Theories of management
• The study in the development of
management theories can be useful to
nursing leaders in creating their own
management style.
• No single management theory is
sufficient in itself to guide the nursing
leaders in every situation.
• Selecting from the most applicable
theory, they may be able to develop
their own individual management style
& most effective in their situation.
Theories of management
• Classical theories
• Scientific theories
• Human relations
• Behavioral sciences
Classical management theory
• It is the oldest theory and is
sometimes referred to as traditional
management theory.
• It views organization as a whole rather
than focusing solely on production,
managerial activities & controlling.
I. Henri Fayol (1841- 1925)
• French industrialist, known as
father of management process.
• Studied functions of managers
& concluded that management
is universal.
II. Max Weber (1894- 1920)
• is German psychologist Father
of organizational theory.
• Emphasized on rules instead of
individuals & on competencies
over favoritism.
• Concept of bureaucracy,
structure of authority to
accomplish organizational
objectives.
III. James Mooney (1884- 1957)
• Believed that management is a
technique to direct people &
organization; technique of
relating functions.
• Organization is management’s
resposibility.
Human Relation Management
Theory
• In this theory, the focus is on the
empowerment of the individual worker
as a source of control, motivation, and
productivity in the organizations.
• The Hawthorne studies led to belief
that human relations between workers
and managers and among the workers
were the main determinants of
efficiency.
• The Hawthorne effect refers to the
phenomenon of how being observed
or studied result in a change of
behaviour.
• This theory also emphasizes on the
participatory decision making which
increases worker's autonomy.
• It also lays emphasis on the training of
the employees to improve work
I. Mary Parker Follett (1868-1933)
• Stressed upon importance of
coordination of psychological
and sociological aspect of
management.
II. Kurt Lewin (1890- 1947)
• Focused on the study of group
dynamics.
• Advocated democratic
supervision.
• Democratic groups solve their
own problems & consult with
leader are most effective.
Scientific Management Theory
• In this theory, the focus is on the 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 efficiency.
• Workers must have proper tools and
equipments.
• There is a focus on training the
workers to work more efficiently and
performance incentives are used.
• Time and motion studies are the
vehicle for determining how to do and
organize the work in the most efficient
manner.
I. Frederick W.Taylor (1856- 1915)
• Father of Scientific
Management.
• Conducted time & motion
studies to time the workers.
• Analyzed worker’s movements
& set their standards using
stopwatches.
• Applied principles of
observation, measurement &
comparison to determine
effective way to accomplish a
task.
II. Henry L. Gantt (1891-1919)
• Concerned with problems
related to efficiency.
• Refined previous work of
Taylor, explained relation
between work completed &
time needed.
• Bonus remuneration plan to
stimulate higher performance,
non- monetary incentives.
• More humanitarian approach
by management.
• Worker are selected
scientifically.
III. Harrington Emerson (1853-
1936)
• Emphasized on conversation &
organization’s goals &
objectives.
• Clear goals & ideas; evaluation
of changes; essentiality of
competent counsel;
strengthening of discipline;
adequate, reliable & immediate
information should be
available; production
scheduling; standardized
schedules to facilitate
performance; efficiency
rewards.
IV. Charles Babbage (1791- 1871)
• Mathematician, developed
principles of cost accounting &
nature of relations between
various disciplines.
• Division & assignment of work
based on skills; means to
determine feasibility of
replacing manual operations
with automatic machinery.
Behavioral management theories
• The behavioural management theory
is often called the human relations
movement because it addresses the
human dimension of work.
• Behavioural theorists believed that a
better understanding of human
behaviour at work, such as motivation,
conflict, expectations, and group
dynamics, improved productivity.
I. Hugo Munsterberg (1863-1916)
• Hugo Munsterberg is known as
the “father of industrial
psychology”
• He focused to provide a view of
psychology's practical
application. Munsterberg
believed that industry can be
benefited by psychologists in
three major areas:
o Seeking modern ways
to hire the right person
for the right job.
o Achieving optimum
efficiency by identifying
the psychological
conditions.
 o Finding methods to
direct behaviour of
individual employees to
bein harmony with the
management’s
objectives.
II. Douglas McGregor (1906-1964)
• Expressed his views of human
nature in two sets of
assumptions.
• They are popularly known as
‘Theory X’ and ‘TheoryY’.
• Theory X stands for the set of
traditional beliefs held, while
Theory-Y stands for the set of
beliefs based on researchers in
behavioural science which are
concerned with modern social
views on the man at work.
• These two theories represent
the extreme ranges of
assumptions. The managerial
attitudes and supervisory
practices resulting from such
assumptions have an important
bearing on employees’
behaviour.
• Theory X assumptions:
o Employees inherently
dislike work and,
whenever possible, will
attempt to avoid it.
o Since employees dislike
work, they must be
coerced, controlled, or
threatened with
punishment.
o Employees will avoid
responsibilities and
seek formal direction
whenever possible.
o Most workers place
security above all other
factors and will display
little ambition.
• Theory Y assumptions:
o Employees can view
work as being as
natural as rest or play.
o People will exercise
self-direction and self-
control if they are
committed to the
objectives.
o The average person
can learn to accept,
even seek,
responsibility.
o The ability to make
innovative decisions is
widely dispersed
throughout the
population.
III. Abraham Maslow (1908-1970)
• A practicing psychologist,
developed one of the most
widely recognized need
theories, a theory of motivation
based upon a consideration
ofhuman needs .
• His theory of human needs had
three assumptions:
1. Human needs are never
completely satisfied
2. Humanbehaviour is
purposeful and is motivated
by the need for satisfaction.
3. Needs can be classified
according to a hierarchical
structure of importance,
from the lowest to highest.
• Maslow broke down the needs
hierarchy into five specific
areas:
o Physiological needs:
Maslow grouped all
physical needs
necessary for
maintaining basic
human well‐being, such
as food and drink, into
this category. After the
 need is satisfied,
however, it is no longer
is a motivator.
o Safety needs: These
needs includetheneed
for basic security,
stability, protection, and
freedom fromfear. A
nirmal state exists for
an individual to have all
these needs generally
satisfied. Otherwise,
they become primary
motivators.
o Social belonging &
love needs: After the
physical and safety
needs are satisfied and
are no longer
motivators, the need for
belonging and love
emerges as a primary
motivator. The
individual strives to
establish meaningful
relationships with
significant others.
o Esteem needs: An
individual must develop
self‐confidence and
wants to achieve status,
reputation, fame, and
glory.
o Self‐actualization
needs: Assuming that
all the previous needs
in the hierarchy are
satisfied, an individual
feels a need to find
himself.
• Maslow's hierarchy of needs
theory helped managers
visualize employee motivation.
IV. Rensis Likert (1903- 1981)
• Categorized 4 management
systems; identified 3 variables
in organization:
1. Casual variable includes
leadership behavior.
2. Intervening variables are
perception, attitude &
motivation.
3. End results variables are
measures of profits, costs &
productivity.
• Factors measured by Likert
scale:
1. Motivation
2. Managerial
3. Communication
4. Decision making process
5. Goal setting
6. Staff development
• 4 types of managements:
1. Exploitative authoritative:
o Associated 1st system
with least effective in
performance.
o Manager shows less
confidence in staff
associates & ignore
their ideas.
o Consequently staff
associates do not feel
free to discuss their
jobs with their
managers.
2. Benevolent authoritative:
o Staff associates ideas
are sometimes sought,
but they do not feel free
to discuss their jobs
with the managers.
o Top & middle
management are
responsible for setting
goals.
o Minimal
communication; mostly
 downwards & received received with open
with suspicion. mind.
o Decisions are made at
top level with some
delegation.
3. Consultative system:
o Manager has
substantial confidence
in staff.
o Their ideas are usually
sought.
o They feel free to
discuss their job with
the manager.
o Goal setting is fairly
general.
o It has limited accuracy
& accepted with some
caution.
o Broad policy is set at
top level.
o Decision making
prevails through out the
organization.
o Control functions are
delegated to lower
levels.
o Rewards & self-
guidance are used.
o Resistance from
informal groups in the
organization.
4. Participative group:
o Most effective group
performance.
o Manager has complete
confidence in their staff
associates.
o Ideas are sought &
discuss their jobs with
the manager.
o Goals are set at all
levels.
o Great upward &
downwards
communication works,
later that is accurate is