Theories of management

1. PRESENTED BY,
Prof. Mr. Ramar. G,
Psychiatric Nursing.

2. THEORIES OF MANAGEMENT
A. SCIENTIFIC MANAGEMENT THEORY:
Principles: the scientific management focuses on
Observation
The measurement of outcome
The pioneers of scientific management are:
1. Frederick W. Taylor (1856-1915)
2. Gantt Henry I. Gantt (1861-1910)
3. Emerson (1853-1936)

3. 1) Frederick W. Taylor (1856-1915):
 Taylor is recognized as father of scientific management.
 He conducted Time-And-Motion studies to time the workers,
Analyze their movements and set their standards.
 He used stop watches.
 He applied the principles of observation, measurement and
scientific comparison to determine the most effective way to
accomplish a task.
Achievements of Taylor:
1) He trained his workers to follow the time to complete the task
given. The most productive workers were hired even when they
were paid an incentive or wage.
2) Labour costs per unit were reduced as a result.
3) Responsibilities of management were separated from the
functions of the workers.
4) Developed systematic approach to determine the most efficient
means of production.
5) 5. He considered management function is to plan.

4. 6. Working conditions and methods to be standardized to
maximize the production.
7. It was the management‘s responsibility to select and train
the workers rather than allow them to choose their own jobs
and train by themselves.
8. He introduced an incentive plan to pay the workers
according to the rate of production to minimize workers
dissent and reduce resistance to improved methods.
9. Increased production and produce higher profits.
The effect of time- motion study of Taylor:
1. Reduced wasted efforts
2. Set standards of performance.
3. Encouraged specialization and stressed on the selection of
qualified workers who could be developed for a particular
job.

5. 2) Gantt Henry I. Gantt (1861-1910):
Gantt was concerned with problems related to efficiency. He
contributed to scientific management by refining the previous
work of Taylor than introducing new concepts.
1. He studied the amount of work planned or completed on one
axis to the time needed or taken to complete a task on the other
axis.
2. Gantt also developed a task and bonus remuneration plan
whereby workers received a guaranteed day‘s wages plus a
bonus for production above the standard to stimulate higher
performance.
3. Gantt recommended to select workers scientifically and
provided with detailed instructions for their tasks.
4. He argued for a more Humanitarian approach by management,
placing emphasis on service rather than profit objectives.
5. He recognized useful non –monetary incentives such as job
security and encouraging staff development.

6. 3) Emerson (1853-1936):
His emphasis was on conservation and organizational goals
and objectives.
He defined principles of efficiency related to:
1. Interpersonal relations and to system in management.
2. Goals and ideas should be clear and well-defined as the
primary objective is to produce the best product as
quickly as possible at minimal expense.
3. Changes should be evaluated-management should not
ignore ―common sense by assuming that big is
necessarily better.
4. Competent counsel ―is essential.

7. 4. Charles Babbage (1792-1871):
 Charles Babbage , a scientist mainly interested in
mathematics, contributed to the management theory by
developing the principles of cost accounting and the
nature of relationship between various disciplines.
 Charles Babbage laid the foundation for much of the
work that later come to be known as scientific
management.
 He concentrated on production problems and stressed the
importance.
1) Division and assignment of work on the basis of skill and
2) The means of determining the feasibility of replacing
manual operations with automatic machinery.

8. B. CLASSIC ORGANIZATIONAL THEORY:
1. Henry Fayol (1841-1925):
Fayal was known as father of the management process
concerned with management of production shops. He
studied the functions of managers and concluded that
management is universal.
Functions of management:
1. Planning policies, programs and procedures.
2. Organization based on hierarchy of authority
3. Directing the business in order to gain optimum return
from all workers.
4. Coordination, signifying harmony in activities of the
organization and to facilitate its working
5. Control, the errors of the functionaries of organization
and ensure that such errors do not occurs.

9. Fayol divided all the work carried out in a business
enterprise into the following categories.
1. Technical activities (production, manufacture, etc)
2. Commercial activities (buying, selling, personnel, and
industrial relations)
3. Financial activities (to have optimum use of capitals)
4. Security activities (production of property and persons)
5. Managerial activities (planning organizing, commanding,
directing, coordination control, communication,
motivation .leadership)

10. Principles by which good organization can be recognized.
They are as follows:
1. The number of organization units should be the minimum
needed to cover the major enterprise functions.
2. All related functions should be combined within one unit.
3. The number of levels of authority should be kept to a
minimum.
4. There should be room for initiative with the limit of his
assigned authority.
5. Functions should be assigned so as to minimize cross
relations between organizational units.
6. No more employees should report to a superior than he
can effectively direct and coordinate.

11. 2) Max Webber theory (1864-1920):
 He is German psychologist. He earned the title of father of
organizational theory. His emphasis was on rules instead of
individuals and on competencies over favoritism.
 His conceptualization was on bureaucracy, structure of
authority that would facilitate the accomplishment of
organizational objectives.
The three basis for authority:
1. Traditional authority, which is accepted because it seems
things have always been that way such as the rule of a king in
a monarchy.
2. Charisma, having a strong influential personality.
3. Rational legal authority which is considered rational in formal
organizations because the person has demonstrated the
knowledge, skills and ability to fulfill the position.

12. 3) James Mooney Theory (1884-1957):
Moony believed that management to be the technique of
directing people and organization the technique of relating
functions.
Organization is managements responsibility.
Four universal principles:
1. Coordination and synchronization of activities for the
accomplishment of goal.
2. Functional affects the performance of one‘s job
description.
3. Scalar process organizes level of commands.
4. Arrange authority in to a higher Archie. Consequently
people get their right to command from their position in
the organization.

13. C. HUMAN RELATION THEORY:
The human relations movement began in 1940s.
 Focused on the effect that the individuals have on the
success or failure of an organization.
 Classic organization and management theory concentrated
on the physical environment fail to analyze the human
element.
Instead of concentrating on the organizations structure,
managers encourage workers to develop their potentials and
help them meet their needs for
 Recognition
 Accomplishment
 Sense of belonging

14. 1). Follett theory (1868-1933):
1. Follett stressed the importance of coordinating the
psychological and sociological aspects of management in
1920s.
2. She perceived the organization s a social system and
management as a social process.
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.

15. 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.

16. 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.

17. 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.

18. According to theory X
1. Most people want to be directed and to avoid
responsibility because they have little 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.

19. 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.

20. 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.
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.

21. 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:

22. 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.

23. 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.

24. 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.
 There is a great deal communication- upward, downward,
and later that is accurate and received with open mind.

25. 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 further classified as
the three streams viz:
1. Quantitative approach
2. System approach
3. Contingency approach

26. 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.

27. 3. . Contingency approach:
 The contingency approach can be described as the
behavioural approach.
 Contingency theory does not prescribe the application of
certain management principles 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 degree of uncertainty in any given
situation.
 The role of management in the contingency approach is to
develop an appropriate management solution for any
given organizational environment.
 It is principally directed at the management practitioner
seeking to control a distinct Organizational environment.

28. 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
in the real world and different disciplines with similarities
could be developed into a general systems 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.

29. Luther Gulick:
He was influenced by Taylor and Fayol. He used Fayal‘s five
elements of administration viz. Planning, Organizing,
Command, Coordination and Control as a frame work for
his neutral principles.
He condensed the duties of administration into a famous
acronym “POSDCORB”.
Each letter in the acronym stands for one of the seven
activities 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 defined objective.

30.  Staffing (S): the whole personnel function of bringing in
and training the staff, and maintaining favourable
conditions of work.
 Directing (D): continuous task of making decisions and
embodying them in specific and general orders and
instructions, and serving as the leader of the enterprise.
 Coordinating (CO): all important duties of interrelating
the various parts of the work.
 Reporting (R): keeping the executive informed as to what
is going on, which includes keeping himself and his
subordinates informed through records, research and
inspection.
 Budgeting (B): all that goes with budgeting in the form of
fiscal planning, accounting and control.

31. 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

32. 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 a purpose.
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.

33. 4. Critical theory versus critical thinking:
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.
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.

34. 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
1. Hierarchical structure of importance from the lowest to
highest
2. Human behaviour is purposeful and is motivated by
need satisfaction.
3. Human needs are never completely satisfied

35. 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.

36. Douglas McGregor (1906-1964)
 McGregor is the other major theorist associated with the
Human Relations School of management.
 McGregor believes there are two basic kinds of managers.
One type of manager, Theory X, has a negative view of
employees assuming they are lazy, untrustworthy and
incapable of assuming responsibility while the other type
of Manager,
 Theory Y, assumes employees are trustworthy and
capable of assuming responsibility having high levels of
motivation.

37. Herzberg’s two factor theory:
This theory was developed in 1959.It is based on realisation
that work motivation and jobsatisfaction 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 job satisfaction, of
employees, which are‖ hygiene‖ factors.
Whereas factors like recognition of work done, status,
opportunities for growth, challenging task, play an
important role in creating work motivation for employees,
which are the motivation factors. ltter, many authors
interpreted that all the motivation factors described by
Herzberg do not give equal amount of satisfaction to all
employees.