NCM119: NURSING LEADERSHIP AND MANAGEMENT

OVERVIEW OF ORGANIZATION AND MANAGEMENT

Instructor: Gloria P. De Leon, RN, MAN, EdD
August 2023

MANAGEMENT THEORIES 3. Capabilities of workers should be developed through training.

4. The traditional ‘boss’ concept should be eliminated.
WHAT ARE MANAGEMENT THEORIES? Taylor developed the following four principles of scientific
management for improving productivity:
͕ Management theories are a collection of ideas that 1. Science, not rule-of-thumb. Old rules-of-thumb should be
recommend general rules for how to manage an organization or supplemented by a scientific approach to each element of a
business. person’s work or replace working by “rule of thumb,” or a simple
͕ They address how supervisors implement strategies to habit and common sense, and instead use the scientific method
accomplish organization goals and how they motivate to study work and determine the most efficient way to perform
employees to perform at their highest ability. specific tasks.
͕ Typically, leaders apply concepts from different management 2. Scientific selection of the worker. Organizational members
theories that best suit their employees and company culture. should be selected based on some analysis, and then trained,
Although many management theories were created centuries taught and developed. Rather than simply assign workers to just
ago, they still provide beneficial frameworks for leading teams any job, match workers to their jobs based on capability and
in the workplace and running businesses today. motivation, and train them to work at maximum efficiency.
3. Management and labor cooperation rather than conflict.
BENEFITS OF MANAGEMENT THEORIES Management should collaborate with all organizational members
so that all work can be done in conformity with the scientific
There are several reasons why leaders should study and apply principles developed. Monitor work performance and provide
established management theories in the workplace including: instructions and supervision to ensure that they are using the
1. Increased Productivity – using these theories, leaders learn most efficient way of working.
how to make the most of their team members, improving 4. Scientific training of the worker. Workers should be trained by
performances and increasing productivity. experts using scientific methods. Allocate the work between
2. Simplified Decision-Making – management theories give managers and workers so that the managers spend their time
leaders strategies that speed up the decision-making planning and training, allowing the workers to perform their tasks
process helping those leaders be more effective in their roles. efficiently.
3. Increased Collaboration – leaders learn how to encourage
team member participation and increase collaboration among Max Weber’s Bureaucratic Management Theory
an entire group. Considering the organization as a segment of broader society, Max
4. Increased Objectivity – management theories encourage Weber (1947) based the concept of the formal organization on the
leaders to make scientifically proven changes rather than following principles:
relying on their judgment. 1. Structure in the Organization – positions should be arranged in
a hierarchy, each with a particular, established amount of
MANAGEMENT THEORIES responsibility and authority.
2. Specialization Tasks – should be distinguished on a functional
͕ Classical organization theories (Taylor, 1947; Weber, 1947; basis, and then separated according to specialization, each
Royal, 1949) deal with formal organization and concepts to having a separate chain of command.
increase management efficiency. 3. Predictability and Stability – the organization should operate
͕ Taylor presented scientific management concepts, Weber gave according to a system of procedures consisting of formal rules
the bureaucratic approach, and Foyal developed the and regulations.
administrative theory of the organization. 4. Rationality Recruitment and Selection of Personnel should
͕ They all contributed significantly to the development of be Impartial – democracy, responsibility, and authority should be
classical organization theory. recognized by designations and not by persons.

Six principal characteristics of the Bureaucratic Management

Frederick W. Taylor’s Scientific Management Theory
Theory:
͕ Scientific management is a theory of management that analyzes 1. Specialization. The workforce is assigned duties and all given
and synthesizes workflow. specific roles. Management hierarchy has total authority, and
͕ Its main objective is improving economic efficiency, especially assignments and advancements are based on merit.
labor productivity. 2. Formalized Rules. Establish policies and procedures that apply
͕ One of the earliest attempts to apply science to the to managers and lower-level positions within the organization.
engineering of processes and to management. 3. Hierarchical Structure. Structure details all management levels
͕ Scientific management is sometimes known as Taylorism after and establishes who reports to who based on the hierarchy.
F.W. Taylor. 4. Well-Trained Employees. Management should be experts in
͕ The scientific management approach developed by Taylor is their field and specialized in their positions. All lower-level
based on the concept of planning of work to achieve employees should also be trained and specialized based on what
efficiency, standardization, specialization, and simplification. position they hold in the organization.
͕ Acknowledging that the approach to increased productivity was 5. Managerial Dedication. Management must be fully dedicated to
through mutual trust between management and workers. their position and the organization.
6. Impartiality of Management. Management must follow the
Taylor suggested that to increase this level of trust: established rules and keep private businesses separate from their
1. The advantages of productivity improvement should go to position.
workers.
2. Physical stress and anxiety should be eliminated as much as ͕ Weber’s theory is infirm on account of dysfunction such as
possible. rigidity, impersonality, displacement of objectives, limitation of

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 categorization, self-perpetuation and empire building, cost of 9. Scalar Chain. If two members who are on the same level of
controls, and anxiety to improve status. hierarchy have to work to accomplish a project, they need not
follow the hierarchy level, but can interact with each other on a
Henry Fayol’s Administrative Management Theory “gangplank” if acceptable to higher officials.
͕ The elements of administrative theory (Fayol, 1949) relate to ͕ Authority should move from the top down in order to
accomplishment of tasks, and include principles of management, maintain unity of command, but lateral communication is
the concept of line and staff, committees, and functions of possible if superiors are aware of and support it.
management. ͕ The line of authority should be as short as possible.
͕ It is an error to depart needlessly from the line of authority,
Henry Fayol’s 14 Principles of Management: but it is an even greater one to keep to it when detriment to
1. Division of Work or Specialization. This increases productivity the business ensues.
in both technical and managerial work. Specialization helps to 10. Order. The organization has a place for everything and
produce more and better work with the same effort by reducing everyone who ought to be so engaged.
the number of objects to which attention and effort must be ͕ Materials must have a place appointed for each thing and
directed. each thing must be in its appointed place. Places should
2. Authority and Responsibility. These are imperative for an also be suitably arranged and well chosen. This is to avoid
organizational member to accomplish the organizational useless handling, lost time, and risk of mistakes.
objectives. ͕ In addition, there should be an appointed place for every
͕ Authority is not to be conceived of apart from responsibility, employee and each employee is suitable for their place.
that is apart from sanction–reward or penalty–which goes Charts or plans are recommended in order to organize
with the exercise of power; in other words, having and materials and people.
exercising authority comes with responsibility and 11. Equity, Fairness. Justice and equity should prevail in the
consequences. organization. Managers should strive to instill a sense of equity
͕ Useful actions of personnel have to be encouraged and their throughout their chain of command and use of equity and equality
opposite discouraged. of treatment when dealing with employees.
͕ Any sanction delivered must take into account the action 12. Stability of tenure of personnel. Job security improves
itself, the attendant circumstances, and potential performance. An employee requires some time to get used to
repercussions, and requires high moral character, new work and do it well.
impartiality, and firmness. ͕ Instability of tenure is at one and the same time cause and
3. Discipline. Members of the organization should honor the effect of bad running.
objectives of the organization. They should also comply with the ͕ In the case of personnel, they should be in a position long
rules and regulations of the organization. enough to have time to render worthwhile service; if not, the
͕ Fayol states that any problem with discipline mostly results work will never be properly done. But , like all the other
from the ineptitude (lack of skill or ability) of the leaders. principles, it is a question of proportion; tenure can also be
͕ Agreements between management and personnel should too long.
be clear and, as far as possible, afford satisfaction to both 13. Initiative. This should be encouraged and stimulated. It is
sides. essential to encourage and develop initiative, but to also ensure
4. Unity of Command. This means taking orders from and being respect for authority and for discipline.
responsible to only one superior. ͕ Other things being equal, a manager able to permit the
͕ For any action whatsoever, an employee should receive exercise of initiative on the part of subordinates is infinitely
orders from one superior only. Should it be violated, superior to one who cannot do so.
authority is undermined, discipline is in jeopardy, order 14. Esprit de Corps. Pride, allegiance, and a sense of belonging are
disturbed, and stability threatened. essential for good performance. Union is strength.
͕ This principle is emphasized as being especially ͕ Harmony, union among the personnel of a concern, is great
important. strength in that concern and effort should be made to
5. Unity of Direction. Members of the organization should jointly establish it.
work toward the same goal.
͕ A group of activities with the same objective should have
one plan and one person in charge. This is essential to
unity of action, coordination of strength, and focusing of
effort.
6. Subordination of individual interest to general interest. The
interest of the organization should not become subservient
to individual interests or the interest of a group of employees.
͕ Everyone should work in the combined best interests of
everyone involved rather than in their own best interests.
͕ Managers can influence positive behavior through firmness
and good example, agreements as fair as possible, and
constant supervision.
7. Remuneration of Personnel. This can be based on diverse
factors such as time, job, piece rates, bonuses, profit-sharing or
non-financial rewards.
͕ Remuneration is dependent on a number of factors, but it
should be fair and, as far as possible, afford satisfaction
both to the personnel and firm.
8. Centralization. Management should use an appropriate blend of
both centralization and decentralization of authority and decision-
making.
͕ The question of centralization and decentralization is a
matter of finding the optimum degree for the particular
decision or task and capacity and/or preferences of the
manager.