Chapter one

According to Lawrence A Appley –
“Management is the development of
people and not the direction of things”.

According to Joseph Massie –
“Management is defined as the process by
which a cooperative group directs action
towards common goals”.

In the words of George R Terry –
“Management is a distinct process
consisting of planning, organizing,
actuating and controlling, performed to
determine and accomplish the
objectives by the use of people and

Management is the process and agency
which directs and guides the operations
of an organization in realizing established
O tead

Management may be defined as the art
of securing maximum result with a
minimum of effort so as to secure
maximum prosperity and happiness for
both employer and employee and give
the public the best possible service.
John Mee 1963

Administer is a English word, which is
originated from the Latin
 word „ad‟ and „ministrare‟. It means to
serve or to manage.
 Adminstration means mangement of
affairs, public or private.

Administration is the organization and
direction of human and material
resources to achieve desired ends.
Pfiffner and presthus
 Administration has to do with getting
things done; with the accomplishment of
defined objectives. - Luther Gullick

Administration believes in:
 • Cost effectiveness
 • Execution and control of work plans
 • Delegation of responsibility
 • Human relations and good morale
 • Effective communication
 • Flexibility in certain situation

The classical school
 human relations
 The human resources

The classical school began in 1800‟s and
it focuses on efficiency and includes
 Scientific theory
 bureaucratic theory
 Administrative theories

These theorist believed in structured
management approaches and that
money motivates people.
 The concept of economic man
 Scientific management focuses on the
one best way to do a job.

Bureaucratic management relies on a
rational set of structured guidelines such
as rules and procedures, hierarchy and a
clear division of labor.
 Administrative management focuses on
flow of information within the

Division of work
 Authority and Responsibility
 Discipline
 Unity of command
 Unity of direction

Subordination of individual interest to
institutional interest
 Employee compensation
 Centralization
 Scalar chain
 order

Personnel stability
 Initiative
 Espirt de corps

Scientific management theory
Gullick and Urwick (1937)Mooney (1939),Taylor (1911)

Key aspects : Focus is on goals and productivity. The
organization is viewed as a machine to be run
efficiently to increase production. managers must
closely supervise the work to assure maximum

Workers must focus on training .
performance incentive are used.
Time and motion studies are the vehicle for determining
how to do and organize the work in the most efficient

It focuses on the relationship between
workers and machinery and defines how
to organize tasks for people. It was
believed that organizational productivity
would increase by increasing the
efficiency of production process or the
production line.

Scientific management attempts to
create jobs that economize time, human
energy, and other productive resources.
Workers are not expected to think but
rather to follow the specific procedures
and methods fro each job with no

Weber 1864
 Focus is on superior –subordinate
communication, transmitted from the top
down via a clear chain management
 Uses explicit rules and regulations for
governing activities focusing on exacting
work process and technical competence.
 Uses merit and skill as basis for promotion
/reward emphasis life time career service
and salaried mangers.

Max Weber defined tree types of
 Rational authority: authority is based on
law, procedures and rules.
 Positional authority of a superior over a
subordinate stems from legal authority
 Charismatic authority stems from
personal qualities of an individual.

Clearly defined an specialized function
 use of legal authority
 Hierarchical form of organization
 Written rules and procedures
 Appointment to positions based on
technical expertise
 Promotions based on competence
 Clearly defined career paths.

Shortell and Kaluzny (2006)
 Focus is on the management and
principles of an organization applicable in
any setting.
 Identifies need for planning, organizing,
supervision, directing, controlling, reviewing
and budgeting
 Commonly referred to as the management
process that involves planning, organizing
coordinating and controlling
 Concerned with the optimal approach for
administrators to achieve economic

Focuses on empowerment of the
individual worker as the source of
control, motivation and productivity in
an organization

The top functions of the executive are to
establish and maintain an effective
communication system
 Hire and retain effective personnel
 Motivate those personnel.

Employees must understand what the
manager want them to do.
 Employees must be able to comply with
the directive
 Employees must think that the directive
is in keeping with organizational
 Employees must think the directive is not
contrary to other personal goals.

It understands that employees are
creative and competent and that much
of their potential are untapped by their
employees. This school believes that
employees want meaningful work , they
want tot contribute and they want to
participate in decision making and
leadership functions.

Theory X
 Leaders must direct and control
because motivation results from reward
and punishment. Employees prefer
security direction and minimal
responsibility and they need coercion
and threats to get the job done

leaders must remove work obstacle as
under the right work conditions , workers
have self control and self discipline. The
workers reward is their involvement in
work and in the opportunity to be

Theory Z
 Uses collective decision making
 long term employment
 mentoring
 holistic concern and use of quality
circles to manage services and quality .

Contingency theory
 Systems theory
 Management as a discipline
 Chaos theory

There is no best way to do anything but
the best method depends on the
situation. Still today some call it depends

The systems theory depicts the
organization as a collection of open
systems that constantly interacts with the
external environment an directive
resources and inputs from that
environment ,transforming them into
goods and products or services that a
are put back into the environment for

Peter ducker – father of modern
management . He stresses management
fundamentals such as strategic planning
and management by objectives or by
results and asserted that management is
a discipline and not a science.

Chaos theory recognizes that the world is
unorganized and filled with
unpredictable events, therefore
organizational events cannot always be
controlled and mangers must recognize
that they will be faced with unusual

Abraham maslow hierarchy of needs

Motivation occurs when needs are not
met. certain needs have to be satisfied
first beginning with physiological needs,
then safety and security needs, then
social needs followed by self esteem
needs and then self actualization needs.
Needs at one level must be satisfied
before one is motivated by needs at the
next higher level of needs.

Two factor theory, hygiene maintenance
factors and motivator factors
 Hygiene maintenance factor include
adequate salary status, job security, quality
of supervision ,safe and tolerable working
conditions and relationship with others.

Motivator factor includes satisfying and
meaningful work, development and
advancement opportunities and
responsibility and recognition. When
these factors are present people are
motivated and satisfied with the job
when they are absent ,people have a
neutral attitude about their job


It is concerned about
determination of
and major policies of
It is a determinative
It takes major
decisions of an
enterprise as a whole


It puts into action the
policies and plans laid
down by the

It is an executive
It takes decisions within
the framework set by the


It is a top-level


It is a middle level activity

It is a group of managerial
It consists of
personnel who use their
owners who invest specialized knowledge to
capital in and
fulfill the objectives of an
receive profits from enterprise
an enterprise.
It is used in business
It is popular with enterprises.
educational, and

The term management may be used
with respect to enterprise having a
economic orientation. Administration is
used with respect to governmental
enterprises pursing social and political
activities and whose primary objective is
other than surplus generation.

Management and administration are
used as two separate terms in the
contest of the single enterprise keep in
view managerial function and hierarchy.
Subscribing to this view there are two
schools of thought

Administration is a border concept than
management .It sets objectives which
management strives to realize and lays
down policies under which management
 Management on the other hand is the
force that leads directs and guides the
organization in the accomplishment of
predetermined objectives. This according
to this school, administration is the thinking
function or a top level function involved in
planning ,setting objectives and policies.
where as the management is a doing
function or lower level function engaged in
executing the plans.

According to this school of thought
management is a wider concept than
administration. Management is rule making
and rule enforcing body. It performs top
level functions of the organization. Whereas
administration handles the current problems
which arises in carrying out the policies laid
down by the management. This school
emphasis that management is an all
encompassing and comprehensive term.
administration is a part of it.

First-line Managers
 Individuals who manage the work of
non-managerial employees.

Middle Managers
 Individuals who manage the work of firstline managers.
Top Managers
 Individuals who are responsible for
making organization-wide decisions and
establishing plans and goals that affect
the entire organization.

• Planning - Defining goals, establishing
strategies to achieve goals, developing
plans to integrate and coordinate
 • Organizing - Arranging and structuring
work to accomplish organizational goals.
 • Leading - Working with and through
people to accomplish goals.
 • Controlling - Monitoring, comparing,
and correcting work.

 Span of management
 Responsibility
 Staffing
 Influencing
 Controlling

Interpersonal roles - Figurehead, leader,
 Informational roles - Monitor,
disseminator, Spokesperson
 Decisional roles - Entrepreneur,
Disturbance handler, resource allocator,

Technical skills - Knowledge and
proficiency in a specific field
 Human skills - The ability to work well with
other people
 Conceptual skills - The ability to think
and conceptualize about abstract and
complex situations concerning the

Henri Fayol (1841 - 1925): Graduated
from the National School of Mines in
Saint Etrenne in1860.
Fayol.s 14 principles of management
 Division of Work. Specialization allows the
individual to build up experience, and to
continuously improve his skills. Thereby he
can be more productive.

2. Principle of Authority and Responsibility
Authority means power to take decisions.
 Responsibility means obligation to
complete the job assigned
 3. Principle of discipline: General rules
and regulations for systematic working in
an organization.
 4. Principle of unity of command:
Employee should receive orders from
one boss only.

Unity of direction: All the efforts of the members
and employees of the organization must be
directed to one direction that is the
achievement of common goal.
6. Subordination of individual interest to
general interest: Subordination of individual
interest to general interest the interest of the
organization must supersede the interest of the
7. Principle of remuneration of persons:
Employees must be paid fairly or adequately to
give them maximum satisfaction

8. Principle of centralization and
decentralization: Centralization refers to
concentration ofpower in few hands.
Decentralization means evenly
distribution of power at every level.
 9. Principle of scalar chain: Means line of
authority or chain of superiors from
highest to lowest rank

Principle of Order: Principle of Order It
refers to orderly arrangement of men
and material a fixed place for everything
and everyone in the organization
 Principle of Equity: Principle of Equity Fair
and just treatment to employees.
 Stability of tenure of personnel: Stability
of tenure of personnel No frequent
termination or transfer.

Principle of Initiative: Principle of
Initiative Employees must be given
opportunity to take some initiative in
making and executing a plan
 Principle of Esprit De Corps: Principle of
Esprit De Corps Means union is strength.

• Planning
 • Organizing
 • Staffing
 • Directing
 • Co-ordinating
 • Reporting
 • Budgeting

Political: Functions of the administration
includes the executive –legislative
 Defensive: It covers the hospital
protective functions.
 Economic: Concerns with the vast area
of the health care activities.
 Educational: Its involves educational
administration in its broadest senses.

Financial: It includes the whole of
financial, budget, inventory control

Social: It includes the activities of the
department s concerned with food,
social factors.
 Local: It concerned with the activities of
the local bodies

General roles
 Provides professional nursing care
according to the established standards
 Responsible for administration of nursing
programs by providing managerial skills
needed in directing, planning,
implementing evaluating and coordinating
nursing care and delivery of patient care.
 Prepares and reviews all protocols of
nursing staff interaction with patients


Coordinates with the consultants to
ensure that good nursing care is
provided. keeps up to date
knowledge of the unit and drug
changes and instructs staff of such
changes .
 Takes the necessary action to resolve
nursing problems and needs
 Making the necessary changes in the
policies and procedures after
discussing with the management


Investigate reports of incidence,
suspected infections, patient doctor
complaints, and resolves problems or
makes recommendations for action.
 Ensures and enforces hospital infection
control standards.
 Ensures highest standards of ethical
medical practices in the hospital.
 She should know how to increase staff
satisfaction and retention. The continuing
nursing shortage is the biggest challenge
for a nurse manager.


Create a positive performance
oriented culture
 The nurse manager is the heart and
soul of the nursing organization. It is
the well prepared managers who will
establish a healthy open unit culture.
She will establish standard of care,
build an alliance with her staff and
other members of the multidisciplinary
team. Work successfully with the
medical staff


Manage multiple bosses-she has to
deal with a variety of different bosses
across the units from finance, nursing,
admissions, ancillary department
 Manage staff –know how to
communicate with the staff in
different situation. She should also
know how one could make a
difference in the organization.


Customer care provider – the complex
health care environment has created a
competitive market place in which,
home health agencies, hospitals,
ambulatory clinics and even hospice
agencies compete for patients. In order
to survive and thrive in the competitive
environment the nurse must keep
customer service

Team builder – show respect for all team
Clearly define the decision making
authority within the realm of the team.
Encourage the team members to
develop a sense of owner ship for the
success of the team
Exhibit a personal commitment of the
team goals
Encourage team members to willingly
help others provide necessary resources
to accomplish goals

14 Principles of Management. (2008, Aug
29). Retrieved 10 2008, from
 Drucker, P. (2007). Management Tasks,
Responsibilities, Practices. New Jersey:
Transaction Publishers.
 Kotelnikov, V. (2008). Management by
Objective. Retrieved 10 2008, from