MANAGEMENT THEORY Purposes of Theory 1. Provide a stable focus of understanding what we experience 2. Enable us to communicate freely 3.

Challenge us to keep learning of our world Principles of Management (Modern Era) Scientific Classical Human Relations Behavioral Scientific Management Focused on the best way to do a task - Efficiency provided information on: standards time & motion studies task analysis job simplification productivity incentives FREDERICK TAYLOR (1856-1915) FATHER OF SCIENTIFIC MANAGEMENT Used stopwatch studies & applied the principles of: observation measurement scientific comparison to determine the most efficient way to accomplish a task Reduced wasted effort Set standard for performance Encourage specialization Stressed the selection of qualified workers who could be developed for a particular job. Monistic Theory FRANK GILBRETH(1868-1924) LILIAN GILBRETH(18781972 Pioneers in time and motion studies Emphasized the benefits of: job simplification establishment of work standards effects of the incentives wage plan fatigue on work performance First to use motion picture films to analyze workers emotions Developed a micro chronometer Henry Gantt (1861-1919) Disciple of Taylor, was concerned w/ problems of efficiency Refined previous work rather than introduce new concepts Developed a task and bonus remuneration plan Argued for: more humanitarian approach placed emphasis on service rather than profit objectives recognize useful non-monetary incentives CLASSIC ORGANIZATON Deductive rather than inductive

-views the organization as a whole rather than focusing solely on production -focused on: planning organizing controlling

Henry Fayol (1841-1925) Father of Management Process School Studied the functions of managers and concluded that management is universal A believer in the division of work , he argued that specialization increases efficiency Believed that workers: should be allowed to think implement plans be adequately remunerated for their services Encourage devt of group harmony through equal treatment and stability of tenure for personnel a place for everything and everything in its place. FAYOLS MANAGEMENT PRINCIPLES Division of Labor the more people specialize, the more efficient they can perform Authority management needs to be able to give orders so that they can get things done. Discipline members in an organization need to respect the rules and regulation that govern the organization Unity of command subordinates should receive orders from only one superior Unity of direction member of any organization should have only one objectives Subordination of Individual Interest to the Common Good give way for the interest of everybody. Remuneration workers should be paid according/commensurate to the work they perform. Centralization managers should retain the final responsibility but should at the same time give their subordinate enough time and authority to do their job. Hierarchy the line of authority in an organization runs in order of rank. Order materials and people should be at the right time and at the right place. Equity people in the organization should be treated with equity and justice Stability of Staff the greater the turn-over rate, the less workers are efficient Initiative subordinate should be given the freedom to do their work/conceive plans even though some mistakes occur Espirit de Corps good relationship must be maintain in the organization

Max Weber (1864-1920) Father of Organizational Theory Conceptualized bureaucracy w/ emphasis on rules instead of individuals and competency over favoritism as the most efficient basis of organization Conceptualized a structure of authority that would facilitate the accomplishment of the organizational objectives Basis Of Authority 1. Traditional Authority 2. Charisma 3. Rational/Legal Authority Human Relations Stresses the Social Environment -focused on the effect individuals have on the success or failure of an organization Chester Barnard (1886-1961) Studied the functions of executives while he was a manager for the New Jersey bell telephone system He defined the managers responsibilities 1. Defining Objectives 2. Acquiring Resources 3. Coordinating Activities Stressing the importance of cooperation b/w management and labor, he noted that the degree of cooperation depends on the non-financial inducement Stressed the role of informal organization for o aiding communication o meeting individuals needs o maintaining cohesiveness Mary Parker Follett (1868-1933) Mother of Modern Management Stressed the importance of coordinating the psychological and sociological aspect of management Perceived the organization as a social system and management as social process She considered subordination offensive Distinguished between power w/ others and power over others and indicated that legitimate power is produced by a circular behavior whereby superior and subordinates mutually influence one another. The law of the situation dictates that a person does not take orders from another person but from the situation Elton Mayo (1810-1949) Author of The Hawthorne Studies Though criticized for poor research methods, the Hawthorne Studies stimulated considerable interest in human problems on the job lighting had little effect on production

Work norms obviously had more influence than wage incentive Kurt Lewin (1890-1974) Study of Group Dynamics maintained that groups have personalities of their own; composite of the members personalities advocated democratic supervision Identified the three types of leaders Authorat Democrat Laissez-Faire Jacob Moreno (1892-1979) Developed Sociometry to analyze group behavior Claimed that people are either: attracted to repulsed by indifferent towards others Developed the sociogram to chart pairings of preferences for others Contributed to: psychodrama (individual therapy) sociodrama ( related to social and cultural roles) and role playing techniques for the analysis of interpersonal relations Behavioral Science emphasizes the use of scientific procedures to study the psychological, sociological, and anthropological aspects of human behavior in organization Abraham Maslow (1908-1970) Hierarchy of Needs Theory Initiated the Human Behavioral School in 1943 He outlined a hierarchical structure for human needs classified into five categories: 1. Physiological 2. Safety 3. Belonging 4. Esteem 5. Self-actualization Once needs are met, newer and more mature ones must emerge Frederick Herzberg(1923-2000) Factors in the job can raise the level of performance and meet the higher order needs Job-content (factors in the job) ex: achievement, recognition, growth = motivators Job-context (surrounding environmental factors) ex: supervision, company policy, working conditions = hygiene factors Douglas McGregor (1906-1964) Theory X and Y Developed the managerial implications of Maslows Theory Notes that ones style of management is dependent on ones philosophy of humans

Theory X managers emphasis on the goal of the organization People dislike & will avoid work Workers must be directed, controlled, coerced, threatened Theory Y emphasis is on the goal of the individual People do not inherently dislike work Work can be a source of satisfaction Workers have self direction, self-control, responds to rewards for the accomplishment of goals William Ouchi Theory Z Published Theory Z: How American Business Can Meet the Japanese Challenge in 1981 Japanese organization lifetime employment Slow evaluation & promotion Non-specialized career paths Implicit control mechanisms Collective decision-making & responsibility Wholistic concern US organization Short-term employment Rapid evaluation & promotion Specialized career paths Explicit control mechanisms Individual decision-making Individual responsibility Segmented concern Richard Pascale & Anthony Athos Gave a more extensive discussion of the Art of Japanese Management: Application for American Executives in 1981. Explain that organization in the US tend to savor strategy, structure, and systems, whereas the Japanese organization focus on staff, skills, style, and superordinate goals Rensis Likert (1903-1981) Theory of Management is based on his work at the University of Michigans Institute for Social Research He identified 3 types of variables in organization 1. Causal 2. Includes: a. Leadership behavior b. Organizational structure c. Policies d. Controls 2. Intervening These are: Perceptions Attitudes motivations 3. End-result

Includes: Measures of profits Costs Productivity Managers may act in ways harmful to the organization because they evaluate end results to the exclusion of intervening variables. Managerial Grid B E (1,9) (9,9)

C (5,5)

A D (1,1) (9,1) Vertical concern for people Horizontal concern fro production Behavioral Science Robert Blake (1918) & Jane Mouton (1930) Maintained that there are 2 critical dimensions of leadership 1. Concern for people 2. Concern for production They depicted these on a 9 x 9 or 81 square managerial grid. The vertical axis represents the managers concern for people, & the horizontal axis represents concern for production. The 5 basic styles are to each corner & in the middle A. Impoverished Manager (1,1) lack of concern for both people & production B. Country Club Manager (1,9) thoughtful & friendly but lack concern for production C. Organization Man Management (5,5) represents a moderate concern for both people & production but not at the same time D. Authority-Obedience (9,1) efficiency in operation but lacks concern for human element E. Team Management (9,9) the optimal managerial style. These managers integrate their concern for people & production Skills of a Manager Accdg to Robert Katz Technical skills knowledge and proficiency in activities involving methods, procedures and process. It also involves working w/ tools and specific techniques to achieve the desire result.

Human skills the ability to work w/ people. It is the creation of work environment in w/c people feel secure and free to express their opinion. Conceptual skills the ability to see the over-all pictures to identify important elements in a situation and to understand the relationship among the elements Summer emphasized Knowledge factors Attitude factors Ability factors Roles of Managers INTERPERSONAL ROLE Symbol Leader Liaison INFORMATIONAL ROLE Monitors Information Disseminates Information Spokesperson or Representative DECISIONAL ROLE Entrepreneur or Innovator Troubleshooter Negotiator I. PLANNING Forecasting or setting the broad outline of work to be done -Why it will be done? -What action is necessary? -Where it will be done? -When it will be done? -Who will do it? -How it will be done? Defined as pre-determining a course of action in order to arrive at a desired result. It is the continuous process of assessing, establishing goals and objectives, implementing and evaluating them, and subjecting these to change as new facts are known. PRINCIPLE OF PLANNING Always based and focused on the vision, mission, philosophy, and clearly defined objectives of the organization Provison for proper analysis would indicate a revision to make it more effective Pervasive within the entire organization covering the various departments, services and the differents level of management Utilizes all available resources Must be prcised in its scope and nature. It should be realistic and focused on its expected outcomes. Should be time-bound with short- and long- range plans.

Projected plans must be documented for proper dissemination to all concerned for implementation and evaluation Scope of planning Supervisors - formulate policies, rules and regulations, methods and procedures -coordinates nursing activities -translate strategies and procedures into specific objectives and program Head nurses - schedule daily and weekly plans for the administration of patient care for his or her unit - directly responsible for the actual production of nursing services CHARACTERISITCS OF GOOD PLAN Based on clearly defined objectives It should be simple It should provide for the proper analysis and classification of action It should be flexible It should be balance It should make use of all available resources REASONS FOR PLANNING Increases the chance of success by focusing on results not activities Forces analytic thinking and evaluation of alternatives Establish a framework for decision making Orient people to action than reaction Includes day to day and future focused managers -Helps avoid crisis management and provide decision making flexibility -Provide a basis for managing organizational and individual performance -Increases employee involvement and improves communication -Cost effective STAGES OF PLANNING 1. Develop the purpose or mission statement, goals, objectives, philosophy Vision organization future role and function, something to strive for. Mission purpose of existence and reason behind organizational structure Philosophy statements of shared values and beliefs Goals statement of intent derived from the purposes of the organization, usually stated broadly and generally Objectives specific aims, purposes or targets that will have to be accomplished 2. Collect and analyze data - external and internal forces

3. Assess for the strength (opportunities that will facilitate effectiveness and achievement of goals and weaknesses (threats that will impede achieving goals and objectives) 4. Write realistic and general statements of goal 5. Identify strategies to achieve specified goals 6. Develop a timetable for accomplishing each objectives 7. Provides guideline for developing operational and functional plans 8. Put plans to work/implement 9. Provide for formative evaluation reports before, during and after the plan is implemented BUDGET (AS A TOOL FOR PLANNING Budget operational management plan related to income and expenses for division of time; allocated resources necessary for future expenditures PREREQUISITES TO BUDGETING Sound organizational structure with clear line of authority and responsibility Managerial support Formal policies and procedures must be reflected in the budgetary manual PUPOSES OF BUDGETING IN NURSING SERVICE To plan the objective, programs, activities of the nursing service and finance to accomplish them. To motivate nursing workers through analysis of actual experience. To serve as standards. Types of Budget Capital Operational Personnel or manpower Flexible Cash flow Fixed ceiling COSTS Fixed cost - not related to volume and remain constant. Variable cost - related to volume and varies according to different factors. Direct cost - related to providing product service. Indirect cost - incurred in support of providing products service. PROCEDURE NURSING SERVICE 1,Determine productivity goal 2. Forecast workload 3. Budget patient care hours 4. Budget patient care hours and staffing 5. Plan for nonproductive hours 6. Chart productive time 7. Estimate the cost of supplies and services 8. Anticipate capital expense II. ORGANIZING

Grouping of activities, providing assignments, supervising, defining means of coordinating activities to accomplish goals and objectives The process of establishing formal authority which includes developing job descriptions by defining the qualifications and functions of personnel. PURPOSES To sustain the philosophy, achieve the mission and vision and objectives of the organization Show the part each person shall work in the organization Elements of Organizing It include setting up: Organizational structure Staffing Scheduling Developing job decription CHARACTERISTICS OF ORGANIZATIONAL STRUCTURE Division of work in which each boxes represent an individual responsible for a given part of the organizations workload Chain of command, with lines indicating who reports to whom and why what authority CHARACTERISTICS The type of work performed, indicated by the labels or description for each boxes The grouping of work segments shown by the cluster of work groups The level of management, which indicate individual and entire management hierarchy COMPONENTS OF ORGANIZATIONAL STRUCTURE People Purpose structure BASIC TYPES OF O.S. Informal consists of the personal and social relationship of the members in the organization Formal describes the positions, responsibilities and those occupying the positions and their relationships among them PATTERNS/FORMS OF ORGANIZATIONAL STRUCTURE 1. Vertical or Tall Chart/Centralized Structure Depicts the Chief Executive at the top with line of authority flowing down the hierarchy.