MANAGEMENT

Management (French) directing

Manu Agere (Latin) to lead by the hand
Art of getting things done thru people
Process that involves guidance, direction of a group of people toward organizational goals of objectives
Process thru which the objectives of an organization are accomplished by utilizing human, physical and
technical resources
Process of leading and directing parts of the organization through resources
Administration coordinated activities which provide all the facilities necessary for rendering services

LEADERSHIP (Leaders)
Do the right things
Get other people to want to do something
Create new paradigm

MANAGEMENT (Managers)
Do things right
Get other people to do what they want to do
Work with the paradigm

MANAGEMENT ROLES
1. INFORMATIONAL monitor, disseminator, spokesperson
2. INTERPERSONAL figurehead, leaders, liaison (formal and informal contacts)
3. DECISIONAL making changes and innovations such as entrepreneur, disturbance handler, resource
allocator, negotiator
MANAGEMENT LEVELS
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1. 1 LEVEL supervises the operative employee (Head nurse, Charge nurse)
2. MIDDLE LEVEL plan and coordinate activities of the organization (Supervisor, Operation manager)
3. TOP LEVEL manages the organization as a whole (CEO, BOD, President)
ATTRIBUTES OF MANAGERS
Formally appointed to position
Charged with enabling and directing others to do their works
Responsible for utilizing resources
Accountable to superior for results
SKILLS OF MANAGERS
1. Technical Skills what the manager needs in technical aspect of the job
2. Conceptual Skills what the manager needs in managing the organization
3. Human Relation what the manager needs in dealing with people

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SCIENTIFIC MANAGEMENT THEORY

Focused on maximizing worker production
Developed time and motion study
Principles of observation, measurement, and scientific comparison

TAYLOR

Father of Scientific Management theory

Establish scientific personnel system
Pay workers according to different piece rate
Cooperative and interdependent relationship among workers and managers
In every aspect of the job, there must be a foreman
Standards of performance

GILBRETHS

Emphasized the benefits of job simplification and establishment of work standards

Used Time and Motion study to analyze workers motion
Used flow diagram and process chart to record observation
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LILIAN GILBRETH 1 lady of management

GANTT

Simplification of work by refining previous works rather than introducing new ones
Introduced the Gantt chart as a means of identifying and simplifying jobs
Scientific selection of workers

ADMINISTRATIVE/CLASSIC ORGANIZATION THEORY

Deductive rather than Inductive
Views the organization as a whole rather than focusing on production
Classified managerial activities as planning, organizing, and controlling

FAYOL

Division of Labor the more people specialize, the more efficient they can perform
Authority management needs to be able to give orders so that they can get things done
Discipline members need to respect the rules & regulations that govern the organization
Unity of Command subordinates should receive orders from only one supervisor
Subordination of individual interest to the common good gives way to the interests of everybody
Remuneration workers should be paid according/commensurate to the work they perform
Centralization managers should retain the final responsibility but should at the same time, give their
subordinates enough time and authority to do their job
Hierarchy the line of authority in an organization runs in order of rank
Order materials and people should be at the right time and at the right place
Equity people in the organization should be treated with equality and justice
Stability of Staff the greater the turnover rate, the less work are efficient
Initiative subordinates should be given the freedom to their work even though some mistakes occur
ESPIRIT DE CORPS good relationships must maintain in the organization
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WEBER

Father of Organization theory

Focused on employee competence as the basis for hiring and promoting
Conceptualized a structure of authority that would facilitate the accomplishment of the org. objectives

HUMAN RELATIONS THEORY

Focuses on individual worker rather than process and procedures

BARNARD

Recognizes the informal structure of organization

Stressed the importance of cooperation between management and labor
Authority depends on the acceptance of the followers

LEWIN

Advocated group dynamics

Advocated group supervision
Maintained that groups have personalities of their own

MCGREGOR

Developed the managerial implications of Maslows theory

Theory X
People dislike work and will avoid it
Must be directed, controlled, and threatened or coerced to achieve goals
Theory Y
People do not inherently dislike work
Work as play, self-directed, self-control, seek responsibility, and creative

FOLLET

Emphasized participative decision-making and importance of coordinating psychological & sociological

aspects of management

HERZBERG

Hygienic Factors of Motivation (intrinsic/extrinsic dissatisfiers)

OUICHI

Father of Modern Management Theory

Published Theory Z
Contrasts Japanese with US organizations

URWICK

Balance of authority with responsibility, span of control, unity of command, use of general and special
staff, proper use of personnel, delegation and departmentation

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MONEY

Management is the technique of directing people; Organization is management responsibility

Principles:
Coordination and synchronization of activities
Functional effects
Scalar process
Authority into hierarchy

BLAKE AND MOUTON

Managerial Grid
Dimensions of Leadership: (1) concern for people, (2) concern for production
1. IMPOVERISHED MANAGEMENT
Low concern for both
Needs effort to get work done
2. AUTHORITY OBEDIENCE
High concern for production and Low concern for people
Stresses operating efficiency
3. ORGANIZATION MAN
Moderate concern for both
Performance is thru balance work (shifts)
4. COUNTRY CLUB
Low concern for production and High concern for people
Thoughtful and friendly
5. TEAM MANAGEMENT
High concern for both
Trust, respect, and interdependence

LIKERT

Identified 3 types of Variables in organization:

CAUSAL leadership behavior, structure, policies, controls
INTERVENING perceptions, attitudes, motivations
END RESULTS profits, cost, and productivity
Identified 4 types of Management system:
EXPLOITATIVE AUTHORITATIVE little confidence in staff and ignore ideas (least effective)
BENEVOLENT AUTHORITATIVE condescending to staff, ideas sometimes sought
CONSULTATIVE substantial confidence to staff
PARTICIPATIVE complete confidence to the staff (most effective)

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LEADERSHIP

Process of influencing the behavior or actions of a person

Social transaction in which one person influences others
Dynamic, interactive process that involves 3 dimensions: leader, follower, situation

TYPES OF LEADER
1. FORMAL/APPOINTED chosen by administration and given official or legitimate authority to act
2. INFORMAL not legally nor authoritatively appointed (seniority)
THEORIES OF LEADERSHIP
TRAIT leaders are born with inherited tasks; envisioning goals, affirming values
GREAT MAN THEORY leaders are born and not made; great leaders will arise when there is a great need
BEHAVIORAL successful leadership is based on definable, learnable behavior
PARTICIPATIVE LEADERSHIP people are more committed to actions
SITUATIONAL the best action of leader depends on a range of situational factors
CONTINGENCY leaders ability to lead is contingent upon situation
TRANSACTIONAL people are motivated by reward and punishment
TRANSFORMATIONAL people will follow a person who inspires them
PATH-GOAL leaders has certain objectives and initiates their followers to attain them
CHARISMATIC charm and grace are needed to create followers
STRATEGY THEORY based on human handling skills of leaders
Strategy 1 attention thru vision
Strategy 2 meaning thru communication
Strategy 3 trust thru positioning
Strategy 4 deployment of self thru self-regard
STYLES OF LEADERSHIP
1. AUTHORITARIAN/AUTOCRATIC strong control over the group or directive approach; concerned with task
accomplishments
2. DEMOCRATIC/PARTICIPATIVE leaders focuses on involving subordinates
3. LAISSEZ-FAIRE/PERMISSIVE delegating approach; little or no direction is provided to subordinates
4. MULTICRATIC the leader identify which style of leadership a particular situation requires
BASES OF POWER
1. LEGITIMATE/AUTHORITY power granted by an official position
2. REFERENT potential influence one has b/c of the strength of relationship bet. leaders and followers
3. EXPERT gained thru the position of special knowledge, wisdom, sound judgment, good decision skills
4. INFORMATIONAL exists when an individual have info that others must have to accomplish goals
5. CONNECTION based on having connections or associations with others who are powerful
6. COERCIVE/PUNISHMENT manager control the groups thru fears, threats, and sanctions
7. REWARD achieved thru influencing others

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PLANNING

Forecasting or setting the broad outline of work to be done

Continuous process of assessing and establishing goals & objectives; implementing and evaluating them
Technical managerial function that enables org to deal with the present and anticipate the future

CHARACTERISTICS OF A GOOD PLAN

Based on clearly defined objectives
Should provide for the proper analysis and classification of action
Should be simple, flexible, and balance
Should make use of all available resources
SCOPE OF PLANNING
STRATEGIC PLANNING
Sum of total/outcome of the process by w/c an organization engages in environmental analysis,
goal formulation, and strategy development w/ purpose of organizational growth & renewal
Based on Mission of the institution
Top Level mgt formulate long-term strategic planning to reinforce
TACTICAL PLANNING
Tactical plans are often specified in one-year increment
Middle level mgt is responsible for translating strategies into shorter-term tactics
OPERATIONAL PLANNING
Refinement of tactical obj. in w/c work is defined & results are measured in small increments
Narrow in scope, short-lived, and subject to sudden change
It is most concerned with budgets, quotas and schedules
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Accomplished by 1 line managers
APPROACHES TO PLANNING
1. CENTRALIZED TOP-DOWN traditional approach in which a centralized group of executives or staff
assumes the primary planning responsibility
2. BOTTOM-UP PLANNING approach that delegates planning authority
3. TEAM PLANNING
CATEGORIES OF PLANNING
1. STANDING USE PLANS used on a continuous basis to achieve consistently repeated objectives (policies,
procedures, rules)
2. SINGLE USE PLANS used once to achieve unique objectives
STAGES OF PLANNING
1. Develop the purpose or mission statements, goals, objectives, and philosophy
Mission purpose of existence and reason behind organizational structure
Goals statement of intent derived from the purposes, usually stated broadly and generally
Philosophy statements of shared values and beliefs
2. Collect and analyze data
3. Assess for the strength

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4.
5.
6.
7.

Write realistic and general statements of goal

Identify strategies to achieve specified goals
Develop a timetable for accomplishing each objective
Provide guidelines for developing operational and functional plans

BUDGET
FACTORS TO CONSIDER IN BUDGETING
Sound organizational structure
Managerial support
Formal policies and procedures should be available in a budget manual
PROCEDURE
1. Determine productivity goal
2. Forecast workload
3. Budget pt. care hours and staffing schedules
4. Plan for non-productive hours
5. Chart productive and non-productive
6. Compute for actual expenses
TYPES OF BUDGETS
CAPITAL - for major equipment, facilities and are r/t long-range planning
OPERATIONAL day to day operation like supplies, materials, minor equipment
PERSONNEL/MANPOWER salary, remuneration
CASH FLOW immediate expenditures
FLEXIBLE unexpected expenditures
FIXED-CEILING for specific projects and time
ZERO-BASED started with no specific to which should be spend for the year
COSTS

Fixed Cost
Variable Cost
Direct/Desired Cost
Indirect

COST CONTAINMENT
COST AWARENESS focuses the employees attention on costs
COST FAIRS increases awareness
COST MONITORING focuses on how much will be spent where, when, and why
COST MANAGEMENT focuses on what can be done by whom to contain costs
COST INCENTIVES motivate cost containment and reward desired behavior
COST AVOIDANCE avoids buying unnecessary supplies or services
COST REDUCTION spending less for goods and services
COST CONTROL making effective use of available resources

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