REPORTING MANUSCRIPT ON

CLASSIC AND HUMAN RELATIONS THEORIES OF MANAGEMENT

August 22, 2022

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NCM 219: Nursing Leadership and Management

Lecture Proper: Theories of Management

A. Classic
 Henri Fayol (1841 – 1925) – Management
Functions
"To manage is to forecast and to plan, to
organize, to command, to coordinate and to control"
All classical theories were developed in an
effort to improve overall organizational management
and productivity, as well as define the functions of the
manager and create a formal structure for solving
problems in the organization. The classic definition of
management was Henri Fayol’ s 1916 list of
managerial tasks: planning, organizing, commanding,
coordinating, and controlling the work of a group of
employees all of which are still used today. (Wren,
1972 quoted from Booth, 2012).
Jules Henri Fayol was a French engineer born in Constantinople, who formed his
conception of management as the general activity of integrating functions of the firm in order to
intelligently use resources to attain the objectives of the firm. His viewpoint was directed at the
activities of all managers and that of general management.
Fayol felt that every organization required management regardless of whether it was
“commercial, industry, politics, religion, war, etc.” This does not indicate that managers are
universal but rather suggests the universality of management in that this activity is necessary in
all organizations.
Henry Fayol’s Conclusions were that managerial abilities have become more important
as a person moves up in the hierarchy, and that management could be taught in schools and
universities but was not because of the absence of management theory.
He developed 14 principles of Management that could be taught in schools and applied
to all organizational situations. However, we should also keep in mind Fayol’s disclaimer that
there is nothing rigid in management, and that the principles are only guides, and not absolutes
or universals.

Fayol’s 14 Principles of Management

1. Division of work – Fayol is rather traditional here regarding work design. However, he
also used job enlargement when appropriate
2. Authority – Fayol distinguished between the formal authority and personal authority. He
was aware of the need to combine and complement the authority of position with
leadership qualities; Authority must be commensurate with responsibility.
3. Discipline -
4. Unity of command – Fayol felt that employees should receive supervision from only one
person
5. Unity of direction – “one head and one plan for a group of activities having the same
objective”. This is still good advice for many organizations today.
6. Subordination of individual interests to the general interest
7. Remuneration
8. Centralization – This is not centralized decision making. Instead, it is finding where
decisions should be made depending on the factors Fayol mentioned.
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corp
In summary, Fayol defined management theory as “the collection of principles, rules,
methods, and procedures tried and checked by general experience.” Fayol’s perspective was
that of a strategist.
B. Human Relations
 Douglas
McGregor –
Theory X-Y

“An objective without a plan is a dream”

McGregor’s theories X and Y provide a
good contrast between scientific management and
human-relations based management.

Theory X Theory Y
- Work is something to - The work itself can be
be avoided motivating
- People want to do as - People really want to
little as possible do their job well
- Use control- - Use guidance-
supervision-punishment development-reward
Theory X reflects a common attitude among managers that most people do not want to work
very hard and that the manager’ s job is to make sure that they do. To accomplish this,
according to Theory X, a manager needs to employ strict rules, constant supervision, and the
threat of punishment (reprimands, withheld raises, and threats of job loss) to create industrious,
conscientious workers.
Theory Y, which McGregor preferred, is the opposite viewpoint. Theory Y managers believe
that the work itself can be motivating and that people will work hard if their managers provide a
supportive environment. A Theory Y manager emphasizes guidance rather than control,
development rather than close supervision, and reward rather than punishment. A Theory Y
nurse manager is concerned with keeping employee morale as high as possible, assuming that
satisfied, motivated employees will do the best work. Employees’ attitudes, opinions, hopes, and
fears are important to this type of nurse manager. Considerable effort is expended to work out
conflicts and promote mutual understanding to provide an environment in which people can do
their best work.
McGregor theorized that managerial attitudes about employees (and, hence, how managers
treat those employees) can be directly correlated with employee satisfaction. Theory X
managers believe that their employees are basically lazy, need constant supervision and
direction, and are indifferent to organizational needs. While Theory Y managers believe that
their workers enjoy their work, are self-motivated, and are willing to work hard to meet personal
and organizational goals.

 William Ouchi (1943 – present) – Theory Z

Dr. William Ouchi is an American academic consultant, and
author in the field of business management. He became
prominent for his studies of the differences between Japanese
and American companies and management styles.
The basic premise of interactional theory is the leadership
behavior which is generally determined by the relationship
between the leader’s personality and the specific situation. In
1981, Ouchi pioneered introducing interactional leadership in
his application of Japanese style management to corporate
America.
Theory Z, also known as “Japanese Management”,
popularized during the Asian economic boom of the 1980s.
Theory Z is an expansion of McGregor’s Theory Y and
supports democratic leadership. Its approach to management is based upon a combination of
American and Japanese management philosophies and has been called a sociological
description of the humanistic organizations.
Ouchi came up with his three (3) approaches to control in an organization’s management:
1. Market control
2. Bureaucratic control
3. Clan control
Unfortunately, Theory Z lost its favor because American managers are unable to put the
same ideas into practice in the United States as they continue to boss-manage workers in an
attempt to make them do what they do not want to do. Theory Z sadly neglects some of the
variables that influence leadership effectiveness as it inadequately recognize the dynamics of
the interaction between the worker and the leader. Nevertheless, this theory is more
comprehensive than many of the earlier theories.
The characteristics of Theory Z include:
 Consensus decision making
 Fitting employees to their jobs
 Job security
 Slower promotions
 Examining the long-term consequences of management decision making
 Quality circles
 Guarantee of lifetime employment
 Establishment of strong bonds of responsibility between superiors and subordinates; and
 Holistic concern for the workers

I. Assessment/Participant Activities
a. Chat box questions:

1. Who is the father of Complete the statement. "Management is the collection of

principles, rules, methods, and procedures tried and checked by ________"

Answer: General Management

2. Theory X and Y are theories of motivation used by managers to increase the

performance of ____________."
Answer: Subordinates
3. Give 1 of Ouchi's 3 approaches to control in an organization’s management
Answer: (choose 1) Market control, Bureaucratic control, clan control

b. Mini quiz questions

1. He is the father of Modern Management Thought – Henry Fayol
2. He developed the 14 principles of Management that could be taught in schools
and applied to all organizational situations. – Henry Fayol
3. He defined management as “the collection of principles, rules, methods, and
procedures tried and checked by general experience.” – Henry Fayol
4. He said, “An objective without a plan is a dream.” – Douglas McGregor
5. His theory’s approach to management is based upon a combination of American
and Japanese management philosophies – William Ouchi
6. His theory is referred to as a sociological description of the humanistic
organizations - William Ouchi
7. His theory focused on increasing employee loyalty to the company by providing a
job for life with a strong focus on the wellbeing of the employee, both on and off
the job.- William Ouchi
 8. -10. Who are the 3 theorists introduced during the lecture? - Henry Fayol,
Douglas McGregor, William Ouchi

II. Synthesis/Summary
 Henri Fayol - Modern approach to general management theory through the
management functions or management process.S
 Douglas McGregor – McGregor theorized that managerial attitudes about employees
(and, hence, how managers treat those employees) can be directly correlated with
employee satisfaction. Theory X managers believe that their employees are basically
lazy, need constant supervision and direction, and are indifferent to organizational
needs. While Theory Y managers believe that their workers enjoy their work, are self-
motivated, and are willing to work hard to meet personal and organizational goals.
 William Ouchi – Ouchi’s Theory Z was an expansion of Mc Gregor’s Theory Y and
supports democratic leadership. The theory focused on increasing employee loyalty to
the company by providing a job for life with a strong focus on the wellbeing of the
employee, both on and off the job. Theory Z has been called a sociological description of
the humanistic organizations

III. References
Booth, J. (2012). THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION
electronic Resource by: Regina Greenwood and Julia Teahen. Retrieved August
21, 2022 from https://slideplayer.com/slide/8314853/
Marquis, B. & Huston, C. (2015). Leadership Roles and Management Functions In
Nursing. Eighth Edition. Wolters Kluwer Health Lippincott Williams & Wilkins
Murray, E. (2022). Nursing Leadership and Management for Patient Safety and Quality
Care. Second Edition. F.A. Davis Company
Weiss, S., Tappen, R., & Grimley, K. (2019). Essentials of Nursing Leadership &
Management. Seventh Edition. F.A. Davis Company