MANAGEMENT THEORIES
employees was highly profitable for management and would
I. CLASSICAL SCHOOL
 Traditional or classical management focuses on
efficiency and includes bureaucratic, scientific and
administrative management.
Bureaucratic management relies on a rational set of structuring
guidelines, such as rules and procedures, hierarchy, and a clear
division of labor.
Max Weber
 Efficiency in bureaucracies comes from:
(1.) Clearly defined and specialized functions;
(2.) Use of legal authority;
(3.) Hierarchical form;
(4.) Written rules and procedures;
(5.) Technically trained bureaucrats;
(6.) Appointment to positions based on technical expertise;
(7.) Promotions based on competence;
(8.) Clearly defined career paths.
Scientific management focuses on the "one best way" to do a
job.
Frederick Taylor (1856-1915)
 To improve productivity, Taylor examined the time and
motion details of a job, developed a better method for
performing that job, and trained the worker.
 Father of Scientific Management
Frank (1868-1924) and Lillian (1878-1972) Gilbreth
 Believed it was possible to design work methods whose
times could be estimated in advance, rather than relying upon
observation-based time studies. Henry Gantt (1861-1919)
 Developed the Gantt chart, which is used for
scheduling multiple overlapping tasks over a time period.
 Focused on motivational schemes, emphasizing the
greater effectiveness of rewards for good work (rather than
penalties for poor work).
Administrative management emphasizes the flow of information
in the operation of the organization.
Henri Fayol (1841--1925),
 His five functions of managers were plan, organize,
command, coordinate, and control.
 His fourteen principles of management included
division of work, authority and responsibility, discipline, unity
of command, unity of direction, subordination of individual
interests to general interests, renumeration of personnel,
centralization, scalar chain, order, equity, stability of tenure
of personnel, initiative, and esprit de corps (union is strength).
Mary Parker Follett's concepts
 the universal goal
 the universal principle
 Law of the Situation
II. HUMAN RESOURCES APPROACH
 Managers get things done by working with people
 Makes up the field of contemporary view on
motivation, leadership, teamwork, and conflict management
Robert Owen
o Chided factory owners for treating their
equipment better than they did their workers
o Claimed that showing concern for
relieve human misery
o Robert Owen
o Idealistic workplace- work hours would be
regulated, child labor would be outlawed, public education
would be provided, meals at work would be furnished, and
businesses would be involved in community projects.
o Remembered for his commitment to
reducing the suffering of the working class
Hugo Munsterberg
o Industrial Psychology- the scientific study
of individuals at work to maximize their productivity and
adjustment.
o Suggested the use of psychological test to
improve employee selection, the value of learning theory in
the development of training methods, the study of human
behavior in order to understand what techniques are most
effective foe motivating workers.
o Hugo Munsterberg
o Saw a connection between scientific
management and industrial psychology
o Both sought increased efficiency through
scientific work analyses and through better alignment of
individual skills and abilities with the demands of various
jobs.
Mary Parker Follett
o Thought that organizations should be based
on a group ethic rather than individualism
o Argued that individual potential remained
only a potential until released through group association
o The implication was that managers and
workers should view themselves as partners—as part of a
common group
o Managers should rely more on their
expertise and knowledge to lead subordinates rather than
the formal authority of their position
Chester Bernard
o Believed that organizations were made up
of people who have interacting social relationships
o Manager’s role: communicate and
stimulate subordinates to high levels of effort
o Success is depended on obtaining
cooperation from its people
o Success also is depended on maintaining
good relations with external groups and with external
institutions with whom the organization regularly interacted
o Managers had to examine the environment
and adjust the organization to maintain a state of
equilibrium
The Hawthorne Studies
 Conducted by Western Electric industrial engineers
to examine the effect of various illumination levels on worker
productivity
 Mayo concluded that behavior and sentiments
were closely related, that group influences significantly
affected individual behavior, that group standards established
individual workers output, and that money was less a factor in
determining output than group standards.
 Stimulated an interest in human factors in
organizations
The Human Relations Movement
 Believed in the importance of employee
satisfaction—a satisfied worker was believed to be a productive
worker
 Unshakeable optimism about people’s capabilities
Dale Carnagie
o Wrote How to Win Friends and Influence
People
o The way to success was through winning
the cooperation with others
o Success Meant: (1)making others feel
important through the sincere appreciation of their efforts;
(2)making good first impression; (3)winning people to your
way of thinking by letting others do the talking, being
sympathetic, and “never telling a man he is wrong”
(4)changing people by praising good traits and giving the
offender the opportunity to save face
Abraham Maslow
o Proposed theoretical hierarchy of human
needs: physiological, safety, social, esteem, and self-
actualization
o Managers who accepted Maslow’s hierarchy
attempted to change their organizations and management
practices so employees’ needs could be satisfied.
Douglas McGregor
o Proposes Theory X and Theory Y
o Theory X: essentially negative view of
people—little ambition, dislike work, avoids responsibility,
and needs to be closely directed to work effectively
o Theory Y: positive view—people can
exercise self directness, accept responsibility and consider
work to be as natural as rest or play
o Believed that Theory Y assumptions best
captured the true nature of workers and should guide
management practice
o Behavioral Science Theorist
o Encompasses a group of psychologists and
sociologists who relied on the scientific method for the study
of organizational behavior
o Engage in objective research of human
behavior in organizations
III. CONTEMPORARY/MODERN THEORIES
Contingency Theory
 asserts that when managers make a decision, they 
must take into account all aspects of the current situation and
act on those aspects that are key to the situation at hand
 the approach that “it depends.”
 For example, the continuing effort to identify the 
best leadership or management style might now conclude that
the best style depends on the situation. If one is leading troops
in the Persian Gulf, an autocratic style is probably best. If one 
is leading a hospital or university, a more participative and
facilitative leadership style is probably best.
 It calls for fitting the structure of the organization
to various possible or chance events. It questions the use of
universal management practices and advocates using
traditional, behavioral, and systems viewpoints independently
or in combination to deal with various circumstances.
 Applying the contingency viewpoint requires the
development and use of conceptual skills. Managers must be
able to diagnose and understand a situation thoroughly - to
determine which approach is most likely to succeed - before
making a decision. Thereafter, the manager must apply a
variety of other managerial skills to ensure that the decision is
carried out in the most effective and efficient way possible.
 Among the most important of these managerial
skills are:
o decision-making
o inter-personal skills
o communication
o negotiating skills
o delegating
Systems Theory
 Systems theory has had a significant effect on
management science and understanding organizations. First,
let’s look at “what is a system?”
 A system is a collection of part unified to
accomplish an overall goal. If one part of the system is
removed, the nature of the system is changed as well. For
example, a pile of sand is not a system. If one removes a sand
particle, you’ve still got a pile of sand. However, a functioning
car is a system. Remove the carburetor and you’ve no longer
got a working car
 Four aspects of the systems:
1. inputs
2. processes
3. outputs
4. outcome
 Let’s look at an organization.
o Inputs would include resources such as
raw materials, money, technologies and people.
o These inputs go through a process
where they’re planned, organized, motivated and
controlled, ultimately to meet the organization’s goals.
o Outputs would be products or services
to a market.
o Outcomes would be, e.g., enhanced
quality of life or productivity for customers/clients,
productivity.
 Feedback would be information from human
resources carrying out the process, customers/clients using the
products, etc. Feedback also comes from the larger
environment of the organization, e.g., influences from
government, society, economics, and technologies.
 Subsystems are systems within a broader system.
 Interdependent subsystems (such as production,
finance, and human resources) work toward synergy in an
attempt to accomplish an organizational goal that could not
otherwise be accomplished by a single subsystem.
Systems develop synergy. This is a condition in
which the combined and coordinated actions of the parts of a
system achieve more than all the parts could have achieved
acting independently
The Systems Viewpoint of Management recognises
that an organisation is an association of interrelated and
interdependent parts or sub-systems.
A manager with a systems view of management
will only make decisions after identifying and analysing how
other managers, departments, or customers might be affected
by the decisions.
Chaos Theory
 A new theory (or some say “science”), chaos
theory, recognizes that events indeed are rarely controlled.
Many chaos theorists (as do systems theorists) refer to
biological systems when explaining their theory. They suggest
that systems naturally go to more complexity, and as they do
so, these systems become more volatile (or susceptible to
cataclysmic events) and must expend more energy to maintain
that complexity. As they expend more energy, they seek more
structure to maintain stability. This trend continues until the
system splits, combines with another complex system or falls
apart entirely. Sound familiar? This trend is what many see as
the trend in life, in organizations and the world in general.
MANAGEMENT FUNCTIONS
 Planning
 Organizing
 Directing
 Controlling
Planning
 Occurs in different ways and at all levels
 Setting organizational goals
 Development of strategies for achieving the
goals of the organization Standards, or levels of equality, that
need to be met in completing the tasks.
 3 Kinds:
o Strategic Planning - long-range
o Tactical Planning - short-range
- very detailed strategies
o Contingency Planning - alternative
courses of action when the primary plans don’t achieve
the goals
Organizing
 The way the organization allocates resources,
assigns tasks, and goes about accomplishing its goals
 Shown by an organizational chart
Directing
 Supervising or leading workers to accomplish
the goals of the organization
 Involves:
 making assignments
 assisting workers to carry out assignments
 interpreting organizational policies
 informing workers of how well they are
performing
Controlling
 Evaluation activities that managers must
perform
 Process of determining if the company’s goals
and objectives are being met
THE NURSE MANAGER IN THE HEALTH FACILITY
Nurse Managers should:
 Challenge contemporary nursing management
 Self assess & plan action for personal leadership
development
 Lean about staff recruiting, retention, performance
development, & performance management
 Have knowledge about financial management &
budgeting
 Develop skill in facilitating change, conflict
management, & negotiation
Classifications
1. Public Health Nurse Manager
o Directs, manages, supervises, and
coordinates program development, fiscal management of
programs and grants, and activities of the District’s health
care programs
o Collaborates, contacts and contracts
for assigned activities with other health care professionals
and outside agencies
o Recommends new services and
programs and their implementation
o Provides highly responsible and
complex staff assistance to the Director of Clinics and
Nursing Services
2. Clinical Nurse Manager
o Responsible for providing direction and
clinical supervision of patient care in a particular assigned
area in the hospital
o To be a professional caregiver with
clinical & supervisory experience that promotes an
atmosphere that is responsive to the needs of the
patients, nursing & medical staff
o Promotes the philosophy, goals, &
objectives of the hospital
o Prohibits the spreading of gossip or
conversations that promote discord of employees &
physicians
Levels
1. First-line Manager
o Oversees operative employees
o Deals with immediate problems in the
unit’s daily operations, with organizational needs & with
personal needs of the employees
o Motivates the staff to achieve
organizational goals
o Represents the staff to the upper
administration & vice-versa
o Usually have 24-hour responsibility for
the management of a unit or area within a health care
facility
2. Middle Manager
o Coordinates with the efforts of lower
levels of hierarchy & is the channel between lower & top-
level managers
o Carries out day-to-day operations but
are still involved in some long term planning & in
establishing unit policies
3. Top Manager
o Looks at the organization as a whole,
coordinates internal & external influences
o Determines the organizational
philosophy
o Sets policies
o Creates goals & priorities for resource
allocation
o Not as involved in routine daily
operations as are lower level managers
 Charge Nurse
 o Liaison to the nurse manager, assisting
in shift-by-shift coordination & promotion of quality
patient care as well as efficient use of resources
o Often troubleshoots problems & assists
other staff members in decision making
o Role model, mentor, educator
o Usually has considerable influence
with the staff & may actually have more informal power
that the manager

 Staff Nurse
o Not formally a manager
o Supervises others to ensure safe,
quality patient care

Mintzberg’s Behavioral Description

1. Interpersonal Roles
a. Figurehead – Performs
ceremonial duties
b. Leader – Defines work
environment & is responsible for subordinate’s work
c. Liaison – Expands outside
information sources & networks
2. Informational Roles
a. Monitor – Internally seeks
information about organization
b. Disseminator – Shares
information within organization
c. Spokesperson – Shares
information outside organization
3. Decisional Roles
a. Entrepreneur – Seeks ways to
solve problems / improve organization
b. Disturbance handler –
Responds to problems
c. Resource allocator – Manages
time & coordinates efforts
d. Negotiator – Mediates
resources / decisions with outside forces

Group C, Papagmarka
[ Krys – Lors – Ado – Prec – Jierah – AR – Jayson – Fiona – Giselle - Regine –
Aileen ]