CONCEPT, TYPES, PRINCIPLES AND TECHNIQUES, THEORIES AND MODELS OF MANAGEMENT

CONCEPT, TYPES, PRINCIPLES
AND TECHNIQUES, THEORIES
AND MODELS OF MANAGEMENT
PRESENTED BY:
MISS. SHWETA SHARMA
M.SC. NURSING II YEAR
AIIMS, JODHPUR

INTRODUCTION
• Management is required in all kinds of
organisations.
• Successful organizations achieve their
goals by following a deliberate process
called ‘management’.
• Management consists of a series of
interrelated functions that are
performed by all managers.

CONCEPT OF MANAGEMENT
• According to Harold Koontz
“Management is the art of
getting things done through and
with people in formally
organized groups”.

• According to Harold Koontz and
Heinz Weihrich, “Management is
the process of designing and
maintaining an environment in
which individuals, working
together in groups, efficiently
accomplish selected aims.”

• According to Robert L. Trewelly and M.
Gene Newport, “Management is
defined as the process of planning,
organising, actuating and controlling an
organisation’s operations in order to
achieve coordination of the human and
material resources essential in the
effective and efficient attainment of
objectives.”

• According to Kreitner,
“Management is the process of
working with and through others
to effectively achieve
organisational objectives by
efficiently using limited resources
in the changing environment.”

IMPORTANT TERMS
• Process: Primary functions or activities that management
performs to get things done. These functions are planning,
organizing, staffing, directing and controlling.
• Effectiveness: Concerned with the end result. It basically means
finishing the given task, completing activities and achieving goals.
• Efficient: Doing the task correctly and with minimum cost.
Management is concerned with the efficient use of input resources
which ultimately reduce costs and lead to higher profits.

CHARACTERISTICS OF MANAGEMENT
• Management is a goal-oriented process
• Management is all pervasive
• Management is multidimensional
Management of work
Management of people
Management of operations

• Management is a continuous process
• Management is a group activity
• Management is a dynamic function
• Management is an intangible force

TYPES OF MANAGEMENT
• Strategic Management
• Sales Management
• Marketing Management
• Public Relations
• Operations Management
• Supply Chain Management
• Procurement Management

• Financial & Accounting Management
• Human Resources Management
• Information Technology Management
• R&D Management
• Engineering Management
• Program Management
• Project Management
• Risk Management

• Change Management
• Quality Management
• Innovation Management
• Design Management
• Facility Management
• Knowledge Management

CONCEPT, TYPES, PRINCIPLES AND TECHNIQUES, THEORIES AND MODELS OF MANAGEMENT

STABILITY OF TENURE OF PERSONNEL

TECHNIQUES OF MANAGEMENT
1.Detection: To find out what is happening or discover something,
e.g. what is wrong.
Techniques: Input-output analysis, attitude survey, production study,
activity sampling, critical examination and break-even analysis.
2.Evaluation: To measure or estimate the value of an item.
Techniques: Job evaluation, work measurement, work estimation,
performance, appraisal, cost-benefit analysis and network analysis.

3.Improving performance
Techniques: Management by objectives (MBO), method study, value
analysis, management by exception (MBE), etc.
4.Optimizing performance
Techniques: Linear programming ergonomics, operational research,
etc.
5.Specification of a desired value of situation or action
Techniques: Layout planning for offices and plants, etc.

6.Control
Techniques: Cost control, credit control, labour control, inventory control,
production control and budget control.
7.Communication
Techniques: Visual aids, suggestion schemes, report writing, communications
theory, information theory, management information, etc.
8.Demonstration
Techniques: Programmed learning, job instruction, management development
and training, etc.

• Management theories are a collection of ideas that recommend
general rules for how to manage an organization or business.
• Management theories address how supervisors implement
strategies to accomplish organizational goals and how they
motivate employees to perform at their highest ability.
• Typically, leaders apply concepts from different management
theories that best suit their employees and company culture.

Seven important management theories are:
1.Scientific management theory
2.Administrative management theory
3.Bureaucratic management theory
4.Human relations theory
5.System management theory
6.Contingency management theory
7.Theory X and Y

• Scientific method should be used to perform tasks in the
workplace
• He recommended simplifying tasks to increase
productivity.
• He suggested that leaders assign team members to jobs
that best match their abilities, train them thoroughly and
supervise them to ensure they are efficient in the role.

Four principles of scientific management:
1.Traditional “rule of thumb” means organizing work must be replaced
with scientific methods.
2.A scientific personnel system must be established so that workers
can be hired, trained, and promoted based on their technical
competence and abilities.
3.Workers should be able to view how they “fit” into the organization
and how they contribute to overall organizational productivity.
4.The relationship between managers and workers should be
cooperative and interdependent, and the work should be shared
equally.

Elements and tools of scientific management:
•Separation of planning and doing
•Functional foremanship
•Job analysis: time study, motion study and fatigue study
•Standardization: instruments, tools, period of work, amount of
work and working condition
•Scientific selection and training of workers
•Financial incentives: differential Piece rate system
•Economy
•Mental revolution

• In this theory, the focus is on the goal and productivity.
• The organization is viewed as a machine to be run efficiently to
increase the productivity of the organization.
• Manager must closely supervise the work to ensure maximum
efficiency. The worker must have proper tool and equipments.
• The use of observation, measurement, experimentation, analysis,
rationality and reasoning are the chief instrument for developing
managerial system.

• He believed that leaders had five main functions, to
forecast, plan, coordinate, command and control, and he
developed principles that outlined how leaders should
organize and interact with their teams.
• He suggested that the principles should not be rigid but
that it should be left up to the manager to determine how
they use them to manage efficiently and effectively.

•Scientific management was focused on the productivity at
lower level management whereas administrative
management focused on management process and
principles of entire organization.
•It views management aspect from the top management
point of view. He used the term administration instead of
management in his study.

It defines the need for POSDCORB where P stands for Planning, O for
Organization, S for Staffing, D for Direction, C for Controlling and Co-
operation, R for Reporting and B for Budgeting.
•It also focusses on the managerial qualities and training and
experience. It is mainly concerned with the optimal approach for
administration to achieve economic efficiency.
•It regards management as a universal process, applicable to all
kinds of organization and to all level of management.

Bureaucratic management theory
• Developed by Max Weber
• Focuses on structuring organizations in a hierarchy
so there are clear rules of governance.

•This theory has played a key role in establishing standards
and procedures that are at the core of most organizations
today.
•This theory uses rational and impersonal management
process. There is a use of merit and skill as the basis for
promotion and rewards.

The bureaucratic theory is characterized by:
• Assigned activities to individual as fixed duties
• A hierarchy of authority and chain of command running throughout
the organization
• Administration through well-defined rules
• Decision making on rational and objective criteria
• Employment and promotion based on demonstrated competence
• Fixed salary based on status or rank rather on work performed and a
guaranteed pension on superannuation.
• It is a centralized approach where most of the power of taking
decision is vested in the top levels.

Human relations theory
• NEO CLASSICAL THEORY: It was proposed to
remove the deficiency of the classical theory and
suggested the improvement for good human
relations in the organization. This is known as a
human relation management theory.

•Human relation theory develops from the Hawthorne study (Elton
Mayo and Fritz Roethlisberger). Researcher started investigating what
are the reason for human behavior and why the productivity is
decreasing and despite of incentives, bonus, sickness benefit and
recreational benefit, the workers had great dissatisfaction.

• Developed by Elton Mayo
• His focus was on changing working conditions like lighting, break
times and the length of the workday.
• Every change he tested was met with an improvement in
performance. Ultimately, he concluded that the improvements
weren’t due to the changes but the result of the researchers
paying attention to the employees and making them feel valued.

•Hawthorne study contributes that in order to increase the productivity,
worker should be provided good light at work place and change in
working condition. They said that physical factors are not affecting the
productivity but attitude and group behavior affecting the productivity.
•In this theory, the focus is on the empowerment of the individual worker
as a source of control, motivation and productivity in the organization. The
Hawthorne studies led to belief that human relations between workers
and managers is important in increasing the productivity.

•The workers were main determinants of efficiency. The
Hawthorne effect refers to the phenomena of how being
observed or studied results in a change of behavior of
employee.
•This theory also emphasizes on the participatory decision
making which increase the workers autonomy. It also
emphasizes on the training of the employee to improve the
work.

Characteristics of human relation approach:
•Organization is a social system
•System is composed of many interacting groups
•Many informal groups emerge at work place and they have great
impact on output of organization
•Workers emotions, values and feelings play important role in an
organization
•Monetary gain alone can't motivate worker
•Worker participation in decision making process boost morale of the
employer.

Systems management theory
•The organization’s success, depends on synergy,
interdependence and interrelations between subsystems.
•Employees are the most important components of a
company, and departments, workgroups and business units
are all crucial elements for success.
•Managers should evaluate patterns and events within the
organization to determine the best management approach.
They need to collaborate and work together on programs to
ensure success.

•Believes that organizational success relies on:
Synergy (combined output)
Interdependence between subsystems
Interconnections within the organization and
between the organization and the environment

CHARACTERISTICS OF SYSTEMS THEORY
Communication
•Communication mechanisms must be in place for organizational
systems to exchange relevant information with its environment.
•Provides for the flow of information among the subsystems.
Systems, subsystems and supersystem
•Systems: set interrelated parts that turn inputs into outputs through
processing.
•Subsystems: do the processing
•Super systems: are other systems in the environment that the
system is present.

Boundaries
•Separates system from its environment
•Four types:
Physical Boundary - prevents access (security system)
Linguistic Boundary - specialized language (jargon)
Systemic Boundary - rules that regulate interaction
(titles)
Psychological Boundary – restricts communication

Goal-directedness
•Systems are goal-oriented and engage in feedback in order to meet
the goals of the organization.
Holistic view
•Systems theory focuses on the arrangement of and relations
between the parts that connect them into a whole.
•The mutual interaction of the parts makes the whole bigger than the
parts themselves.

TYPES OF A SYSTEM
Open system
•Continuously interacts with the environment
•There is exchange of materials, energies and information
with the environment
Closed system
•Theoretical systems that do not interact with the
environment
•Not influenced by surroundings

STRENGTHS OF SYSTEMS THEORY
•Deals with complexity
•Takes a holistic view
•Can easily manage change through interaction with the
environment
•Utilizes feedback – easy to improve
•Recognizes importance of supersystems

LIMITATIONS OF SYSTEMS THEORY
•Not a prescriptive management theory
•Does not specify tools and techniques for practicing
managers
•Too abstract – difficult to apply in practical problems
•Does not adequately address power and social inequalities
and their causes

Contingency management theory
•It was developed by Fred Fiedler.
•A contingency theory is an organizational theory that
claims that there is no best way to organize a corporation,
to lead a company, or to make decisions. Instead, the
optimal course of action is contingent (dependent) upon
the internal and external situation.

•A contingent leader effectively applies their
own style of leadership to the right situation.
Contingent leaders are flexible in choosing and
adapting to succinct strategies to suit change in
situation at a particular period in time in the
running of the organization.

• This theory’s primary focus is that no one management
approach works for every organization. Fiedler suggested
that a leader’s traits were directly related to how
effectively they lead their team. He asserts that there are
leadership traits that apply to every kind of situation and
that a leader must be flexible to adapt to a changing
environment.
• Fred Fiedler's contingency model focused on a
contingency model of leadership in organizations. This
model contains the relationship between leadership style
and the favourableness of the situation.

•Situational favourableness was described by Fiedler in terms
of three empirically derived dimensions:
Leader-member relationship – high if the leader is
generally accepted and respected by followers
Degree of task structure – high if the task is very structured
Leader's position power – high if a great deal of authority
and power are formally attributed to the leader's position
•Situations are favorable to the leader if all three of these
dimensions are high.

Theory X and Y
• Douglas McGregor introduced X and Y theories.
• Large organizations may rely on theory X to keep
everyone focused on meeting organizational goals.
Smaller businesses, where employees are part of
the decision-making process and where creativity
is encouraged, tend to use theory Y.

Theory X
• Theory X managers tend to take a pessimistic view of
their people, and assume that they are naturally
unmotivated and dislike work. As a result, they think that
team members need to be prompted, rewarded or
punished constantly to make sure that they complete
their tasks.

This style of management assumes that workers:
•Dislike their work.
•Avoid responsibility and need constant direction.
•Have to be controlled, forced and threatened to deliver work.
•Need to be supervised at every step.
•Have no incentive to work or ambition, and therefore need to
be enticed by rewards to achieve goals.
Authority is rarely delegated, and control remains firmly
centralized. Managers are more authoritarian and actively
intervene to get things done.

Theory Y
• Theory Y managers have an optimistic, positive opinion of their
people, and they use a decentralized, participative management
style. This encourages a more collaborative, trust-based relationship
between managers and their team members.
• People have greater responsibility, and managers encourage them
to develop their skills and suggest improvements.

•Theory Y organizations also give employees frequent
opportunities for promotion.
This style of management assumes that workers are:
Happy to work on their own initiative.
More involved in decision making.
Self-motivated to complete their tasks.
Enjoy taking ownership of their work.
Seek and accept responsibility, and need little direction.
View work as fulfilling and challenging.
Solve problems creatively and imaginatively.

SUMMARY AND CONCLUSION
• Nursing management consists of the performance of the
leadership functions of governance and decision-making within
organizations employing nurses. It includes processes common to
all management like planning, organizing, staffing, directing and
controlling.
• Nurse managers are responsible for managing human and
financial resources; ensuring patient and staff satisfaction;
maintaining a safe environment for staff, patients, and visitors;
ensuring standards and quality of care are maintained; and
aligning the unit's goals with the hospital's strategic goals.

REFERENCES
1.I. Clement. Management of nursing services and education.
2019.New Delhi. ELSEVIER Publishers. Second edition. Pg. No.13-21
2.Shabnam Masih. Essentials of Nursing Management in service and
education. 2017. New Delhi. LOTUS Publishers. Second edition. Pg.
No. 3-17
3.Anna Mar.21 Types of Management. Available from
https://management.simplicable.com/management/new/21-types-
of-management [cited 13 Aug 2020]
4.7 Types of Workplace Management Theories. Available from
https://www.indeed.com/career-advice/career-development/types-
of-management-theories [cited 13 Aug 2020]

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