Cebu Sacred Heart College

College of Nursing
Lawaan I, Talisay City, Cebu

NCM 107: Nursing Leadership and Management and Jurisprudence

Module 2. The Manager

I. OBJECTIVES

a. Discuss the evolution of management theory.

b. Correlate management theorists with appropriate

c. Define the components of the management functions

d. Discuss the tasks of a manager.

II. EVOLUTION OF MANAGEMENT THEORY

The industrial revolution is at the center of management theory. From the late 1700s through the early
1900s, the industrial revolution brought extraordinary change to the workplace and forever transformed the way
companies operate.

The industrial revolution brought better and faster technology allowing companies to perform more
efficiently than ever before and gave them the ability to dramatically increase their output. However, increased
output meant lower prices which increased demand which in turn required more employees. Companies that
once had a couple dozen employees were now growing into gigantic corporations. No longer was it possible for
a manager to know each and every one of their employees on a friendly level. In order to meet demand,
company leadership had to ensure their employees were productive. Sounds simple, right? Not exactly.

While productivity goals can be set easily, managing a team to meet productivity goals was not so simple.
For the first time, managers had to find new and innovative ways to motivate a sizable number of employees to
perform. Since this was a new concept, research, observations, experiments, and trial and error were all used

 to find new and better ways to manage employees. The industrial revolution gave birth to a variety of
management theories and concepts, many of which are still relevant and essential in today’s workforce. In
addition, many management theories have developed since the end of the industrial revolution as society
continues to evolve. Each management theory plays a role in modern management theory and how it is
implemented.

III. MANAGEMENT THEORIES

a. Scientific Management

Frederick Winslow Taylor developed and published his Scientific Management Theory in 1909. At
its core, scientific management theory believes that it is vital to find the most effective way to complete
each and every task, no matter how small. In the early 1900s, managers would give orders to their workers
with no guidance on how to accomplish them. Managers and employees rarely, if ever, had interaction with
one another. Taylor believed this was an inefficient way to operate a business and recommended some key
changes.

Taylor argued each task should be completed as efficiently as possible. In addition, everyone
should be assigned a particular job based on their skills and abilities and must be evaluated based on the
quantity and quality of their work. Taylor did not think it was fair or cost effective to pay every employee the
same amount, regardless of their output. While this may sound like common sense today, this was a
groundbreaking idea in the early 1900s. Another big component of scientific management theory is the idea
of training and development. Taylor argued it was extremely important to monitor and train your employees
on the tasks they are assigned to. By ensuring your employees are efficient at their work, the output will be
larger and of a higher quality.

One part of the scientific management theory that is not common today is the idea that managers
strictly manage and employees simply work. Nowadays, most companies offer room for growth and
advancement for their employees as opposed to keeping a distinct barrier between management and
employees. This theory had a huge impact on the way companies operated and were able to create a more
balanced pay system, better training, and a more efficient workforce.

b. Administrative Management Theory

Administrative management theory was developed by Henri Fayol in the early 1900s and is
considered to be highly relevant even today. Fayol created fourteen principles which he believed outlined
the basis for strong and successful companies. It is important to know that Fayol agreed with many of
Taylor’s ideas and ideologies, however, the main difference is that Taylor focused on the process of
completing the work most effectively, and Fayol focuses on the organizational structure of a company as a
whole.

Some of Fayol’s principles included a clear division of labor, ensuring each employee had only one
direct manager to report to, and a healthy manager-employee relationship. Another important part of
Fayol’s administrative management theory is the idea that everyone in a company should be aligned by

 organizational goals. Fayol believed that organizational structure was vital to the success and productivity
of a company.

14 Principles of Management

1. Division of work

According to this principle, work should be divided among individuals and groups according to
their skills and knowledge. This helps in completing the work with greater efficiency.

2. Authority and responsibility

Authority is a right of an individual to give orders and instructions. The right of authority arises
from the position, intelligence, experience and skills of a manager. On the other hand,
responsibility is a state of being accountable for the consequences of the decisions taken by
an individual. Managers should be responsible for the actions taken by them

3. Discipline

Discipline in an organization refers to the obedience to authority. Employees must obey and
respect the governing policies and rules of the organization. In order to maintain good
discipline in an organization, there is a need for good supervision at all levels; clear
understanding between management and workers; and rational use of penalties.

4. Unity of command

According to this principle, employees associated with a particular type of work should report to
one superior only. This helps in avoiding confusions in the role of the employees.

5. Unity of direction

It means that there should be one direction in which employees must move to achieve a
particular objective. Of employees get pulled into different directions, it may be difficult for them
to achieve the objective.

6. Subordination of individual interest to general interest

In this principle, Fayol laid emphasis on aligning individual’s personal goals to organizational
goals.

7. Remuneration

There should be provision of fair wages for workers. The calculation of wages should be done
considering various factors, such as business environment, cost of living, and capacity of
organization to pay and productivity of employees.

8. Centralization

According to Fayol, the degree of centralization should be decided to make the optimum
utilization of employees’ skills.

9. Scalar chain

 Scalar chain refers to the hierarchy followed in an organization from top managers to
employees working at lower levels. According to the principle of scalar chain, all
communications should pass through proper channels of hierarchy. However, in case there are
delays in communication due to hierarchy, there must be provision of cross communication.
According to Fayol, scalar chain is vital to the success of the organization.

10. Order

Order is required for the efficient coordination of all the elements in an organization.
Management must follow the principle of the right place for everything and every man.

11. Equity

The principle of equity means fair treatment of all employees. Management must treat all
employees equally and should be free from biases and prejudices.

12. Stability of tenure of personnel

Management must strive to stabilize the tenure of employees by providing them job security.
Increased turnover always results in inefficient production, therefore, organization must attempt
to reduce it by improving employee morale and motivation.

13. Initiative

Management must provide freedom to employees so that they can carry out orders effectively.
Employees should be encouraged to take initiatives in their respective fields in order to perform
their jobs efficiently.

14. Esprit de corps

It refers to team spirit. Management must adopt new ways to improve team spirit among
employees. This helps employees to work in harmony.

c. Bureaucratic Management Theory

The word bureaucracy tends to give off a negative vibe, implying that a bureaucratic organization is
an impersonal machine that focuses more on numbers and output than on the wellbeing of its employees.
However, its intended meaning is quite different. At the end of the 19th century, Max Weber created the
bureaucratic management theory. Unlike today’s interpretation of the word, Weber believed that
bureaucracy meant carefully developing and spelling out company objectives and divisions of labor. While
this included developing a hierarchy of command within the company, it also included supporting and
developing employees.

Weber built onto Taylor’s theory by adding a few key ideas of his own. Like Taylor, Weber believed
efficiency in completing tasks was a key component to success and recommended detailed record keeping
at all levels to monitor efficiency as well as areas of opportunity. He agreed that all employees need to have
clear job expectations and each job should be standardized to allow for maximum productivity. The greatest
difference between the scientific theory and the bureaucratic theory is that Weber believed in the
importance of human emotion.

 Characteristics of Bureaucratic Management

• Management by standard rules

According to Weber, an organization must be governed by a set of rules. Upper level

managers must follow these rules while controlling lower level workers.

• Division of labor

Weber promoted the principle of division of labor while assigning the work to all
employees. According to hi, division of labor results in saving a lot of time consumed
during changing over from one job to another.

• Selection of personnel having technical skills

Employees having required technical skills must be hired in order to perform their jobs
efficiently.

• Hierarchical organizational structure

In order to be successful, an organization must adopt a hierarchical structure wherein low

level employees must be under the supervision of higher level managers.

• Record of all administrative acts, decisions and rules

An organization must keep a record of its administrative activities including policies, rules
and decisions. The record can be used in the future for studying the nature of activities and
people in the organization.

d. Human Relations Management Theory

As the title implies, Human Relations Management Theory is centered around human interactions
and relationships. Elton Mayo believed that all early management theories only focused on how money
affects employee performance. He believed there were more factors that influenced how employees
behaved and performed at work. To test his theory, he began a study at Chicago’s Western Electric
Hawthorne Plant in the 1920s and 1930s and created his own management theory based on his findings
which are more commonly known today as The Hawthorne Effect.

The initial goal of the study was to determine how changing the lighting would or would not affect
employee productivity. They began the study with a small group of employees who they interacted with
throughout the process. The study found that regardless of how they changed the lighting, productivity
increased. When they were unable to make a connection as to why productivity improved, they began
branching out to other departments to see if the results were similar. They realized that the lighting changes
did not affect productivity but instead the daily interactions with the employees throughout the process

 motivated them to work more efficiently and increase their output. They allowed employees to voice their
opinions, frustrations, and successes which in turn helped the employees feel more valuable. In addition,
since they knew they were being monitored, they were more motivated to perform on a higher level. This
was a revolutionary discovery that put the spotlight on human relations and highlighted the importance of
individual and group dynamics.

e. General Systems Theory

In the 1940s, biologist Ludwig von Bertalanffy created his General Systems Theory. I know you’re
probably wondering why a biologist would have any impact on management. Keep reading to see if you
can connect the dots.

Ludwig von Bertalanffy believed that your body is the sum of all parts. For example, your nervous
system works together with your digestive system, which work with each organ and muscle group to allow a
person to function. If one function of the body fails to work, the body as a whole cannot effectively operate.
Humans are most healthy and functional when all aspects of their being are working together effectively. He
also argued that the environment can have an effect on each of the parts. A broken leg can prevent you
from walking or the flu can have you bedridden for days. Each of these issues can damage the overall
productivity of a person.

Ludwig von Bertalanffy’s theory is still found today in many management styles and theories. His
work shows that external factors can prove to be toxic to an environment. Although he was referring to the
human body, the same can be said for the workplace. Negativity and other toxic outlooks can have a
harmful effect on motivation and performance at all levels in an organization. And, like his theory states,
even when only one component of the organization isn’t executing properly, it will have an undesirable
effect on the rest of the organization.

f. X & Y Management Theory

Based on his observations in the 1950s and 1960s, Douglas McGregor developed the X&Y
Management Theory, arguing that all managers can be grouped into two categories. The first category
known as Theory X explains that managers have a negative view of their employees and believe that
employees need to be forced or coaxed into working. Theory X Managers tend to micromanage with the
belief that employees will not motivate themselves to complete their work. This theory can be linked back to
the scientific management theory and its focus on output above employee development and input.

 On the opposite side of the spectrum, Theory Y Managers believe that employees are inherently
motivated to work. Theory Y managers value the importance of helping their employees to thrive by
providing opportunities for learning and development. Theory Y is focused on the idea of team versus
independent work. McGregor argued that a team environment paired with an emphasis on individual
professional development produces better results and a healthier work environment. Theory Y continues to
prove its relevance and is still present in today’s business world.

IV. THE MANAGEMENT FUNCTIONS

a. Planning encompasses determining philosophy, goals, objectives, policies, procedures, and rules; carrying
out long- and short-range projections; determining a fiscal course of action; and managing planned change.

b. Organizing includes establishing the structure to carry out plans, determining the most appropriate type of
patient care delivery, and grouping activities to meet unit goals. Other functions involve working within the
structure of the organization and understanding and using power and authority appropriately.

c. Staffing functions consist of recruiting, interviewing, hiring, and orienting staff. Scheduling, staff
development, employee socialization, and team building are also often included as staffing functions.

d. Directing sometimes includes several staffing functions. However, this phase’s functions usually entail
human resource management responsibilities, such as motivating, managing conflict, delegating,
communicating, and facilitating collaboration.

 e. Controlling functions include performance appraisals, fiscal accountability, quality control, legal and ethical
control, and professional and collegial control.

V. Mintzberg’s Categories of Manager’s Activities

a. Interpersonal Activities

The interpersonal category is one in which leaders and managers have overlapping concerns. However,
the manager has some additional responsibilities that are seldom given to leaders. These include the
following:

i. Networking. As we mentioned earlier, nurse managers are in pivotal positions, especially in

inpatient settings where they have contact with virtually every service of the institution as well as
with most people above and below them in the organizational hierarchy. This provides them with
many opportunities to influence the status and treatment of staff nurses and the quality of the care
provided to their patients. It is important that they “maintain the line of sight,” or connection,
between what they do as managers, patient care, and the mission of the organization (Mackoff &
Triolo, 2008, p. 123). In other words, they need to keep in mind how their interactions with both
their staff members and with administration affects the care provided to the patients for whom they
are responsible

ii. Conflict negotiation and resolution. Managers often find themselves resolving conflicts among
employees, patients, and administration. Ineffective managers often ignore people’s emotional side
or mismanage feelings in the workplace (Welch & Welch, 2008).

iii. Employee development. Managers are responsible for providing for the continuing learning and
upgrading of the skills of their employees.

iv. Coaching. It is often said that employees are the organization’s most valuable asset (Shirey, 2007).
Coaching is one way in which nurse managers can share their experience and expertise with the

 rest of the staff. The goal is to nurture the growth and development of the employee (the
“coachee”) to do a better job through learning (McCauley & Van Velson, 2004; Shirey, 2007).

v. Rewards and punishments. Managers are in a position to provide specific rewards (e.g., salary
increases, time off ) and general rewards (e.g., praise, recognition) as well as punishments
(withhold pay raises, deny promotions).

b. Decisional Activities

Nurse managers are responsible for making many decisions:

i. Employee evaluation. Managers are responsible for conducting formal performance appraisals of
their staff members. Traditionally, formal reviews have been conducted once a year, but people
need to know much sooner than that if they are doing well or need to improve. Effective managers
are like coaches, regularly giving their staff feedback (Suddath, 2013).

ii. Resource allocation. In decentralized organizations, nurse managers are often given an annual
budget for their units and must allocate these resources wisely. This can be difficult when
resources are very limited.

iii. Hiring and firing employees. Nurse Managers either make the hiring and firing decisions or
participate in employment and termination decisions for their units.

iv. Planning for the future. Not only is the dayto-day operation of most units complex and time-
consuming, nurse managers must also look ahead to prepare themselves and their units for future
changes in budgets, organizational priorities, and patient populations. They need to look beyond
the four walls of their own organization to become aware of what is happening to their competition
and to the health-care system (Kelly & Nadler, 2007).

v. Job analysis and redesign. In a time of extreme cost sensitivity, nurse managers are often required
to analyze and redesign the work of their units to make them as efficient as possible.

c. Informational Activities

Nurse managers often find themselves in positions within the organizational hierarchy in which they acquire
much information that is not available to their staff. They also have much information about their staff that is
not readily available to the administration, placing them in a strategic position within the information web of
any organization. The effective manager uses this knowledge for the benefit of both the staff and the
organization. The following are some examples:

i. Spokesperson. Nurse managers often speak for administration when relaying information to their
staff members. Likewise, they often speak for staff members when relaying information to
administration. You could think of them as central information clearinghouses, acting as gatherers
and disseminators of information to people above and below them in the organizational hierarchy
(Shirey, Ebright, & McDaniel, 2008, p. 126).

ii. Monitoring. Nurse managers are also expert “sensors,” picking up early signs (information) of
problems before they grow too big (Shirey, Ebright, & McDaniel, 2008). They are expected to
monitor the many and various activities of their units or departments, including the number of
patients seen, average length of stay, and important patient outcomes such as infection rates, fall

 rates, and so forth. They also monitor the staff (e.g., absentee rates, tardiness, unproductive time),
the budget (e.g., money spent, money left in comparison with money needed to operate the unit),
and the costs of procedures and services provided, especially those that are variable such as
overtime or disposable vs. nondisposable medical supplies (Dowless, 2007).

iii. Reporting. Nurse managers share information with their patients, staff members, and employers.
This information may be related to the results of their monitoring efforts, new developments in
health care, policy changes, and so forth.

Bad Management Styles

These are the types of managers you do not want to be and for whom you do not want to work
Know-it-all Self-appointed experts on everything, these managers do not listen to anyone else
Emotionally remote Isolated from the staff and the work going on, these managers do not know what is
going on in the workplace and cannot inspire others
Purely mean Mean, nasty, and dictatorial, these managers look for problems and reasons to criticize.
They diminish people instead of developing them.
Overly nice Desperate to please everyone, these managers agree to every idea and request,
causing confusion and spending too much money on useless projects.
Afraid to decide ndecisive managers may announce goals for their unit but fail to be clear about their
expectations, assign responsibility, or set deadlines for accomplishment. In the name of
fairness, these managers may not distinguish between competent and incompetent, or
hardworking and unproductive employees, thus creating an unfair reward system

Supplemental Videos

https://tinyurl.com/classicalmgt

https://tinyurl.com/fayolprinciple

https://tinyurl.com/weberbureaucracy

https://tinyurl.com/taylorscientific

https://tinyurl.com/gregortheoryxy

https://tinyurl.com/needsmaslowshierarchy

https://tinyurl.com/herzbergmotivation