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8/13/2019 Management Unit 2
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THEORIES
OF
MANAGEMENT
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INTRODUCTION
Administer-Latin word
ad+ministraire to care for or to
look after people-to manage affairs.
Administraireserve
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ADMINISTRATION
ORGANIZATION MANAGEMENT
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ADMINISTRATION
DEFINITION:
It is the organisation and direction of humanand material resources to achieve desired
ends. -pfiffner&presthus
it is the direction, co-ordination and control
of many persons to achieve purposes orobjectives. -LD White
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contd
It has to do with getting things done;
with the accomplishment of defined
objectives -Luther gullick
It is the activities of groups co-operating
to accomplish common goals-Herbert
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NATURE OF ADMINISTRATION
It is universal
It is holistic
It is intangible
It is continuous & on going process
It is goal oriented
It is social& human
It is dynamic
It is creative & innovative
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MANAGEMENT
DEFINITION: The process by which a co-operative group directs action
towards common goals - Joseph
It is the distinct process consisting ofplanning,organising,actuating,activating &controlling,performed to determine and accomplish the objectives bythe use of people and resources -George
It is the process and agency which directs &guides theoperations of an organisation in realizing established aims-O Tead
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contd
The art of getting things done
through people.
Working with and throughindividual and groups to
accomplish organizational goals
-parker follet
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DEFINITION OF
NURSING MANAGEMENT
The co-ordination and
integration of nursing resources byapplying the management process to
accomplish nursing care and service
goals and objectives
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concept
of
management
earlymanagement
approaches
modernmanagement
approaches
BEHAVOURAL SYSTEM CONTINGENCYSCIENTIFICADMINIS
TRATIVE
HUMAN
RELATION
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ADMINISTRATION & MANAGEMENT
FLEXIBILITY IN
CERTAIN
SITUATION
DELEGATION
OF
RESPONSIBILITY
& AUTHORITY
EFFECTIVE
COMMUNICATION
HUMAN
RELATIONS &GOOD MORALE
EXECUTION &
CONTROL OF
WORK PLANS
COST
EFFECTIVENESS
PHILOSOPHY
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PRINCIPLES
OFADMINISTRATION
ONENESS
SPECIALISM
& THE WHOLE
SELF-
ADMINISTRATION
HIERARCHY
ANDREGIMENTATION
MORALE BUREAUCRACY
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FUNCTIONS OF ADMINISTRATION
POSDCORBLUTHER GULLICK P --- planning
o --- organising
s --- staffing d --- directing
co --- co-ordinating
r --- reporting
b --- budgeting
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Contd
Planning- Working out the things thatneed to be done & the
methods for doing them toaccomplish the purpose set for the
enterprise.Organizing- Establishment of the formal
structure of authoritythrough which work sub-divisions are arranged,designed & co-ordinate for thedefined objective.
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ContdStaffing - The whole personnel function
of bringing in & training the staff,&maintaining favourable conditions ofwork.
Directing- Continuous task of making
decisions & embodying them inspecific & general orders &instructions,& serving as the leaderof the enterprise.
Co-
Ordinating-All important duties ofinterrelating the various parts of
the work.
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Contd
Reporting -Keeping the executive
informed as to what is going
on, which includes keeping
himself & his subordinates
informed through records,research & inspection
Budgeting -All that goes with budgeting
in the form of fiscalplanning, accounting &
control
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PRINCIPLES OF MANAGEMENT
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interest to
general interest
Remuneration
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Contd
Centralisation or decentralisation
Scalar chain
Order
Equity
Stability&Tenure
InitiativeEsprit de corps
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THE MANAGEMENT PROCESS
ORGANIZING
CONTROLLING
PLANNING
STAFFING
DIRECTING
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CO-ORDINATION
It is the integration, synchronization ororderly pattern of group efforts in the
institution/organization towards the
accomplishment of common objectives. to
ensure harmonious & smooth working of an
organization with a number of its divisions,
departments or units the activities in all
areas are required to be pulled together,unified & blended so as to give them a
commonners & purposes.
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DEFINITION OF CO-ORDINATION
It is the orderly synchronization or orderlypattern of group efforts to provide theproper amount, timing,& directing ofexecution resulting in harmonious & unified
actions to a stated objectives. IT is the adjustment of the parts of each
other & of the movement & operation ofparty in times so that each can make inmaximum contribution to the product of thewhole. -Terry
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Contd
It is the balancing & keeping the team
together by ensuring a suitable allocation of
working activities to the various members,&
seeing that these are performed with dueharmony among the members them selves.
-Brech
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NEED FOR CO-ORDINATION
Diverse & specialised activities
Empire building
Personal rivalries & prejudice
Conflict of interest
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IMPORTANCE OF CO-ORDINATION
Quintessence of management
Creative force
Unity of direction
High employee morale
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PRINCIPLES OF CO-ORDINATION
a. As the thinking function of management
proceeds the doing function, co-ordinationEndeavour must start at the planning stage ,
otherwise it becomes impossible to secure
co-ordination of activities & efforts in theexecution of work.
b. There is need for importance of direct
personal contact in removingmisunderstanding & conflict between
departments.
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Contd
c. Co-ordination is a continual activity
that permeates through each
managerial function.
d. There should be an integration of all
efforts, actions & interests towardscommon purpose.
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TYPES OF
CO-ORDINATION
TYPES OF
CO-ORDINATION
TYPES OF
CO-ORDINATION
INTERNAL
PLANNING
ORGANIZING
DIRECTION
CONTROL
EXTERNAL
3 INTERESTING PARTIES
OTHER ENTERPRISES
GOVERNMENTAL REGULATION
TECHNOLOGICAL ADVANCES
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HINDRANCES OF CO-ORDINATION
The uncertainty of the future, as to the
behaviour of the individuals & of people.
The lack of knowledge, experience wisdom &character among leaders & their confused
&conflicting ideas & objectives. The lack of administration skill & technique.
Size & complexity, personalities & political
factors
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Contd The vast number of variables involved & the
incompleteness of human knowledge,
particularly with regard to men & life. The lack of orderly methods developing,
considering, perfecting & adopting new ideas
& programmes. The lack of leaders with wisdom &
knowledge pertaining to publicadministration.
The accelerated expansion of publicadministration of international dimension.
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THEORIES OF ADMINISTRATION& MANAGEMENT
Frederic Winslow Taylor(1857-1915)-Scientific management
Henri Fayol(1841-1925)-Management functions
Luther Gullick-Activities of management
Lynda Urwick Max Weber(1864-1920)-Bureaucratic organisations
Mary Follett(1869-1933)-Partcipative management
Elton Mayo(1927-1933)-Hawthorne effect
Kurt Lewin
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Contd
Abraham Maslow -Human Motivation
Douglas McGregor-theory x &theory Y
Chris Argyris-Employee Participation
Renesis Likert
Herbert Simon
Chester Barnard
Henry Mintzberg
W.Ouchi-theory Z
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FREDERIC WINSLOW TAYLOR
A mechanical engineer,
Born in pennsylvania,
Educated in a steel company &a paper mill
invented several industrial tools,
Conducted research on methods of trainingworkers for increased production,
BEST MANAGEMENT IS A TRUE SCIENCE
C td
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Contd
SCIENCE-a body of knowledge,ascertained throughobservation & experimentation.
It is a systematized & critically tested body of knowledge. Objective of management is To secure the maximum
prosperity for the employer, coupled with the maximumprosperity for each employee.
His philosophy of Scientific management is no inherent
conflict in the interest of employers, employees &consumers.
It was the result of higher productivity should equallybenefit all people.
He advocated in the interest of societal prosperity, close
collaboration & deliberate co-operation between theemployers & employees.
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Contd4 basic principles of Scientific
management
The development of true science
The scientific selection of employees
The scientific education & development
of employees
Intimate &friendly co-operation
between employees & employers.
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Contd
Scientific management requires a mental
revolution by both managers & workers,
regarding their duties, towards their work,
towards their follow workers, & towards allof their daily problems to achieve the
objectives.
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Taylor specifies 9 qualities of which willmake a good foreman / workman
Education
Special technical knowledge
Manual dexterity& strength
Tact
Energy
Spirit
Honesty
Judgement &
Good health
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Taylors system for work improvement consists
1. Observing the workers performance through time& motion study
2. Scientifically selecting the best worker to performeach job
3. Training the selected worker
4. Paying the worker a differential piece rate5. Appointing a few highly skilled worker to
managerial positions
6. Appointing foreman for each aspect of the work &
instructing the production worker to report to adifferent functional foreman for each aspect ofthe job.
H i F l M t f ti
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Henri Fayol-Management functions
Born in France
Educated as an engineer at the National
school of Mines & employed as mining
engineer & then as GM of a coal & steel
company.
He divided all activities in an organization
into 6 groups-technical,
commercial,financial,security, accounting
&administrative.
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ContdFayol broke down the key function of
administration into 5 main aspects;To plan
To organise
To command
To co-ordinate &
To control
these aspects of administration, falling
into 2 main groups-process & effect
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PROCESS
FORECASTING
ORGANISATION COMMAND
EFFECTS
PLAN
CO-ORDINATION CONTROL
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PRINCIPLES PROCESS OBJECTIVE FFECT
INVESTIGATION FORECASTING
REALITY ORGANISATION PLAN CO-
ORDINATION
&
CONTROL
ORDER COMMAND
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FAYOLS 14 PRINCIPLES OFADMINISTRATION
Division of work
Authority
Discipline
Unity of commandUnity of direction
Subordination of individual interest to
general interestRemuneration
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Contd
Centralization or decentralizationScalar chain
Order
Equity
Stability &Tenure
Initiative
Esprit de corps
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LUTHER GULICK
POSDCORB
P --- planning
O --- organising
S --- staffing
D --- directing
CO --- co-ordinating
R --- reporting
B --- budgeting
PRINCIPLES OFADMINISTRATION
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PRINCIPLES OFADMINISTRATION
Division of work or specialization
Bases of departmental organisation Co-ordination through hierarchy
Deliberate Co-ordination
Co-ordination through committees Decentralization
Unity of command
Staff & line Delegation &
Span of control
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4Ps of Gulick
ThePurposes they serve (function)
The processthey use
The personsor things which they deal
with (clientele)
The place where they work
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LYNDA URWICK
Classical theorist
More importance to the structure of
organisation than the role of the peoplein the organisation (design)
He further considered lack of design as
illogical, cruel, wasteful, & inefficient.
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Urwick- PRINCIPLES OFADMINISTRATION
1. The principal of objective
2. The principal of correspondence
3. The principal of responsibility
4. The scalar principal
5. The principal of span of control
6. The principal of specialisation
7. The principal of co-ordination8. The principal of definition
MAX WEBER BUREAUCRATIC
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MAX WEBER-BUREAUCRATIC
ORGANIZATIONS
German intellectual with no managerial
experience,
Studied at the university of Heidelberg,
taught law at the university of Berlin &
Economics of Frieberg university,
Studied Politics, sociology, &economics as a
private scholar.
Contd
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Contd
Bureaucracy as having a well-
defined hierarchy of authority, divisionof work based on specialisation,highly
specific rules governing workers duties
& rights, deputed work procedures,impersonal interpersonal relationships
& promotion based on technical
competence.
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Contd
It was superior to other forms of organisation It provides greater stability, precision &
reliability in controlling employees .
Bureaucracy- highly efficient in dealing withchanging circumstances, is seen as too rigid &
ponderous to respond to todays rapid
societal change.
MARY FOLLETT-PARTICIPATIVE
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MARY FOLLETT PARTICIPATIVE
MANAGEMENT
o An American who studied government & businessadministration at Radcliffe and abroad.
o Management as a social process aimed atmotivating individuals & groups to work towards a
common goal.o She advised managers on avoid arbitrary authority,
o Manager should never give orders to an employee,instead Manager & employee should analyse the
situation together,& both should take orders fromthe situation.
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Elton Mayo-Hawthorne effect
Mayo & fritz Roethlisberger conducted studies atChicago's Hawthorne western electric plant,
To test Several assumptions of scientific
management,
Purposeto determine relationship between
intensity of illuminations & workers productivity
Resultwhen research increased the level of
illumination of the experimental groupworkoutput increased,
C td
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Contd
When illumination was decreased, output continue
to increase, Conclusionan unidentified psychological factor
had influenced work output.
human relationrefers to relations
between workers & employer, which are not
regulated by legal norms. These relations are
concerned with moral & psychological factors
rather than legal factors
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KURT LEWIN
A social psychologist,Field theory of human behaviour(1951),
He claimed that a workers on- the job
behaviour is influenced by interactionsbetween workers personality, work group
structure & socio- technical climate of the
work place.The process of behaviour changes occurs in 3
phases:
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BEHAVIOUR CHANGE
UNFREEZING
CHANGING
REFREEZING
Abraham Maslow -Human Motivation
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Abraham Maslow Human Motivation
SELF
ACTUALISATION
SELF ESTEEM
SOCIAL NEEDS
SECURITY NEEDS
PHYSIOLOGICAL NEEDS
Douglas McGregor theory x &theory
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Douglas McGregor-theory x &theory
Y
A behavioural scientist,
A strong believe in the potentialities of
human beings in contributing organizational
performance.
His focus is on utilizing human potentials in
organisations & getting the best out of
people by creating a conducive & harmoniousenvironment.
Contd
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Contd
Trational managers in a bureaucracy
operates on a set of assumptions abouthuman nature & human behaviourTHEORY X
a. The average human being has an inherentdislike of work & will avoid it,
b. Because of dislike of a work, most peoplemust be coaxed, controlled, directed,
threatened with punishment to getthrough, put forth adequate effort towardsthe achievement of organizationalobjectives
Contd
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Contd
c. The average human being prefers to be
directed, wishes to avoid responsibility, hasrationally little ambition & is more
interested in financial increments & wants
security above all than personal
achievements.
Theory X assumes human beings as
lazy, lacking in ambition, resisting
change,non-creative,capable of being
deceived easilyetc.
C d
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ContdManagement has 2 strategies-hard & soft.
Hardstrategy - close supervision, tight centre,coercion & threat.
Softstrategymore permissible, meets the
demands & attempts to harmonize the demands of
the organizations & that of employees.
Theory X represents classical
administrative theory, lays stress on
efficiency & economy by putting direction &control.
Contd
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Contd
Theory Yprovide a more accurate
assessment of human nature, one thatencourages workers to develop their full
potential.
a. The average individual does not inherently dislike
work.
b. External control & threat of punishment are not
only means of bringing about efforts towards
organizational objectives. People will exerciseself-control & selfdirection when pursuing goals
to which they are personally committed.
Contd
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c. Commitment to objectives is a function of therewards associated with their achievement.
d. The average human being learns, under properconditions, not only to accept but ti seekresponsibility.
e. The capacity to exercise a relatively high degree of
imagination,ingenity & creativity in the solutionof organizational problems is widely not narrowly,distributed in the population.
f. Under the conditions of modern industrial life, the
intellectual potentialities of the average humanbeing are only partially utilized.
C td
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Contd
The theory Yunderlines the
importance of maintaining an organisationwhere people feel confident & motivated.It emphasize on developing & improvingperformance orientation of the people
working in the organisation.it involves lotof leadership skills on the part of themanager to achieve these objectives. thecorner stoneof McGregor framework, isself- restraint, self- direction goalorientation & human values in theorganisation.
CHRIS ARGYRIS EMPLOYEE PARTICIPATION
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CHRIS ARGYRIS-EMPLOYEE PARTICIPATION
During maturation, the individual moves to acondition of greater independence, moreachievements, musts & activities, longer timeperspective & increased self-control.
Argyris claimed that the rigid structure &stringent rules of a bureaucracy block normalmaturation, encouraging employees to become
passive & dependent & decreasing their jobsatisfaction & emotional health
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RENESIS LIKERT
Likert advocated SYSTEM 4
approach to organisational
development in which organisational
structure facilitates continuous
interaction among various groups in the
organisation, so work is controlled
through mutual influence by employees.
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Contd
ASYSTEM 4 organisation is one in
which superiors & subordinates trust eachother in all matters, information flows freelythroughout the organisation,employees
participate in setting high but achieve goals,decisions are made at all levels, training isprovided to upgrade personnel & controlmechanism stimulates workers to solve their
own problems.
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HERBERT SIMON
A decision theorist,
Business &service institutions are
networks decision makers.
He analyzed the human behaviour in terms
of its preference in decision making process.
The decision making process involves 3
phases of activities.
3 PHASES OF DECISION MAKING
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3 PHASES OF DECISION MAKING
PROCESS
1. INTELLIGENCE ACTIVITY
2. DESIGN ACTIVITY
3. CHOICE ACTIVITY
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INTELLIGENCE ACTIVITY
It involves finding, access to taking
decision, for which executive has to
analyses the organisational
environment & identify the conditions
that need decision. He likes the
alternative strategies for problem
solving.
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DESIGN ACTIVITY
It involves development of
alternatives to do a particular job. here
also the executive identifies the merits
& demerits as well as problem involved
in each of the alternatives, determining
likely consequences of each alternative.
CHOICE ACTIVITY
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CHOICE ACTIVITY
Decision maker should choose or
select one of the alternative or course of
action ,keeping in view the
organisational goals. here the executive
evaluates consequences & select the
course of actions.
Contd
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Contd
Herbert contrasts 2 approaches todecision- making; optimising, the
approach applied by so called
ECONOMIC MAN & satisfying themethod used by so called
ADMINISTRATIVE MAN
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CHESTER BARNARD
Organisation as a social system.
A system is defined as a set of arrangementsof things so related or connected as to form a
unity or organic whole.It composes of elements under one related &
dependent upon one another but that wherein interaction form a unity whole.
d
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Contd
Organisation as a co-operative systems.
Gives risk to formal Organisation.
He defines Organisation as a system ofconsciously co-ordinated
personal activities or forces.
C td
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Contd
The organisation came into existence
when: There are persons able to communicate with
each other
Who are willing to contribute action
To accomplish a common purpose
the elementsof organisation are
communication, willingness & commonpurpose.
Contd
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Contd
the process of co-operation in an
organisation requires the following to makeit effective.
1. The placewhere work is done
2. The timewhich work is done3. The personwith whom work is done
4. The thingsupon which work is done
5. The method or processby which work is
done
Contd
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Contd
Barnard also laid emphasis on the
ACCEPTANCE OF AUTHORITY by others in the
organisation.
Authority as the character of
communication (order) in a formal
organisation by virtue of which it is accepted
by a contributor or member of theorganisation as governing the action he
contributes.
HENRY MINTZBERG
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HENRY MINTZBERG
He asserts that managerial activitiesare more reactive than productive & are
characterized by brevity, variety &
discontinuity.Mintzberg reports that the topical
manger or administrator patrons 10
roles;
ROLES
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ROLES
OF
MANAGER
INTERPERSONAL
FIGURE HEAD
LEADER
LIASION
INFORMATIONAL
MONITOR
DISSEMINATOR
SPOKESMAN
DECISIONAL
ENTERPRENEURHANDLER
RESOURCE
ALLOCATOR
NEGOTIATOR
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W.OUCHI-THEORY Z
Life long employment on the same firmInfrequent evaluation & promotions
Non-specialised carpet path development
Implicit control of worker behaviour
Collective decision making
Group responsibility for quality &
Holistic concern for the employees welfare.
Contd
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Contd
Theory Z calls for long term
employment, a combination of specialised &
generalised training.
For carrier development, slow promotion
based on non- threatening peer evaluation,
group decision making based on both
qualitative & quantitative data,decentralised
control of performance quality & concern forboth employee & agency welfare is required
Contd
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Contd
The principles of group decision making &
decentralised control of quality &
implemented through quality circles.
In aquality circles the managers& members
of the primary work group meet for an hour
each week to solve work problems &
improve work processes & outcomes.
Contd
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YoshidaJapanese management principles
To improve service delivery. each employee muststart with a clear conception of what the most
desirable service could include.
A manager can eliminate the need for continuous
inspection by building quality into the process orproduct in the first place.
If employee do not understand the fundamental
institutional purposes, single application of rules &
procedures will not improve productivity & quality.
Contd
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Contd
The notion of replacing unsatisfactory worker with
a more satisfactory worker, requires that oneperceives the total organisation as a complex that is
composed of separate & replaceable parts.
Replacement of an unsatisfactory worker with a
more satisfactory worker causes insecurity forremaining worker.
Too close linking of responsibility to authority
produces feeling of sectionalism & decreases loyalty
to the organisation as a whole.
CURRENT ISSUES AND TRENDS
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CURRENT ISSUES AND TRENDSManagement of populations with chronic
illnessesResources to acquire technology on an
ongoing basis
The need for primary & preventive services &programs, including complementary andalternative programs
Integration & seamlessness of clinical &
financial services 7 information
Protection of consumers privacy
Contd
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ContdShortages of key personnel, especially
registered nursesFinancing structures such as capitation &
managed care
Care delivery & process management
Management of knowledge workers &personal accountability
Pressuresfor quality & sustainable outcomes
Leadership skills related to changemanagement
Contd
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Contd
Non- involvementof nursing administrators
in planning & decision- making in thegovernmentalhospital administration.
No specific powerhas been assigned to
nursing superintendents, but he/she hasbeen made in-charge of all inventories &
linen of hospital.
Nursing superintendents will have noauthoritiesto sanction leave to their
subordinates.
Contd
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Lack of knowledge in managementof
hospital among nursing/medical
administrators.
Administrator, always dependent on the
advice of clerical staffin all matters including
technical aspects.
Prevalence of role ambiguity, among
administration & administrators.
Unnecessary interference of non nursing
personnelin nursing administration.
Contd
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No written nursing policies & manuals.
No proper job descriptionfor various nursingcadres.
Noorganised staff development programme.
No special incentives.
Inefficiency of nursing councilsof state &union to maintain standards in nursing.
No efforts at higher level for implementation
of separatedirectorate of nursing.
CONCLUSION
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CONCLUSION
A managers job is to coordinate and
integrate resources, nurses have valuable
related skills of coordination and integration.
all nurses are managers; they coordinate anddeliver health services to clients
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