MODULE 2:

The Evolution of Management Thoughts: HISTORY AND CONCEPTS Rationale: Although modern operational-management theory dates primarily from the early twentieth century, there was serious thinking and theorizing about managing many years before. A familiarity with the development of management thought can be useful to nursing leaders in creating their own management styles. No single management theory is suf icient in itself to guide the nursing leaders every action. But through an electic approach, drawing from the best and most applicable theories in each situation. Nurse administrators can create individual management styles to meet their particular needs. Although they have always been good managers, management has been studied scienti ically by academics and practitioners mainly since the beginning of the 20th century. Further, because our modern understanding of management did not develop full-blown but rather evolved since the beginning of the 20th century, the history of that development is present ed in several different areas. The researcher feel that a kwonledge of the past is important to know because it not only enhance an appreciation of the present but also helps the reader understand future trends. This module present an overiew of the major theoris and principles of organization and management. It is hoped that these theoris and principles will provide the nurse manager the much needed direction to understand of what action to take, what measures to employ to function effectively and what new approach to implement to ensure a smooth low of work and coordination. KEY TERMS Behavioral approach - a school of management that emphasize the improvement of worker ef iciency through an understanding of the workers themselves as opposed to an understanding of the work. Classical approach- the earliest attempt to study management in a scienti ic manner, emphasizing worker ef icacy achieved through the one right away determined by the expert who posseses a scientific understanding of the work achieved by methodic study. Contingency approach -approach that asserts that the best management style will depend upon or is contingent on the leadership style of the leader in relation to the needs of the speci ic situation. Human relations-is focused on the effect individuals have on the success of the organization. Management science - maintains that worker productivity can be increased by the use of the scientific method combined with mathematical models of workers tasks. Scientific management-it is focused on the best way to do a task. Theory x and theory y- theories term by Douglas McGregor to express the belief that management decision making is based upon assumptions about human nature. Theory z or Japanese management theory-stresses decision making by means of group consensus and places highest emphasis on achievement of the group rather than the individual worker. I. Scientific Management Theory Theories of management do not remain static. Since the introduction of the earliest

principles of scientific management nearly a century ago, management thought has been marked by constant change. Frederick Winslow Taylor (1856-1916): father of Scientific Management. He gave up going to college and started out as an apprentice patternmaker and machinist in 1875, joined the Midvale Steel Work in Philadelphia as a machinist in 1878, and rose the position of engineer after earning a degree in Engineering through evening study. He invented high-speed steel-cutting tools and sent most of his life as a consulting engineer. He is generally recognized as the Father of Scientific management. Taylors major concern throughout most of life was that of increasing efficiency in production, not only to lower cost and raise profit but also to make positive increased pay for workers through there higher productivity. Through the use of stopwatch studies, he applied the principle of observation, measurement and scienti ic comparison to determine the most ef icient way to accomplish a task. He conducted time-andmotion studies to time workers, analyze their movements, and set work standards. When the most ef icient way to complete a task was determined, workers were trained to follow that method. The most productive workers were hired, and even when they were paid an incentive wage, labor costs per unit were reduced. He concluded that productivity will increase through careful, systemic design of workplace conditions, work methods, and proper training and instruction of workers. He believed that management, not labor, was the cause of and potential solution to problems in industry. To the end, Taylor maintained that he truly believed managers and workers would be satis ied if inancial rewards were adequate as a result of increased productivity. Taylor identified four principle of scientific management: a. Management should develop the best work method. b. Management should scienti ically select, train, teach, and develop each worker so that the right person has the right job. c. Management should cooperate with workers to ensure that the job matches plans and principles. d. Management should ensure an equal decision of work and responsibility between managers and workers. Frank B. Gillbreth (1868-1924) and Lillian M. Gillbreth (1878-1972): Innovators of Motion Studies The ideas of Taylor were also strongly supported and develop by the famous husband and wife team, Frank & Lillian Gilbreth. He gave up going to the university to become a bricklayer at the age of 17 in 18855; he rose the position of chief superintendent of a building constructing irm. 10 years later and became a building constructor on his own shortly thereafter. As an apprentice bricklayer, he was instructed by each workman on how to lay bricks. Wondering what methods would be most ef icient, he started studying the workers motions. He reduce the number of motion required to lay a bricks from 18 to 4 developing a new way to stock bricks; develop an adjustable stand to eliminate excessive stooping, bending and walking back in forth, and prescribe a mortar consistency that prevent excessive tapping on the brick with a trowel. His system of speedwork eliminated haste and also increased work output by cutting out unnecessary motions. Workers could be paid higher wages because they accomplish more in a short time. The Gilbreths were among the irst to use motion-picture ilms to analyze workers motions, he developed 17 classi ications for hand movements such as ind select, grasp, position and rest which he labeled therbligs (Gilbreth spelled backward). They stress the relationship of job satisfaction and establishment of incentive wage plan on work performance.

Lillian Gilbreth is known as the First Lady of Management Her doctoral dissertation was one of the irst contributions toward understanding human factors in industry. Her work on the effects of fatigue complemented her husbands efforts. The Gilbreths and their 12children are the subjects of the popular book Cheaper by the Dozen. Henry Gantt (1816-1919): Innovator in scheduling and rewarding employees. He is an associate of Taylor at the Midvale and Bethiehem Steel companies, made significant contributions in the areas of scheduling and controlling of work as well as the rewarding of workers. Gantt maintained that management needed scienti ically determined data in order to operate ef iciency. Work standards should be determined by observation and measurement, and only then may realistic work standards set. Once the nature and amount of work to be accomplished were determined, the work could be effectively scheduled. Gantts best known contribution to management practice is the work scheduling chart that bears his name known as the GANTT chart, which is highly developed work scheduling chart that allows one to visualize multiple tasks that have to be done. Mary Parker Follet (1868-1933): Pioneer in Conflict Resolution. One of the few female classical management theorists, focused in the 1920s on how management deal with con lict. Her research and writing pointed to a collaborative approach to problem solving that advocated compromise. One of her favorite admonition to management was dont over manage employees, and she referred to his over management as bossism. Management task was to formulate requests in a logical manner but not to give too many orders. Her work forms the basis for modern problem-solving. She stressed the importance of coordinating psychological and sociological aspects of management. II. Modern Operational Management Theory Classic Administration Organization thinking began to receive attention in 1930. Deductive rather inductive, it viewed the organization as a whole rather than focusing solely on production, or single segment of it. Henri Fayol (1841 - 1925): Father of Modern Operational Management Theory He was trained as an engineer, achieved the senior executive position of managing director of a large French coal and mining company. His concern was the efficiency and effectiveness of the entire organization. Fayol asserted that the activity of management was characterized by speci ic functions and these are Planning, Organizing, Commanding, Coordinating and Controlling. Management according to Fayol was not personal talent but a skill. Fayol developed fourteen principles of management to guide the manager in resolving real work problems and these were: 1. Division of work divide work into specialized task and assign responsibilities to speci ic individuals. 2. Authority delegate authority along with responsibility. Authority and responsibility go together, and one without the other lead to managerial failure. 3. Discipline make expectation clear and sanction violations. Members is an organization need to respect the rules and agreements that govern the organization. 4. Unity of command this means that employee should receive orders from one superior only. 5. Unity of direction employees efforts focused on achieving organizational objectives. 6. Subordination of individual interest to he general interest the general interest must predominate.

7. Remuneration compensation for work done should be fair to both employees and employers 8. Centralization - determine the relative importance of superior and subordinate roles 9. Scalar chain keep communication within the chain of command 10. Order the resources of a company its raw maerials and workers must be in the right place and the right time. This ordering of organizational resource ensures maximal efficiency. 11. Equity employees should feel they are being treated equally and fairly. 12. Stability of tenure inding unnecessary turnover to be both the cause and the effect of bad management, Fayol points out its danger and cost. 13. Initiative encourage employeesto act on their own in support of organizations direction. 14. Esprit de Corps management should try to encourage harmony and common interests promoting unity of interest between employess and management. James Mooney (1884 - 1957) He believed management to be the technique of directing people and organization the techniques of relating functions. Organization is managements responsibility. Mooney enumerated four universal principles of organization a follows: a. Coordination and synchronization of activities for the accomplishment of a goal can be accomplished in part through. b. Functional effects, the performance of ones job description. c. Scalar process organizes. d. Authority into hierarchy. LyndallUrwick (1891 - 1939) He integrated the ideas of Henri Fayol and James Mooney. His conceptual framework blended scientific management and classic organization theory into the beginnings of classic management theory. Administrative Management: Key concepts: Fayols five fucntions and fourteen principles of management Executive formulate the organizations purpose, secure employees and maintain communications. Managers must responds to changing developments. Contributions Viewed management as a profession that can be trained and developed. Emphasized the broad policy aspects of top level managers. Offered universal management prescriptions. Limitation Universal prescriptions need quali ications for environmental, technological, and personnel factors. III. BUREAUCRACY MAX WEBR (1864 1920) He is a German sociologist, earned the title of Father of Organization Theory by his conceptualization of bureaucracy with emphasis on rules instead of individuals and on competence over favoritism as the most ef icient basis for organization. The characteristics of these organizations are: I. Task are specialized II. People are appointed by merit or promotion because of their ability and not because of

III. IV. V. VI.

favoritism and whim. Career opportunities for the members are provided. Authority and responsibility are clearly specified. Activities are routinized. A rational and impersonal climate exists.

BUREAUCRACY Key Concepts Structured, formal network of relationships among specialized position in an organization Rules and regulations standardize behavior Jobs staffed by trained specialist who follow rules Hierarchy defines the relationship among jobs Contributions Promotes efficient performance of routine organizational activities Eliminate subjective judgment by employees and management Emphasizes position rather than the person Limitations Limited organizational flexibility and slow decision making Ignores the importance of people and interpersonal relationship Accumulation of power can lead to authoritarian management Rules may become ends in themselves Difficult to dismantle once established IV. HUMAN RELATIONS THEORY This movement began in the 1940s with attention focused on the effect individuals have on the success or failure of an organization. Thechief concerns of the human relations movement are the individual, group process, interpersonal relations, leadership and communication. MARY PARKER FOLLET (1868 1933) In the 1920s she stressed the importance of coordinating the psychological and sociological aspects of management. Follet distinguished between power with others and power over others and indicate that legitimate power is produced by a circular behavior whereby superior and subordinates mutually in luences one another. The law of the situation indicates that a person does not take orders from another person but from the situation. For instance, nurses will work through their lunch break during an emergency. Follet advocated that managers study the total situation to achieve unity. ELTON MAYO (1880 1949) and the HAWTHORNE EXPERIMENTS The Hawthorne studies was conducted at the Chicago Hawthorne Plant of Western Electric by researchers from Harvard University under the direction of Elton Mayo and reported by Fritz Roethlisberger. The studies investigated the effects of changes in illumination on productivity. Finding that, when illumination was either increased or decreased for a test group, productivity improved. The results of these experiments greatly surprised the researches. Committed to discovering the reasons for increase in productivity, the scientists began intensive interviewing of all the workers and discovered that workers increased productivity because: The test room was enjoyable to work in The relationship between worker and supervisor was more relaxed for the worker group during the experimental period

The workers responded to the realization that they were taking part in a meaningful experiment The experience of participating in the experiment created a feeling of identity and belonging. This phenomenon arising from people is being noticed has been known as the Hawthorne Effect. KURT LEWIN (1890 1947) A Jewish psychologist, fled from Germany to the United States, where he revived the study of group dynamics. He advocated democratic supervision. His research indicated that democratic groups in which participants solve their own problems and have the opportunity to consult with the leader are most effective. JACOB L. MORENO (1892 1974) He developed sociometry to analyze group behavior. Claiming that people are either attracted, repulsed, or feels indifferent toward others, he developed the sociogram to chart pairings and rankings of preferences for others. This process of classi ication can be used to calculate which workers are capable of harmonious interpersonal relationships. Human Relations: Key Concepts Productivity and employee behavior are influenced by the normal work group Cohesion, status, and group norms determine output. Managers should stress employee welfare, motivation and communication Social needs have precedence over economic needs Contributions Psychological and social processes influence performance. Limitations Ignored workers rational side and the formal organizations contribution to productivity. Research findings overturned the prescription that happy workers are more productive V. BEHAVIORAL SCIENCE THEORY This theory emphasized the use of scienti ic procedures to study the psychological, sociological, and anthropological aspects of human behavior in organizations. Behavioral scientists stressed the importance of maintaining appositive attitude toward people, training managers, meeting employees needs, promoting employees sense of achievement, and obtaining commitment thru participation in planning and decision making. Abraham Maslow (1908-1970) He initiated the human behavioral school in 1943 with his development of a hierarchyof-needs theory. He outlined a hierarchical structure for human needs classi ied into ive categories: a. Physiological needs- these are the most important and the most necessary for survival. They include the need for oxygen, water, sleep, sex and activity. b. Safety- includes freedom from danger, threat and deprivation. c. Love composed of affectionate relations with others , acceptance, recognition and companionship d. Esteem- comprises self-respect, positive self-evaluation, recognition and regard by others

e. Self- evaluation- composed of self-fulfillment and achievement In Maslows hierarchy of needs, physical needs must be met before other needs become proponent, and so on, and the satisfaction of self-actualization needs is impossible only after all other needs are met. Once a need is satis ied it is no longer a motivator, and the next need becomes proponent. Frederick Herzberg (1923) Frederick Herzberg and his colleagues used the critical-incident method in 1959 to interview200 Pittsburgh area engineers and accountants about job situations that they had found satisfying or dissatisfying. Herberg did research on a content theory, which he labeled a twofactor theory of motivation. One factor is labeled extrinsic conditions, hygiene factors or dissatis iers. These include salary, job security, working conditions, status, company procedures, quality of technical supervision and quality of interpersonal relations among peers, with supervisors and with subordinates. They must be maintained in quantity and quality to prevent dissatisfaction. They become dissatis iers when not equitably administered, causing low performance and negative attitudes. The other set of factors is labeled intrinsic conditions, motivators or satis iers. They include achievement, recognition, responsibility, advancement, the work itself and the possibility of growth. They create opportunities for high satisfaction, high motivation and high performance. The individual must be free to attain them. Herzbergs research was criticized for its limited sample of accountants and engineers and for being simplistic Douglas McGregor (1906-1964) Theory X and Theory Y He developed the managerial implications of Maslows theory. He noted that ones style of management is dependent on ones philosophy of human and categorized those assumptions as Theory X and Theory Y. In theory X, the mangers emphasis is on the goal of the organization. The theory assumes that people dislike work and will avoid it; consequently, workers must be directed, controlled, coerced, and threatened so that organizational goals can be met. They work to survive, they avoid responsibility and have noambition. The task of the manager based on this view is to exercise strict control over his subordinates to ensure that the work is carried out properly. In theory Y, the emphasis is on the goal of the individual. It is the managers assumptions that people do not inherently dislike work and work can be a source of satisfaction. Work itself can be motivating and rewarding; people seek responsibility and display imagination, ingenuity and creativity. The task of the manager according to this theory is to provide opportunities for the subordinates to be creative, allow participation and encourage incentives. Chris Argyris (1923) He focused his research on the coexistence of personal and organizational needs, found that individuals give priority to meeting their own needs. He found that the greater the disparity between individual and organizational needs, the more tension, con lict, dissatisfaction and subversion result. Thus, to make jobs more meaningful managers must take advantage of peoples talents and letting them participate in planning, goal setting and problem solving. RensisLikert (1903-1981) His theory of management is based on his work at the University of Michigans Institute for Social Research. He identifies three variables in organizations 1. Causal variables- which include leadership behavior, organizational structure, policies and controls.

2. Intervening variables- which are perceptions, attitudes and motivations. 3. End-result variables- which are measures of profits, costs and productivity. Likert also identifies four types of management systems 1. Exploitive-authoritative mangers show little con idence in staff associates and ignore their ideas. Consequently, staff associates do not feel free to discuss their jobs with their managers. Managers make decisions without input from below. Policing and punishment are used as control functions by top administration. 2. Benevolent-authoritative- the manager is condenscending to staff associates. Staff associates ideas are sometimes sought, but they do not feel vry free to discuss their jobs with their manager. Top and middle management are responsible for setting goals. There is little communication. Decisions are made at the top with some delegation. Decisions are made at the top with some delegation. Rewards and punishment are used as control functions by top administration. 3. Consultative system- the manager has substantial con idence in staff associates. Their ideas are usually sought and they feel free to discuss their work with the manager. Responsibility for setting goals is fairly general. Control functions are delegated to lower levels where reward and self-guidance are used. 4. Participative management- managers have completely con idence in their staff associates, their ideas are always sought, and they feel completely free to discuss their jobs. Control is widely shared through the use of slf-guidance and problem solving. Organizational behavior -Promote employee effectiveness through understanding of individual, group and organizational processes -Stresses relationships among employees, managers and the work they perform for the organization - Assumes employees want to work and can control themselves Contributions - Increased participation, greater autonomy, individual challenge and initiative and enriched jobs may increase performance - Recognized the importance of developing humanresources. Limitation -Some approaches ignored situational factors, such as the environment and the organizations technology SYSTEMS THEORY Systems theory provides a way to interpret organizations. Systems theory takes a holistic view of the entire organizational system and stresses processes. The task of the manager is to maintain a system of cooperative effort in a formal organization. Important concepts from systems theory include open versus closed system, ef iciency and effectiveness, subsystems, equilinality and synergy. Chester Barnard (1886-1961): The Acceptance Theory of Authority He studied the functions of the executive while he was a manager for the New Jersey Bell Telephone System. In The Functions of Executive he maintained that people form organizations to achieve common goals and stresses cooperative effort as a key to organizational success and managerial effectiveness. He also focused on managements attention on motivation, decision making, communication effectiveness, and the importance of objectives. He was a leader in

stressing the sociological aspects of management concentrated on the concept of authority. Key Concepts Organization is viewed as an open system Management must interact with the environment to gather inputs and return the outputs of its production Organizational objectives must encompass both efficiency and effectiveness Organizations contain a series of subsystems There are many avenues to the same outcome Synergies exist where the whole is greater than the sum of the parts Contribution Recognized the importance of oragnizations relationship with the external environment Limitation Does not provide specific guidance on the functions and duties of managers The Contingency Approach The contingency approach to management assert that there is no universally applicable approach to a management problem, but the needs of the particular situation determine the best approach to the organizational problem. The contingency approach is eclectic in that manager can make use of techniques of other approaches to management if the applications of these various techniques is the best solution to the specific problem. Key Concepts Situational contingencies in luence strategies, structures and processes that result in high performance There is more than one way to reach a goal Managers may adopt their organization to situation Contributions Identified major contingencies Argues against universal principles of management Limitations Not all critical contingencies have been identified Theory may not be applicable to all managerial issues