Management unit i

ManagementManagement
of nursingof nursing
services andservices and
EducationEducation
MR.JEENATH JUSTIN DOSS.KMR.JEENATH JUSTIN DOSS.K
ASSISTANT PROFESSORASSISTANT PROFESSOR

UNIT:I HOURS:4
Introduction to
management In nursing
•Definition, concepts and theories
•Functions of management
•Principles of management
•Role of a nurse as a manager
UNIT:I HOURS:4
Introduction to
management In nursing
•Definition, concepts and theories
•Functions of management
•Principles of management
•Role of a nurse as a manager

IntroductionIntroduction
 One of the most important human activities is managing.One of the most important human activities is managing.
Management is the process of designing and maintaining anManagement is the process of designing and maintaining an
environment in which individuals, working together inenvironment in which individuals, working together in
groups, efficiently accomplish selected aims, managers aregroups, efficiently accomplish selected aims, managers are
changed with the responsibility of taking actions that willchanged with the responsibility of taking actions that will
make it possible for individuals to make their bestmake it possible for individuals to make their best
contributions to group objectives. Management thus appliescontributions to group objectives. Management thus applies
to small and large organizations.to small and large organizations.

Some Definitions of Management:Some Definitions of Management:
 Process that involves the coordination of human andProcess that involves the coordination of human and
material resources towards the accomplishment ofmaterial resources towards the accomplishment of
certain objectivescertain objectives
 Accomplishment of objectives through efforts of otherAccomplishment of objectives through efforts of other
peoplepeople
 Process by which the execution of a given purpose isProcess by which the execution of a given purpose is
put into operations and supervised(Terry)put into operations and supervised(Terry)
 ““Management is defined as the process by which a co-Management is defined as the process by which a co-
operative group directs action towards common goal”operative group directs action towards common goal”
-Joseph-Joseph
Massie(1973)Massie(1973)
 ““Management is the art of knowing what you want toManagement is the art of knowing what you want to
do in the best and cheapest way”do in the best and cheapest way”
-F.W.Taylor-F.W.Taylor

Elements of definitionElements of definition

CONCEPTS OFCONCEPTS OF
MANAGENMENTMANAGENMENTAccording to Raymond Gi LeonAccording to Raymond Gi Leon
In his famous book has written “Manage more byIn his famous book has written “Manage more by
doing less” which explains the followingdoing less” which explains the following
concepts for effective managementconcepts for effective management
– Management by communicationManagement by communication
– Management by systemManagement by system
– Management by resultsManagement by results
– Management by participationManagement by participation
– Management by motivationManagement by motivation
– Management by exceptionManagement by exception
– Management by objectives (MBO)Management by objectives (MBO)

Management by communicationManagement by communication ::
 As manager spends 90% of his time in communication onlyAs manager spends 90% of his time in communication only
.Management is getting things done through others. Communication.Management is getting things done through others. Communication
determines the effectiveness of the management .Communication isdetermines the effectiveness of the management .Communication is
the continuous, coordinated process of telling, listening andthe continuous, coordinated process of telling, listening and
understanding.understanding.
Management by system:Management by system:
 This refers to:This refers to:
 Recognizing the problems, analyze it and defining the objectivesRecognizing the problems, analyze it and defining the objectives
 Collection and analysis of necessary dataCollection and analysis of necessary data
 Finding out various possible alternativesFinding out various possible alternatives
 Reviewing and evaluating each alternativesReviewing and evaluating each alternatives
 Testing the conclusionsTesting the conclusions
 Selecting the best alternativeSelecting the best alternative
 Management by system is more concerned with experimentationManagement by system is more concerned with experimentation
and analysis.and analysis.

Management by results:Management by results:
 These concept states that the end results areThese concept states that the end results are
significant. Development or progress can besignificant. Development or progress can be
evaluated by looking the end results.evaluated by looking the end results.
Management is result oriented. The success andManagement is result oriented. The success and
strength of the management is determined fromstrength of the management is determined from
the point of the results that can be bringing it.the point of the results that can be bringing it.
Management by participation:Management by participation:
 This concept takes worker in to confidence.This concept takes worker in to confidence.
Workers are provided opportunity in the decisionWorkers are provided opportunity in the decision
making process. This concept helps in creating amaking process. This concept helps in creating a
sense of involvement among the workers.sense of involvement among the workers.

Management by motivation:Management by motivation:
 Motivation is considered as dynamic aspects.Motivation is considered as dynamic aspects.
Management distinct from that of mechanical one. TheManagement distinct from that of mechanical one. The
problem of motivation is its action in its executive form. Itproblem of motivation is its action in its executive form. It
is among the chief tasks of the general manager.is among the chief tasks of the general manager.
Management byManagement by ExceptionException::
 It’s a special skill of managing by attending only toIt’s a special skill of managing by attending only to
exceptionally important matters and taking vitalexceptionally important matters and taking vital
decisions. Routine levels of matters are handled by thedecisions. Routine levels of matters are handled by the
lower level officers.lower level officers.
Management by objectives (MBO):Management by objectives (MBO):
 It’s a dynamic system which seeks to integrate theIt’s a dynamic system which seeks to integrate the
company’s need to clarify and achieve its profit andcompany’s need to clarify and achieve its profit and
growth goals with the manager’s need to contribute andgrowth goals with the manager’s need to contribute and
develop him. It’s a demanding and rewarding style ofdevelop him. It’s a demanding and rewarding style of
managing a business.managing a business.

PRINCIPLES OF MANAGEMENTPRINCIPLES OF MANAGEMENT
According to Hendri FayolAccording to Hendri Fayol
 Hendri Fayol’s suggested fourteenHendri Fayol’s suggested fourteen
principles of management which heprinciples of management which he
found most frequently to apply in hisfound most frequently to apply in his
work. He, however, recognized thatwork. He, however, recognized that
there was no limit to the number ofthere was no limit to the number of
principles of management and theprinciples of management and the
principles laid down by him wereprinciples laid down by him were
flexible and capable of adaptation toflexible and capable of adaptation to
every need.every need.

These principles are:These principles are:
1) DIVISION OF WORK1) DIVISION OF WORK ::
 It refers to the division of work among variousIt refers to the division of work among various
individuals engaged in collective output under theindividuals engaged in collective output under the
umbrella of an organization.umbrella of an organization.
 This principle is equally applicable to managerial workThis principle is equally applicable to managerial work
as to technical work. It refers to the division of workas to technical work. It refers to the division of work
among various individuals in the organization to bringamong various individuals in the organization to bring
about specialization in every activity.about specialization in every activity.
 Fayol observed that specialization belongs to theFayol observed that specialization belongs to the
natural order. It tends to increase efficiency. It helps tonatural order. It tends to increase efficiency. It helps to
avoid waste of time and effort caused by changes fromavoid waste of time and effort caused by changes from
one work to another. But when carried too far, it leadsone work to another. But when carried too far, it leads
to loss of skill and crafts man ship of the employee andto loss of skill and crafts man ship of the employee and
makes the job monotonous and less interesting.makes the job monotonous and less interesting.

 2. AUTHORITY AND RESPONSIBILITY2. AUTHORITY AND RESPONSIBILITY ::
 Authority and responsibility according to Henri FayolAuthority and responsibility according to Henri Fayol
should go together, though generally speakingshould go together, though generally speaking
responsibility is favored as much as authority is soughtresponsibility is favored as much as authority is sought
after in practicing.after in practicing.
 Authority is the right or power to give orders to theAuthority is the right or power to give orders to the
subordinates. Responsibility means the duty which thesubordinates. Responsibility means the duty which the
subordinate is expected to perform by virtue of hissubordinate is expected to perform by virtue of his
position in the organization.position in the organization.
 Responsibility must be expressed either in term ofResponsibility must be expressed either in term of
functions or in terms of objectives. When a subordinatefunctions or in terms of objectives. When a subordinate
is asked to control the working of a machine, theis asked to control the working of a machine, the
responsibility is in terms of function and when aresponsibility is in terms of function and when a
subordinate is asked to produce a certain number ofsubordinate is asked to produce a certain number of
pieces of a product, the responsibility is created inpieces of a product, the responsibility is created in
terms of objectives.terms of objectives.

3. DISCIPLINE:3. DISCIPLINE:
 Discipline means getting obedience to rules and regulation of theDiscipline means getting obedience to rules and regulation of the
organization. According to fayol discipline is obedience, application,organization. According to fayol discipline is obedience, application,
energy and outward marks of respect.energy and outward marks of respect.
 Discipline is necessary for the smooth running of the organizationDiscipline is necessary for the smooth running of the organization
depends upon the quality of leadership, clear and fair agreementsdepends upon the quality of leadership, clear and fair agreements
and a judicious application of sanctions.and a judicious application of sanctions.
Discipline can be classified as,Discipline can be classified as,
 Self imposed disciplineSelf imposed discipline
 Command discipline.Command discipline.
According to Fayal, ‘discipline is what leader makes it, andAccording to Fayal, ‘discipline is what leader makes it, and
accepts discipline as an outward mark of respect.accepts discipline as an outward mark of respect.
It is absolutely essential for the smooth running of business andIt is absolutely essential for the smooth running of business and
the best way of maintaining discipline according to fayol is tothe best way of maintaining discipline according to fayol is to
keep a system in which,keep a system in which,
 Good supervisors are available at all levelGood supervisors are available at all level
 Penalties are judiciously applied.Penalties are judiciously applied.
 The agreements with employee are as clear and fair as possible.The agreements with employee are as clear and fair as possible.

4. UNITY OF COMMAND:4. UNITY OF COMMAND:
 This principle implies that for one action anThis principle implies that for one action an
employee should receive orders from one superioremployee should receive orders from one superior
only.only.
 The more completely an individual has a reportingThe more completely an individual has a reporting
relationship to a single superior, the less is therelationship to a single superior, the less is the
problem of conflict in instructions.problem of conflict in instructions.
 By observing the principles of unity of command, theBy observing the principles of unity of command, the
following benefits may be delivered.following benefits may be delivered.
It helps clarity authority responsibility relationshipIt helps clarity authority responsibility relationship
in the organization.in the organization.
There will be no possibility of the subordinateThere will be no possibility of the subordinate
receiving conflicting orders.receiving conflicting orders.
The organization structure will be simple andThe organization structure will be simple and
management will be more effective because theremanagement will be more effective because there
will be no confusion as to who is responsible towill be no confusion as to who is responsible to
whom.whom.

5. UNITY OF DIRECTION5. UNITY OF DIRECTION ::
 Fayol expressed this principle to meanFayol expressed this principle to mean
one head and plan for a group of activitiesone head and plan for a group of activities
having same objectives.having same objectives.
 It is the condition essential to the unity ofIt is the condition essential to the unity of
action, co-operation of strength andaction, co-operation of strength and
focusing of efforts.focusing of efforts.
 Unity of direction is provided by soundUnity of direction is provided by sound
organization of the body corporate, whileorganization of the body corporate, while
unity of command turns of the functioningunity of command turns of the functioning
of personal.of personal.

6. SUBORDINATION OF INDIVIDUALS6. SUBORDINATION OF INDIVIDUALS
INTEREST TO GENERAL INTEREST:INTEREST TO GENERAL INTEREST:
 The interest of one employee or group should notThe interest of one employee or group should not
prevail over that of the whole organization.prevail over that of the whole organization.
 It is true that factors like ambition, laziness,It is true that factors like ambition, laziness,
weakness, tend to reduce the importance of generalweakness, tend to reduce the importance of general
interest, but the principle calls for reconciliation ofinterest, but the principle calls for reconciliation of
the objectives of individual with that of organization.the objectives of individual with that of organization.
 The interest of one employee or a group ofThe interest of one employee or a group of
employees can be held under check and balance it;employees can be held under check and balance it;
Firmness and good example of conduct andFirmness and good example of conduct and
behavior are laid down by the supervisors.behavior are laid down by the supervisors.
Agreement are rendered fairAgreement are rendered fair
Constant supervision is exercised over the totalConstant supervision is exercised over the total
activities of the enterprise.activities of the enterprise.

 7. REMUNERATION OF7. REMUNERATION OF
PERSONNAL:PERSONNAL:
 This principle stands for a fair wage aThis principle stands for a fair wage a
remuneration which should ensureremuneration which should ensure
satisfaction to the personal and to the firm.satisfaction to the personal and to the firm.
 Fayol insisted on fair wages and salariesFayol insisted on fair wages and salaries
which had to be neither too low nor high.which had to be neither too low nor high.
 Fayol insisted not only on the fairness andFayol insisted not only on the fairness and
justice ability of the quantum ofjustice ability of the quantum of
remuneration for service rendered.remuneration for service rendered.
 Fair wages and salaries be the mediumFair wages and salaries be the medium
and the method of payment might dependand the method of payment might depend
upon the circumstances.upon the circumstances.

8. CENTRALIZATION:8. CENTRALIZATION:
 It means concentration of authority at oneIt means concentration of authority at one
place or at one level in the organizationplace or at one level in the organization
refers dispersal of authority to the lowerrefers dispersal of authority to the lower
levels in the organization.levels in the organization.
 According to fayol, the question ofAccording to fayol, the question of
centralization or decentralization is acentralization or decentralization is a
simple question of proportion.simple question of proportion.
 In small organization, order go directly toIn small organization, order go directly to
subordinates, in a big organizationsubordinates, in a big organization
authority has been delegated to lowerauthority has been delegated to lower
levels to the maximum possible extent.levels to the maximum possible extent.

9. SCALARCHAIN:9. SCALARCHAIN:
 This is the line of authority from superiors to subordinate, fromThis is the line of authority from superiors to subordinate, from
the very top to the bottom of the business.the very top to the bottom of the business.
 In each aspect of the business, the chain must be unbroken, ieIn each aspect of the business, the chain must be unbroken, ie
at each level a man must have an immediate boss, whoat each level a man must have an immediate boss, who
himself has a boss, and so on up to the managing director.himself has a boss, and so on up to the managing director.
 The scalar chain is the channel of authority, for communicationThe scalar chain is the channel of authority, for communication
up and down, and for decision-making. The one exception toup and down, and for decision-making. The one exception to
its use is when, with the consent of their respective bosses,its use is when, with the consent of their respective bosses,
two men on different chain can make direct contact across’ thetwo men on different chain can make direct contact across’ the
gang plank’, reach a decision, and inform their bosses of thegang plank’, reach a decision, and inform their bosses of the
decision reached.decision reached.
 Fayol suggested that a “Gangplank” or the HorizontalFayol suggested that a “Gangplank” or the Horizontal
communication like could be used without weakening thecommunication like could be used without weakening the
chain of common. By this D1 can contact directly D2 or D2chain of common. By this D1 can contact directly D2 or D2
contact with D1 directly, i.e. D1&D2 to deal with each other incontact with D1 directly, i.e. D1&D2 to deal with each other in
few hours with some question otherwise the scalar chain willfew hours with some question otherwise the scalar chain will
pass through transmission.pass through transmission.

10. ORDER:10. ORDER:
 There must be “a place for everything an everything in itsThere must be “a place for everything an everything in its
place” that is what is meant by order.place” that is what is meant by order.
 Fayol dealt with order in material things and also social order.Fayol dealt with order in material things and also social order.
 There is a place for everything and everyone then everythingThere is a place for everything and everyone then everything
and everyone are to be put in their place, the right man willand everyone are to be put in their place, the right man will
automatically find the right job.automatically find the right job.
11. EQUITY11. EQUITY::
 Equity refers fair judgment in dealing with human resources.Equity refers fair judgment in dealing with human resources.
 Personal must be related with kindness and equity if devotionPersonal must be related with kindness and equity if devotion
and loyalty are expected of them.and loyalty are expected of them.
 The principle of equity suggests that manager should treatThe principle of equity suggests that manager should treat
their employees with ‘kindness’ because the desire for equitytheir employees with ‘kindness’ because the desire for equity
and equality reprents aspirations which should be taken in toand equality reprents aspirations which should be taken in to
account while dealing with the employees. A manager mustaccount while dealing with the employees. A manager must
strive to install a “sense of equity” at all level of scalar chain.strive to install a “sense of equity” at all level of scalar chain.

12. STABILITY OF TENURE OF PERSONNAL12. STABILITY OF TENURE OF PERSONNAL ::
 Organization should provide a career structure so that itsOrganization should provide a career structure so that its
manager may continue to stay and progress with in themanager may continue to stay and progress with in the
organization.organization.
 Unnecessary turnover is the cause as well as effect ofUnnecessary turnover is the cause as well as effect of
poor management.poor management.
 This principle calls for lowest possible turnover of personalThis principle calls for lowest possible turnover of personal
for the well being of the concern. Moreover the employeesfor the well being of the concern. Moreover the employees
should not be rotated at different jobs very frequentlyshould not be rotated at different jobs very frequently
because considerable time is required to learn each job.because considerable time is required to learn each job.
13. INITIATIVE:13. INITIATIVE:
 The employees with initiative should be encouraged withinThe employees with initiative should be encouraged within
limits of authority and discipline.limits of authority and discipline.
 Fayol wanted that the subordinates should be given onFayol wanted that the subordinates should be given on
opportunity to take some initiative in thinking out andopportunity to take some initiative in thinking out and
executing. The Plano. Employees get satisfaction whenexecuting. The Plano. Employees get satisfaction when
they are followed to take initiative.they are followed to take initiative.

14. ESPIRIT DE CORPS (union is14. ESPIRIT DE CORPS (union is
strengthstrength))
 The phrase ‘Espirit de corps’ means ‘theThe phrase ‘Espirit de corps’ means ‘the
spirit of loyalty and devotion’ which unitesspirit of loyalty and devotion’ which unites
the members of the honour of the group tothe members of the honour of the group to
which one belongs. This principle calls forwhich one belongs. This principle calls for
harmonious human relations in theharmonious human relations in the
organization so that the employees areorganization so that the employees are
loyal to the organization.loyal to the organization.

According to TaylorAccording to Taylor
(TAYLOR’S PRINCIPLES OF MANAGEMENT)(TAYLOR’S PRINCIPLES OF MANAGEMENT)
 Taylor’s has given certain basic principles ofTaylor’s has given certain basic principles of
scientific management.scientific management.
 The fundamentals are as follows:The fundamentals are as follows:
 1. Replacing rule of thumb with science:1. Replacing rule of thumb with science:
– Taylor has emphasized that in scientificTaylor has emphasized that in scientific
management, organized knowledge should bemanagement, organized knowledge should be
applied which will replace rule of thumb, whileapplied which will replace rule of thumb, while
the use of scientific method denotes precisionthe use of scientific method denotes precision
in determining ant aspect of work, rule ofin determining ant aspect of work, rule of
thumb emphasis estimation.thumb emphasis estimation.
– Since exactness of various aspects of workSince exactness of various aspects of work
like day’s fair work, standardization of work,like day’s fair work, standardization of work,
payment etc.

2. Harmony in group action2. Harmony in group action ::
 Taylor emphasized on this principlesTaylor emphasized on this principles
suggests that there should be mutual givesuggests that there should be mutual give
and take situation and properand take situation and proper
understanding, so that group as a wholeunderstanding, so that group as a whole
contributes to the maximum.contributes to the maximum.
3. Co-operation3. Co-operation ::
 Scientific management is based on mutualScientific management is based on mutual
confidence, co-operation and good will.confidence, co-operation and good will.
Co-operation between management andCo-operation between management and
workers can be developed thoughworkers can be developed though
understanding and change in thinking.understanding and change in thinking.

4. Maximum output:4. Maximum output:
 Scientific management involves continuousScientific management involves continuous
increase in production and productivity.increase in production and productivity.
 Taylor’s advised the management and workersTaylor’s advised the management and workers
to turn their attention towards increasing the sizeto turn their attention towards increasing the size
of surplus becomes so large that is necessary toof surplus becomes so large that is necessary to
quarrel over how it shall be divided.quarrel over how it shall be divided.
5. Development of workers5. Development of workers ::
 In scientific management all workers should beIn scientific management all workers should be
developed to the fullest extent possible for theirdeveloped to the fullest extent possible for their
own and for the company’s highest prosperityown and for the company’s highest prosperity
development of workers requires their scientificdevelopment of workers requires their scientific
selection and providing them training at the workselection and providing them training at the work
place.place.

According to Luther Gullick and LyndallAccording to Luther Gullick and Lyndall
UrwickUrwick
(PRINCIPLES OF POSDCORB)/ELEMENTS OF(PRINCIPLES OF POSDCORB)/ELEMENTS OF
MANAGEMENTMANAGEMENT
 POSDCORBPOSDCORB is an acronym created by is an acronym created by Luther GulickLuther Gulick
and Lyndall Urwick in their “Papers on the Science of and Lyndall Urwick in their “Papers on the Science of
Administration” (1937). Developed as a means toAdministration” (1937). Developed as a means to
structurestructure
 and analyze management activities, it set a newand analyze management activities, it set a new
paradigm in Public Administration.paradigm in Public Administration.
 Based on the theories of Henri Fayol’s 14 Principles ofBased on the theories of Henri Fayol’s 14 Principles of
Management, Gulick and Management, Gulick and Lyndall UrwickLyndall Urwick disputed the disputed the
prevailing thinking that there was a dichotomy betweenprevailing thinking that there was a dichotomy between
politics and administration. Instead that it was impossiblepolitics and administration. Instead that it was impossible
to separate the two. It has been called the “high noon ofto separate the two. It has been called the “high noon of
orthodoxy,” due to the assumption that it was theorthodoxy,” due to the assumption that it was the
principles that were important and not where they wereprinciples that were important and not where they were
applied.applied.

The acronym which formulates the responsibility of a chiefThe acronym which formulates the responsibility of a chief
executive or administrator stands for: Planning,executive or administrator stands for: Planning,
Organizing, Staffing, Direction, Coordinating, Reporting,Organizing, Staffing, Direction, Coordinating, Reporting,
and Budgeting. It defines the principles as follows:and Budgeting. It defines the principles as follows:
PLANNINGPLANNING
 Planning is working out in broad outline the things thatPlanning is working out in broad outline the things that
need .to be done and the methods for doing them toneed .to be done and the methods for doing them to
accomplish the purpose set for the enterprise;accomplish the purpose set for the enterprise;
ORGANIZINGORGANIZING
 Organizing is the establishment of the formal structure ofOrganizing is the establishment of the formal structure of
authority through which work subdivisions are arranged,authority through which work subdivisions are arranged,
defined and coordinated for the defined objective;defined and coordinated for the defined objective;

STAFFINGSTAFFING
 Staffing is the whole personnel function of bringing inStaffing is the whole personnel function of bringing in
and training the staff and maintaining favorableand training the staff and maintaining favorable
conditions of work; conditions of work;
DIRECTINGDIRECTING
 Directing is the continuous task of making decisions andDirecting is the continuous task of making decisions and
embodying them in specific and general orders andembodying them in specific and general orders and
instructions and serving as the leader of the enterprise;instructions and serving as the leader of the enterprise;
CO-ORDINATINGCO-ORDINATING
 Coordinating is the all-important duty of interrelating theCoordinating is the all-important duty of interrelating the
various parts of the work;various parts of the work;

REPORTINGREPORTING
 Reporting is keeping those to whom the executive isReporting is keeping those to whom the executive is
responsible informed as to what is going on, which thusresponsible informed as to what is going on, which thus
includes keeping himself and his subordinates informedincludes keeping himself and his subordinates informed
through records, research and inspections;through records, research and inspections;
BUDGETINGBUDGETING
 Budgeting, with all that goes with budgeting in the formBudgeting, with all that goes with budgeting in the form
of fiscal planning, accounting and control.of fiscal planning, accounting and control.

 A theory is a conceptual frameworkA theory is a conceptual framework
for organizing knowledge thatfor organizing knowledge that
provides a blueprint for variousprovides a blueprint for various
courses of action.courses of action. Hence, anHence, an
awareness and understanding ofawareness and understanding of
important historical developments andimportant historical developments and
theories propounded by early thinkers istheories propounded by early thinkers is
important for today’s managers.important for today’s managers.
Evolution of Management Thought/Theories ofEvolution of Management Thought/Theories of
ManagementManagement

 Classical ApproachClassical Approach
 Behavioral ApproachBehavioral Approach
 Quantitative ApproachQuantitative Approach
 Modern Approaches to ManagementModern Approaches to Management

Major Classification of Management Approaches Major Contributors
Classical approach Scientific management Frederick W. Taylor, Frank and Lillian
Gilbreth and Henry Gantt
Bureaucratic management Max Weber
Administrative management Henri Fayol
Behavioral approach Group influences Mary Parker Follet
studies Elton Mayo
Maslow’s needs theory Abraham Maslow
Theory X and Theory Y Douglas McGregor
Quantitative approach Management science -
Operations management -
Management information system -
Modern approaches The Systems Theory -
Contingency Theory -
Emerging pproaches: Theory Z and
Quality management
William Ouchi
Table 2.1: Major Classification of Management Approaches and their Contributors

CLASSICAL APPROACHCLASSICAL APPROACH
 Classical management thought can be divided intoClassical management thought can be divided into
three separate schools: scientific management,three separate schools: scientific management,
administrative theory and bureaucraticadministrative theory and bureaucratic
management. Classical theorists formulatedmanagement. Classical theorists formulated
principles for setting up and managingprinciples for setting up and managing
organizations. These views are labeled “classical”organizations. These views are labeled “classical”
because they form the foundation for the field ofbecause they form the foundation for the field of
management thought. The major contributors to themanagement thought. The major contributors to the
three schools of management thought – scientificthree schools of management thought – scientific
management, administrative theory andmanagement, administrative theory and
bureaucratic management – are Frederick W.bureaucratic management – are Frederick W.
Taylor, Henry Fayol and Max Weber respectively.Taylor, Henry Fayol and Max Weber respectively.

Scientific ManagementScientific Management
 Scientific management became increasingly popular in theScientific management became increasingly popular in the
early 1900s. In the early 19early 1900s. In the early 19thth
century, scientific managementcentury, scientific management
was defined as “was defined as “that kind of management whichthat kind of management which
conducts a business or affairs by standardsconducts a business or affairs by standards
established, by facts or truths gained throughestablished, by facts or truths gained through
systematic observation, experiment, orsystematic observation, experiment, or
reasoning.”reasoning.” In other words, it is a classicalIn other words, it is a classical
management approach that emphasizes themanagement approach that emphasizes the
scientific study of work methods to improve thescientific study of work methods to improve the
efficiency of the workersefficiency of the workers . Some of the earliest. Some of the earliest
advocates of scientific management wereadvocates of scientific management were Frederick W.Frederick W.
Taylor (1856-1915), Frank Gilbreth (1868-1924),Taylor (1856-1915), Frank Gilbreth (1868-1924),
Lillian Gilbreth (1878-1972), and Henry GanttLillian Gilbreth (1878-1972), and Henry Gantt
(1861-1919).(1861-1919).

Frederick WinslowFrederick Winslow
TaylorTaylor Frederick Winslow Taylor took up Henry Towne’s challenge to developFrederick Winslow Taylor took up Henry Towne’s challenge to develop
principles of scientific management.principles of scientific management. Taylor, considered “father ofTaylor, considered “father of
scientific management”,scientific management”, wrotewrote The Principles of ScientificThe Principles of Scientific
ManagementManagement in 1911. An engineer and inventor, Taylor first began toin 1911. An engineer and inventor, Taylor first began to
experiment with new managerial concepts in 1878 while employed atexperiment with new managerial concepts in 1878 while employed at
the Midvale Steel Co. At Midvale, his rise from laborer to chief engineerthe Midvale Steel Co. At Midvale, his rise from laborer to chief engineer
within 6 years gave him the opportunity to tackle a grave issue faced bywithin 6 years gave him the opportunity to tackle a grave issue faced by
the organization – the soldiering problem. ‘Soldiering’ refers to thethe organization – the soldiering problem. ‘Soldiering’ refers to the
practice of employees deliberately working at a pace slower than theirpractice of employees deliberately working at a pace slower than their
capabilities. According to Taylor, workers indulge in soldiering for threecapabilities. According to Taylor, workers indulge in soldiering for three
main reasons:main reasons:
 Workers feared that if they increased their productivity, other workersWorkers feared that if they increased their productivity, other workers
would lose their jobs.would lose their jobs.
 Faulty wage(salary) systems employed by the organization encouragedFaulty wage(salary) systems employed by the organization encouraged
them to work at a slow pace.them to work at a slow pace.
 Outdated methods of working handed down from generation toOutdated methods of working handed down from generation to
generation led to a great deal of wasted efforts.generation led to a great deal of wasted efforts.

In essence, scientific management as propounded by Taylor
emphasizes:
Need for developing a scientific way of performing each job.
Training and preparing workers to perform that particular job.
Establishing harmonious relations between management and workers
so that the job is performed in the desired way.
Step Description
Step 1 Develop a science for each element of the job to replace old rule of thumb
methods.
Step 2 Scientifically select employees and then train them to do the job as described in
Step 1.
Step 3 Supervise employees to make sure they follow the prescribed methods for
performing their jobs.
Step 4 Continue to plan the work but use workers to actually get the work done.
Table 2.4: Four Steps in Scientific Management

Frank and Lillian GilbrethFrank and Lillian Gilbreth
 After Taylor, Frank and Lillian Gilbreth madeAfter Taylor, Frank and Lillian Gilbreth made
numerous contributions to the concept of scientificnumerous contributions to the concept of scientific
management.management. Frank Gilbreth (1868-1924) isFrank Gilbreth (1868-1924) is
considered the “considered the “father of motion study.”father of motion study.”
Lillian Gilbreth (1878-1972) was associated withLillian Gilbreth (1878-1972) was associated with
the research pertaining to motion studies. Motionthe research pertaining to motion studies. Motion
study involves finding out the best sequence andstudy involves finding out the best sequence and
minimum number of motions needed to completeminimum number of motions needed to complete
a task.a task. Frank and Lillian Gilbreth wereFrank and Lillian Gilbreth were
mainly involved in exploring new ways formainly involved in exploring new ways for
eliminating unnecessary motions andeliminating unnecessary motions and
reducing work fatiguereducing work fatigue

Henry Laurence GanttHenry Laurence Gantt
 Contributions toward Contributions toward work scheduling andwork scheduling and
controlcontrol were made by were made by Harry L. GanntHarry L. Gannt. �He. �He
tried to improve systems or organizationstried to improve systems or organizations
through task scheduling and rewardthrough task scheduling and reward
innovation. Essentially, Gantt's most famousinnovation. Essentially, Gantt's most famous
contribution was the Gannt chart, a system ofcontribution was the Gannt chart, a system of
control and scheduling we still use today.control and scheduling we still use today.

Administrative TheoryAdministrative Theory
 The administrative management theory –The administrative management theory –
focused on principles that could be used byfocused on principles that could be used by
managers to coordinate the internalmanagers to coordinate the internal
activities of organizations. The mostactivities of organizations. The most
prominent of the administrative theoristsprominent of the administrative theorists
was Henri Fayol.was Henri Fayol.
 Many of the managerial concepts that weMany of the managerial concepts that we
take for granted today were first articulatedtake for granted today were first articulated
by Fayol. According to Fayol, the businessby Fayol. According to Fayol, the business
operations of an organization could beoperations of an organization could be
divided into six activities (see Figure 2.2)divided into six activities (see Figure 2.2)

Fayol outlined fourteen principles of management:Fayol outlined fourteen principles of management:
 ��1. Division of labor. Specialization of labour results in increased productivity. Both managerial1. Division of labor. Specialization of labour results in increased productivity. Both managerial
and technical work are amenable to specialization.and technical work are amenable to specialization.
 ��2. Authority. Authority was defined by Fayol as the "2. Authority. Authority was defined by Fayol as the "right to give orders and the power toright to give orders and the power to
exact� obedienceexact� obedience". It is needed to carry out managerial responsibilities.". It is needed to carry out managerial responsibilities.
 3. Discipline. Employees must respect the rules that govern the organization.3. Discipline. Employees must respect the rules that govern the organization.
 4. Unity of command. Employees should receive orders from only one superior.4. Unity of command. Employees should receive orders from only one superior.
 5. Unity of direction. Each group of activities in an organization should be grouped together5. Unity of direction. Each group of activities in an organization should be grouped together
under one head and one plan.under one head and one plan.
 6. Subordination of individual interests to the general interest The interests of one person6. Subordination of individual interests to the general interest The interests of one person
should not be placed before the interests of the organization as a whole.should not be placed before the interests of the organization as a whole.
 7. Remuneration. Compensation should be based on� systematic attempt to reward good7. Remuneration. Compensation should be based on� systematic attempt to reward good
performance.performance.
 8. Centralization. The degree to which centralization or decentralization should be adopted8. Centralization. The degree to which centralization or decentralization should be adopted
depends on the specific organization, but managers should retain final responsibility to do thedepends on the specific organization, but managers should retain final responsibility to do the
tasks successfully.tasks successfully.
 9. Scalar chain. A chain of authority should extend from the top to the bottom of the9. Scalar chain. A chain of authority should extend from the top to the bottom of the
organization. This chain implements the unity-of-command principle and allows the orderly floworganization. This chain implements the unity-of-command principle and allows the orderly flow
of information.of information.
 10. Order. Human and material resources must be in the right place at the right time.10. Order. Human and material resources must be in the right place at the right time.
 11. Equity. Employees should be treated as equally as� possible.11. Equity. Employees should be treated as equally as� possible.
 ��12. Stability of personnel. Successful firms usually had a stable group of employees.12. Stability of personnel. Successful firms usually had a stable group of employees.
 ��13. Initiative. Employees should have the freedom to take initiative.13. Initiative. Employees should have the freedom to take initiative.
 14. 14. Esprit de corpsEsprit de corps. Managers should encourage a sense of unity of effort through harmony of. Managers should encourage a sense of unity of effort through harmony of

Bureaucratic ManagementBureaucratic Management
 Bureaucratic management, one of theBureaucratic management, one of the
schools of classical management,schools of classical management,
emphasizes the need for organizations toemphasizes the need for organizations to
function on a rational basis. Weber (1864-function on a rational basis. Weber (1864-
1920), a contemporary of Fayol, was one of1920), a contemporary of Fayol, was one of
the major contributors to this school ofthe major contributors to this school of
thoughtthought
 According to Weber, “a bureaucracy is aAccording to Weber, “a bureaucracy is a
highly structured, formalized, andhighly structured, formalized, and
impersonal organization.” In other words, itimpersonal organization.” In other words, it
is a formal organization structure with a setis a formal organization structure with a set
of rules and regulations.of rules and regulations.

Characteristic Description
Work specialization and division
of labor
The duties and responsibilities of all the employees are clearly defined. Jobs are divided into
tasks and subtasks. Each employee is given a particular task to perform repeatedly so that he
acquires expertise in that task.
Abstract rules and regulations
The rules and regulations that are to be followed by employees are well defined to instill
discipline in them and to ensure that they work in a co-coordinated manner to achieve the
goals of the organization.
Impersonality of managers
Managers make rational decisions and judgments based purely on facts. They try to be immune
to feelings like affection, enthusiasm, hatred and passion so as to remain unattached and
unbiased towards their subordinates.
Hierarchy of organization
structure
The activities of employees at each level are monitored by employees at higher levels.
Subordinates do not take any decision on their own and always look up to their superiors for
approval of their ideas and opinions.
Table 2.5: Major Characteristics of Weber’s Ideal Bureaucracy

BEHAVIORAL APPROACHBEHAVIORAL APPROACH
 The behavioral school of managementThe behavioral school of management
emphasized what the classical theoristsemphasized what the classical theorists
ignored – the human element. Whileignored – the human element. While
classical theorists viewed the organizationclassical theorists viewed the organization
from a production point of view, thefrom a production point of view, the
behavioral theorists viewed it from thebehavioral theorists viewed it from the
individual’s point of view. The behavioralindividual’s point of view. The behavioral
approach to management emphasizedapproach to management emphasized
individual attitudes and behaviors and groupindividual attitudes and behaviors and group
processes, and recognized the significanceprocesses, and recognized the significance
of behavioral processes in the workplace.of behavioral processes in the workplace.

Elton Mayo: Focusing on HumanElton Mayo: Focusing on Human
RelationsRelations
 Elton Mayo (1880-1949), the “Father of the HumanElton Mayo (1880-1949), the “Father of the Human
Relations Approach,” led the team which conducted a studyRelations Approach,” led the team which conducted a study
at Western Electric’s Hawthorne Plant between 1927 andat Western Electric’s Hawthorne Plant between 1927 and
1933 to evaluate the attitudes and psychological reactions1933 to evaluate the attitudes and psychological reactions
of workers in on-the-job situations. The researchers andof workers in on-the-job situations. The researchers and
scholars associated with the Hawthorne experiments werescholars associated with the Hawthorne experiments were
Elton Mayo, Fritz Roethlisberger, T.N. Whitehead andElton Mayo, Fritz Roethlisberger, T.N. Whitehead and
William Dickson. The National Research Council sponsoredWilliam Dickson. The National Research Council sponsored
this research in cooperation with the Western Electricthis research in cooperation with the Western Electric
Company. The study was started in 1924 by WesternCompany. The study was started in 1924 by Western
Electric’s industrial engineers to examine the impact ofElectric’s industrial engineers to examine the impact of
illumination levels on worker productivity. Eventually theillumination levels on worker productivity. Eventually the
study was extended through the early 1930s.study was extended through the early 1930s.

Pre-judgments Findings
Job performance depends on the individual worker. The group is the key factor in job performance.
Fatigue is the main factor affecting output.
Perceived meaning and importance of the work determine
output.
Management sets production standards. Workplace culture sets its own production standards.
Elton Mayo and the Hawthorne Studies

Abraham Maslow: Focusing on Human NeedsAbraham Maslow: Focusing on Human Needs
 In 1943, Abraham H. Maslow (1908-In 1943, Abraham H. Maslow (1908-
1970), a Brandeis University psychologist,1970), a Brandeis University psychologist,
theorized that people were motivated by atheorized that people were motivated by a
hierarchy of needshierarchy of needs

Douglas McGregor: Challenging TraditionalDouglas McGregor: Challenging Traditional
Assumptions about EmployeesAssumptions about Employees
 Douglas McGregor (1906-1964) developed two assumptions aboutDouglas McGregor (1906-1964) developed two assumptions about
human behavior, which he labeled “Theory X” and “Theory Y.”human behavior, which he labeled “Theory X” and “Theory Y.”
According to McGregor, these two theories reflect the two extreme setsAccording to McGregor, these two theories reflect the two extreme sets
of belief that different managers have about their workers. Theory Xof belief that different managers have about their workers. Theory X
presents an essentially negative view of people. Theory X managerspresents an essentially negative view of people. Theory X managers
assume that workers are lazy, have little ambition, dislike work, want toassume that workers are lazy, have little ambition, dislike work, want to
avoid responsibility and need to be closely directed to make them workavoid responsibility and need to be closely directed to make them work
effectively. Theory Y is more positive and presumes that workers caneffectively. Theory Y is more positive and presumes that workers can
be creative and innovative, are willing to take responsibility, canbe creative and innovative, are willing to take responsibility, can
exercise self-control and can enjoy their work. They generally haveexercise self-control and can enjoy their work. They generally have
higher-level needs which have not been satisfied by the job.higher-level needs which have not been satisfied by the job.
 Like Maslow’s theory, McGregor’s Theory X and Theory Y influencedLike Maslow’s theory, McGregor’s Theory X and Theory Y influenced
many practicing managers. These theories helped managers developmany practicing managers. These theories helped managers develop
new ways of managing the workers.new ways of managing the workers.

Quantitative approachQuantitative approach
Management ScienceManagement Science
 The management science approach stresses the use of mathematicalThe management science approach stresses the use of mathematical
models and statistical methods for decision-making. It visualizesmodels and statistical methods for decision-making. It visualizes
management as a logical entity, the action of which can be expressedmanagement as a logical entity, the action of which can be expressed
in terms of mathematical symbols, relationships and measurementin terms of mathematical symbols, relationships and measurement
data. Another name commonly used for management science isdata. Another name commonly used for management science is
operations research. Recent advances in computers have made itoperations research. Recent advances in computers have made it
possible to use complex mathematical and statistical models in thepossible to use complex mathematical and statistical models in the
management of organizations. Management science techniques aremanagement of organizations. Management science techniques are
widely used in the following areas:widely used in the following areas:
 Capital budgeting and cash flow managementCapital budgeting and cash flow management
 Production schedulingProduction scheduling
 Development of product strategiesDevelopment of product strategies
 Planning for human resource development programsPlanning for human resource development programs
 Maintenance of optimal inventory levelsMaintenance of optimal inventory levels
 Aircraft schedulingAircraft scheduling

Operations ManagementOperations Management
 Operations management is an applied form ofOperations management is an applied form of
management science. It deals with the effectivemanagement science. It deals with the effective
management of the production process and the timelymanagement of the production process and the timely
delivery of an organization’s products and services.delivery of an organization’s products and services.
Operations management is concerned with: (i) inventoryOperations management is concerned with: (i) inventory
management, (ii) work scheduling, (iii) productionmanagement, (ii) work scheduling, (iii) production
planning, (iv) facilities location and design, and (v)planning, (iv) facilities location and design, and (v)
quality assurance. The tools used by operationsquality assurance. The tools used by operations
managers are forecasting, inventory analysis, materialsmanagers are forecasting, inventory analysis, materials
requirement planning systems, networking models,requirement planning systems, networking models,
statistical quality control methods, and project planningstatistical quality control methods, and project planning
and control techniques.and control techniques.

MODERN APPROACHES TOMODERN APPROACHES TO
MANAGEMENTMANAGEMENT
Systems TheorySystems Theory
 Those who advocate a systems viewThose who advocate a systems view
contend that an organization cannot existcontend that an organization cannot exist
in isolation and that management cannotin isolation and that management cannot
function effectively without consideringfunction effectively without considering
external environmental factors. Theexternal environmental factors. The
systems approach gives managers a newsystems approach gives managers a new
way of looking at an organization as away of looking at an organization as a
whole and as a part of the larger, externalwhole and as a part of the larger, external
environment.environment.

Role of a Nurse as a ManagerRole of a Nurse as a Manager
INTERPERSONAL Figurehead
Performs ceremonial and symbolic duties such as greeting visitors, signing legal
documents.
Leader
Direct and motivate subordinates, training, counseling, and communicating with
subordinates.
Liaison
Maintain information links both inside and outside organization, use mail, phone calls,
meetings
INFORMATIONAL Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts
Disseminator
Forward information to other organization members, send memos and reports, make
phone calls
Spokesperson Transmit information to outsiders through speeches, reports, memos
DECISIONAL Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others
Disturbance Handler
Take corrective action during disputes or crises; resolve conflicts among subordinates;
adapt to environmental crises
Resource Allocator Decide who gets resources, scheduling, budgeting, setting priorities
Negotiator
Represent department during negotiation of union contracts, sales, purchases, budgets,
represent departmental interests
Mintzberg's 10 Managerial Roles

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