION

TECHNOLOGICAL ADVANCES


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HINDRANCES OF CO-ORDINATION

The uncertainty of the future, as to the

behaviour of the individuals & of people.

The lack of knowledge, experience wisdom &character among leaders & their confused

&conflicting ideas & objectives. The lack of administration skill & technique.

Size & complexity, personalities & political

factors


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Contd The vast number of variables involved & the

incompleteness of human knowledge,

particularly with regard to men & life. The lack of orderly methods developing,

considering, perfecting & adopting new ideas

& programmes. The lack of leaders with wisdom &

knowledge pertaining to publicadministration.

The accelerated expansion of publicadministration of international dimension.


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THEORIES OF ADMINISTRATION& MANAGEMENT

Frederic Winslow Taylor(1857-1915)-Scientific management

Henri Fayol(1841-1925)-Management functions

Luther Gullick-Activities of management

Lynda Urwick Max Weber(1864-1920)-Bureaucratic organisations

Mary Follett(1869-1933)-Partcipative management

Elton Mayo(1927-1933)-Hawthorne effect

Kurt Lewin


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Contd

Abraham Maslow -Human Motivation

Douglas McGregor-theory x &theory Y

Chris Argyris-Employee Participation

Renesis Likert

Herbert Simon

Chester Barnard

Henry Mintzberg

W.Ouchi-theory Z


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FREDERIC WINSLOW TAYLOR

A mechanical engineer,

Born in pennsylvania,

Educated in a steel company &a paper mill

invented several industrial tools,

Conducted research on methods of trainingworkers for increased production,

BEST MANAGEMENT IS A TRUE SCIENCE

C td


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Contd

SCIENCE-a body of knowledge,ascertained throughobservation & experimentation.

It is a systematized & critically tested body of knowledge. Objective of management is To secure the maximum

prosperity for the employer, coupled with the maximumprosperity for each employee.

His philosophy of Scientific management is no inherent

conflict in the interest of employers, employees &consumers.

It was the result of higher productivity should equallybenefit all people.

He advocated in the interest of societal prosperity, close

collaboration & deliberate co-operation between theemployers & employees.


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Contd4 basic principles of Scientific

management

The development of true science

The scientific selection of employees

The scientific education & development

of employees

Intimate &friendly co-operation

between employees & employers.


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Contd

Scientific management requires a mental

revolution by both managers & workers,

regarding their duties, towards their work,

towards their follow workers, & towards allof their daily problems to achieve the

objectives.


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Taylor specifies 9 qualities of which willmake a good foreman / workman

Education

Special technical knowledge

Manual dexterity& strength

Tact

Energy

Spirit

Honesty

Judgement &

Good health


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Taylors system for work improvement consists

1. Observing the workers performance through time& motion study

2. Scientifically selecting the best worker to performeach job

3. Training the selected worker

4. Paying the worker a differential piece rate5. Appointing a few highly skilled worker to

managerial positions

6. Appointing foreman for each aspect of the work &

instructing the production worker to report to adifferent functional foreman for each aspect ofthe job.

H i F l M t f ti


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Henri Fayol-Management functions

Born in France

Educated as an engineer at the National

school of Mines & employed as mining

engineer & then as GM of a coal & steel

company.

He divided all activities in an organization

into 6 groups-technical,

commercial,financial,security, accounting

&administrative.


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ContdFayol broke down the key function of

administration into 5 main aspects;To plan

To organise

To command

To co-ordinate &

To control

these aspects of administration, falling

into 2 main groups-process & effect


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PROCESS

FORECASTING

ORGANISATION COMMAND

EFFECTS

PLAN

CO-ORDINATION CONTROL


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PRINCIPLES PROCESS OBJECTIVE FFECT

INVESTIGATION FORECASTING

REALITY ORGANISATION PLAN CO-

ORDINATION

&

CONTROL

ORDER COMMAND


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FAYOLS 14 PRINCIPLES OFADMINISTRATION

Division of work

Authority

Discipline

Unity of commandUnity of direction

Subordination of individual interest to

general interestRemuneration


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Contd

Centralization or decentralizationScalar chain

Order

Equity

Stability &Tenure

Initiative

Esprit de corps


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LUTHER GULICK

POSDCORB

P --- planning

O --- organising

S --- staffing

D --- directing

CO --- co-ordinating

R --- reporting

B --- budgeting

PRINCIPLES OFADMINISTRATION


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PRINCIPLES OFADMINISTRATION

Division of work or specialization

Bases of departmental organisation Co-ordination through hierarchy

Deliberate Co-ordination

Co-ordination through committees Decentralization

Unity of command

Staff & line Delegation &

Span of control


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4Ps of Gulick

ThePurposes they serve (function)

The processthey use

The personsor things which they deal

with (clientele)

The place where they work


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LYNDA URWICK

Classical theorist

More importance to the structure of

organisation than the role of the peoplein the organisation (design)

He further considered lack of design as

illogical, cruel, wasteful, & inefficient.


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Urwick- PRINCIPLES OFADMINISTRATION

1. The principal of objective

2. The principal of correspondence

3. The principal of responsibility

4. The scalar principal

5. The principal of span of control

6. The principal of specialisation

7. The principal of co-ordination8. The principal of definition

MAX WEBER BUREAUCRATIC


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MAX WEBER-BUREAUCRATIC

ORGANIZATIONS

German intellectual with no managerial

experience,

Studied at the university of Heidelberg,

taught law at the university of Berlin &

Economics of Frieberg university,

Studied Politics, sociology, &economics as a

private scholar.

Contd


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Contd

Bureaucracy as having a well-

defined hierarchy of authority, divisionof work based on specialisation,highly

specific rules governing workers duties

& rights, deputed work procedures,impersonal interpersonal relationships

& promotion based on technical

competence.


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Contd

It was superior to other forms of organisation It provides greater stability, precision &

reliability in controlling employees .

Bureaucracy- highly efficient in dealing withchanging circumstances, is seen as too rigid &

ponderous to respond to todays rapid

societal change.

MARY FOLLETT-PARTICIPATIVE


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MARY FOLLETT PARTICIPATIVE

MANAGEMENT

o An American who studied government & businessadministration at Radcliffe and abroad.

o Management as a social process aimed atmotivating individuals & groups to work towards a

common goal.o She advised managers on avoid arbitrary authority,

o Manager should never give orders to an employee,instead Manager & employee should analyse the

situation together,& both should take orders fromthe situation.


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Elton Mayo-Hawthorne effect

Mayo & fritz Roethlisberger conducted studies atChicago's Hawthorne western electric plant,

To test Several assumptions of scientific

management,

Purposeto determine relationship between

intensity of illuminations & workers productivity

Resultwhen research increased the level of

illumination of the experimental groupworkoutput increased,

C td


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Contd

When illumination was decreased, output continue

to increase, Conclusionan unidentified psychological factor

had influenced work output.

human relationrefers to relations

between workers & employer, which are not

regulated by legal norms. These relations are

concerned with moral & psychological factors

rather than legal factors


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KURT LEWIN

A social psychologist,Field theory of human behaviour(1951),

He claimed that a workers on- the job

behaviour is influenced by interactionsbetween workers personality, work group

structure & socio- technical climate of the

work place.The process of behaviour changes occurs in 3

phases:


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BEHAVIOUR CHANGE

UNFREEZING

CHANGING

REFREEZING

Abraham Maslow -Human Motivation


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Abraham Maslow Human Motivation

SELF

ACTUALISATION

SELF ESTEEM

SOCIAL NEEDS

SECURITY NEEDS

PHYSIOLOGICAL NEEDS

Douglas McGregor theory x &theory


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Douglas McGregor-theory x &theory

Y

A behavioural scientist,

A strong believe in the potentialities of

human beings in contributing organizational

performance.

His focus is on utilizing human potentials in

organisations & getting the best out of

people by creating a conducive & harmoniousenvironment.

Contd


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Contd

Trational managers in a bureaucracy

operates on a set of assumptions abouthuman nature & human behaviourTHEORY X

a. The average human being has an inherentdislike of work & will avoid it,

b. Because of dislike of a work, most peoplemust be coaxed, controlled, directed,

threatened with punishment to getthrough, put forth adequate effort towardsthe achievement of organizationalobjectives

Contd


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Contd

c. The average human being prefers to be

directed, wishes to avoid responsibility, hasrationally little ambition & is more

interested in financial increments & wants

security above all than personal

achievements.

Theory X assumes human beings as

lazy, lacking in ambition, resisting

change,non-creative,capable of being

deceived easilyetc.

C d


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ContdManagement has 2 strategies-hard & soft.

Hardstrategy - close supervision, tight centre,coercion & threat.

Softstrategymore permissible, meets the

demands & attempts to harmonize the demands of

the organizations & that of employees.

Theory X represents classical

administrative theory, lays stress on

efficiency & economy by putting direction &control.

Contd


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Contd

Theory Yprovide a more accurate

assessment of human nature, one thatencourages workers to develop their full

potential.

a. The average individual does not inherently dislike

work.

b. External control & threat of punishment are not

only means of bringing about efforts towards

organizational objectives. People will exerciseself-control & selfdirection when pursuing goals

to which they are personally committed.

Contd


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c. Commitment to objectives is a function of therewards associated with their achievement.

d. The average human being learns, under properconditions, not only to accept but ti seekresponsibility.

e. The capacity to exercise a relatively high degree of

imagination,ingenity & creativity in the solutionof organizational problems is widely not narrowly,distributed in the population.

f. Under the conditions of modern industrial life, the

intellectual potentialities of the average humanbeing are only partially utilized.

C td


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Contd

The theory Yunderlines the

importance of maintaining an organisationwhere people feel confident & motivated.It emphasize on developing & improvingperformance orientation of the people

working in the organisation.it involves lotof leadership skills on the part of themanager to achieve these objectives. thecorner stoneof McGregor framework, isself- restraint, selfdirection goalorientation & human values in theorganisation.

CHRIS ARGYRIS EMPLOYEE PARTICIPATION


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CHRIS ARGYRIS-EMPLOYEE PARTICIPATION

During maturation, the individual moves to acondition of greater independence, moreachievements, musts & activities, longer timeperspective & increased self-control.

Argyris claimed that the rigid structure &stringent rules of a bureaucracy block normalmaturation, encouraging employees to become

passive & dependent & decreasing their jobsatisfaction & emotional health


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RENESIS LIKERT

Likert advocated SYSTEM 4

approach to organisational

development in which organisational

structure facilitates continuous

interaction among various groups in the

organisation, so work is controlled

through mutual influence by employees.


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Contd

ASYSTEM 4 organisation is one in

which superiors & subordinates trust eachother in all matters, information flows freelythroughout the organisation,employees

participate in setting high but achieve goals,decisions are made at all levels, training isprovided to upgrade personnel & controlmechanism stimulates workers to solve their

own problems.


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HERBERT SIMON

A decision theorist,

Business &service institutions are

networks decision makers.

He analyzed the human behaviour in terms

of its preference in decision making process.

The decision making process involves 3

phases of activities.

3 PHASES OF DECISION MAKING


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3 PHASES OF DECISION MAKING

PROCESS

1. INTELLIGENCE ACTIVITY

2. DESIGN ACTIVITY

3. CHOICE ACTIVITY


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INTELLIGENCE ACTIVITY

It involves finding, access to taking

decision, for which executive has to

analyses the organisational

environment & identify the conditions

that need decision. He likes the

alternative strategies for problem

solving.


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DESIGN ACTIVITY

It involves development of

alternatives to do a particular job. here

also the executive identifies the merits

& demerits as well as problem involved

in each of the alternatives, determining

likely consequences of each alternative.

CHOICE ACTIVITY


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CHOICE ACTIVITY

Decision maker should choose or

select one of the alternative or course of

action ,keeping in view the

organisational goals. here the executive

evaluates consequences & select the

course of actions.

Contd


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Contd

Herbert contrasts 2 approaches todecision- making; optimising, the

approach applied by so called

ECONOMIC MAN & satisfying themethod used by so called

ADMINISTRATIVE MAN


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CHESTER BARNARD

Organisation as a social system.

A system is defined as a set of arrangementsof things so related or connected as to form a

unity or organic whole.It composes of elements under one related &

dependent upon one another but that wherein interaction form a unity whole.

d


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Contd

Organisation as a co-operative systems.

Gives risk to formal Organisation.

He defines Organisation as a system ofconsciously co-ordinated

personal activities or forces.

C td


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Contd

The organisation came into existence

when: There are persons able to communicate with

each other

Who are willing to contribute action

To accomplish a common purpose

the elementsof organisation are

communication, willingness & commonpurpose.

Contd


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Contd

the process of co-operation in an

organisation requires the following to makeit effective.

1. The placewhere work is done

2. The timewhich work is done3. The personwith whom work is done

4. The thingsupon which work is done

5. The method or processby which work is

done

Contd


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Contd

Barnard also laid emphasis on the

ACCEPTANCE OF AUTHORITY by others in the

organisation.

Authority as the character of

communication (order) in a formal

organisation by virtue of which it is accepted

by a contributor or member of theorganisation as governing the action he

contributes.

HENRY MINTZBERG


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HENRY MINTZBERG

He asserts that managerial activitiesare more reactive than productive & are

characterized by brevity, variety &

discontinuity.Mintzberg reports that the topical

manger or administrator patrons 10

roles;

ROLES


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ROLES

OF

MANAGER

INTERPERSONAL

FIGURE HEAD

LEADER

LIASION

INFORMATIONAL

MONITOR

DISSEMINATOR

SPOKESMAN

DECISIONAL

ENTERPRENEURHANDLER

RESOURCE

ALLOCATOR

NEGOTIATOR


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W.OUCHI-THEORY Z

Life long employment on the same firmInfrequent evaluation & promotions

Non-specialised carpet path development

Implicit control of worker behaviour

Collective decision making

Group responsibility for quality &

Holistic concern for the employees welfare.

Contd


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Contd

Theory Z calls for long term

employment, a combination of specialised &

generalised training.

For carrier development, slow promotion

based on non- threatening peer evaluation,

group decision making based on both

qualitative & quantitative data,decentralised

control of performance quality & concern forboth employee & agency welfare is required

Contd


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Contd

The principles of group decision making &

decentralised control of quality &

implemented through quality circles.

In aquality circles the managers& members

of the primary work group meet for an hour

each week to solve work problems &

improve work processes & outcomes.

Contd


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YoshidaJapanese management principles

To improve service delivery. each employee muststart with a clear conception of what the most

desirable service could include.

A manager can eliminate the need for continuous

inspection by building quality into the process orproduct in the first place.

If employee do not understand the fundamental

institutional purposes, single application of rules &

procedures will not improve productivity & quality.

Contd


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Contd

The notion of replacing unsatisfactory worker with

a more satisfactory worker, requires that oneperceives the total organisation as a complex that is

composed of separate & replaceable parts.

Replacement of an unsatisfactory worker with a

more satisfactory worker causes insecurity forremaining worker.

Too close linking of responsibility to authority

produces feeling of sectionalism & decreases loyalty

to the organisation as a whole.

CURRENT ISSUES AND TRENDS


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CURRENT ISSUES AND TRENDSManagement of populations with chronic

illnessesResources to acquire technology on an

ongoing basis

The need for primary & preventive services &programs, including complementary andalternative programs

Integration & seamlessness of clinical &

financial services 7 information

Protection of consumers privacy

Contd


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ContdShortages of key personnel, especially

registered nursesFinancing structures such as capitation &

managed care

Care delivery & process management

Management of knowledge workers &personal accountability

Pressuresfor quality & sustainable outcomes

Leadership skills related to changemanagement

Contd


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Contd

Non- involvementof nursing administrators

in planning & decision- making in thegovernmentalhospital administration.

No specific powerhas been assigned to

nursing superintendents, but he/she hasbeen made in-charge of all inventories &

linen of hospital.

Nursing superintendents will have noauthoritiesto sanction leave to their

subordinates.

Contd


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Lack of knowledge in managementof

hospital among nursing/medical

administrators.

Administrator, always dependent on the

advice of clerical staffin all matters including

technical aspects.

Prevalence of role ambiguity, among

administration & administrators.

Unnecessary interference of non nursing

personnelin nursing administration.

Contd


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No written nursing policies & manuals.

No proper job descriptionfor various nursingcadres.

Noorganised staff development programme.

No special incentives.

Inefficiency of nursing councilsof state &union to maintain standards in nursing.

No efforts at higher level for implementation

of separatedirectorate of nursing.

CONCLUSION


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CONCLUSION

A managers job is to coordinate and

integrate resources, nurses have valuable

related skills of coordination and integration.

all nurses are managers; they coordinate anddeliver health services to clients


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Documents

Management Unit 2