Chapter Outline
- • Definition of Management
- • Concept of Management
- • Nature of Management
- • Levels of Management
- • Scope of Management (or) Functional Areas of Management
- • Functions of Management
- • Functions of Managers
- • Posdcorb
- • Current Trends and Issues of Management
- • Skills of Managers
- • Principles and Theories of Management
- • Motivational Theories of Management
- • Modern Management Theories
- • Principles of Administration Applicable to all Organization by Lyndal Urwick
- • Role of Nurse as a Manager
INTRODUCTION OF MANAGEMENT
The term ‘Management’ means differently by different people. It is generally underlined as ‘an art of getting activities done through other peoples’.
Management and Administration are not understood clearly. As a system, Administration is a function of Management, it is existed by man has been organized into communities. The people are working together in a group manner at one organization in various categories that indicates management. It is characterizes the process of leading and directing of organization, marketing (or) business development and manipulation of resource (Human, financial, material and intellectual (or) intangible). The individual person has to perform numerous activity and he/she has to get satisfy work. The individual cannot perform in all activity therefore human beings joint one group and provide cooperation together in the form of groups and organizations. Every organization (Family, college, business, enterprise, army and government) is basically a group of people to be attain some common goal.
Administration (Flow Chart 1.1)
The word “administer” is derived from the latin word “ad+ministrair” means to care and look for people. Administration is a process permiting all collective efforts, be it public (or) private, civil (or) military and it is a universal nature. It is used every- where, in every institution, organization and family. “Administration” means direction.
Management is the process of designing and maintaining an environment in which individuals, working together in groups, accomplish efficiently for selected aims.
Basic Definition Needs to be Expanded
- As managers, people carry out the managerial functions of planning, organization, staffing, leading and controlling.
- Management applies to any kind of organization.
- It applies to managers at all organizational levels.
- The aim of all managers are the same to create a surplus.
- Managing is concerned with productivity that implies effectiveness and efficiency.
DEFINITION OF MANAGEMENT
- Management is a problem-solving process of effectively achieving organizational objectives through the efficient use of scarce resources in a changing environment.—Kreither
- Management is a process by which the elements of a group are integrated, coordinated and utilized so as to effectively and efficiently achieve organizational objectives.—Howard M Carlisle
- Management is a conceptual, theoretical and analytical purpose as that process by which managers create, direct, maintain and operate organization through systematic, coordinated, cooperative human effort.—Marfarland
- Management is to make planning, organizing, commanding, coordinating and controlling for organization.—Henry Fayo
- Management is working with human, financial and physical resources to achieve organizational goals by performing planning, organizing, coordinating and controlling to the functions of institution.—Meggerison and Mosby
- Management is the responsibility and functions of manager.—Louis Allen
- Management is the art of directing and insipiring people.—J D Mooney and AC Raileys
- Management is defined as getting the right activities done in term as per plan by competent and qualified persons with the right amount of other resources such as money, machines, materials, etc.
- Management is the art of getting things done through and with people informally organized groups.—Harold Koontz
- Management is the art and science of decision making and leadership.—DJ Clough
- Management is a social process entailing responsibility for the effective (or) efficient planning and regulation of the operation of an enterprise.—EFL Brech
- Management is a multipurpose organ that manages a business and managers, managers are manages workers and work.—Peter F Drucker
- Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated goals.—Henry L Sisk
- Management is the process and agency which directs and guides the operation of an organization in realizing established aims.—Otead
- Management is principally the task of planning, coordinating, motivating and controlling the efforts of others toward a specific objective.—James Linde
Difference between Administration and Management
S. No. | Administration | Management |
|---|---|---|
1. | It is thinking process | It is executive and implementing working process |
2. | It is concerned with formulate objectives and policies | It is concerned with the implementation of policies of institution |
3. | It concentrate a top-level of function of institution | It concentrate middle and lower level of working function |
4. | Administrative decisions mainly influence by other outside forces and public activities (or) reaction | Managerial decisions mainly influence by objective (or ) goal and rules (or) policies of the organization |
5. | It is not direct concerned with outplan of human activity | It is directing concern with human activities according to the plans |
6. | The main functions are planning and controlling of organization | The main functions are directing the rules and policies, goals (or) objectives and working efforts |
7. | Conceptual and human skills | Technical and human skills |
8. | Government/ public sectors are used in this position like governor, minister, registrar, and vice-chancellor | Business organizations are used in this position like managing director, general manager, sales manager, branch manager, etc. |
Characteristics of Management
- Management is a goal directed activity. There is always a definite objective of management and managers help in achieving that objective successfully.
- Management is concerned with arranging group activity in a coordinated manner, the manager alone cannot achieve the objectives. He has to take help from others. He has to see that different employees perform their activities in such a manner that there is no conflict, that work is performed in an orderly manner and completed at the right time. Besides, different activities should support each other. This is called coordination.
- Management is an economic activity. It aims at securing maximum results with minimum of effort and cost. Managers use various methods to reduce wastes and increase the efficiency of work.
- Management is a creative activity. Managers have to get workdone in different types of situations with the help of people having different types of skills.
- Managers are involved in decision making that is, choosing between alternative courses of action at all stages of management. Managers have to make a number of decisions to manage the activities properly. For example, a factory manager aims at increasing the profits through increased production and sales. Then he/she will first have to take steps to increase the level of production and then try to sell the goods produced. To increase production there may be a few alternatives, e.g. increase in working hours, installing another machine, hiring more workers, improvement in the methods of work and so on. He/she has to choose the most suitable alternative to achieve his/her objective.
CONCEPT OF MANAGEMENT
Management is a commonly used word; it has been interpreted differently for different purposes. The word ‘Management’ is interpreted as:
- A discipline
- A body of individuals
- A process
- A profession
- A human process
- A financial resource.
Management as a Discipline
- Ordinarily the word ‘discipline’ is understood to mean orderly behavior in day-to-day life. This word also means an independent branch of knowledge.
- Management is also recognized as a discipline in the same sense. Like other disciplines, it also consists of certain principles, theories and methods.
- The body of knowledge in management has been developed on the basis of thinking of experts and practitioners in the field of management.
- For instance, Henry Fayol and FW Taylor have suggested various principles of management to make management more systematic and scientific in practice.
- Taylor’s principles of scientific management suggest that instead of traditional methods, managers should adopt scientific methods for the solution of business problems.
- Henry Fayol has given fourteen principles of management. It as a discipline will be more scientific as knowledge of management expands and there is systematic thinking on management.
Management as a Body of Individuals
- As managers perform their functions jointly in a group, they are often collectively known as ‘Management’.
- The success of a business depends upon the efficiency of not one but more than one manager.
- They have to work as a team so that the objectives of the business as a whole may be fully achieved. Hence, it is proper that the word ‘management’ should not be related to any single manager but to the team of managers.
- To run any business successfully, the group of managers must work with a team spirit. Also there are certain levels of management divided on the basis of the nature of duties and responsibilities.
- The managers at different levels should work in cooperation to make sure that their joint efforts lead to the best possible result.
Management as a Process
- Management is also ‘process’ in the sense that the work of a manager is performed by taking different steps in proper sequence.
- The process of management as include, planning, organizing, staffing, directing and controlling are the steps to be taken, together in sequence. For example,
- Planning must be done first of all before carrying out any activity. This is the first stage in the management process.
- This stage should be followed by deciding on the manner in which the work is to be arranged and distributed among the people. This is known as organizing.
- The next step should consist of selecting the right type of persons for the jobs to be preformed it is staffing.
- Directing which comprises arranging for the supervision of work.
- The last stage is to check that the actual work is in accordance with plans. This is known as controlling.
- In business activities use men, materials, machines and money to produce goods and services. The value of goods and services produce is greater than the value of resources used. Thus planning, organizing, staffing, etc. are steps taken by management which really mean a transformation process whereby material resources are converted into valuable goods and services.
Management as a Profession
- In the company form of organization, it is not possible for all the shareholders to take part in the management of the company.
- The management of company is entrusted to the elected representatives of the shareholders called the directors.
- These directors appoint managers to mange the day-to-day activities. Thus, there is a separation between ownership and management.
- Managers of a company should, therefore, possess expert knowledge and skill in management which can be acquired through education and training. Managers of other types of organizations are also expected to possess expert knowledge.
- They are expected to observe some principles in the conduct of business affairs.
- They are also expected to take care of the responsibilities of the company toward the society.
A profession need following requirements:
- There is a systematized body of knowledge.
- Specialized knowledge is acquired through education and training.
- Service is considered to be more important than earning profits.
- Those engaged in the occupation observe certain standards in the conduct of affairs. (These standards are embodied in ‘Code of Conduct’, which differ from profession to profession).
- There should be an association of the persons in the profession to regulate their occupational behavior.
Management as a Financial Resource
- Management is a vital role of production of product.
- Management to establishes the organization and improve the productivity.
- The management is midpoint around the workers, to maintain the interpersonal relationship through that encourage to improve the productivity.
- Management as concentrate to coordinates various factors of production and to ensure growth of industries by labor, money and material, etc.
- Based on managers efficient the production will be improve, so manager will be get training and way of development of organization.
Management as a Human Process
- A manager should act as a leader and to achieves the goal of organization.
- A manager should be delegate authority effectively.
- A manager should take decisions at all levels and any situation.
- A sound management as need effective motivation and democratic leadership qualities.
- A manager must have inter, intra, extra relationship to people and workers.
- Workers should not have fear of punishment threat of unemployment, fines and penalties if it is there the product will be affecting.
- Management participation, achievement of objectives and delegation of authority to helpful to getting successful activity and product.
NATURE OF MANAGEMENT
- There are two basic types of work in any organization:
- Non managerial work
- Managerial work.
- A manager is a person who works through other people (subordinates), and “brings together” their efforts to accomplish goals.
- It involved nonhuman resources, such as money and materials, are also involved.
- Management is the process of managing, a collection of managers, or an area of study.
- primary definition of management is the process of achieving goals through the efforts of others.
- Management is necessary in any organization that seeks to accomplish objectives.
- In the absence of effective management an organization becomes a collection of individuals, each going in his or her own direction with no unifying guidance toward organizational goals.
- The efficient managers are the most important ingredient in a firm's ability to reach the organization goals, the poor management is the basic cause of business failures. Because a manager must work through others to accomplish goals, how those “others” view management is important to a manager's effectiveness.
Some of the Other Concepts of Management
Management is:
- A science
- An art
- An essential activity
- An executive activity
- An essential situation
- An intangible asset
- A social process
- A disciplinary action
- A good relationship
- A common to all
- A universal process.
Is it a SCIENCE or an ART?
- We have discussed the various interpretations of the term ‘Management’.
- When a manager performs his/her functions or takes decisions, the systematized body of knowledge helps him/her to apply one or more principles or methods in the course of his/her activities.
- Adoption of principles and methods already known to him/her during his/her education and training may be regarded as the application of science in management.
Management is a Science as Well as an Art
- A manager may not find it useful to apply the known methods and principles. He/she may have to understand the nature of the situation and of the problem and then acts or takes a decision after careful thinking of the nature of the situation.
- He/she has to apply his/her skill and judgment rather than simply use the methods and principles known to him. In this sense, management may be regarded as an art.
- Managers sometimes may apply methods and principles in their day-do-day activities as well as use their mind and skill where necessary. Therefore, management may be regarded as both a science as well as an art.
LEVELS OF MANAGEMENT
- The managers perform different types of duties and they are jointly perform the various functions.
- Some managers decide about the objectives.
- Some managers perform functions to achieve these objectives in different departments, like production, sales, etc.
- Some of the managers are concerned with the supervision of day-to-day activities of workers.
- Managers performing different types of duties may, thus, be divided into three categories:
- Top-Level Management
- Middle-Level Management
- Lower-Level Management
The following diagram will give you an idea about the functions, positions and relations of different levels of management.
Top-Level Management
- It includes Board of Directors and the Chief Executive. The chief executive may have the designation of Chairman, Managing Director, President, or General Manager.
- This level determines the objectives of the business as a whole and lays down policies to achieve these objectives (making of policy means providing guidelines for actions and decision).
- The top management also exercises an overall control over the organization.
Middle-Level Management
- It includes heads of various departments, e.g. head of the production, head of the sales, etc. and other departmental managers.
- Sometimes senior departmental heads are included in the top management team.
- The objectives of the business as a whole are translated into departmental objectives for the middle-level management.
- The middle-level management acts as a mediator between top level-management and lower-level management (Supervisor).
- The heads of the various departments then issue instructions to subordinates so as to achieve these objectives.
- The middle-level managers are particularly concerned with the activities of their respective departments.
Lower-Level Management
- It consists of foremen and supervisors.
- The functions of supervisory are the worker, is assigned to works, and then these people see that the work is carried out properly and at the right time.
- These three levels of management taken together form the ‘hierarchy of management’. It indicates the ranks and positions of managers in the hierarchy. It shows that the middle-level management is subordinate to the top-level and 7that the lower level is subordinate to the middle-level management. At the top of the organization, there is usually one person.
SCOPE OF MANAGEMENT (OR) FUNCTIONAL AREAS OF MANAGEMENT
Various functional areas of management are:
- Production management
- Marketing management
- Financial management
- Personnel management
Production Management
Production means creation of utilities by converting raw material into final product by various scientific methods and regulations. It is very important field of management. Various sub-areas of the production department are as follows:
- Plant layout and location: This area deals with designing of plant layout, decide about the plant location for various products and providing various plant utilities.
- Production planning: Managers have to plan about various production policies and production methods.
- Material management: This area deals with purchase, storage, issue and control of the material required for production department.
- Research and development: This area deals with research and developmental activities of manufacturing department. Refinement in existing product line or develop a new product are the major activities.
- Quality control: Quality control department works for production of quality product by doing various tests which ensure the customer satisfaction.
Marketing Management
Marketing management involves distribution of the product to the buyers. It may need number of steps. Sub areas are as follows:
- Advertising: This area deals with advertising of product, introducing new product in market by various means and encourage the customer to buy the products.
- Sales management: Sales management deals with fixation of prices, actual transfer of products to the customer after fulfilling certain formalities and after sales services.
- Market research: It involves in collection of data related to product demand and performance by research and analysis of market.
Finance and Accounting Management
Financial and accounting management deals with managerial activities related to procurement and utilization of fund for business purpose. Its sub areas are as follows:
- Financial accounting: It relates to record keeping of various financial transactions, their classifications and preparation of financial statements to show the financial position of the organization.
- Management accounting: It deals with analysis and interpretation of financial record so that management can take certain decisions on investment plans, return to investors and dividend policy.
- Taxation: This area deals with various direct and indirect taxes which organization has to pay.
- Costing: Costing deals with recording of costs, their classifications, analysis and cost control.
Personnel Management
Personnel management is the phase of management which deals with effective use and control of manpower. Following are the sub areas of personnel management:
- Personnel planning: This deals with preparation inventory of available manpower and actual requirement of workers in organization.
- Recruitment and selection: This deals with hiring and employing human being for various positions as required.
- Wage administration: It deals with job evaluation, merit rating of jobs and making wage and incentive policy for employees.
- Industrial relation: It deals with maintenance of overall employee relation, providing good working conditions and welfare services to employees.
FUNCTIONS OF MANAGEMENT
- Managerial work consists of performing the functions of management.
- The analysis of management is facilitated by a useful and clear organization of knowledge. As a first order of knowledge classification, we have used the eight functions of managers.
- Planning
- Organizing
- Staffing
- Directing
- Controlling and coordination
- Recording
- Budgeting
The concepts and principles, theories and techniques are organized around these functions and become the basis for discussion.
Planning
- Planning is deciding in advance
- what is to be done
- when it is to be done
- how it is to be done
- why it is to be done.
- It emphasizes the fact that if one knows where he is going, he is more likely to get there.
- Planning involves
- problem-solving
- decision-making.
- Whenever there is a problem, the manager should know what alternatives are there to solve it. Out of the alternative courses of action, he has to choose the most suitable one. This process of making choice is known as decision making.
- Planning requires decisions to be made on
- what should be done
- how it should be done
- who will do it
- where it will be done
- when it should be done
- why it is to be done.
- The essential part of the planning consists of setting goals and programs of activities.
Organizing
- After planning have been established the management has to organize the activities.
- The managers determine the priority of activities, necessary to achieve the objectives and how these activities should be divided among the departments and employees.
- The management must be organize the human resources and physical resources.
- The performance of any activity requires different type of work, e.g. the manager of a surgical instrument factory decides to produce 1 lakh instrument/week.
- This is his goal or objectives. Now to achieve this, he has to divide the activities and operations into certain departments.
- The production work is given to the production department.
- Finance department is assigned the work of arranging funds.
- Personnel department is to procure people with required skills.
- The sales department is to take care of sales.
- The organizing function of management involves creating departments and defining the duties and responsibilities of people in different positions within each department.
Staffing
- Staffing is concerned with employing people for the various activities to be performed. An organization is meaningless without people.
- Staffing includes the function of recruitment, selection, training, promotion of personnel to fill both managerial positions in a company and placement of employees.
Directing
- Assume that we have developed plans, created an organization structure, and staffed it.
- It now must be stimulated to action through the management function of directing.
- Directing means encouraging subordinates to work toward achieving company objectives. It synonyms by known as leading, guiding, motivating, or actuating.
- The directing function of management includes guiding the subordinates, supervising their performance, communicating information and motivating.
- A manager should be a good leader.
- The following basic concepts related to the directing function:– Participation– Communication– Motivation– Leadership
- Manager should be able to instruct and guide his subordinates in the work assigned to them.
- He should keep a watch on the performance of his subordinates and help them out whenever they come across any difficulty.
- The communication system, i.e. exchange of information should take place in clearly understandable words and without delay.
- Information should flow from managers to workers and from workers to managers at the right time.
- Managers should also understand the needs of subordinates and accordingly inspire them in their work.
Controlling
- This function of management consists of the steps taken to ensure that the performance of work is in accordance with the plans.
- Controlling means measuring the actual performance with the planned one. If differences are noticed, corrective steps are taken which may include revision of plans, improvement in the division of work and providing better guidance.
Coordination
- Coordination is important to note that all the activities should contribute to the achievement of the objectives of the business as a whole.
- The heads of different departments should not treat each other as competitors but should work as organs of one body.
- As the proper functioning of every organ of a human body is important for a healthy body, the work of every department is important for the organization
- Managers should therefore see that everybody in the organization understands its objectives and works in cooperation with others to achieve these objectives. This function of management is called coordination.
- It consists of harmonizing group effort so as to achieve common objectives/goals of organization.
FUNCTIONS OF MANAGERS
Management roles refer to specific categories of managerial behavior. Overall there are ten specific roles performed by managers which are included in the following three categories.
Interpersonal Roles
- Nominal head
- Director
- Connection activities.
Informational Roles
- Advisor
- Propagator
- Representative activities.
Decisional Roles
- Entrepreneur
- Disturbance handler
- Negotiator.
- The management is a dynamic process. the elements of management process are known as functions of management.
- In this process as utilized in nursing profession to prevent illness, promote health and curative care.
- This functions of management as firstly classified Henrry Fayol such as planning, organizing, commanding, controlling and coordinating.
- RC Davis identified planning, organizing, and coordinating, as part of control.
POSDCORB
- It is developed by luther Gullick.
- It indicate to do being of the functions of the executives.
- The functions (or) responsibilities of the chief executive (or) administrator stands.
- The manager has to guide, motivator, lead communicator with his subordinates (or) workers.
- Ernest Dale has in addition mentioned innovation and representation.
- Innovation is involved to creative thinking designed for changes and improvement of managerial functions. It is involved as a function of planning, budgeting is also a sub function of planning.
P | Planning |
O | Organizing |
S | Staffing |
D | Directing |
Co | Controlling |
R | Reporting |
B | Budgeting |
Functions and Role of Nursing Managers
The functions of nursing managers may be classified into five categories.
1. Planning |
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2. Organizing |
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3. Staffing |
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4. Directing |
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5. Controlling |
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CURRENT TRENDS AND ISSUES OF MANAGEMENT
The following are the current concepts and practices which are changing the way; the managers do their jobs today.
- Ethics
- Work force diversity
- Entrepreneurship
- Managing in an e-business world
- Knowledge management and learning organizations
- Quality management
Globalization
- Organizational operations are no longer limited by national borders.
- Manager’s deals throughout the world must deal with new opportunities and challenges inherent in the globalization of business.
Ethics
- In cases of corporate the lying, misrepresentations, and financial manipulations have been widespread in recent years.
- Most of the managers continue to be have in a highly ethical manner; abuses suggest a need to “upgrade” ethical standards.
- Ethics education is increasingly emphasized in college curricula today.
- Organizations are taking a more active role in creating and using codes of ethics, ethics training programs, and ethical hiring procedures.
Workforce Diversity
- It is heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect differences.
- The group of people by addressing different lifestyles, family needs, and work styles is a major challenge for managers.
Entrepreneurship
- It is the process whereby an individual or group of individuals use organized efforts to pursue opportunities to create value and grow by fulfilling wants and needs through innovation and uniqueness, no matter what resources the entrepreneur currently has.
- Three important themes stand out in this definition:
- The pursuit of opportunities
- Innovation
- Growth
- It will continue to be important to societies around the world.
Managing in an e-Business World
The e-business (electronic business) is a comprehensive term describing the way an organization does its work by using electronic (Internet-based) linkages with its key constituencies in order to efficiently and effectively achieve its goals.
Knowledge Management and Learning Organizations
- Change is occurring at an unprecedented rate.
- The organization must become a learning organization because it has developed the capacity to continuously learn, adapt, and change.
- Knowledge management involves cultivating a learning culture where organizational members systematically gather knowledge and share it with others in the organization so as to achieve better performance.
Quality Management
- It is a philosophy of management that is driven by continual improvement and response to customer needs and expectations.
- The objective of quality management is to create an organization committed to continuous improvement in work.
SKILLS OF MANAGERS
Managers as need certain skills to perform the challenging duties and activities associated with being a manager.
Robert L Katz concluded in 1970s that managers need four essential skills,which are:
Technical Skills
It is job-specific knowledge and techniques needed to proficiently perform specific tasks. It is knowledge of proficiency in activities involving methods, process and procedures.
Human Skills
It is the ability to workwell with other people individually and in a group. It is the creation of an environment in which people feel secure and free to express their opinions.
Conceptual Skills
It is the ability to think and to conceptualize about abstract and complex situations.
Design Skill
It is the ability to solve problems in ways that will benefit the enterprise. To be effective, particularly at upper organizational levels, managers must be able to do more than see a problem. If managers merely see the problem and become “problem watchers”, they will fail. They must have, in addition, the skill of a good design engineer in working out a practical solution to a problem.
PRINCIPLES AND THEORIES OF MANAGEMENT
Basic Principles and Theories of Management by FW Taylor
- Frederick Winson Taylor (1856–1915) was an American mechanical chief engineer.
- FW Taylor suggested a new approach to management early in the twentieth century.
- This is known as ‘Scientific Management’. The basic principles developed by FW Taylor as principles of scientific management.
- Development of a true science of management replacing the old rule of thumb method, which would enable managers among other things, to determine the best method of performing each task;
- Scientific selection of workers so that each worker could be assigned the task for which he is best suited;
- Scientific training and development of workers so as to achieve the highest level of efficiency;
- Close cooperation between management and labor to ensure that work is carried out in accordance with the scientific principles which are developed.
General Principles and Theories of Management by Henry Fayol
Henry Fayol (1841–1925) was an French engineer. He examined the nature of management and administration in the year of 1916 in the basis of French mining organization experience. He strongly felt that managers should be guided by certain principles. He evolved 14 principles of management which are still considered important in management.
Division of Work
This principle suggests that work should be assigned to a person for which he is best suited. Work should be divided up to that stage where it is optimum and just. Basically, the works allocated by experience, skills of the individual, etc.
Authority and Responsibility
Responsibility means the work assigned to any person, and authority means rights that are given to him to perform that work. It is necessary that adequate authority should be given to discharge the responsibility.
Discipline
This principle emphasizes that subordinates should respect their superiors and obey their orders. On the other hand, superiors’ behavior should be such that they make subordinates obedient. If such discipline is observed, there will be no problem of industrial disputes.
Unity of Command
Subordinates should receive orders from one superior only. If he receives orders from more than one person, he can satisfy none.
Unity of Direction
Each group of activities having the same objective must have one head and one plan. In the absence of this principle, there may be wastage, over expenditure and useless rivalry in the same organization.
Subordination of Individual to General Interest
While taking any decision, the general interest, i.e. the interest of the organization as a whole should be preferred to individual interests.
Remuneration
Management should try to give fair wages to the employees and employees should have the satisfaction of being rightly paid.
Centralization
A single person controls the affairs of an organization, it is said to be complete centralization. In small concerns, a single manager can supervise the work of the subordinates easily, while in a big organization, control is divided among a number of persons. Thus centralization is more in small concerns and it is less in big concerns. Fayol’s opinion was that the degree of centralization should be fixed on the basis of capabilities of the persons.
Scalar Chain
This is the chain of superiors from the highest to the lowest ranks. The order of this chain should be maintained when some instructions are to be passed on or enquiries are to be made.
Order
Placement of men and materials should be properly made. Proper space should be made available where materials can be kept safely. Each man should be provided the work for which he is best suited.
Equity
This principle requires the managers to be kind and just so that loyalty can be won from the subordinates.
Stability of Tenure
Employees should be selected on the principles of stability of employment. They should be given necessary training so that they become perfect. There should not be frequent termination of employees.
Initiative
This principle emphasizes the necessity of chalking out a plan and then implementing it. When the plan is ready, managers should take the initiative of getting it done through people.
Esprit de Corps
These French words mean team spirit. It is unity of command for establishing team work. Employees must have talent utilize effort, encourage abilities and provide reward.
Deming’s 14 Principles of Management
- “Create a constancy of purpose”
- Define the problems of today and the future
- Allocate resources for long-term planning
- Allocate resources for research and education
- Constantly improve design of product and service
- “Adopt the new philosophy”
- Quality costs less not more
- Superstitious learning
- The call for major change
- Stop looking at your competitor and look at your customer instead
- “Cease dependence on inspection”
- Quality does not come from inspection
- Mass inspection is unreliable, costly, and ineffective Inspectors fail to agree with each other
- Inspection should be used to collect data for process control
- “Do not award business based on price tag alone”
- Price alone has no meaning, Change focus from lowest initial cost to lowest total cost Work toward a single source and long-term relationship
- Establish a mutual confidence and aid between purchaser and vendor
- “Improve constantly the system of production and service”
- Quality starts with the intent of management Teamwork in design is fundamental
- Forever, continue to reduce waste and continue to improve putting out fires is not improvement of the process
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- Management must provide the setting where workers can be successful
- Management must remove the inhibitors to good work. Management needs an appreciation of variation. This is management’s new role
- “Adopt and institute leadership”
- Management by objectives (MBOs)Work standardsMeet specificationsZero defectsAppraisal of performance
- Replace with leadership. Leaders must:Remove barriers to pride of workmanshipKnow the work they superviseKnow the difference between special and common cause of variation
- “Drive out fear”: The common denominator of fear
- The fear of knowledge
- Performance appraisals
- Management by fear or numbers
- “Break barriers among staff areas”: Know your internal suppliers and customers. Promote team work
- “Eliminate slogans, exhortations, and targets”
- They are directed at the wrong group
- They generate frustration and resentment
- Use posters that explain what management is doing to improve the work environment
- “Eliminate numerical quotas”
- They impede quality
- They reduce production
- A person’s job becomes meeting a quota
- “Remove barriers”
- Performance appraisal systems
- Production rates
- Financial management systems
- Allow people to take pride in their workmanship
- “Institute a program of education and self-im provement”
- Commitment to lifelong employment
- Overtime and education
- Work with higher education of needs
- Develop team building skills in children
- “Take action to accomplish the transformation” Management must:
- Struggle over the fourteen points
- Take pride in the new philosophy
- Include the critical mass of people in the change
- Learn and use the Shewhart cycle
Approaches to Management
There are six major approaches to management. They are explained as follows:
Scientific Management
- It is defined as the use of the scientific method to determine the “one best way” for a job to be done.
- The most important contributor in this field was Frederick W Taylor who is known as the “father” of scientific management.
- Scientific management theory also known as traditional organizational theory (or) classical theory.
- The worker and management motivation are to increase production.
- In the principles of scientific management 1911, Taylor formulated that the primary goal of any organization should be increase production and decrease wasted human effort, this could be achieved if management found the “one right way” to do things and trained workers accordingly.
- After that Taylor redesigned both the job and tools needed to eliminate the misuse of time and effort. This concept of assembly line eras industrial revolution.
- Current management practice is not restricted to scientific management practices alone. Elements of scientific management still used include,
- Using time and motion studies
- Hiring best qualified workers
- Designing incentive systems based on output.
- Max Weber, a well known German sociologist developed similar ideas and expanded up on Taylor’s concept.
- Weber (1958) saw the need for legalized, formal authority and consistent rules and regulations for personnel in different positions he proposed bureaucracy as an organizational design.
General Administrative Theorists
- This group of writers, who focused on the entire organization, developed more general theories of what managers do and what constitutes good management practice.
- Henri Fayol and Max Weber were the two most prominent proponents of the general administrative approach. Fayol focused on activities common to all managers. He described the practice of management as distinct from other typical business functions.
He stated 14 principles of management which are as follows:
- Division of Work
- Authority
- Discipline
- Unity of command
- Unity of direction
- Subordination of individual interest to group interest
- Remuneration
- Centralization
- Scalar chain
- Order
- Equity
- Stability
- Initiative
- Espirit de corps.
- Max Weber was a German sociologist who developed a theory of authority structures and described organizational activity based on authority relations.
- He described the ideal form of organization as a bureaucracy marked by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
- Some current management concepts and theories can be traced to the work of the general administrative theorists.
- The functional view of a manager’s job relates to Henri Fayol’s concept of management.
- Weber’s bureaucratic characteristics are evident in many of today’s large organizations—even in highly flexible organizations that employ talented professionals.
- Some bureaucratic mechanisms are necessary in highly innovative organizations to ensure that resources are used efficiently and effectively.
Quantitative Approach to Management
- The quantitative approach to management, sometimes known as operations research or management science, uses quantitative techniques to improve decision making.
- This approach includes applications of statistics, optimization models, information models, and computer simulations.
- The quantitative approach originated during World War II as mathematical and statistical solutions to military problems were developed for wartime use.
- The relevance of quantitative approach today is that it has contributed most directly to managerial decision making, particularly in planning and controlling.
- The availability of sophisticated computer software programs has made the use of quantitative techniques more feasible for managers.
Organizational Behavior
- The field of study concerned with the actions (behaviors) of people at work is organizational behavior.
- Organizational behavior (OB) research has contributed much of what we know about human resources management and contemporary views of motivation, leadership, trust, teamwork, and conflict management.
- The early advocates of OB approach were Robert Owen, Hugo Munster berg, Mary Parker Follett, and Chester Barnard.
- Their ideas served as the foundation for employee selection procedures, motivation programs, work teams, and organization-environment management techniques.
- The Hawthorne Studies were the most important contribution to the development of organizational behavior. This series of experiments conducted from 1924 to the early 1930s at Western Electric Company’s Hawthorne Works in Cicero, Illinois, were initially devised as a scientific management experiment to assess the impact of changes in various physical environment variables on employee productivity.
- In the present day context behavioral approach assists managers in designing jobs that motivate workers, in working with employee teams, and in facilitating the flow of communication within organizations. The behavioral approach provides the foundation for current theories of motivation, leadership, and group behavior and development.
The Systems Approach
- During the 1960s researchers began to analyze organizations from a systems perspective based on the physical sciences. A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. The two basic types of systems are open and closed. A closed system is not influenced by and does not interact with its environment. An open system interacts with its environment.
- Using the systems approach, managers envision an organization as a body with many interdependent parts, each of which is important to the well-being of the organization as a whole. Managers coordinate the work activities of the various parts of the organization, realizing that decisions and actions taken in one organizational area will affect other areas.
- The systems approach recognizes that organizations are not self-contained; they rely on and are affected by factors in their external environment.
The Contingency Approach
- The contingency approach recognizes that different organizations require different ways of managing. The contingency approach to management is a view that the organization recognizes and responds to situational variables as they arise.
- It can be described as the behavioral approach.
- It is recognition of the extreme importance of individual performance of manager at any situation.
- The manager power and control a situation and degree of uncertainty in any given situation.
MOTIVATIONAL THEORIES OF MANAGEMENT
Hertzberg’s Two Factor Theory of Management
- It is developed on 1959, based on realization that works motivation and job satisfaction. These two dimensions are influence the productivity of an employee.
- He is finding that good working condition, adequate salary, good human relation, good physical facilities, quality of supervision and get job satisfaction to the employees, these are comes under hygienic factors.
- Recognition of workdone status, opportunities for growth, challenging task play an important role in creating work motivation of employees these are comes under the motivation factor. Many authors interpreted that all the motivation factors are described by Hertzberg. Do not give equal amount of satisfaction to all employees.
Douglas MCGregor (1906–1964)
- He believes there are two basic kinds of manager.
- Theory X, it has a negative view of employees, they had lazy, untrustworthy and incapable of thinking responsibility while the other type of manager.
- Theory Y, the employees are trustworthy and capable of thiking responsibility having high levels of motivation.
- McGregor and major theorist associated with the human relations school of management.
Abraham H Maslow (1908–1970)
- Receiving his doctorate in psychology, Abraham Maslow was the first psychologist to develop a theory of motivation based upon a consideration of human needs.
Factors within Human
- Physiological needs: The need for food, drink, shelter and relief from pain.
- Belongingness, social and love: The need for friendship affiliation interaction and love
- Self-esteem: The need for self-esteem and for esteem from others.
- Self-actualization: The need for fulfill oneself by making maximum use of abilities skills and potential.
Factors within Employee
- Physiological needs:
- Salary, air-conditioning, company criteria.
- Safety and security:
- Increase salary, pension plan, hospital and medical plan, etc.
- Belongingness, social and love:
- Employee centred supervision personal and professional friends, office, parties, and social gathering compatible work group.
- Self-esteem:
- Jop title, complement office, furnishing merit, salary increase.
- Self- actualization:
- Development of opportunities, opportunities to use skills.
MODERN MANAGEMENT THEORIES
Scientific Management Theory
The scientific management focuses on observation, measurement of outcome. The following theories are comes under pioneers of scientific management.
- Frederick W Taylor (1856–1915)
- Gantt Henry I Gantt (1861–1910)
- Emerson (1853–1936)
Frederick W Taylor (1856–1915)
Taylor is recognized as father of scientific management. He conducted studies of time and motion to the workers, he analyze their movements and set their standards. He used stop watches. He applied the principles of observation, measurement and scientific comparison to determine the most effective way to accomplish a task.
Achievements of Taylor
- He trained his workers to follow the time to complete the task given. The most productive workers were hired even when they were paid an incentive or wage.
- Labor costs per unit were reduced as a result.
- Responsibilities of management were separated from the functions of the workers.
- Developed systematic approach to determine the most efficient means of production.
- He considered management function is to plan.
- Working conditions and methods to be standardized to maximize the production.
- It was the management’s responsibility to select and train the workers rather than allow them to choose their own jobs and train by themselves.
- He introduced an incentive plan to pay the workers according to the rate of production to minimize workers dissent and reduce resistance to improved methods.
- Increased production and produce higher profits.
The Effect of Time-Motion Study of Taylor
- Reduced wasted efforts
- Set standards of performance
- Encouraged specialization and stressed on the selection of qualified workers who could be developed for a particular job.
Gantt HenryIGantt (1861–1910)
- He was concerned with problems related to efficiency. He contributed to scientific management by refining the previous work of Taylor than introducing new concepts.
- He studied the amount of work planned or completed on one axis to the time needed or taken to complete a task on the other axis.
- He also developed a task and bonus remuneration plan whereby workers received a guaranteed day’s wages plus a bonus for production above the standard to stimulate higher performance.
- He recommended to select workers scientifically and provided with detailed instructions for their tasks.
- He recognized useful non-monetary incentives such as job security and encouraging staff development.
Emerson (1853–1936)
He was emphasis on conservation and organizational goals and objectives.
Principles of Efficiency Related to:
- It is essential “competent counsel”.
- Changes should be evaluated, management should not ignore “commensense” by assuming that big necessarily better.
- Interpersonal relations and to system in management.
- Goals and ideas should be clear and well-defined as the primary objective is to produce the best product as quickly as possible at minimal expense.
- Management can strengthen discipline or adherence to the rules by justice, or equal enforcement on all records, including adequate, reliable and immediate information about the expenses of equipment and personnel should be available as a basis for decisions.
- Dispatching or production scheduling is recommended.
- Standardized schedules, conditions, and written instructions should be there to facilitate performance.
- Efficiency rewards—should be given for successful completion of tasks.
- Emerson moved further beyond scientific management to classic organizational theory.
Charles Babbage (1792–1871)
He is a scientist mainly interested in mathematics, contributed to the management theory by developing the principles of cost accounting and the nature of relationship between various disciplines. He is laid the foundation for much of the work that later come to be known as scientific management. He concentrated on production problems and stressed the importance.
- Division and assignment of work on the basis of skill.
- To determining the feasibility of replacing manual operations with automatic machinery.
Human Relation Theory
- The human relations theory is started on 1940s. it is focused on the effect that the individuals success or failure of an organization.
- The management theory and classic organization have concentration on physical environment fail to analyze the human element.
- It is concentrating on the organizations structure, managers encourage workers to develop their potentials and help them meet their needs for recognition, accomplishment, sense of belonging
Follett Theory (1868–1933)
- Follett stressed the importance of coordinating the psychological and sociological aspects of management in 1920s.
- She perceived the organization is a social system and management as a social process.
- Indicated that legitimate power is produced by a circular behavior where by superiors 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.
Lewin Theory (1890-1947)
- He is focused on “group dynamics”.
- He maintained that groups of personalities of their own and composites of the members personalities.
- He showed that group forces can overcome individual interests.
Behavioral Science Theory
- In this theory, scientific procedures are use to the study of psychological, sociological, anthropological aspects of human behavior in organization.
- In this theory, a positive attitude is maintaining toward people, training managers, fitting, supervisory action to the situation, to meet needs of the employees, promoting sense of achievement to the employees and obtaining commitment through participation in planning and decision making.
Douglas McGregors Theory (1932)
He is the father of the classical theory of management. He developed the managerial implications of Maslow‘s theory. He followed that one’s style of management is dependent on ones philosophy of humans and categorized those assumptions as theory X and theory Y.
Theory X
- The manager’s emphasis is on the goal of organization.
- The theory assumes that people dislike work and avoid it.
Consequence of theory X
- Workers must be directed
- Controlled
- Coerced
- Threatened.
So that organizational goals can be met. According to theory X
- Most people want to be directed and to avoid responsibilities because they have little ambition.
- They desire security.
Managers who accept the assumption of theory X
- Will do the thinking and planning with little input from staff associates.
- They will delegate little, supervise closely.
- Motivate workers through fear and threats
- Failing to make use of the workers potentials.
Theory Y is focuses on goal
- People do not inherently dislike the work and that work can be a source of satisfaction.
- Workers have the self direction and self control necessary for meeting their objectives.
- Will respond to the rewards for the accomplishment of those goals.
Managers who believe in this Y theory
- Will allow participation
- They will delegate
- Give general supervision than close supervision
- Support job enlargement
- Use positive incentives such as praise and recognition.
They believe that under favorable conditions
- People seek responsibility and display imagination, unity and creativity.
- According to theory Y human potentials are only partially used.
Rensis Likert’s theory
Dr Rensis Likert has studied human behavior within many organizations. After extensive research, Dr Rensis Likert concluded that there are four systems of management. According to Likert, the efficiency of an organization or its departments are influenced by their system of management. His theory of management is based on his work at the University of Michigan’s institute for social research. Likert categorized his four management systems as follows:
He identified three variables in organizations:
- The casual variable includes leadership behavior.
- The intervening variables are perceptions, attitudes and motivations.
- The end results variables are measures of profits, costs and productivity.
Factors Measured by Likert Scale
The scale measures several factors related to leadership behavior process:
- Motivation
- Managerial
- Communication
- Decision making process
- Goal setting
- Staff development.
These four types of management system according to likert, affects on the management systems:
Exploitive-authoritative
- He associates the first system with the least effective in performance.
- Managers show less confidence in staff associates and ignore their ideas.
- Consequently staff associates do not feel free to discuss their jobs with their managers.
- Staff associates ideas are sometimes sought, but they do not feel free to discuss their jobs with the manager.
- Top and middle management are responsible for setting goals.
- There is minimal communication. Mostly downward and received with suspicion.
- Decisions are made at the top with some delegation.
Consultative system
- The manager has substantial confidence in staff associates and their ideas are usually sought.
- They fell free to discuss their job with the manager, fairly and generally to set the objective.
- It has limited accuracy and accepted with some caution.
- Policy to be formulated at the top level management.
- They will be taken decisions making throughout organization. it will be control, functions are delegated to lower level management.
- It will be used for reward and self guidance.
- The informal groups had resistance in the organization.
Participative group
It is the most effective performance. Managers have complete confidence in their staff associates. Their ideas are always sought, and they feel completely free to discuss their jobs with the manager. Goals are set at all levels. There is a great deal communication upward, downward, and later that is accurate and received with open mind.
PRINCIPLES OF ADMINISTRATION APPLICABLE TO ALL ORGANIZATION BY LYNDAL URWICK
Lyndal Urwick is one among classical theorist, in this theory and principles are more important to the organization and responsibility of the people in the organization.
He concentrated his efforts on the discovery of principles and identified eight principles of administration applicable to all organization as given below:
- Principle of objective: In all organization must be an expression of a purpose.
- Principle of correspondence: Authorities and responsibilities are interrelated.
- Principle of responsibility: The higher authority and responsibility is to assign the work to the subordinates.
- Scalar principle
- Principle of span control
- Principle of specialization: The workers should assign and performance to the single function.
- Principle of coordination
- Principle of definition: Clearly explained authority and responsibility to the activity and position to the every duty.
ROLE OF NURSE AS A MANAGER
- The nurse act as a manager, he/she has to do the work performance in a hospital.
- The nurse manager plays an essential role in health care. She sets the tone of any healthcare system.
- The manager is the backbone of the organization.
- The quality of patient care, as well as staff recruitment and retention success, rests with this key role.
- Over the time it will be the strength of the nurse manager.
- The nurse managers are given the opportunity to acquire the operational, financial, and management skills essential to their success and the success of their organization.
Roles
- Director of nursing
- For information about the director of nursing (DON) position at a long-term care facility.
- The director of nursing is the senior nursing management position in an organization and often holds executive titles like Chief Nursing Officer (CNO), Chief Nurse Executive, or Vice-President of Nursing.
- They typically report to the CEO or COO.
- The Organization of Nurse Executives is a professional association for directors of nursing.
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- Many large healthcare organizations also have service directors.
- These directors have oversight of a particular service within the facility or system (surgical services, women’s services, emergency services, critical care services, etc.).
- Nurse Manager
- The nurse manager is the nurse with management responsibilities of a nursing unit. They typically report to a service director.
- They have primary responsibilities for staffing, budgeting, and day-to-day operations of the unit.
- Charge nurse
- The charge nurse is the nurse, usually assigned for a shift, who is responsible for the immediate functioning of the unit.
- The charge nurse is responsible for making sure nursing care is delivered safely and that all the patients in the unit are receiving adequate care.
- They are typically the frontline management in most nursing units. Some charge nurses are permanent members of the nursing management team and are called shift supervisors.
- The traditional term for a female charge nurse is a nursing sister (or just sister), and this term is still commonly used in some countries (such as the United Kingdom).
- They interpret and communicate policies and procedures that the agency or facility puts in place to establish areas of responsibility and assignments among departments and staffs.
- They are also responsible for developing budget estimates and handle other information pertaining to financial concerns and requirements. They approve and monitor expenditures and purchases to ensure that the budget guidelines are complied to.
- They are responsible in the staff maintenance. They assign nurses to particular cases andoversee the patient care to ensure that it remains at a high standard.
- They are also involved in creating treatment plans for patients and to coordinate the efforts of the medical team. This is to keep everyone up-to-date of the progress in the medical care and condition of the patient.
In Hospital
- A nurse manager is called as a nursing superintendent, he/she is controlled all the function of the nursing units like head nurse, ward in charge nurse, duty nurses at various department in the hospital.
- For example, he/she is responsible for administrative function of medical intensive care unit.
Responsibilities
- He/she is responsible for providing quality care for patients, maintain cost-effectiveness in the unit, during the working time to be maintain safety measures of patient care in the unit.
- He/she has to recruit qualified professional nurses.
- He /she has to take immediate and healthy decision making to solve the problem.
- To monitor daily practice activities of nurse and monitor patient outcomes at the time of hospital.
Functions
- The first activities or function of a nurse manager is to ensure patient outcomes in the unit.
- He/she has to get good name from the patient and higher authority.
- To monitor and support for beloved staffs.
- He/she acts as an advocate for patients and his/her families.
Skills
- He/she has to good knowledge about clinical practice and administration.
- He/she has to good communication skill from people.
- He/she must have commending and negotiating ability during working time.
- He/she could be in sense of humor and a sound fiscal strategies of the working.
Hierarchy
- Nursing superintend is belongs to middle management. He/she must serve direct care to the patient and to supervise the workers and hospitals. He/she maintain the reports about the function of working people and functions of hospital.
A Voice
- When top level management to take decision about organization at the time as a nursing manager is to represent about merits and demerits of the decisions.
General Duties (or) Roles of Nursing Manager in Hospital
- Nurse Managers are responsible for planning, organizing, and directing health services in their department to ensure that the goals and objectives are performed consistently and that the services provided to the patients are of the highest quality and standard.
- They select, mentor, motivate, and direct the development and evaluation of the staff nurses. They are responsible for establishing and keeping track of quality improvement indicators and other information that concerns the patient care and services.
- They ensure that resources are available in order to provide high quality service and the on-time performance that is consistent with the facility's standards. At times, they devise educational programs that are health related for the facility's non-professional and professional staff.
- They participate, consult and collaborate with other units and healthcare providers in developing long-term plans for health care programs.
- Assign the work to the staff nurse.
- Improve coordinate to the staff nurses and activities to working places.
- Organize the working priority and supervising, directing, the subordinate employees.
- To identify the nurse performance through the evaluation tool.
- To plan to conduct in-service education and training to the work staff nurses to develop the staff development program.
- She maintains the records and reports related to the workers and work to get feedback to nurses and from patients.
- He/she will be supervise the general nursing care to provide by nurses and workers.
- He/she will be develop plan and objective for working places.
- To identify the needs of patients and to improve the nursing care at the situation.
- He/she make evaluates to the nursing programs and nursing care.
- Asses the needs in the hospital like equipments, physical facilities, budget, supplies and personals.