Wolkite university college of health

science and medicine

department of public health

Health service management

Dereje M. (MPH. A/P)
 introduction
Health service management course is designed
• To help health since students to have a firm
foundation in the principles and tools of management
as applied to health.
Thus Emphasis is placed on
• Guiding students to acquire the skills to identify and
address management problems.

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 introduction...
Objectives of the course is
• To recognize a variety of leadership and management styles
and to classify one’s own style of leadership and management.
• To understand the importance of and be able to critically
appraise an organization’s mission and goals.
• To be able to conduct a strategic analysis and elaborate a
strategic and operational health plans including its objectives

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 introduction...
• To understand key models and be able to use basic tools for
management decision-making, motivation and
communication.
• To develop and understand organizational processes
subsystems including
 Coordination, delegation, decentralization, authority,
organizational change, innovation, and organizational
development....

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 Chapter 1
Introduction to management

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 Session objectives

At the end of this session the student will be able to

• Define management
• Describe historical development of management
• Explain the importance of management
• Discuss principles in management
• Recognize the relationship between management and
environment

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 1.key Definitions

Health: WHO definition ????

Health: - is the maximization of the biological & clinical
indicators of organ function & the maximization of physical,
mental & role functioning in every day life.
Health care:
• The total societal effort, undertaken in the private or public
sectors, focused on pursuing health.
Health services
Are specific activities within the larger domain of health care
which are undertaken to maintain and improve health or to
prevent decrements of health.
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 Definitions cont...

Health service organizations

• Are entities that provide the organizational structure within
which the delivery of health services is made directly available
to consumers ,whether the purpose of the services is
preventive, acute or chronic care, restorative or palliative.
Health systems
• Are formally linked HSOs, possibly including financial
arrangements, joined together to provide more coordinated &
comprehensive health services

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 2. What is management ?

• The Practice of Management has existed ever since man has

been organized in to communities.
• Although management is so old and universal, it has been
defined in ways that appear different, but ,most of the
definitions have a strong underlying similarity.
• Some define management shortly as “getting things done”
Others define it as
• a process of reaching organizational goals by working with
and through people and other organizational resources

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 definition cont…

• management is a process of planning, organizing, staffing,

leading and controlling the work of organization members and
of using all available organizational resources to reach stated
organizational goals.
Others consider management as
• The process of directing, coordinating and influencing the
operations of an organization so as to obtain desired results
and enhance total performance.

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 Management...
• The definition of management is based on the following
principles
1. It is a process or series of continuing and related activities.
2. It involves and concentrates on reaching organizational goals.
3. It reaches these goals by working with and through people and
other organizational resources.
4. Occurs in a formal organizational setting
Remember that people are the most important resources

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 Management...
• Goals are fundamental elements of an organization
and management

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 4. Importance of management
• Management is universal and necessary function
• It is essential ( important) for all kinds of organizations
This is because every organization requires:
• Making of decisions
• Coordination of activities
• Handling of people
• Proper allocation of resources
• Evaluation of performance directed toward its objectives....

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 Importance of management….
In addition Management :-
• provides leadership and administration of activities
• helps in achieving group and individual goals
• utilizes all human and capital resources effectively
• establishes sound organization
• Establishes equilibrium between an organization and the
environment
• In general management is essential for the prosperity of the
society ...

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 5. Management vs. Administration
• Usually those terms used interchangeably however there exists
some difference between the two terms
• Administration means the overall determination of policies
and major objectives
Functionally It is
• The laying down of the general purpose of the organization.
• The framing of its major polices.
• The formulation of general plan of procedure.
• The inauguration of broad Programme.
• Approval of specific major projects that fall within the general
Programme.
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 Management vs. Admin….
Management is essentially an executive function, it is an active
direction of human effort
• Functionally administration is determinative and management
is executive
• Yet the same person may perform both functions with different
degree
• for instance,The chief executive would devote a greater part of
his/her time to the broader administrative responsibilities,
• but will also participate (though to limited extent) in executing
those policies.

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 Management vs. Admin….
• Many minor executives also determine policies in a limited
sphere and so perform administrative function.
• As we go down the hierarchical ladder, the administrative
function became less and less and the management function
become more and more.

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 Management vs. Admin….
president

Vice president

management
college
administrative

Department

division

unit

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 5. Management as an Art science and Profession

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 5. Management as an Art, science and Profession

• Management is a social science and deals with the behaviour

of people in an organization
E.g. Engineer uses science of engineering while building a bridge
and manager uses the knowledge of management while
performing his/her managerial functions
• Engineering is a science and its application to the solution of a
practical problem is an art
• Similarly management as the body of knowledge and
discipline it is a science. And its application to the solution of
organizational problems is an art.

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 Management as an Art….

• Management has well-organized infrastructure to certifying

new members and its own licensing system which makes it
profession
• Therefore, Management is a science as well as an art and a
profession

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 6. Principles of management
Principle : refers to fundamental truth
• It establish cause and effect relationship between two or
more variables under a given situation based on logic.
• It gives a guide for thought and reaction
• Management principles serve as guidance to fundamental
decisions and actions
• There are about nine managerial principles which are
modified from the work of Henry Fayol (1841-1925)

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 principles of cont...
6.1 Management by Objectives
• Managers must see that objectives are specified and that they
will be achieved.
The objectives should state:-
• What is to be accomplished
• How much of it
• Where it is to be done
• When it is to be completed.
Therefore, a clear statement of objectives makes it possible to
evaluate how effective one is in approaching and reaching the
objectives
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 principles of cont...
6.2 Learning From Experience
• Analysis of the difference between the objectives stated and
achievement made shows whether there is any gap or not
• If there is any gap the analysis will help us to discover the
cause of the gap & leads us towards searching for solutions
• For better performance there should always be feedback to
learn form the experience gained.

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 principles of cont...
6.3 Division of Labor
• Management attempts to bring about balance of work among
different people concerned.
• Assignment of the right proportion of each kind of work to be
performed by the staff is essential for most organizations
• division of labor enhances team approach and specialization

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 principles of cont...
6.4 Substitution of Resources
• Often when the resources that are normally used to provide
service became scarce or too expensive
• it is the Managers responsibility to track usage and substitute
them or use different resources to provide the intended results

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 principles of cont...
6.5 Convergence of Work
• Working relations should contribute to the success of each
activity and so to general effectiveness.
Some of working relations of activities are:-
• logical relations with each other
• time relations or sequence
• functional and structural-working relations between people

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 principles of cont...
6.6 Functions Determine Structure
• Determining the function and duties of individual member
is followed by working relations
• When the work is defined i.e. the function and duties of the
individual members of the team are clearly defined and
known to all.
• Then working relations (the structure) follows.
• Finally: the authority will be clearly delineated on that
structure

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 principles of cont...
6.7 Delegation
• Delegation is assigning job activities and corresponding
authority to specific individual within the organization
• Delegation takes place when some body's authority is lent, so
as to enable that person to take responsibility when the
occasion arises.

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 principles of cont...
6.8 Management by Exception.
In effect this means two things:
a).Don't be overloaded with the routine and/or
unnecessary information, be selective.
b). Make BIG decision first.
• In short management by exception means
Selectivity in information & Priority in decision

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 principles of cont...
6.9 Shortest Decision-Path
This principle deals with issue like
• Who should make which decision?
• When and where?
• Decision should be made as closely as possible in
time and place to the object of decision and to those
affected by it.

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 7. Management and Environment:

• Health service organizations exist in the larger

environment they are not isolated.
• They are affected by the external environment
and vice versa.
• Management performs all the functions of
management in interaction with its
environment.

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 Management and env….
COMPONENTS OF THE
• Farmers
EXTERNAL
• Merchants
ENVIRONMENT
• Share-holders....
Political Social
• Policy • Community Leaders. man in the
• Political Institutions street...
• Government Officials... Others
Economic and Business • Technological
• Medical Equipment
Communities
• Strategies
• Suppliers
• National and International
• Clients
Issues..
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 Management and env….
• This interaction between organization and the environment
occur because Health service organizations are open
systems.
• They acquire their inputs from the environment in the form
of:-
• Human Resource → Information
• Materials → Technology
• Finances → Time...

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 Management and env….
• The organizations process these inputs in to outputs
in the form of goods, services and deliver them to the
environment.
• Management while performing its various functions
must continually adapt itself to changes occurring in
the external environment.

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08/02/2022 36
 Chapter Two
Organizations and the need for managers
Dereje M. ( BSC/MPH/A/P)

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 objectives
At the end of this session students are expected
to
• Understand what an organization means
• Describe who managers are and what they do
• Highlight basic managerial functions
• Explain managerial roles
• Understand managerial skills

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 1. What is an organization ?
• Organization : refers to Two or more people who work
together in a structured way to achieve a specific goal or set of
goals.
• Organization is deliberate arrangement of people brought
together to accomplish specific goals
• Goal is a purpose an organization strives to achieve
• Goals are fundamental elements of an organization
Common elements of all an organizations are :-
Goal
People
Structure
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 2. Basic management functions

• Function can be defined as a broad area of responsibility

composed of many activities aimed at achieving
predetermined objectives.
• There are eight basic of management functions:-
1. Planning planning
2. Organizing
3. Staffing Implementation
4. Leading
5. Controlling evaluation

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 Functions…
• In addition to these three broad sequential
functions Planning, Implementation &
Evaluation (PIE).
• There are Two continuous functions of
management -
1.Communication
2. Decision- Making

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 2.1The relationship between function of
Management

• The diagram above shows Planning, Implementation and

evaluation as the three slices of a PIE.
• But what matters the most are the arrows that link the three
functions which emphasize the spiral/continuous cycle of
management.
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 management functions cont...

1. Planning
• It is the process of establishing goals and a suitable
course of action to achieve those goals.
• It is a primary management function.
• Planning helps to deal with the present and an
anticipated future.
• It involves what to do, how to do and when to do
• during the process of planning managers clearly outline
exactly what organizations must do to be successful.

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 management functions cont...
2. organizing /implementation/
• is establishing the internal organizational
structure of the organization
• the focus is on division of labor , coordination,
control of tasks and flow of information within
the organization
• Distribution of responsibility and authority to
job holders
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 management functions cont...
3. Staffing/implementation/
Is filling and keeping filled with qualified people all
positions in the organization
Involves
 Recruiting
 selecting
 Hiring
 Training
 Evaluating
 compensating
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 management functions cont...
4. Leading /implementation/
• Is influencing peoples behavior through
motivation, communication, group dynamics,
leadership and discipline
• It is a process of channeling workers behavior
to accomplish organizations objective and
mission
• it is process of helping employees to
accomplish their own career objectives
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 management functions cont...
5. Controlling / Evaluation/
• The process of ensuring that the actual activities are
in- line to planned activities.
Involves
• Establishing standards of performance
• Gathering information and Measuring current
performance
• Comparing performance with standard
• Taking corrective or preventive action
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 management functions cont...
• In addition to these five sequential functions of
management the following two are cross cutting
(continuous) functions of management
I. Communication function is necessary for sharing
information between managers staffs and the
community during all the above functions
II. Decision making is employed during all the above
functions (i.e. planning, implementation,
evaluation). Each of the require decision making as
an essential task
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 4. Types of managers and their
functions
Managers: are people formally appointed to positions of authority in
organizations who enable others to do their direct or support work
effectively, have responsibility for resource utilization and accountable
for the work results
Types of managers
1. Traditional by level / hierarchy
a)Top/ senior managers : high level
• Have authority over and are responsible for the entire organization
• They establish operating policies
• They are responsible for the governing body

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 Types of managers cont...
b) Middle-level managers: have authority over and responsible
for the specific segments of the organization
• Numerous in number
• Supposed to report to senior managers
c) First- level / front line managers : they have authority over &
responsibility for overseeing specific work & a particular group
of workers
• Supposed to report to middle level managers

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 5. Managerial skills
• Skills are the competencies a manager held to undertake his/her roles
effectively.
• They are abilities to change managerial knowledge in to action
• Manifested in individual performance
there are three distinct types of skills:
1.Technical skill:
is the ability of manager to use:
• Procedures,methods, techniques and knowledge of a specialized field
• specialized knowledge and expertise in executing work related
techniques and procedures.
• Generally they deal with things, very Important for first level
managers
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 Managerial skills cont...
2.Human relation and communication skill
• the ability of the manager to get along with other
people ( stakeholders , customers or employees)
• it the ability to work with, understand, motivate and
build cooperation among the team member and lead
others
• Generally they deal with human beings
• Equally important for all levels of managers

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 Managerial skills cont...
3.Conceptual skill
• Reflect the mental abilities of the managers
• Ability to see the organization as a whole
• Ability to visualize how various functions of the organization
complement one another
• The ability to comprehend how changes in one part of the
organization affect the rest of the organization
• To conceive the relationship of the organization to its environment
• Generally deal with ideas and ; more essential to top level
managers
27

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 6. Managerial Roles
Managerial role : is the behavioral pattern
expected of someone within a functional unit.
• All managers have formal authority with in the
organizational unit and derive status out of it
• The work of managers is viewed as a series of
three broad categories of roles (Henry mintzberg)
• This include interpersonal role, informational role
and decisional role

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 Figure 1; managerial roles

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 Managerial Roles cont..
1.Interpersonal Roles
A. figurehead - they engage in activities that are
symbolic in nature
• Managers are expected to act as a symbol of
legal authority
• Such role involve greeting visitors, making
speeches at events, signing legal
documents ...
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 Managerial Roles cont..
B. Liaison :
• This role allows managers to create formal/ informal
contacts Both inside and outside the organization.
• Helps them to establish relationship that will help
them to achieve organizational objectives
• All effective managers “play politics” in the sense
that they develop network
C. Leader - includes:
• The mangers should lead, motivate, inspire and set
example through their behavior
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 Managerial Roles cont..
2.Informational Roles
There are three informational roles:
2.1 Monitor
• Managers gather information from their network of contacts .
 Then they should filter the information, evaluate it and decide
whether to act on the information or not
2.2 Disseminator:
• This role grows out of managers access to information
 involves choosing wheather to disseminate the information or
not.

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 Managerial Roles cont..
Mangers distribute information to those who should receive it
2.3 Spokesperson:
 This relates to the figure-head role
 managers represent and speak on behalf of the organization to
the internal and external stakeholders
 communicate selected information to outsiders
 In general represent the organization in dealing with the
external environment

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 Managerial Roles cont..
3.Decision-Making Roles
There are four decision maker roles:
A. Entrepreneur / Change agent
• Mangers should be initiators and designers of change intended
to improve performance
• they act as change agents
• Identify new ideas
B. Disturbance Handler:
• Managers should handle both internal and external
disturbances.
• They anticipate disturbances and resolve conflicts.
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 Managerial Roles cont..
C. Resource allocator:
• managers decide who gets what based on some
priority criteria.
D. Negotiator:
managers choose how to interact with their:
• superiors, peers, subordinates and different stake
holders .
• They negotiate with other parties representing
organizational interests
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• Thank you !!!!!

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2. Theories of management

Chapter Three

63
 Theories of Management…
• Management and organizations are products of
their historical & social times & places.

• Thus the need to understand the evolution of

management theory in terms of how people have
struggle with matters of relationships at
particular times in history.

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 Theories of Management…
Let us compare different ages
Formal organizations existed for many
centuries.
such as:
• The Greek and Roman armies
• The Roman Catholic Church
• Period of industrial revolution
• Early 1900’s 4

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 Did we have similar management
experience in Ethiopia and Africa?
• The Axum monument/ Fasile Des Castle
• The Lalibela churches they are result of
systematically managed effort.
• The Adwa war
• To do great pyramids the Egyptians
-mobilized human and material resources
-have to plan, implement ,coordinate , control and
report.

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 Definition
• A theory is coherent group of assumptions put forth to
explain the relationship between two or more
observable facts.
• Theories are perspectives with which people make
sense of their world experiences.
• Provide a stable focus for understanding what we
experience.
– provide criteria for determining what is relevant.
– enable us to communicate efficiently.

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 Theories of Management…

Theories make it possible and challenge us to

keep learning about our world.
Justifications
• theories have boundaries and everything can not
be covered by any one theory.

• Thus there is a need for alternative theories and

consideration of the consequences of adopting
alternative beliefs

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 Theories of Management…
• Theories do not work or our theories no longer
seem to "fit" our experience.

• We live in an environment where there is

continuous change and improvement (e.g.
technological environment).

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 Theories of Management…
 Why evolution of Management Theory ?
Evolution of management theory because:
– since it developed pieces by pieces over the years
– So many people contributed to the theory and practice
 Management has Inter disciplinary nature: different fields
history geography , psychology , health, education and
including religions etc.

 Each discipline and professionals used, interpreted, and

reformulated management according to their own
perspective .

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 Theories of Management…
• Each new perspective have come with
– new questions & assumptions,
– new research techniques,
– different technical jargons
– new conceptual frameworks.
As a result :
• There is no universally accepted theory of
management.
• Knowing the evolution help us to know how it was,
how it is now and where it is heading

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• Despite the emerging new assumptions later
ideas have not replaced earlier ones

• Instead, each new school has tended to

complement or coexist with previous ones

• At the same time, each school has continued to evolve,

and some have even merged with others.

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 Management Theory
• The early management theory
– The Scientific Management Theory
– The Classical Organizational Theory
– The Behavioral School
– The Management Science
• Contemporary theories
– The systems Approach
– The Contingency Approach
– Dynamic engagement Approach

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 1. Scientific Management Theory
• Frederick W.Taylor (1856-1915) is the father of The scientific
management school

• production-oriented field of management dedicated to

improving efficiency and minimizing waste.

• Focuses on ways to improve the performance of individual

workers: workers job can be reduced to a science

• To increase efficiency by scientifically designing jobs

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 Scientific Mx theory…
• Encouraged employers to pay more productive
workers at a higher rate than others
• Thus, workers were urged to surpass their
previous performance standards to earn more
pay.
• It is known as differential pay rate system

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 Scientific Mx theory…
• Taylor saw workers soldiering or deliberately working beneath
their potential and designed a 4- step method to overcome this
problem
1. breaking the job into its smallest pieces.
2. select the most qualified employees to perform the job and
train them to do it.
3. supervisors are used to monitor the employees to be sure
they are following the methods prescribed.
4. continue in this fashion, but only use employees who are
getting the work done.

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 Scientific Mx theory…
• According to Taylor
• the success of these principles required
"a complete mental revolution" on the part of
management and labor.
• Avoid quarrel over profits and try to increase
production because both had a common interest
in increasing productivity.

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 Scientific Mx theory…
• Limitations
• Less emphasis of the human relationships and
behaviors.
• Motivation of workers is only based on
differential payment scheme.
• Little involvement of workers in the
management.

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 Scientific Mx theory…
• Summary of Taylor’s Approach
He used four principles:
• Development of a true science management
• Scientific selection of workers
• Scientific education and development of workers
• Intimate, friendly cooperation between manager
and labor

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 Other contributors to the Scientific
mang’t theory
• Henry L. Gantt (1861-1919)
• Gantt worked with Taylor
• Gantt reconsidered Taylor's incentive system
• Unlike the differential rate system as having
too little motivational impact, Gantt idea.
• Every worker who finished a day's assigned
work load would win a 50-cent bonus.
6

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• Supervisor would earn a bonus for each worker
who reached the daily standard, plus an extra
bonus if all the workers reached it.
• THUS would spur supervisors to train their
workers to do a better job.
• Every worker's progress was rated publicly and
recorded on individual bar charts
– in black on days the worker made the standard
– in red when he or she fell below it.

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• Gantt originated the "Gantt chart“
• which is a way to schedule work or a
charting system for production
scheduling
• Gantt chart is still widely used

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• Frank B. & Lillian M. Gilbreth 1868-1924
&1878- 1972)
• The Gilberts: a husband and wife team
helped to find more efficient ways for workers
to produce output.
• Work on fatigue and motion studies
• focused on ways of promoting the individual
worker's welfare.
6

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• The ultimate aim of scientific management was to
help workers reach their full potential as human
beings.
• Motion and fatigue were intertwined
– every motion that was eliminated reduced fatigue.
important contribution in the field of bricklaying.
– changed an 18-step process into a 5-step process
– increased productivity by about 200 percent.

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 2. Classical Organization Theory
• Scientific management was concerned with
increasing the productivity of the individual worker
While
• Classical organization theory grew out of the
need to find guidelines for managing such complex
organizations as factories.
• Sometimes called the Universal Approach

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 Classical Organization Theory…
• Founded by Henri Fayol (1841-1925)
• Focuses on managing the total organization.
• concerned with the entire range of managerial performance
• comprehensive analysis of management involves studying the
management function as a whole
• Taylor was basically concerned with organizational functions
while Fayol was interested in the total organization.

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 Henry Fayol’s universal approach assumes:

• All organizations, regardless of purpose or size,

require the same management process.

• Developed 14 principles of management.

• The first to identify the four management

functions: planning, organizing, leading, and
controlling.
• He developed guidelines for managers to follow.

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 Fayol’s 14 Principles of management

1. Division of Labor: The more people specialize,

the more efficiently they can perform their work.
– Effort and attention are focused on special portion of
the task.
– Work specialization is the best way to use human
resource
2. Authority: Managers must give orders so that
they can get things done.
– Authority and responsibility should be closely related.

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• 3. Discipline: Members in an organization need
to respect the rules & agreements that govern
the organization.
4. Unity of Command: Each employee must
receive instructions from only one person.
5. Unity of Direction: The entire organization
should be moving toward a common objective
,in a common direction

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6. Subordination of Individual Interest to the
Common Good:

In any undertaking, the interests of employees

should not take precedence over the interests of
the organization as a whole.

7. Remuneration: Consideration of variables such

as cost of living ,success of the organization etc.
to determine rate of payment.

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8. Centralization:
• Decreasing the role of subordinates in decision
making is centralization
• Fayol believed that managers should retain final
responsibility
• But should at the same time give their
subordinates enough authority to do their jobs
properly.
• The problem is to find the proper degree of
centralization in each case.

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9. The Hierarchy: Lower line managers should
always inform upper level managers.
10. Order: To increase efficiency and
coordination ,materials and people should be in
the right place at the right time.
11. Equity: All employees should be treated
equally.
7

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12. Stability of Staff: Retaining productive employees should
always be a high priority of management.
• A high employee turnover rate undermines the efficient
functioning of an organization.
13. Initiative. Subordinates should be given the freedom to
conceive & carry out their plans.
• Encourage employees to do through self
direction.

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14. Espirit de Corps. Promoting harmony &
team spirit among members to give the
organization a sense of unity.
• Small factors should help to develop the spirit
• For example, the use of verbal
communications instead of formal.
• written communication whenever possible.

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 Other contributors to the classical mang’t
theory
• Max Weber (1864-1920)- a German sociologist:
worked on Bureaucracy

• Mary Parker Follet (1868- 1933): Considered

the external environment

• Chester I. Barnard (1886 – 1961): worked on

informal organizations

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 3. The Behavioral School
• Successful mang't depends largely on:
• managers’ ability to understand and work with
people who have a variety of backgrounds
,needs, perceptions and aspirations
• The behavioral school emerged from the human
relations movement which is an effort to make
managers more sensitive to their employees’ needs

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 The Behavioral School…
• The behavioral approach to management emphasizes
increasing productivity through understanding of
people and adapt the organization to them.
The Human Relations movement
• describe the ways in which managers interact
with their employees.

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 4. The Management Science School

• Management science focuses specifically on using

scientific methods and mathematical
techniques to the development of mathematical
models.
• These models help organizations to try out various
activities with the use of a computer.
• Modeling can help managers locate the best way
to do things.

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 History:
• During the World War II, Great Britain and then
USA used the management sciences.
• Formation of Operational Research (OR) Team to
solve complex problems in Warfare using leading
scientists.
• The teams used computers to perform the
thousands of calculations involved in mathematical
modeling.

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 After the war

• Complicated industrial, transportation &

communication technologies
• specialists to help managers come up with answers to
these new problems.
• procedures were formalized into the management
science school.

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 The Management science…

• The Management Science School gained popularity

through postwar phenomena.
• The development of high-speed computers &
communications among computers provided the
means for tackling complex and large-scale
organizational problems.
• Robert McNamara implemented a management
science approach at Ford Motor Company in the
1950s and 1960s.

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 Limitations
• Mathematical modeling tends to ignore
relationships
• Emphasis on only the aspects of the organization
that can be captured in numbers, missing the
importance of people and relationships.

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 5. The system approach
• A system is a number of interdependent parts
functioning as a whole for some purpose
• to understand fully the operation of an entity it
must be viewed as a system.
• the activity/modification of any segment of an
organization affects, in varying degrees, the
activity of every other segment i.e. interrelatedness
• each part has a role that helps the whole to
function

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 system approach…
• Subsystems
• Are the parts that make up the whole of a
system
• Interdependent subsystems such as
production, finance, and human resources etc.

• For example In a hospital system, departments

make subsystems of a hospital
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 Types of System
1. Open System: constantly interacting with
the environment.
2. Closed system not influenced and not
interact with the environment.
- All organizations interact with their
environment, but the extent to which they do
so varies.

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 system approach…
System boundary.
• Each system has a boundary that separates it
from its environment.

• In a closed system, the system boundary is

rigid
• in an open system, the boundary is more
flexible.
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 System theory
• emphasizes the dynamic and interrelated
nature of organizations and the management
task.
• provides a framework to plan actions and
anticipate both immediate and far reaching
consequences
• allows to understand unanticipated
consequences as they develop
9
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 6. The Contingency Approach (Situational
approach)
• The answer to any really engrossing question
in economics is: It depends
• The task of the economist, is to specify upon
what it depends, and in what ways.
• The contingency approach does this.

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 The contingency ….

• Why do methods highly effective in one

situation failed to work in other situations?
• Results differ because situations differ; a
technique that works in one case will not
necessarily work in all cases.
9

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 The contingency approach emphasized that

• What managers do in practice depends or

contingent upon a given set of circumstances
situation. ’’if-then’’ relationship.
• If this situational variable exist this is what
the manager will do.
9

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 The contingency ….
• How does the contingency approach represent
an important turn in modern management
theory?
• The contingency approach provides a
framework for integrating the knowledge of
management thought.
HOW?

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 The contingency ….
• It allows the use of management practices:
– using traditional,
– behavioral,
– systems viewpoints independently or in
combination to deal with various
circumstances.
• It calls for fitting the structure of the
organization to various possible or chance
events.

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 7. Dynamic engagement Approach/
• The dynamic engagement approach recognizes
that an organization's environment is changing
fast.
• Dynamic
– the opposite of static
– continuous change, growth, and activity
• Engagement
– the opposite of detachment
– intense involvement with others.

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 An era of dynamic engagement
• The need to have new ways of thinking about
relationships and time.
1.Boundaries between cultures and nations are
blurred
2. New communications technology makes the
world a "global village,"
3.The scope of international and intercultural
relationships is rapidly expanding.
4. The pace of organizational activity picks up fast

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 Dynamic engagement…
• Six different themes
– new organizational environments
– ethics and social responsibility
– globalization and management
– inventing and reinventing organizations
– cultures and multiculturalism
– quality

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 New Organizational environments

• According to The dynamic engagement

approach
– an organization's environment is not
composed of a set of fixed, impersonal forces.
– is a complex, dynamic web of people
interacting with each other.
1

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 Dynamic engagement…
• Thus in addition to their own concerns,
– understand what is important to other managers
both within their and at other organizations.

• The theory of competitive strategy,

– managers can influence conditions in any
institutions when they interact as competitor,
buyers, suppliers.

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 Ethics and Social Responsibility

• Important ethical concepts

-Focus on values and excellence
-values that guide people in their organizations,
-the organization culture that embodies those values,
and the values held by people outside the
organization.
-managers must exercise moral courage by placing
the value of excellence at the top of their agendas.

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 Globalization & management
• Easy connection even to the remotest
corners.
– Managers are global citizens.
• a "borderless" world where managers
treat all customers as "equidistant" from
their organizations.

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 Inventing and Reinventing
Organizations
• Search for ways to unleash the creative potential
of employees and themselves.
• Issues for managers to rethink about the
traditional standard organization structures.
• "liberation Management" challenges the kinds of
rigid organization structures that inhibit people's
creativity.

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 Cultures and Multiculturalism
• various perspectives and values that people
of different cultural backgrounds bring to
ones organizations are not only a fact of life
but a significant source of contributions.

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 Quality
• Total Quality Management (TQM)
• to provide products and services that are
responsible to strong customer and competitive
standards.
• QM emphasizes achieving customer satisfaction by
providing high quality goods & services.
• Reengineering the organization redesigns the
processes that are crucial to customer
satisfaction

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 Thank you!!!

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