University of Baghdad

College of Nursing
Community Health Nursing Department
Leadership and Management in Nursing

‫المحاضرة الثانية‬

Management Theories
Learning Objectives for the Lecture:

At the end of the lecture the student is going to be able to:

1. Identify the types of management theories.

2. Know what is the global theory of management.
3. Identify the levels of management.
4. Describe the epidemiological triad and the variations among its elements.

Four Types of Management Theory

The aim of business management is to find the most efficient and productive ways
of operating a business. This usually entails finding strategies to coordinate the
different branches of a business. Each business management type is determined by
an underlying management theory, which determines the strategy and long term
goals of the business. For instance, a successful management theory provides ways
to coordinate the financial, marketing, human resources and information
technology of a company.

1- The Classical theory: Before the classical theories were developed, there
were no clearly defined responsibilities, roles and tasks for workers and
managers, which was largely due to the industrial revolution of late
nineteenth century and the accelerated emergence of factories. No
effective work standards existed and workers were placed on jobs with
little concern of matching tasks with abilities or skills (According to Stoner
et al. skilled labour was in short supply and the only way to expand
productivity was to raise the efficiency of workers. This led to the
formulation of a body of principles known as scientific management. there
was three schools:
1
a-Scientific Management
b- Administrative Management
c-Bureaucratic School

2-The Human Relations and Neo-Human Relations Approach This school of

thought emerged as a result of the many criticisms of the classical
approach, especially because it focused on tasks, productivity and
organizational structure rather than people. During the early part of the
20th century, especially as a result of the great depression in the 1920s and
1930s, more attention shifted to employee behavior and social factors at
work. This led to the human relations and neo-human relations
- The Human Relations Approach This approach developed as a result of
focus on the human side of management and it sought to understand
how social and psychological dynamics interacted with the work
environment in influencing productivity and performance, thereby
creating effective human relations.
- The Neo-Human Relations (Behavioural) Approach: The result of the
Hawthorne experiment led to more interest from researchers in the
social sciences with background in sociology, psychology and
anthropology, and they relied on more sophisticated research methods
to explain what motivate employees at work. These researchers known
as 'behavioural scientists' or 'behaviourists' built the platform for new
management theory ideas and a major focus was the adjustment of the
employee's complex character within the work organisation

3. Systems Management

o The systems management theory requires business managers to view

their company or organization as a system as opposed to a monolithic
structure. This forces managers to reflect on how their decisions in
one aspect of the business, such as laying off workers, will affect
other parts of the company, such as customer service. To do this,
business leaders divide the company into departments, sections and
subsections as part of an overall framework.

2
 o .

4. Contingency Management Theory

o The contingency theory is based around the idea there is no single

right answer and that the best choices in a given situation depend on
numerous factors, which must be considered. A company, according
to contingency theory, should take into account all aspects of a
situation when making a decision, including which type of
management system it chooses. For instance, a leader using
contingency theory may decide an autocratic and hierarchical
management system is the best when leading soldiers into battle, but
not necessarily the best if managing a group of scientists.

Global Theory of Management

Today, there are many schools of management. There are also many management
experts. Each school and each expert gives their own theory about management.
They say that their theory is right, and the theories of the other experts are wrong.
There are so many management theories. We cannot say, which one right and, which
one is wrong. This has caused a lot of confusion in the field of management.

Harold Koontz warned all management experts to stop this jungle warfare because
of its destructive nature. He asked them to remove all these confusions. This is
because if confusion exists, then management will not have universal application.
So now all the management theories / thoughts / schools / experts are converging.
That is, they are coming together at a same point. All the experts are agreeing with
each other. This unification or convergence of the management thoughts, now being
adopted globally, is called as the "Global Theory of Management."

1. The empirical approach

Now-a-days most writers purify the basics. That is, they make the basic concepts of
management very simple and clear. So, the trainee managers can understand the
basics very easily. Secondly, whenever there is a problem, most experts first try to
find out the root cause of the problem.

2. System thinking

3
Most experts agree that the organization is a unified, purposeful system which
consists of many different parts. The organization is a part of the total environment.

3. Situational and contingency approach

Most experts believe that we cannot have universal styles of management, which
can be used in all situations. A manager must first study the situation very carefully
then he must use a style of management, which is suitable for that situation.

4. Motivation and leadership theory

Most experts feel that the theories of motivation and leadership must be combined.
They support the Follower Theory of leadership. According to the follower theory,
people will follow those leaders who will help them to satisfy their wants. So, a
leader will be successful only if he can satisfy the wants of his followers. Now-a-
days leaders must combine both financial and non-financial motivation plans.

5. Impact of technology

All experts agree that technology has a big influence on management. Management
has to change according to the changes in technology. Technology has a direct effect
on the organizational structure, plant location, plant layout, production design and
role of manpower. As the technology changes, these factors will also change.

6. Merger of theory and practice

Most experts agree that the best way to teach management is to combine theory
(fundamentals) and practice (case studies). Management trainees all over the world
read the same management books. They also read the same case studies. They are
given the same type of training. They also talk to other managers all over the world
using advanced communication technology. Today, all multi-national corporations
(MNCs) use the same management techniques. This justifies the emergence of
Global Theory of Management.

7. Unified development and behavior

Most experts feel that Organization Development and Organization Behavior are
both moving towards the same direction. So, the experts are making uniform (same)
theories for organization development and behavior. These theories are used for
managing MNCs all over the world.

4
8. Research supports the management process

Research all over the world, found that the management process (planning,
organizing, directing, controlling) is the best way to manage an organization. So,
organizations all over the world are using the management process.

9. Common meaning for management terms

About twenty-five years ago, different management experts gave different meanings
for the same management terms. However, now this situation has stopped. Today,
management terms have same meaning in all books.