Theories and concepts of management

HISTORY

THEORIES AND CONCEPTS OF MANAGEMENT

MAJ LAICY FERNANDEZ

Learning ObjectivesKnow the basic premises of management theories

Understand the context for the evolution and development of these theories

Know place of these concepts in nursing management

The Evolution of ManagementBefore the Industrial Revolution, the economy was based on agriculture

Professional managers were not needed because most people worked for themselves.

The Industrial RevolutionRefers to the period during which a country develops an industrial economy.

By the late 1800s, the economy depended largely on industries such as oil, steel, railroads, and manufactured goods.

Many people left their farms to take jobs in factories, where professional managers supervised their work.

The new industrial enterprises that emerged in the nineteenth century demanded management skills that had not been necessary earlier.

MANAGEMENTThe task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective.

-JAMES L LUNDY

THEORYA set of assumptions, propositions, or accepted facts that attempts to provide a rational explanation

(The Oxford Dict)

CONCEPTS OF MANAGEMENT

As a processAs an activityAs an economic resourceAs a teamAs an academic discipline

MANAGEMENT AS A PROCESS

PLANNING ORGANISING

STAFFING DIRECTING

CONTROLLING

MANAGEMENT AS A ECONOMIC RESOURCE

LAND

LABOUR

PRODUCTION &CAPITAL RESOURCE

MANAGEMENT AS AN ACADEMIC DISCIPLINE

SPECIALISED BRANCH OF KNOWLEDGE

PRINCIPLES AND PRACTICES

A FIELD OF STUDY

OFFERS CARRIER

Evolution of Management Theory

A. Scientific Theory

Defined by Frederick Taylor (1865 - 1915)in the late 1800’s to replaceinformal rule of thumb knowledge. Also called Taylorism, the Taylor system, or the Classical Perspective. It's a theory of management that analyzes and synthesizes workflow processes, and improving labour productivity.

Taylor’s scientific management was based on four main ideas:

Jobs should be designed according to scientific rules rather than rule-of-thumb methods.

Employees should be selected and trained according to scientific methods. Employers should also train employees in order to improve their performance.

The principles of scientific management should be explained to workers.

Management and workers should be interdependent so that they cooperate.

Abraham Maslow1908-1970Maslow believed that individuals fulfill lower-level needs before seeking to fulfill higher-level needs.

one set of needs must be met before another is sought, Maslow referred to this as a hierarchy of needs.

Administrative TheoriesFocus on managers and their behavior Henri Fayol,

Management is a discipline with principles that can be taught

Max WeberDeveloped the concept of “bureaucracy” as the ideal structure for an organization

Fayol’s Administrative Principles1. Division of labor2. Authority to

give orders3. Discipline4. Unity of

command 5. Unity of

direction6. Subordination of

individual interest 7. Remuneration:

pay for work done

8. Centralization 9. Scalar chain10. Order11. Equity12. Stability and

tenure of staff 13. Esprit de corps14. Initiative

Weber's Bureaucratic Management (1930-1950)

Formal system of rules and proceduresHierarchical structure with detailed authority Clear division of laborRationalityCareer commitment

establishing strong lines of authority and control. He suggested organizations develop comprehensive and detailed standard operating procedures for all routinized tasks.

Professor Douglas McGregor(1906 - 1964)Theory X—assumes that people are basically lazy and will avoid working if they can. To make sure that employees work, Theory X managers impose strict rules and make sure that all important decisions are made only by them.

Theory Y assumes that people find satisfaction in their work. Theory Y managers believe that people are creative and will come up with good ideas if encouraged to do so. They tend to give their employees much more freedom and let them make mistakes.

Theory ZWilliam Ouchi, a management researcher developed this new theory in the 1980sTheory Z - business management theory that integrates Japanese and American business practices. The Japanese business emphasis is on collective decision making, whereas the American emphasis is on individual responsibility.

Behavioral TheoryFocuses on the human aspects of organizations

Mary Parker FollettManagement is a dynamic processWorkers should be involved in decisions

Chester BarnardOrganizations are social systemsManagers need “buy-in” of employees

Mary Parker Follet

Co ordination by direct contact

Co ordination in the early stages

Co ordination as a reciprocal relation of all the features in a situation

Co ordination is a continuous process

Barnard’s key concepts:Importance of an Individual's behavior

Compliance Concept of "zone of indifference".

CommunicationFocused on importance of communication in informal organization.

George Elton Mayo (1880 - 1949)

• Social man and the need for this in the work place.

• Mayo found that workers acted according to sentiments and emotion.

• He felt that if you treated the worker with respect and tried to meet their needs than they would be a better worker for you and both management and the employee would benefit.

IMPORTANCE ?

IMPORTANCE IN NURSING

SCIENTIFIC THEORY- Measured Functional AspectADMINISTRATIVE THEORY- Related to roles and functions of the nurse BEHAVIORAL THEORY- Involves alterations and modifications in behaviourTHEORY OF MOTIVATION-An important path to assess success.

To summarize………WHAT IS MANAGEMENT

HISTORY OF MANAGEMENT

IMPORTANT THEORIES OF MANAGEMENT

THEIR APPLICATION IN NURSING

CONCLUSION

Workplaces are social environments within them, people are motivated by

much more than economic self-interest