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Theories of Management

The document discusses several classical management theories: 1. McGregor's Theory X and Theory Y which propose that management styles are influenced by beliefs about human motivation and potential. Theory X assumes people dislike work while Theory Y assumes people can find work motivating. 2. Likert's research identified four management systems - exploitive, benevolent, consultative, and participative - that differ in levels of trust in subordinates and communication flow. More effective systems have greater participation. 3. Gulick summarized administrative duties into the acronym POSDCORB - planning, organizing, staffing, directing, coordinating, reporting, and budgeting. His principles focused on work specialization, departmental structure,

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100% found this document useful (1 vote)
262 views9 pages

Theories of Management

The document discusses several classical management theories: 1. McGregor's Theory X and Theory Y which propose that management styles are influenced by beliefs about human motivation and potential. Theory X assumes people dislike work while Theory Y assumes people can find work motivating. 2. Likert's research identified four management systems - exploitive, benevolent, consultative, and participative - that differ in levels of trust in subordinates and communication flow. More effective systems have greater participation. 3. Gulick summarized administrative duties into the acronym POSDCORB - planning, organizing, staffing, directing, coordinating, reporting, and budgeting. His principles focused on work specialization, departmental structure,

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3.

Indicated that legitimate power is produced by a circular behaviour where by


superiors and subordinates mutually influence one another.
4. The law of the situation dictates that a person does not take orders from another
person but from the situation.

2). Lewin theory (1890-1947):


1. Lewin focused on the Group dynamics.
2. He maintained that groups have personalities of their own: composites of the
member‘s personalities.
3. He showed that group forces can overcome individual interests.

D. BEHAVIORAL SCIENCE THEORY:


Emphasis is on:
1. Use of scientific procedures to study the psychological,
2. Sociological,
3. Anthropological aspects of human behaviour in organization.
Behavioural Science Indicated:
1. The importance of maintaining a positive attitude toward people,
2. Training managers,
3. Fitting supervisory actions to the situation,
4. Meeting employees needs.
5. Promoting employees sense of achievement,
6. Obtaining commitment through participation in planning and decision making.

1) Douglas McGregor‟s Theory (1932):


McGregor‘s is the father of the classical theory of management which termed
theory. He developed the managerial implications of Maslow‘s theory. He noted 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
1. The manager‘s emphasis is on the goal of organization.
2. 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
1. Most people want to be directed and to avoid responsibility because they havelittle
ambition.
2. They desire security.
Managers who accept the assumption of theory X
1. Will do the thinking and planning with little input from staff associates.
2. They will delegate little, supervise closely.
3. Motivate workers through fear ad threats
4. Failing to make use of the workers potentials.

Theory Y
It is focuses on goal.
1. People do not inherently dislike the work and that work can be a source of
satisfaction.
2. Workers have the self direction and self control necessary for meeting their
objectives.
3. Will respond to the rewards for the accomplishment of those goals.

Managers who believe in this Y theory:


1. Will allow participation
2. They will delegate
3. Give general supervision than close supervision
4. Support job enlargement
5. Use positive incentives such as praise and recognition.
They believe that under favourable conditions: people seek responsibility and display
imagination, unity and creativity. According to theory Y human potentials are only
partially used.

2).Rensis Likert‟s theory:


Dr Rensis Likert has studied human behaviour within many organisations. After
extensive research, Dr. Rensis Likert concluded that there are four systems of
management. According to Likert, the efficiency of an organisation or its departments is
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 categorised his
four management systems as follows;

He identified three variables in organizations.


1. The casual variable includes leadership behaviour.
2. The intervening variables are perceptions, attitudes and motivations.
3. The end results variables are measures of profits, costs and productivity.
Factors measured by likert scale
The scale measures several factors related to leadership behaviour process:
 Motivation
 Managerial
 Communication
 Decision making process
 Goal setting
 Staff development
Four types of management system according to likert, effcets on the management
systems:
a). Exploitive-authoritative:
1. He associates the first system with the least effective in performance.
2. Managers show less confidence in staff associates and ignore their ideas.
3. Consequently staff associates do not feel free to discuss their jobs with their
managers
b). Benevolent- authoritative:
1. Staff associates ideas are sometimes sought, but they do not feel free to discuss
their jobs with the manager.
2. Top and middle management are responsible for setting goals.
3. There is minimal communication. Mostly downward and received with suspicion.
4. Decisions are made at the top with some delegation.
c). Consultative system:
1. The manager has substantial confidence in staff associates.
2. Their ideas are usually sought.
3. They fell free to discuss their job with the manager.
4. Goal setting is fairly general.
5. It has limited accuracy and accepted with some caution.
6. Broad policy is set at the top level.
7. There are decisions making throughout organization.
8. Control functions are delegated to lower level where.
9. Reward and self guidance are used.
10.There is some resistance from informal groups in the organization.
d) Participative group:
Group Participative 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.
Thereisa great deal communication- upward, downward, and later that is accurate and
receivedwith open mind.

E. MODERN MANAGEMENT THEORIES:


The modern era is characterized by trends in the management through viz:-
1. Microanalysis of human behaviour, motivation, group dynamics leadership
leading to many theories of organization.

2. The macro search for fusion of the many systems in business organization-
economic social technical political and quantitative methods in decision- making.

Modern management theories era can be father classified as the three streams viz:
1. Quantitative approach
2. System approach
3. Contingency approach

Indicating further refinement, extension and synthesis of all the classical and neo-
classical approaches to management.
1. Quantitative approach: Management science refers to the application of Quantitative
methods to management. Management science has an interdisciplinary basis in other
words management science is a combination and interaction of different scientists.
2. System approach:-according to system approach the organization is the unified,
purposeful systems composed of interrelated parts and also interrelated with its
environment. Each unit must mesh/ interact with the organization as a whole, each
manager most interact/ communicate and deal with executives of other unites and the
organization itself must also interact with other organizations and society as whole.

Ludwing Von Bertanffy:


Bertanffy, a biology is credited with coining the general system theory. His contention
were that it was possible to develop a theoretical framework for describing relationship
inthe real world and different disciplines with similarities could be developed into a
generalsystems model. The similarities were:
1. Study of organization
2. State of equilibrium
3. Openness of all systems and their influence o the environment and environment
influence on the system.
3. Contingency approach:
 The contingency approach can be described as the behavioural approach.
 Contingency theory does not prescribe the application of certain
managementprinciples to any situation.
 Contingency theory is recognition of the extreme importance of individual
manager performance in any given situation.
 It rests on the extent of manager power and control over a situation and the
degreeof uncertainty in any given situation.
 The role of management in the contingency approach is to develop
aappropriatemanagement solution for any given organizational environment.
 It is principally directed at the management practitioner seeking to control
adistinct Organizational environment.

Luther Gulick:
He was influenced by Taylor and Fayol. He used Fayal‘s five elements ofadministration
viz.Planning,Organizing,Command,Coordination and Control as aframe work for his
neutral principles. He condensed the duties of administration into afamous
acronym‖POSDCORB‖.Each letter in the acronym stands for one of the sevenactivities of
the administrator as given below:
 Planning (P): working out the things that need to be done and the methods for
doing them to accomplish the purpose set for the enterprise.
 Organising (O): establishment of the formal structure of authority through which
work subdivisions are arranged, designed and coordinated for the
definedobjective.
 Staffing (S): the whole personnel function of bringing in and training the staff,
andmaintaining favourable conditions of work.
 Directing (D): continuous task of making decisions and embodying them
inspecific and general orders and instructions, and serving as the leader of
theenterprise.
 Coordinating (CO): all important duties of interrelating the various parts of
thework.
 Reporting (R): keeping the executive informed as to what is going on,
whichincludes keeping himself and his subordinates informed through
records,researchand inspection.
 Budgeting (B): all that goes with budgeting in the form of fiscal
planning,accounting and control.
Luther Gulick was very much influenced by Fayal‘s 14 basic elements of administration
in expressing his principles of administration as follows:

1. Davison of work or specialization


2. Bases of departmental organization
3. Coordination though hierarchy
4. Deliberate coordination
5. Decentralization
6. Unity of command
7. Staff and line
8. Delegation
9. Span of control

Lyndal urwick:
Lyndal urwick also one of the among classical theorist, attached more important to the
structure of organization than the role of the people in the organization.
Lyndal urwick concentrated his efforts on the discovery of principles and identified eight
principles of administration applicable to all organization as given below:
1. The principle of objective-that all organizations should be an expression of apurpose.
2. The principle of correspondence-that authority and responsibility must be co-equal.
3. The principle of responsibility-that the responsibility of higher authorities of the
work of subordinates is absolute.
4. The scalar principle-that a paramedical type of structure is build up in an .
5. The principle of span control
6. The principle of specialization-limiting ones work to single function.
7. The principle of coordination-
8. The principle of definition-clear prescribed of every duty.

4. Critical theory versus critical thinking:


Steffy and Grimes note that a strict natural science approach to social science is native,
since subjective or qualitative analysis is important to quantitative research. This holds
true for management and, consequently for nursing management. The authors suggest a
critical theory approach to organizational science rather than a phenomenological or
hermeneutic approach.
Phenomenological approach uses second order constructs ―interpretations of
interpretation. ―The nurse manager would interpret the meaning of nursing of nursing
management experience or observations and arrive at a nursing management theory
fromaggregate of meanings.
Hermeneutic approach is the art of textual interpretation. She would consider the
specificcontext and historic dimensions of data collected, and would reflect on the
relationshipbetween theory and history.

Critical theory: Critical theory is an empirical philosophy of social institutions. It is


translated into practice by decision makers, in these case nurse managers. It includes
organizational development, management by objectives or results, performance
appraisal,
and other practice- oriented activities performed by managers.
Aims:
 To critique the ideology of scientism, ―the institutionalized form of
reasoningwhich accepts the idea that the meaning of knowledge is defined what
thesciencesdo and thus can be adequately explicated through analysis of
sciencetificproducers.
 To develop an organizational science capable of changing
organizationalprocesses. ―it is used the practice of clinical nursing and nursing
management.
Critical thinking: Concept analysis is advocated as a strategy for promoting critical
thinking. The rudiments of critical thinking: recalling facts, principles, theories, and
abstractions to make deductions, interpretations, and evaluations in solving problems,
making decisions, and implementing changes. Concept analysis uses critical thinking to
advance the knowledge base of nursing management as well as nursing practice.

Definition: critical thinking is reflecting on a situation, a plan an event under the rule of
standards and antecedent to making a decision.(Mackenzie)

Critical thinking is both a philosophical orientation toward thinking and a cognitive


process characterized by reasoned judgment and reflective thinking.(Jones and brown)

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.

Maslow‟s theory of human needs has three assumptions

Factor within Person


Maslow‘s need hierarchy

– Physiological. The need for food, drink, shelter and relief from pain
– Safety and Security. The need for freedom from threat, that is, the security from
threatening events or surroundings.
– Belongingness, Social and love. The need for friendship affiliation interaction
and love
– 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.

Douglas McGregor (1906-1964)


• McGregor is the other major theorist associated with the Human Relations School
ofmanagement.
• McGregor believes there are two basic kinds of managers. One type of manager,
TheoryX, has a negative view of employees assuming they are lazy, untrustworthy and
incapableof assuming responsibility while the other type of Manager,
• Theory Y, assumes employees are trustworthy and capable of assuming responsibility
having high levels of motivation.

Herzberg‟s two factor theory:


This theory was developed in 1959.It is based on realisation that work motivation and
job-satisfaction are two dimensions that influence the productivity of an employee.
Herzberg‘s finding that good working conditions, adequate salary, good physical
facilities, good human relation, quality of supervision might contribute to
jobsatisfaction,of employees, which are‖ hygiene‖ factors. Whereas factors like
recognition of workdone, status, opportunities for growth, challenging task, play an
important role in creatingwork motivation for employees, which are the motivation
factors.ltter, manyauthorsinterpreted that all the motivation factors described by
Herzberg do not give equalamount of satisfaction to all employees.

IMPLICATIONS OF MANAGEMENT THEORIES IN NURSING:


1. Taylor‘s theory can be implemented in nursing to study complexity of care and
determine staffing needs and observe efficiency and nursing care.
2. Nurses can utilize Emerson‘s theory of early notion of the importance of
objectives setting in an organization.
3. Nurses should be aware of the managerial tasks as defined by Fayol: Planning,
Organizing, Directing, Coordinating and Controlling.
4. The theory of human relations of Follett and Lewin emphasise the importance for
nurse managers to develop staff to their full potential and meeting their needs for
recognition, accomplishment and sense of belonging.
5. Mc Gregon and Likert support the benefits of positive attitudes towards people,
development of workers, satisfaction of their needs and commitment through
participation.

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