Leadership and Management for Nurses Pramila Thapa
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Management: An Introduction and OverviewCHAPTER 1

 
CONCEPTS OF MANAGEMENT
The concept of management is not fixed. It has changing according to time and circumstances. Different authors on management have given different concepts of management. The main concepts of management (Table 1.1) are as follows:
Functional concept : According to this concept ‘management is what a manager does’ According to Louis Allen, “Management is what a manager does.” Henry Fayol, “To manage is to forecast, and plan, to organize, to command, to coordinate and to control.”
Getting things done through others' concept: According to this concept, ‘Management is the art of getting things done through others’.
Table 1.1   Concepts and definitions of management
Organization
Group of people works together, a club, business, etc. The organization of the timetable.
Organize
To plan and prepare something in an orderly way. To put things in order.
Administration
The management of a company, etc. The government of a country.
Administer
To be in charge of and manage.
Management
As the process by which a cooperative group direction action towards.
Manager
Have an assigned position within the formal organization, are expected to carry out specific function duties and responsibilities.
Leader
Somebody who leads or who goes first, a person in charge of a group.
Leadership
Leadership is the process of influencing people to accomplish goals.
It is very 2 narrow and traditional concept of management. JD Mooney and AC Railey, “Management is the art of directing and inspiring people.”
Leadership and decision-making concept: According to this concept, “Management is an art and science of decision-making and leadership.” According to FW Taylor, “Management implies substitution of exact scientific investigation and knowledge for the old individual judgment or opinion, in all matters in the establishment.”
Productivity concept: According to this concept, “Management is an art of increasing productivity According to FW Taylor, “Management is the art of knowing what you want to do in the best and cheapest way.”
Universality concept: According to this concept, “Management is universal”. Management is universal in the sense that it is applicable anywhere whether social, religious or business and industrial. According to Henry Fayol, “Management is an universal activity which is equally applicable in all types of organization whether social, religious or business and industrial”.
Management is knowing exactly what you want people to do and then seeing that they do it in the best and cheapest way (FW Taylor).
“Management is coordinating work activities so that they are completed efficiently and effectively with and through other people.” (Stephen P Robbins and Mary Coulter, 2005).
Management is the art of getting things done through people (Mary parker Follet).
Management involves the coordination of human and material resources toward objective accomplishment (Kast and Rosenzweig).
 
FEATURES OF MANAGEMENT
Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Nature of management can be highlighted as:
Management is goal-oriented: The success of any management activity is accessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human and physical resources to fulfill the predetermined goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable prices. This can be achieved by employing efficient persons and making better use of scarce resources.
3 Management integrates human, physical and financial resources: In an organization, human beings work with non-human resources like machines. Materials, financial assets, buildings, etc. Management integrates human efforts to those resources. It brings harmony among the human, physical and financial resources.
Management is continuous: Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it, e.g. the target of a company is maximum production. For achieving this target various policies have to be framed but this is not the end. Marketing and Advertising is also to be done. For this policies have to be again framed. Hence this is an ongoing process.
Management is all pervasive: Management is required in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management. When ever more than one person is engaged in working for a common goal, management is necessary. Whether it is a small business firm which may be engaged in trading or a large firm like Tata Iron and Steel, management is required everywhere irrespective of size or type of activity.
 
PRINCIPLES OF MANAGEMENT
A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought and actions. Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions. These principles are derived:
  • On the basis of observation and analysis, i.e. practical experience of managers.
  • By conducting experimental studies.
There are 14 Principles of Management described by Henri Fayol:
  1. Division of work: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.
  2. 4 Authority: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.
  3. Discipline: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.
  4. Unity of command: Workers should receive orders from only one manager.
  5. Unity of direction: The entire organization should be moving towards a common objective in a common direction.
  6. Subordination of individual interests to the general interests: The interests of one person should not take priority over the interests of the organization as a whole.
  7. Remuneration: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker's rate of pay.
  8. Centralization: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.
  9. Scalar chain: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possesses certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.
  10. Order: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.
  11. Equity: All employees should be treated as equally as possible.
  12. Stability of tenure of personnel: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.
  13. Initiative: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.
  14. 5 Espirit de corps: Management should encourage harmony and general good feelings among employees.
 
FUNCTIONS OF MANAGEMENT
Management has been described as a social process involving responsibility for economical and effective planning and regulation of operation of an enterprize in the fulfillment of given purposes. It is a dynamic process consisting of various elements and activities (Table 1.2 and Fig. 1.1). These activities are different from operative functions like marketing, finance, purchase, etc. Rather these activities are common to each and every manger irrespective of his level or status.
 
PLANNING
It is the basic function of management. It deals with chalking out a future course of action and deciding in advance the most appropriate course of actions for achievement of predetermined goals. According to KOONTZ, “Planning is deciding in advance—what to do, when to do and how to do. It bridges the gap from where we are and where we want to be”. A plan is a future course of actions. It is an exercise in problem solving and decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways and means for accomplishment of predetermined goals. Planning is necessary to ensure proper utilization of human and non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages, etc.
 
ORGANIZING
It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning, i.e. raw material, tools, capital and personnel's”. To organize a business involves determining and providing human and non-human resources to the organizational structure. Organizing as a process involves:
  • Identification of activities.
  • Classification of grouping of activities.
  • Assignment of duties.
  • Delegation of authority and creation of responsibility.
  • Coordinating authority and responsibility relationships.
6 Management is a group activity: Management is very much less concerned with individual's efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined goal of management of ABC and Co. is good refers to a group of persons managing the enterprize.
Table 1.2   Model and function of management
Model
Functions
PIE
Planning
Implementation
Evaluation
POAE
Planning
Organizing
Actuating
Evaluating
POMA
Planning
Organizing
Managing
Appraisal and control
POSDCORBE
Planning
Organizing
Staffing
Directing
Coordination
Reporting
Budgeting
Evaluation
PM
Planning
Management
 
STAFFING
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior, etc. The main purpose of staffing is to put right man on right job, i.e. square pegs in square holes and round pegs in round holes. According to Kootz and O'Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection; appraisal and development of personnel to fill the roles designed un the structure”. Staffing involves:
Manpower planning (estimating manpower in terms of searching, choose the person and giving the right place).
  • Recruitment, selection and placement.
  • Training and development.
  • Remuneration.
  • Performance appraisal.
  • Promotions and transfer.
 
DIRECTING
It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprize which sets it in motion the action 7of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inertpersonnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:
zoom view
Fig. 1.1: Functions of management
  • Supervision—implies overseeing the work of subordinates by their superiors. It is the act of watching and directing work and workers.
  • Motivation—means inspiring, stimulating or encouraging the subordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.
  • Leadership—may be defined as a process by which manager guides and influences the work of subordinates in desired direction.
  • Communications—is the process of passing information, experience, opinion, etc. from one person to another. It is a bridge of understanding.
 
CONTROLLING
It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz and O'Donell “Controlling is the measurement and correction of performance activities of subordinates in order to make sure that the enterprize objectives and plans desired to obtain them as being accomplished”. Therefore controlling has following steps:
  • Establishment of standard performance.
  • Measurement of actual performance.
  • Comparison of actual performance with the standards and finding out deviation if any.
  • Corrective action.
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MANAGEMENT VERSUS ADMINISTRATION
Administration means overall determination of policies, setting of major objectives, the identification of general purposes and lying down of broad programmers and projects. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, “Administration means guidance, leadership and control of the efforts of the groups towards some common goals” (Table 1.3).
Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some predetermined goals. In other words, it is an art of getting things done through and with the people in formally organized groups.
Table 1.3   Management vs administration
Basis
Management
Administration
Meaning
Management is an art of getting things done through others by directing their efforts towards achievement of predetermined goals
It is concerned with formulation of broad objectives, plans and policies
Nature
Management is an executing function
Administration is a decision-making function
Process
Management decides who should as it and how should he dot it
Administration decides what is to be done and when it is to be done
Function
Management is a doing function because managers get work done under their supervision
Administration is a thinking function because plans and policies are determined under it
Skills
Technical and human skills
Conceptual and human skills
Level
Middle and lower level function
Top level function
Management as both science and art: Management is both an art and a science. The above mentioned points clearly reveal that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge and art deals with the application of knowledge and skills.
9A manager to be successful in his profession must acquire the knowledge of science and the art of applying it. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ‘know’ and art teaches to ‘do’. For example, a person cannot become a good singer unless he has knowledge about various ragas and he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter, etc.).
The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit.
Management as a process: As a process, management refers to a series of inter-related functions. It is the process by which management creates, operates and directs purposive organization through systematic, coordinated and cooperated human efforts, according to George R. Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources”.
Management as an activity: Management bear the responsibility for ensuring that the organization operates to meet its objectives, taking into account the various participants, regulatory authorities and laws. Management activities include setting objectives, controlling work, reviewing results, applying corrective action and providing an environment that stimulates and motivates.
 
MANAGEMENT THEORIES
 
SCIENTIFIC MANAGEMENT THEORY (1890-1940)
Scientific management theory (1890-1940): At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The United States highly prized scientific and technical matters, including careful measurement and specification of activities and results. Management tended to be the same. Frederick Taylor developed the “scientific management theory” which espoused this careful specification and measurement of all 10organizational tasks. Tasks were standardized as much as possible. Workers were rewarded and punished. This approach appeared to work well for organizations with assembly lines and other mechanistic, reutilized activities.
Taylor developed his theory through observations and experience as a mechanical engineer. As a mechanical engineer Taylor noticed that the environment lacked work standards, bred inefficient workers and jobs were allocated to people without matching the job to the worker's skill and ability. In addition to this the relationship of the workers with the managers included many confrontations.
Over a 20 year period Taylor devised the “one best way” to do each of the jobs on the shop floor. He then concluded that prosperity and harmony for both workers and managers could be achieved by following the five Principles below:
  1. Develop a science for each element of an individual's work.
  2. Scientifically select, train and develop the worker.
  3. Heartily cooperate with the workers.
  4. Divide work and responsibility equally between managers and workers.
  5. Improve production efficiency through work studies, tools, economic incentives. Frederick W. Taylor, The Principles of Scientific Management (New York: Harper Bros., 1911)
Taylor had a simple view about what motivated people at work-money. He felt that workers should get a fair day's pay for a fair day's work, and that pay should be linked to the amount produced (e.g. piece-rates). Workers who did not deliver a fair day's work would be paid less (or nothing). Workers who did more than a fair day's work (e.g. exceeded the target) would be paid more.
The implications of Taylor's theory for managing behavior at work were:
  • The main form of motivation is high wages, linked to output.
  • A manager's job is to tell employees what to do.
  • A worker's job is to do what they are told and get paid accordingly.
Weaknesses in Taylor's approach:
  • The most obvious weakness in Taylor's approach is that it ignores the many differences between people. There is no guarantee that a “best way” will suit everyone.
  • Secondly, whilst money is an important motivation at work for many people, it isn't for everyone. Taylor overlooked the fact that people work for reasons other than financial reward.
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BUREAUCRATIC MANAGEMENT THEORY (1930-1950)
Secondly, the Administrative/Bureaucratic Management Theory was established by Henri Fayol. He is also the pioneer to what today is universally known as the four functions of management. Fayol also identified 14 principles of management.
 
HUMAN RELATIONS MOVEMENT (1930-TODAY)
Eventually, unions and government regulations reacted to the rather dehumanizing effects of these theories. More attention was given to individuals and their unique capabilities in the organization. A major belief included that the organization would prosper if its workers prospered as well. Human Resource departments were added to organizations. The behavioral sciences played a strong role in helping to understand the needs of workers and how the needs of the organization and its workers could be better aligned. Various new theories were spawned, many based on the behavioral sciences (some had name like theory “X”, “Y” and “Z”).
 
MANAGERIAL SKILLS
 
TECHNICAL SKILLS
As the name of these skills tells us, these are skills about technical of fulfillment of tasks. These are not only for working on machines, but also can be skills to performing sales, about marketing and so on. For example, some individual work in a sales department and have skills about sales that were developed through education and experience. This person is perfect to become some day sales manager because have great technical skills from sales. Technical skills are most needed for first-level managers, but for the top managers, there does not need for this type of skills. As we go through a hierarchy the bottom to upper levels the technical skills lose their signification
 
CONCEPTUAL SKILLS
Conceptual skills are ability or knowledge of managers for abstract thinking that mean to see the whole through analysis and diagnose of different states and to predict the future state of the business as a whole. Why is needed this skill? Firstly, one business is composed from several business elements as selling, marketing, finance, production… All of these business elements have different objects even completely opposed as marketing and production.
12This skill helps top managers to look outside from single objects of business elements and to take decisions that will bring fulfilment of overall business objects. Conceptual skills are most needed for top managers, little for midlevel managers, and it is not needed for first-level managers. As we go from a bottom of the managerial hierarchy to the top, significance of these skills is increasing.
 
HUMAN SKILLS
Human skills are knowledge of managers to work with people. The most important task for managers is to work with people. Without people, there is not needed for management and managers. These skills will enable managers to become leaders, to motivate employees for better accomplishment of their tasks, to make more effective use of human potential in the services. These are most important skills for managers. Human skills are needed equally on all hierarchical levels of management.
 
LEVELS OF MANAGEMENT
The term “Levels of Management” refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority and status enjoyed by any managerial position. The levels of management can be classified in three broad categories: -
  • Top level/administrative level
  • Middle level/executory
  • Low level/supervisory/operative/first-line managers. Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:
 
TOP LEVEL OF MANAGEMENT
It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.
The role of the top management can be summarized as follows:
  • Top management lays down the objectives and broad policies of the enterprise.
  • It issues necessary instructions for preparation of department budgets, procedures, schedules, etc.
  • It prepares strategic plans and policies for the enterprise.
  • It appoints the executive for middle level, i.e. departmental managers.
  • It controls and coordinates the activities of all the departments.
  • 13It is also responsible for maintaining a contact with the outside world.
  • It provides guidance and direction.
  • The top management is also responsible towards the shareholders for the performance of the enterprise.
 
MIDDLE LEVEL OF MANAGEMENT
The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as They execute the plans of the organization in accordance with the policies and directives of the top management.
  • They make plans for the subunits of the organization.
  • They participate in employment and training of lower level management.
  • They interpret and explain policies from top level management to lower level.
  • They are responsible for coordinating the activities within the division or department.
  • It also sends important reports and other important data to top level management.
  • They evaluate performance of junior managers.
  • They are also responsible for inspiring lower level managers towards better performance.
 
LOWER LEVEL OF MANAGEMENT
Lower level is also known as supervisory/operative level of management. It consists of supervisors, foreman, section officers, superintendent, etc. According to RC Davis, “Supervisory management refers to those executives whose work has to be largely with Personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include
  • Assigning of jobs and tasks to various workers.
  • They guide and instruct workers for day to day activities.
  • They are responsible for the quality as well as quantity of production.
  • They are also entrusted with the responsibility of maintaining good relation in the organization.
  • They communicate workers problems, suggestions, and recommendatory appeals, etc. to the higher level and higher level goals and objectives to the workers.
  • 14They help to solve the grievances of the workers.
  • They supervise and guide the subordinates.
  • They are responsible for providing training to the workers.
  • They arrange necessary materials, machines, tools, etc. for getting the things done.
  • They prepare periodical reports about the performance of the workers.
  • They ensure discipline in the enterprise.
  • They motivate workers.
  • They are the image builders of the enterprise because they are in direct contact with the workers.
 
EMERGING CHALLENGES FOR MANAGEMENT
The following are the emerging challenges for management in the dynamic environment of twenty—first century:
Globalization: mangers will be involved in the management of global organizations. They will need to think globally and act locally. Strategic alliances also pose challenges to management.
Technology: The new economy will be based on digital revolution. The developments in information technology will provide greater access to information. Management will need manage changing technology effectively. Biotechnology and nanotechnology revolution also pose challenge for management.
Quality: management will need to cope with continuous improvements in product quality. Improving quality of work life also pose a challenge.
Social responsibility: management will pursue long-term goals that are good for the society. Environmental issues will be important. Ethical conduct will be a necessary. Managing social responsibility poses challenge to management.
Cultural sensitivity: Cultural values will change. Cross-cultural influences will increase. Management of multiculturist poses a challenge to managers.
Human resources management: Management needs to deal with diversified consisting of knowledge workers, bimodal workforce, work teams, virtual teams and contingent employees. Dealing with diversity requires visionary leadership on the part of managers. The need is increasing to develop human competencies.
Change management: managers will face the challenge of managing change. They will need to be aware of specific changes, factors contributing to them, and their likely impact on the practice of manage.