LESSON 1: Introduction to Laboratory Management

Leadership vs Management

Leadership Management
provides the direction of where one (or an provides the “road” to get there
organization) is going
One model of leadership describes four key These skills fall under four primary
leadership styles: supporting, directing, management functions: (1) planning and
delegating, and coaching. prompt decision-making, (2) organizing, (3)
leading, and (4) controlling
Traits
Administrator Implementer
Organizer and developer Maintains control
Risk taker Thinks short term
Inspiration Asks how and when
Thinks long term Watches bottom line
Asks what and why Accepts status quo
Challenges status quo A good soldier
Does the right thing Does things right

Management
- process of designing and maintaining an environment in which individuals, working
together, in groups, efficiently and effectively accomplish selected aims
- system of organization using resources to attain a unified goal
- process of using organizational resources to achieve objectives through the functions of
planning, organizing and staffing, and leading.
- The planning, organizing, leading, and controlling of human and other resources to achieve
organizational goals effectively and efficiently

Managers
- people responsible for supervising the use of an organization’s resources to meet its
goals
- Resources: organizational assets
- People, Skills, Knowledge, Information, Raw materials, Machinery, Financial capital

Components of Management
• Mission - Who are we? What are we here for?
• Vision – How do we see ourselves in the future?
• Goals – Generally/Overall, what do we want to do?
• Objectives – What specific actions are we going to take?
• Authority – Who should be followed?
• Responsibility – What am I supposed to do?
• Accountability – What resources (human and material) are under my control?
• Efficiency – doing it at the right cost
• Effectiveness – doing the right thing
• Productivity – doing the right things at the right cost
Efficiency, Effectiveness, and Performance in an Organization

Organizational Performance
- A measure of how efficiently and effectively managers are using organizational
resources to satisfy customers and achieve goals
Efficiency
- A measure of how well or productively resources are used to achieve a goal.
Effectiveness
- A measure of the appropriateness of the goals an organization is pursuing and the
degree to which they are achieved.
Four Functions of Management

1. Planning
- Identifying and selecting appropriate goals and courses of action for an organization.
- determines how effective and efficient the organization is and determines the strategy
of the organization
- Three Steps in the Planning Process:
i. Deciding which goals to pursue.
ii. Deciding what courses of action to adopt.
iii. Deciding how to allocate resources

2. Organizing
- Structuring working relationships in a way that allows organizational members to work
together to achieve organizational goals.
- Organizational structure: individuals have different works

3. Leading
- Articulating a clear vision to follow, and energizing and enabling organizational
members so they understand the part they play in attaining organizational goals.

4. Controlling
- Evaluation, monitoring, and taking action
 - Evaluating how well an organization is achieving its goals and taking action to maintain
or improve performance.
- Monitoring individuals, departments, and the organization to determine if desired
performance standards have been reached

Decision Making
- process of identifying problems and opportunities and resolving them
Categories of Decisions
● Programmed Decisions: Situations occurred often enough to enable decision rules to be
developed and applied in the future
● Nonprogrammed Decisions: in response to unique, poorly defined and largely
unstructured, and have important consequences to the organization

Certainty, Risk, Uncertainty, Ambiguity

● Certainty: all the information the decision maker needs is fully available

● Risk: decision has clear-cut goals; Uncertainty; managers know which goals they wish to
achieve
● Ambiguity: by far the most difficult decision situation goals to be achieved or the
problem to be solved is unclear

Types of Managers
First-line Managers
- Section heads
- Responsible for day-to-day operations. Supervise people performing activities required
to make the good or service.
- Lead and control
Middle managers
- Chief Medical Technologists
- Supervise first-line managers. Are responsible to find the best way to use departmental
resources to achieve goals
- Balance all four primary management function
Top managers

- Clinical Pathologist
- Responsible for the performance of all departments and have cross-departmental
responsibility
Managerial Roles and skills

Managerial Role
- The set of specific tasks that a person is expected to perform because of the position he
or she holds in the organization
- Roles are defined into three role categories (as identified by Mintzberg): Interpersonal,
Informational, Decisional

Interpersonal Roles
- Roles that managers assume to provide direction and supervision to both employees
and the organization as a whole
● Figurehead—symbolizing the organization’s mission and what it is seeking to achieve.

● Leader—training, counseling, and mentoring high employee performance.

● Liaison—linking and coordinating the activities of people and groups both inside and
outside the organization/department.

Informational Roles
- Roles associated with the tasks needed to obtain and transmit information in the
process of managing the organization
● Monitor—analyzing information from both the internal and external environment.

● Disseminator—transmitting information to influence the attitudes and behavior of

employees.
 ● Spokesperson—using information to positively influence the way people in and out of
the organization respond to it.

Decisional Roles
- Roles associated with methods managers use in planning strategy and utilizing resources
● Entrepreneur—deciding which new projects or programs to initiate and to invest
resources in.
● Disturbance handler—managing an unexpected event or crisis.

● Resource allocator—assigning resources between functions and divisions, setting the

budgets of lower managers.
● Negotiator—reaching agreements between other managers, unions, customers, or
shareholders.

Managerial Skills
Conceptual Skills (What should be the right thing?)
- The ability to analyze and diagnose a situation and distinguish between cause and
effect.
Human Skills
- The ability to understand, alter, lead, and control the behavior of other individuals and
groups.
Technical Skills (How can we do better?)
- The specific knowledge and techniques required to perform an organizational role.
Major Theories in Management

Theory of Scientific Management

- Frederick Taylor (1856-1915) - “The Father of Scientific Management”
- Maximize worker capacity and profits
- Best way to maximize job performance
- Frank and Lillian Gilbreth: Work efficiency
- Henry Gantt: Work scheduling
Theory of Bureaucracy
- Max Weber (1864-1920)
- Principles and Elements of Management - describe an ideal or pure form of
organizational structure
- PRIMARY FOCUS: Organizational Structure
- Worker should respect the “right” of managers to direct activities dictated by
organizational rules and procedures
- Bureaucracy allows for the optimal form of authority - “rational authority”

Three types of Legitimate Authority

i. Traditional Authority - past customs; personal loyalty
ii. Charismatic Authority - personal trust in character and skills
iii. Rational Authority - rational application of rules or laws

Administrative management Theory

 - Functions: Forecasting, planning, organizing, commanding

Systems Theory
- Focuses on viewing the organization as a whole and as the interrelationship of its parts
(subsystems)
- A system is a collection of part unified to accomplish an overall goal.
- If one part of the system is removed, the nature of the system is changed as well.
- A system can be looked at as having inputs, processes, outputs and outcomes.
- Systems share feedback among each of these four aspects of the systems

Human relations Theory

- Focused also in the needs of workers
- Focus on people to determine the best way to manage in all organizations.

Sociotechnical Theory: Focuses on integrating people and technology

Contingency Theory: Focuses on determining the best management approach for a given
situation.

Theory of X and Y
● Theory X: Assumption that employee dislike work

● Theory Y: Assumption that employee like work

Other Theories

Resource Dependence Theory

- Continuous improvement and total quality management = value to purchasers of care
- Continuous improvement relative to that of other organizations

Strategic Management
- Positioning the organization relative to its environment and competitors
- Capacity to differentiate itself in the marketplace (competitive advantage)

Population Ecology Theory

- Based on dominance; ability to influence environment is minor
- Principles of variation, selection and retention

Institutional Theory
- Isomorphism: Organizations with similar set of environmental circumstances resemble
each other.
- External norms, rules, and requirements for legitimacy and support

Comparing Theories
Classical Attempts to develop the best way to manage
in all organizations by focusing on the jobs
 and structure of the firm.
Behavioral Attempts to develop a single best way to
manage in all organizations by focusing on
people and making them productive
Management Science Recommends using math (computers) to aid
in problem solving and decision making.
Systems Theory Manages by focusing on the organization as a
whole and the interrelationship of its
departments, rather than on individual parts.
Sociotechnical Theory Recommends focusing on the integration of
people and technology
Contingency Theory Recommends using the theory or the
combination of theories that best meets the
given situation.

LESSON 2: Management Planning

Concept of Planning
▪ Plan: a method for doing or making something, consisting of a goal and a course of
action
▪ Mission: reason of existence; encompasses values and belief system

▪ Goal: a specific result to be achieved, the end result of a plan

▪ Policies: guidelines to accomplish task

▪ Process: step by step procedures to execute different activities

▪ Project: set of interrelated activities

▪ Objectives: specific results toward which effort is directed

▪ Planning: The process of setting goals and courses of action, developing rules and
procedures and forecasting future outcomes

Hierarchy of Plans
▪ A set of plans that includes the company-wide plan and the derivative plan of subsidiary
units required to help achieve the enterprise-wide plan.
 ▪ Top management approves a long-term plan and each department creates its own
budget

Strategic planning
▪ establishes master plans that fit the destiny of the firm.

▪ plans that apply to the entire organization, establish the organization’s overall objectives, and
seek to position the organization in terms of its environment.
▪ The process by which high level decisions are made is called strategic planning and can be
defined as
(1) deciding on the objectives of the organization and the need to modify existing objectives
if appropriate;
(2) allocating resources to attain these objectives; and
(3) establishing policies that govern the acquisition, use, and disposition of these resources
(Lifshitz, 1996).
▪ based on long-term projections and a global view that can have an impact on all levels of a
laboratory’s operations.

Tactical planning
▪ translates strategic plans into specific goals for organizational units.

▪ (sometimes referred to as operational plans) specify the details of how the overall
objectives are to be achieved
 ▪ consists of the detailed, day-to-day operations needed to meet the immediate needs of
the laboratory and works toward meeting the long-term strategic goals that have been set

Operational planning
▪ identifies the specific procedures and actions required at lower levels in the organization.

- Both tactical planning and organizational planning support the strategic plans.
- Strategic and tactical plans differ in three primary ways—their time frame, scope, and
whether they include a known set of organizational objectives
▪ Short-term plans are plans that cover less than one year.

▪ Long-term plans are plans that extend beyond five years.

- Their differences lie in the length of future commitments and the degree of variability
organizations face.
▪ Specific plans have clearly defined objectives and leave no room for misinterpretation.

▪ Directional plans are flexible plans that set out general guidelines.

▪ Single-use plans are used to meet the needs of particular or unique situation.

▪ Standing plans are ongoing, and provide guidance for repeatedly performed actions in an
organization.

Nature of Planning
Goal oriented Primary function
Mental activity Continuous process
Flexible Forward looking
Integrated process Includes effective and efficient dimensions

General Framework for Planning

- Define the present situation (includes examining internal capabilities and external
threats and opportunities).
- Establish goals and objectives (a starting point for planning).
- Analyze the environment to forecast aids and barriers to goals and objectives (helps
predict factors that will foster or hinder attaining goals).
- Develop action plans for reaching goals and objectives (without action plans, goals may
not be attained).
- Develop budgets (most action plans require money, so realistic budgets have to be
developed).
- Implement the plans (plans are often developed then forgotten).
- Control the plans (evaluate progress and make any necessary adjustments for lack of
progress).
- Make contingency plans (develop an alternative in case the original plan cannot be
implemented successfully or at all; an exit strategy might be part of the contingency
plan).
STEPS IN THE PLANNING PROCESS

Advantages of Planning Disadvantages of Planning

- It gives direction to managers and - Planning may create rigidity.

non-managers alike.
- reduce the impact of change.
- It minimizes waste and
redundancy.
- establishes objectives or standards
that facilitate control.
- Fewer employee initiatives
- Costly process and time consuming
- can’t be developed for a dynamic
environment.
- Formal plans can’t replace intuition and
creativity.
- Planning focuses managers’ attention on
today’s competition, not on tomorrow’s
survival.
- Formal planning reinforces success,
which may lead to failure

OVERVIEW OF MANAGEMENT OF OBJECTIVE (MBO)

- MBO is a system in which specific performance objectives are jointly determined by
subordinates and their supervisors, progress toward objectives is periodically reviewed,
and rewards are allocated on the basis of that progress.

● Management by Objectives: A System of Planning and Review

1. Establish organizational goals.
2. Establish unit objectives.
3. Review subordinates’ proposals.
4. Negotiate or agree (with subordinate).
5. Create action plans to achieve objectives.
6. Review performance.
The Common Elements in an MBO Program
Goal specificity
Participative decision making
An explicit time period
Performance feedback.

The MBO strategy:

1. All individuals are assigned a specialized set of objectives
2. Performance reviews are conducted periodically
3. Rewards are given to individuals

The MBO process:

1. Review organizational objectives
2. Set worker objectives
3. Monitor progress
4. Evaluate performance
5. Give rewards

Factors Necessary for a Successful MBO Program

1) Top management must be committed and set appropriate objectives
2) Managers and subordinates must develop and agree on individual’s goals
3) Employee performance should be evaluated against established objectives
4) Management must follow through on employee performance evaluations

MBO Programs: Advantages and Disadvantages

Advantages Disadvantages
- Continually emphasize how to achieve - Development of objectives can be
organizational goals time consuming
- Secures employee commitment to - Increase the volume of paperwork in
attaining goals an organization
LESSON 3: Organizing and Staffing the Laboratory

“For every minute spent in organizing; an hour is earned”. – Benjamin Franklin

Organizational system/structure
- a system used to define a hierarchy within an organization
- It identifies each job, its function and where it reports to within the organization
- developed to establish how an organization operates and assists an organization in obtaining its
goals to allow for future growth
- illustrated using an organizational chart

Significance of Organization Structure

▪ Clear-cut Authority Relationships: Organization structure allocates authority and responsibility. It
specifies who is to direct whom and who is accountable for what results. It helps an organization
member to know what is his role and how does it relate to other roles.
▪ Pattern of Communication: It provides the patterns of communication and coordination. By
grouping activities and people, structure facilitates communication between people centered on
their job activities. People who have joint problems to solve often need to share information.
▪ Location of Decision Centers: it determines the location of centers of decision making in the
organisation. A departmental store, for instance may follow a structure that leaves pricing, sales
promotion and other matters largely up to individual departments to ensure that various
departmental conditions are considered.
▪ Proper Balancing: creates the proper balance and emphasizes on coordination of group activities.
Those more critical aspect for the success of the enterprise may be given higher priority in the
organisation. Research in a pharmaceutical company, for instance, might be singled out for
reporting to the general manager or the managing director of the company. Activities of
comparable importance might be given, roughly equal levels in the structure to give them equal
emphasis.
▪ Stimulating Creativity: Sound organisation structure stimulates creative thinking and initiative
among organisational members by providing well defined patterns of authority. Everybody knows
the area where he specializes and where his efforts will be appreciated.
▪ Encouraging Growth: provides the framework within which an enterprise function. If it is flexible, it
will help in meeting challenges and creating opportunities for growth. A sound organisation
structure facilitates growth of the enterprise by increasing its capacity to handle increased level of
activity.
▪ Making use of Technological Improvements: A sound organisation structure which is adaptable to
change can make the best possible use of latest technology. It will modify the existing pattern of
authority/responsibility relationships in the wake of technological improvements.

Characteristics of Organizing

▪ Division of Labour: Work is assigned to the employee who is specialised in that work.

▪ Coordination: Different members of the organization are given different tasks to perform when all
the tasks are put together logically and sequentially, it results in the objectives, so coordination is
required.
▪ Objectives: Objectives need to be specifically defined.
▪ Authority-Responsibility Structure: For an effective authority responsibility structure, the position
of each manager and executive is specified, as per the degree of the authority and responsibility
assigned to them, while performing the duties.
▪ Communication: The techniques, flow and importance of communication must be known to all the
members.

Factors Affecting Organizational Structure

1. The Organizational Environment

° The quicker the environment changes, the more problems face managers.

° Structure must be more flexible (i.e., decentralized authority) when environmental change
is rapid.
2. Strategy
° Different strategies require the use of different structures.
- A differentiation strategy needs a flexible structure, low cost may need a more formal
structure.
- Increased vertical integration or diversification also requires a more flexible structure.
3. Technology
° The combination of skills, knowledge, tools, equipment, computers and machines used in
the organization.
° More complex technology makes it harder for managers to regulate the organization.

° Technology can be measured by:

1. Task variety: the number of new problems a manager encounters.
 2. Task analyzability: the availability of programmed solutions to a manager to solve
problems.
4. Human Resources
° Highly skilled workers whose jobs require working in teams usually need a more flexible
structure.
° Higher skilled workers (e.g., CPA’s and doctors) often have internalized professional norms
and values.
° Managers must take into account all four factors (environment, strategy, technology and
human resources) when designing the structure of the organization.

● The way an organization’s structure works depends on the choices managers make about:

→ How to group tasks into individual jobs

→ How to group jobs into functions and divisions

→ How to allocate authority and coordinate functions and divisions

Organization Chart
1. Hierarchical Structure – most preferred

- Every employee has supervisor, grouped based on function, geography or product

- the chain of command goes from the top (e.g., the CEO or manager) down (e.g., entry-level
and lower-level employees), and each employee has a supervisor

Pros
● Shows who is authorized for particular
decisions
● Instructions go from top to bottom,
directly provides a clear communication
● Better defines levels of authority and
responsibility
Cons
● Can make low level employee feel less
responsible for the well-being of the company
● Can slow down innovation or important
changes due to increased bureaucracy
● Can cause employees to act in the interest of
their department instead of the company as a
whole
 ● Shows who each person reports to or
who to talk to about specific projects
● Motivates employees with clear career
paths and chances for promotion
● Gives each employee a specialty

● Creates camaraderie between employees

within the same department

2. Functional Organizational Structure

- Organizes employees around skills or other resources (marketing, production)
- Create subordinate goals

Pros Cons
● Allows employees to focus on their role ● Can cause lack of communication within an
organization or between departments
● Encourages specialization
● Hampers interdepartmental communication
● Help teams and departments feel self-
determined ● Obscures processes and strategies for
different markets or products in a company
● Is easily scalable in any sized company

3. Divisional Structure
- Organizes employees around outputs, clients, or geographic areas
- for large and dynamic organizations
- They work autonomously with their own resources
 Pros
● Helps large companies stay flexible
● Allows for a quicker response to industry
changes or customer needs
Cons
● Can cause lack of communication within an
organization or between departments
● Hampers interdepartmental communication

● Promotes independence, autonomy, and ● Obscures processes and strategies for

a customized approach different markets or products in a company

4. Project-Based Matrix Structure

- Employees are temporarily assigned to a specific project team and have a permanent
functional unit
- matrix organizational chart looks like a grid, and it shows cross-functional teams that
form for special projects

Pros
● Allows supervisors to easily choose
individuals by the needs of a project
● Gives a more dynamic view of the
organization
● Encourages employees to use their skills
in various capacities aside from their
original roles
Cons
● Presents a conflict between department
managers and project managers
● Can change more frequently than other
organizational chart types

5. Hybrid Structure
- Parts are combined to maintain balance of power and effectiveness across functional,
product, geographic and client focused units
Types of organizations
1. Tall organizations
- have many levels of authority and narrow spans of control.
- As hierarchy levels increase, communication gets difficult creating delays in the time
being taken to implement decisions.
- Communications can also become distorted as it is repeated through the firm.
- Can become expensive

Pros Cons
● More direction, greater sense of job ● Expensive, tight monitoring
security and understanding roles
● Communication may be distorted because
● promotes a transparent chain of of long chain of command
command, ensuring efficient and
effective decision-making

2. Flat organization
- have fewer levels and wide spans of control.
- Structure results in quick communications but can lead to overworked managers.
Concepts of authority
Authority: The power vested in a manager to make decisions and use resources to achieve
organizational goals by virtue of his position in an organization
Hierarchy of Authority
- An organization’s chain of command, specifying the relative authority of each manager.
- Span of Control: the number of subordinates who report directly to a manager
Allocating Authority
▪ Line Manager: Someone in the direct line or chain of command who has formal authority over
people and resources
▪ Staff Manager: Managers who are functional-area specialists that give advice to line managers.

Three types of authority

1. line authority
- The right to carry out tasks and give orders related to the organization’s primary
purpose.
- Line authority is related to the production and/or delivery of products or services.
- Those associated with production are described as line supervisors.

2. staff authority
 - The right to advise or assist those with line authority.
- Staff authority provides support for line functions
3. functional authority
- The right given by higher management to specific staff personnel to give orders
concerning an area in which the staff personnel have expertise.
- Authority is assigned to the position.
- The supervisor who occupies the position has the authority to carry out the assignments
of the position.

Empowerment: Delegation of broad decision-making authority and responsibility.