NUR 1220 Nursing Leadership and Management PDF

FAR EASTERN UNIVERSITY INSTITUTE OF HEALTH SCIENCES AND NURSING DEPARTMENT OF NURSING NUR 1220 NURSING LEADERSHIP AND MANAGEMENT NURSE AS A LEADER...

FAR EASTERN UNIVERSITY INSTITUTE OF HEALTH SCIENCES AND NURSING DEPARTMENT OF NURSING NUR 1220 NURSING LEADERSHIP AND MANAGEMENT NURSE AS A LEADER MODULE 1 CONCEPTS OF LEADERSHIP Leadership (contemporary)- dynamic relationships on AND MANAGEMENT mutual influence and common purpose between leaders Topic Outline and collaborators 1. Leadership and Management Concepts Three key principles: relationship, mutual, 2. Management Process and Functional Areas collaborator 3. What is involved in Nursing Leadership Leadership is a dynamic, interactive process that involves three dimensions LEADERSHIP AND MANAGEMENT CONCEPTS o Leader à Follower à Situation Nursing Leadership and Management- introduction to theory and practice of nursing leadership and management HOW LEADERS INFLUENCE OTHERS as applied in the delivery of health care. Power- capacity to affect the behavior of others The course is designed to facilitate understanding Ability to impose the will of one person or group on the key skills employed by the nurse leaders to bring about certain behaviors in other person or and managers in the development of their critical groups and analytical thinking leadership and management skills in the hospital and community Sources of Power settings 1. Legitimate power- authority vested in the position Ex. Director of Nursing Service, Supervisor, Organization- process of organizing Head Nurse Arranging and allocating of work among an 2. Reward Power- based on the capacity à institution’s members so that the goals can be promotion efficiently achieved 3. Coercive power- punishment à demotion, Signifies an institution or functional groups with sanctions formal intentional structure of roles and position 4. Expert power- expertise that is valued by others; knowledge, skills, ability Leadership- directing and coordinating the work of group 5. Referent power- admired personality, strength of members (Fiedler) character Relates to the personal traits necessary to establish a vision for patient care consistent with TYPES OF LEADERS the mission and purpose of the organization 1. Formal leaders- appointed, chosen by (Yoder) administrators; given official or legitimate authority to act Social transaction to influence others 2. Informal leaders- do not have official sanction to direct activities of others; chosen by the group; Management- the process of getting work done through age or seniority people (Mary Parker Follet) Process of planning, organizing, leading, and LEADERSHIP VS. MANAGEMENT controlling the efforts of organizational resources Leadership Management in order toa chive the organizational goals Motto Do the right Do things right Process of setting and accomplishing goals things through the use of human, technical, and financial Challenge Change Continuity resources Focus Purposes Structures and Procedures Manager- carries a predetermined policies, rules, and Time Frame Future Present regulations with official sanction or act Methods Strategies Schedules Questions Why? Who, what, when, Leader- the one who directs and coordinates the work of where, and how? group members Outcomes Journeys Destinations Humans Potential Performance Leadership (traditional)- intrapersonal influence directed towards the achievement of goals LEADERSHIP BEHAVIORS AND STYLES Interpersonal à Influence à Goals AUTOCRATIC/ DIRECTIVE/ AUTHORITARIAN STYLE Uses positional and personal power Demanding and controlling 1  Can result in chaos because of lack of central ADVANTAGES control and coordination Results in central and control coordination Personal rather than group goals may More consistency in policy interpretation predominate Quicker decisions Easy for coordination to get out of hand before Contributes to strong leadership that is important corrective action is taken in guiding change and meeting crises Good quantity and quality of output FACTORS AFFECTING LEADERSHIP STYLES Ability, skill, and knowledge of the subordinates DISADVANTAGES Manager’s personality/preference, training, Results in low morale education, and background Not as much opportunity of people to develop Nature of task their potential Organizational culture and climate One-way communication does not lead to Nature of the task understanding The expectation of superior from colleague or Results in hostility, alienation, and inflexibility peers Little autonomy, creativity, and confidence with subordinates SOME COMMON TRAITS OF LEADERS Subordinates fear the manager A leader is more intelligent that the group or peers DEMOCRATIC/ PARTICIPATIVE/ Initiative, ability to perceive to start courses of CONSULTATIVE STYLE action not considered by others Allows group governance Creativity is an asset Situation of trust and openness Emotional maturity with integrity Group members are capable of decision making Communication skills are important Persuasion is used by others ADVANTAGES Leaders need to be perceptive enough Extremely motivational Leaders participate in social activities Makes better use of the skill and knowledge of the group FOUR PRIMARY TRAITS BY WHICH LEADERS Builds effective work groups COULD SUCCEED OR DERAIL People are more committed to an organization 1. Emotional stability and composure and its activities 2. Admitting errors Empowers the worth 3. Good interpersonal skills 4. Intellectual breath DISADVANTAGES Takes time to get others involved MANAGEMENT Results in compromise and watered-down Involves money, manpower, and machinery decisions Includes planning, organizing, staffing, directing, Inaction can result from the diffused and controlling responsibility Participation may hold down the innovative, far- MANAGEMENT PROCESS/ FUNCTIONAL sighted leader AREAS Participative styles are difficult to learn 1. Planning- anticipates the future and discovers Works well only under certain conditions (not alternative course of action when there are time constraints) - budget, location, staff 2. Organizing- process setting of which relationship PERMISSIVE. ULTRA LIBERAL/ LAISSEX FAIRE between people work and resources, STYLE organizational chart Abdicates leadership responsibilities - Identify the activities and duties à specific responsibilities Leaving workers without direction and 3. Staffing- the process by which the managers supervision and allows them to plan train, select, promotes, and retires subordinates Leaders and uninvolved, disinterested, withdrawn 4. Directing/leading- actual performance by the subordinates is guided towards common goals. ADVANTAGES This is the implementation of phase of Highly motivational to those people who seek management freedom and independence - Motivation though recognition, career Maximizes the potential of the individual advancement (seminars/trainings), team Encourages a free flowing adaptive organization building DISADVANTAGES 2  5. Controlling- process of evaluating the work The grid provides a reasonable indication of accomplished against plan or standards to health of the organization as well as the ability of determine if it is being carried out as planned. It the managers is concerned with assessments and regulations of To coordinated to 9,9 as possible both progress and completed Selected on the basis of their ability to coordinate - Can be peer or self-evaluation people and tasks for optimum benefit - Guidelines on promotion or demotion Five Coordinates on the Managerial Grid ROLES OF A MANAGER Impoverished Management (1, 1 to 4, 4)- weak 1. Interpersonal Role- developing and maintaining on both tasks and people skills positive relationships Authoritarian (people: 1, 4; tasks 1, 4)- strong - Communicating and motivation on tasks, weak on people skills - Liaises between the organization and Socialite (people: 5, 9; task: 1, 4)- strong on outsiders people skills, weak on tasks Team Leadership (6,6 to 9,9)- strong on both 2. Informational Role tasks and people skills a. Monitor role- seeking information Middle-of-the-road (5,5)- in the middle of the internally and externally (benchmarking chart, but with more experience and skills can with other organizations) display good team leadership b. Dissemination role- about issues that can affect the organization aimed at WHAT IS INVOLVED IN LEADERSHIP transmitting information internally Over the past several decades, nurses have c. Liaison- transmits collective gradually adopted greater responsibilities. As the role of information to subordinates (internally) the nurse transformed from a doctor's assistant to an and outside integral member of the life-saving team, the nurse leader 3. Decisional Role- acts as an entrepreneur role emerged. It is the job of the nurse leader to guide - Disturbance handler (conflict resolution) nurses and ensure that they are adhering to high standards - Allocates resources (budgeting, of quality and safety. authorization to incur expenditures) - Represents the organization or unit in THREE PRIMARY RESPONSIBILITIES OF major organizations NURSE LEADERS 1. Ensuring safe deliver of care. They must be MANAGERIAL GRID (ROBERT BLAKE/ JANE MOUTON) intimately familiar with the safety standards and Plays an important part in managerial behavior in protocols of the medical profession and their organizational development healthcare facility. They are expected to supervise Shows managerial orientation in terms of two members of the nursing team to guarantee that all variables: people and production patients receive safe care. 2. Maintain evidence-based practices within their nursing teams. This requires that nurse leaders be up to date and well informed about various medical practices. Nurse leaders should subscribe to and regularly read professional publications and health notices. Evidence-based research studies and public health concerns should inform the choices made in patient care. 3. Monitoring the care that patients. Nurse leaders should take patient complaints seriously and address them appropriately. Part of the responsibility of nurses is to promote a high quality of life each patient and their families. Successful nurse leaders achieve high quality experiences for both patients and nurses. Figure 1. Managerial Grid WHY DOES NURSING LEADERSHIP MATTER? One of the primary functions of the nurse leader is to Purpose of the Grid bring individual nurses together as a team. Without nurse A tool for identifying management style leaders, individual nurses would carry on with their jobs Back-up style used when normal style fails independently and would likely miss key opportunities for 3 communication, growth and education. By bringing the treatment team together, nurse leaders verify that each nurse is obeying the same high standards of quality and safety. Additionally, if the nursing team is not following certain protocols, the nurse leader takes this opportunity to educate the entire team about the proper methods. It is normal for employees to become complacent and cut corners as they become more comfortable in their roles. However, it is the nurse leader's job to ensure that this complacency and comfort does not morph into dangerous habits or poor quality of care. Nurse leaders maintain the rigorous standards of care that patients and their families come to expect from exemplary healthcare facilities. Nurse leaders bridge the gap between policy and practice by ensuring that all members of a team are obeying safety protocols. Not only do nurse leaders protect patients in this way, but also they improve the reputation their nursing team and the nursing profession as a whole. 4  FAR EASTERN UNIVERSITY INSTITUTE OF HEALTH SCIENCES AND NURSING DEPARTMENT OF NURSING NUR 1220 NURSING LEADERSHIP AND MANAGEMENT NURSE AS A LEADER MODULE 2 LEADERSHIP THEORIES According to Carlyle, effective leaders are those gifted Topic Outline with divine inspiration and the right characteristics 1. Great Man Theory Some of the earliest research on leadership looked 2. Trait Theory at people who were already successful leaders. 3. Behavioral Theory These individuals often included aristocratic rulers 4. Participative Leadership Theory 5. Situational Theory who achieved their position through birthright. 6. Contingency Theory Because people of a lesser social status had fewer 7. Transactional Theory opportunities to practice and achieve leadership 8. Transformational Theory roles, it contributed to the idea that leadership is an 9. Path-Goal Theory inherent ability. Even today, people often describe prominent GREAT MAN THEORY Great man theories assume that the capacity for leadership leaders as having the right qualities or personality is inherent– that great leaders are born, not made. for the position, implying that inherent characteristics are what make these people MAJOR ASSUMPTIONS effective leaders. These theories often portray great leaders as heroic, TRAIT THEORY mythic and destined to rise to leadership when Similar in some ways to "Great Man" theories, trait needed. theories assume that people inherit certain qualities and Leadership development is based on Darwinistic traits that make them better suited to leadership. principles Leaders are born, not made MAJOR ASSUMPTIONS Leaders have natural abilities of power and Scientific research has not proved that leadership is influence based on hereditary factors Scientific research has not proved that leadership is Leadership was believed to exist only in a few elite based on hereditary factors individuals Leadership was believed to exist only in a few elite Trait theories often identify particular personality individuals or behavioral characteristics shared by leaders. If particular traits are key features of leadership, The term "Great Man" was used because, at the time, then how do we explain people who possess those leadership was thought of primarily as a male quality, qualities but are not leaders? This question is one of especially in terms of military leadership. the difficulties in using trait theories to explain The great man theory of leadership became popular leadership. during the 19th-century. The trait theory suggests that individual The mythology behind some of the world's most personalities are composed broad dispositions. famous leaders such as Abraham Lincoln, Julius Consider how you would describe the personality of Caesar, Mahatma Gandhi, and Alexander the Great a close friend. Chances are that you would list a helped contribute to the notion that great leaders are number of traits, such as outgoing, kind and even- born and not made. tempered. In many examples, it seems as if the right man for A trait can be thought of as a relatively stable the job seems to emerge almost magically to take characteristic that causes individuals to behave in control of a situation and lead a group of people into certain ways. safety or success. The trait approach to personality is focused on differences between individuals. Historian Thomas Carlyle also had a major influence on The combination and interaction of various traits this theory of leadership, at one point stating that, "The forms a personality that is unique to each individual. history of the world is but the biography of great men." 5  Trait theory is focused on identifying and measuring these individual personality While an individual may score high on assessments of a characteristics. specific trait, he or she may not always behave that way in every situation. Another problem is that trait theories do not address how or why individual differences in GORDON ALLPORT’S TRAIT THEORY personality develop or emerge. In 1936, psychologist Gordon Allport found that one English-language dictionary alone contained more than BEHAVIORAL THEORY 4,000 words describing different personality traits. Behavioral theories of leadership are based upon the belief that great leaders are made, not born. THREE LEVELS OF TRAITS AS Rooted in behaviorism, this leadership theory CATERGORIZED BY ALLPORT focuses on the actions of leaders not on mental 1. Cardinal Traits qualities or internal states. Traits that dominate an individual’s whole life, often to the point that the person MAJOR ASSUMPTIONS becomes known specifically for these traits. There is one best way to lead People with such personalities often become Leaders who express high concern for both people so known for these traits that their names are and production or consideration and structure will often synonymous with these qualities. be effective Consider the origin and meaning of the According to this theory, people can learn to following descriptive terms: Freudian, become leaders through teaching and observation. Machiavellian, narcissism, Don Juan, Christ- Behavioral psychology is a theory of learning like, etc. based upon the idea that all behaviors are acquired Allport suggested that cardinal traits are rare through conditioning. and tend to develop later in life. Conditioning occurs through interaction with the environment. 2. Central Traits According to behaviorism, behavior can be These are the general characteristics that studied in a systematic and observable manner form the basic foundations of personality. with no consideration of internal mental states. These central traits, while not as dominating as cardinal traits, are the major TWO MAJOR TYPES OF CONDITIONING characteristics you might use to describe CLASSICAL CONDITIONING another person. Classical conditioning is a technique used in behavioral Terms such as intelligent, honest, shy and training in which a naturally occurring stimulus is paired anxious are considered central traits. with a response. These techniques are also useful in the treatment of phobias or anxiety problems. 3. Secondary Traits These are the traits that are sometimes OPERANT CONDITIONING Operant conditioning is a method of learning that occurs related to attitudes or preferences and often through rewards and punishments for behavior. Through appear only in certain situations or under operant conditioning, an association is made between a specific circumstances. behavior and a consequence for that behavior. Some examples would be getting anxious We can find examples of operant conditioning at when speaking to a group or impatient while work all around us. Consider the case of children waiting in line. completing homework to earn a reward from a parent or teacher, or employees finishing projects to CRITICISMS ON THE TRAIT THEORY While most agree that people can be described based upon receive praise or promotions. their personality traits, theorists continue to debate the In these examples, the promise or possibility of number of basic traits that make up human personality. rewards causes an increase in behavior, but operant conditioning can also be used to decrease a While trait theory has objectivity that some personality behavior. The removal of an undesirable outcome theories lack, it also has weaknesses. or the use of punishment can be used to decrease or prevent undesirable behaviors. For example, a child Some of the most common criticisms of trait theory center may be told they will lose recess privileges if they on the fact that traits are often poor predictors of behavior. talk out of turn in class. This potential for 6  punishment may lead to a decrease in disruptive S1. Directing: a lot of direction by the leader and behaviors. little support; low competence and low motivation. S2. Coaching: a lot of direction by the leader and a PARTICIPATIVE LEADERSHIP THEORY lot of support; low competence and high motivation. Participative leadership theories suggest that the S3. Supporting: little direction by the leader and a lot ideal leadership style is one that takes the input of of support; high competence and low motivation. others into account. S4. Delegating: little direction by the leader and little These leaders encourage participation and support; high competence and high motivation. contributions from group members and help group members feel more relevant and committed to the According to Paul Hersey and Ken Blanchard a leader decision-making process. will have to adapt his style to level of maturity of the In participative theories, however, the leader retains employee. As the maturity increases, the independence of the right to allow the input of others. the employee also increases accordingly. Consequently, four leadership styles are created within situational SITUATIONAL THEORY leadership. Situational theories propose that leaders choose the best course of action based upon situational S1: TELLING (DIRECTING) variables. At this level, the leader has to deal with employees that Different styles of leadership may be more are not competent and (still) unmotivated. This may have appropriate for certain types of decision-making. different causes. New and/or inexperienced employees are not capable enough to carry out tasks independently. It MAJOR ASSUMPTIONS may be experienced as threatening when an employee is Leaders act differently depending on the situation not competent enough to perform a task. This might cause The situation determines who will emerge as a him to postpone the task or do this unwillingly. Good leader instruction and monitoring of the entire work process Different leadership behaviors are required for would be the best style of leadership in this situation. This different situations is also sometimes referred to as task-oriented leadership with little or no concern for human relationships and SITUATIONAL LEADERSHIP MODEL support. Paul Hersey and Ken Blanchard designed these four styles of situational leadership on the basis of a parabola. The employee will receive a lot of direction from the The horizontal axis the level of maturity (independence of leader when it comes to the tasks they have to fulfil. Not the employee) is indicated in the gradation high to low. In just the final objective is made clear, but also the steps that the opposite direction on the horizontal axis the directive have to be taken along the way. That is why he needs behavior from low to high is indicated. By this is meant specific instructions in the form of composed tasks. The the level of direction provided to the employee. On the leader makes the final decisions. It helps to compliment vertical axis, they indicate low to high supportive the employee about progress he is making and not behavior; the degree of support to the employees. overburdening him with too much information at once. It is a good idea for a leader to have the employee repeat in his own words what he is supposed to do. That way, it becomes clear if the instructions have been correctly understood. S2: COACHING At this level the employees have a desire to work independently but they are not capable of doing this yet. They are employees who have not reached full maturity and are hindered by circumstances for example a change or a reform of the organization. This employee wants to set to work enthusiastically but he cannot work independently Figure 2. Situational Leadership Model because of his lack of skills and knowledge. A situation like this might make an employee insecure. By explaining FOUR LEVELS OF LEADERSHIP MATURITY IN his decision-making and by listening to the employee and SITUATIONAL LEADERSHIP MODEL giving him undivided attention, the leader is guiding him. 7 This style can be compared to the consultative leadership that might determine which particular style of style. leadership is best suited for the situation. According to this theory, no leadership style is This leadership style is also called selling for a reason; best in all situations. the leader has to ‘sell’ the tasks to the employee and Success depends upon a number of variables, convince him that he is able to do them. Specific including the leadership style, qualities of the instructions are important here, as are communication at a followers and aspects of the situation. level of equals. The leader makes the decisions, but it is good if the employee asks questions and wants to know the TRANSCATIONAL THEORY purpose of the task. When the employee shows progress, Transactional theories, also known as he should be complimented to make him feel confident management theories, focus on the role of about his skills. supervision, organization and group performance. These theories base leadership on a system of S3: SUPPORTING rewards and punishments. At this level, the employees are capable but Managerial theories are often used in business; (temporarily) unwilling. They are qualified workers but when employees are successful, they are because of the number of tasks, they might get the idea that rewarded; when they fail, they are reprimanded or they are being inundated with work. This can make them punished. insecure and reluctant. To take away this insecurity, it is This theory of leadership was first described in by important that the leader confers with the employees and sociologist Max Weber, and further explored by supports them in their work. By having employees Bernard M. Bass in the early 1980s. participate in the decision-making process, acceptance will Basic Assumptions of Transactional Leadership increase and the employees will be able to work People perform their best when the chain of independently again. It is also possible that a mistake has command is definite and clear. been made for which the employee blames himself. This Workers are motivated by rewards and can make him stagnate and lose confidence. That is why punishments. support from the leader is important. TRANSFORMATIONAL THEORY The employee needs to be stimulated and has to get Relationship theories, also known as back the confidence to make decisions independently transformational theories, focus upon the again. It is a good idea for the leader to give that connections formed between leaders and confidence to the employee and remind him of other tasks followers. and projects that he did do well in the past. This type of Transformational leaders motivate and inspire employee can benefit from some calm, face-to-face people by helping group members see the brainstorming or sparring about a question or an issue. importance and higher good of the task. That increases his confidence and makes his superior These leaders are focused on the performance of someone he can talk to. The employee is allowed to take group members, but also want each person to some risks and trust in his own abilities. fulfill his or her potential. Leaders with this style often have high ethical and S4: DELEGATING At this level the employees can and want to carry out moral standards. their tasks independently, they have a high level of task THE COMPONENTS OF TRANSFORMATIONAL maturity as a result of which they need less support. LEADERSHIP (BASS) Employees inform the leader about their progress of their 1. Intellectual Stimulation. Transformational leaders own accord and at the same time they indicate when not only challenge the status quo; they also encourage problems present themselves or when the work is creativity among followers. The leader encourages stagnating. They become motivated because of their followers to explore new ways of doing things and independence and as a result a leader does not have to new opportunities to learn. consult with them continuously. 2. Individualized Consideration. Transformational leadership also involves offering support and encouragement to individual followers. In order to CONTINGENCY THEORY Contingency theories of leadership focus on foster supportive relationships, transformational particular variables related to the environment leaders keep lines of communication open so that followers feel free to share ideas and so that leaders 8  can offer direct recognition of the unique 4. The supportive leader behavior is directed contributions of each follower. towards the satisfaction of employees’ needs and 3. Inspirational Motivation. Transformational leaders preferences. The leader shows concern for the have a clear vision that they are able to articulate to employees’ psychological well-being. This followers. These leaders are also able to help behavior is especially needed in situations in followers experience the same passion and motivation which tasks or relationships are psychologically to fulfill these goals. or physically distress. 4. Idealized Influence. The transformational leader serves as a role model for followers. Because followers trust and respect the leader, they emulate this individual and internalize his or her ideals. PATH-GOAL THEORY Describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy Emphasizes that the leader behavior be such as complement the group work setting and aspirations Based upon the expectancy theory of motivation and reflects the workers belief that efforts will lead to successful results. PATH-GOAL’S FOUR STYLES The Path-Goal model is a theory based on specifying a leader’s style or behavior that best fits the employee and work environment in order to achieve a goal. The goal is to increase an employee’s motivation, empowerment, and satisfaction so they become a productive member of the organization. The Four Styles: 1. The directive path goal clarifying leader behavior refers to situations where the leader lets employees know what is expected of them and tells them how to perform their tasks. The theory argues that this behavior has the most positive effect when the employees’ role and task demands are ambiguous and intrinsically satisfying. 2. The achievement-oriented leader behavior refers to situations where the leader sets challenging goals for employees, expects them to perform at their highest level, and shows confidence in their ability to meet this expectation. Occupations in which the achievement motive were most predominant were technical jobs, sales persons, scientists, engineers, and entrepreneurs. 3. The participative leader behavior involves leaders consulting with employees and asking for their suggestions before making a decision. This behavior is predominant when employees are highly personally involved in their work. 9  FAR EASTERN UNIVERSITY INSTITUTE OF HEALTH SCIENCES AND NURSING DEPARTMENT OF NURSING NUR 1220 NURSING LEADERSHIP AND MANAGEMENT NURSE AS A LEADER MODULE 3 MANAGEMENT THEORIES revolution would end all conflicts between Topic Outline the two parties and would be beneficial to 1. Scientific Management Theories both of them. a. Frederick Winslow Taylor 3. Cooperation, Not Individualism. According to b. Frank and Lillian Gilbreth this principle, all the activities done by different c. Henry Gantt people must be carried on with a spirit of mutual 2. Classical Management Theories a. Max Weber cooperation. b. Henri Fayol Taylor has suggested that the manager and the c. Lyndall Urwick workers should jointly determine standards. 3. Relational Management Theories This increases involvement and thus, in turn, a. Elton Mayo increases responsibility. In this way we can b. Kurt Lewin expect miraculous results. c. Mary Parker Follet 4. Behavioral Management Theories 4. Development of Each and Every Person to His/ a. Douglas McGregor Her Greatest Efficiency and Prosperity: b. Abraham Maslow According to this principle, the c. Frederick Herzberg efficiency of each and every person should be taken care of right from his SCIENTIFIC MANAGEMENT THEORIES selection. A proper arrangement of Scientific management is a theory of management everybody’s training should be made. that analyzes and synthesizes workflows. Its main objective is improving economic FRANK AND LILLIAN GILBRETH efficiency, especially labor productivity. It was Lilian Gilbreth- First Lady of Management one of the earliest attempts to apply science to the Job simplification engineering of processes to management. Used scientific insights to develop a study method Also known as Taylorism based on the analysis of work motions, consisting in part of filming the details of a worker’s activities FREDERICK WINSLOW TAYLOR (1856-1915) while recording the time it took to complete those Father of scientific management activities. The Principles of Scientific Management Filming Productivity would increase if jobs were o helped to create a visual record of how optimized and simplified work was completed and emphasized areas FOUR IMPORTANT PRINCIPLES OF for improvement. SCIENTIFIC MANAGEMENT o served the purpose of training workers 1. Science, Not Rule of Thumb. This principle says about the best way to perform their work. that we should not get stuck in a set routine with the old techniques of doing work, rather we HENRY GANTT (1861-1919) should be constantly experimenting to develop an associate of Taylor. new techniques which make the work much Best contribution to management: simpler, easier and quicker. o the task and bonus system. 2. Harmony, Not Discord. As per this principle, GANTT CHART such an atmosphere should be created in the a tool that provides a visual (graphic) organization that labor (the major factor of representation of what occurs over the course of a production) and management consider each other project. indispensable. The focus of the chart is the sequential Taylor has referred to such a situation as a performance of tasks that make up a project. ‘Mental Revolution.’ Taylor firmly It identifies key tasks, assigns an estimated time believed that the occurrence of a mental to complete the task, and determines a starting date for each element of a task. 10  Gantt differentiated between a terminal element examinations, education, or training. There is no that must be completed as part of a larger task. nepotism. The related terminal elements together created Career Orientation. Management is separate from what he called the summary element. ownership, and managers are career employees. Protection from arbitrary dismissal is guaranteed. Formal Rules and Regulations. Rules and regulations are documented to ensure reliable and predictable behavior. Managers must depend on formal organizational rules in employee relations. Impersonality. Rules are applied uniformly to everyone. There is no preferential treatment or favoritism. Figure 3. Model Gantt Chart HENRY FAYOL (1841-1925) Father of General Administration CLASSICAL MANAGEMENT THEORIES It is based on the belief that workers only have 14 PRINCIPLES OF MANAGEMENT physical and economic needs. 1. Division of Work– When employees are It does not take into account social needs or job specialized, output can increase because they satisfaction, but instead advocates a specialization become increasingly skilled and efficient. of labor, centralized leadership and decision- 2. Authority– Managers must have the authority to making, and profit maximization. give orders, but they must also keep in mind that o Hierarchical structure with authority comes responsibility. o Specialization 3. Discipline– Discipline must be upheld in o Incentive organizations, but methods for doing so can vary. 4. Unity of Command – Employees should have MAX WEBER (1864—1920) only one direct supervisor. Bureaucratic Theory 5. Unity of Direction – Teams with the same Father of Organization Theory objective should be working under the direction Interested in industrial capitalism, an economic of one manager, using one plan. This will ensure system where industry is privately controlled and that action is properly coordinated. operated for profit. 6. Subordination of Individual Interests to the Weber made a distinction between authority and General Interest – The interests of one employee power. should not be allowed to become more important Weber believed that power educes obedience than those of the group. This includes managers. through force or the threat of force which induces 7. Remuneration – Employee satisfaction depends individuals to adhere to regulations. on fair remuneration for everyone. This includes Types of power in an organization financial and non-financial compensation. o Traditional Power 8. Centralization – This principle refers to how o Charismatic Power close employees are to the decision-making process. It is important to aim for an appropriate CHARACTERISTICS OF THE BUREAUCRACY balance. Hierarchical Management Structure. Each level 9. Scalar Chain– Employees should be aware of controls the levels below and is controlled by the where they stand in the organization's hierarchy, level above. Authority and responsibilities are or chain of command. clearly defined for each position. 10. Order– he workplace facilities must be clean, Division of Labor. Tasks are clearly defined, and tidy and safe for employees. Everything should employees become skilled by specializing in doing have its place. one thing. There is clear definition of authority and 11. Equity – Managers should be fair to staff at all responsibility. times, both maintaining discipline as necessary Formal Selection Process. Employee selection and and acting with kindness where appropriate. promotion are based on experience, competence, 12. Stability of Tenure of Personnel – Managers and technical qualification demonstrated by should strive to minimize employee turnover. Personnel planning should be a priority. 11 13. Initiative– Employees should be given the ELTON MAYO necessary level of freedom to create and carry out Founder of the Human Relations Theory. plans. Hawthorne Experiment 14. Esprit de Corps – Organizations should strive to o Prior to this trend, Elton Mayo already started an promote team spirit and unity. experiment in the Hawthorne plants in 1924; the Hawthorne experiment. There was a great deal LYNDALL URWICK (1891-1984) of discontent among the 30,000 workers in the PRINCIPLES OF MANAGEMENT Hawthorne plants in Chicago in the early 1. purpose of an organization it its raison d'être. twenties of the last century. This was somewhat 2. The principle of specialization – one group, one peculiar, because this phone parts plant already function. acted extremely progressively towards its 3. The principle of coordination – the purpose of workers (through pensions and sickness organizing is to facilitate coordination or unity of benefits), something which was almost effort. unthinkable in this period. 4. The principle of authority – in every organized o Elton Mayo and his assistants, including Fritz group, supreme authority must be located Roethlisberger, conducted research into somewhere, and there should be a clear line of changing working conditions. authority to every member of the group. o They experimented with light, duration of 5. The principle of responsibility– a superior may breaks and working hours. A group of women be held accountable for the actions of were exposed to either more or less light. It subordinates. turned out that, regardless of the amount and 6. The principle of definition– jobs, duties and duration of lighting, this had a positive effect on relationships should be clearly defined. their performances. The same was true for rest 7. The principle of correspondence– in every periods; shorter or longer breaks both led to an position, responsibility and authority should increase in labor productivity. correspond with one another. o Results of Hawthorn experiment 8. The principle of span of control– no person § Individual employees must be seen as should supervise more than 5–6 line reports members of a group whose work is interlocked. § Salary and good working conditions are 9. The principle of balance– it is essential that the less important for employees and a sense of various units of an organization are kept in belonging to a group; balance. § Informal groups in the workplace have a 10. The principle of continuity– reorganization is a strong influence on the behaviour of continuous process and provision should be made employees in said group; for it. § Managers must take social needs, such as belonging to an (informal) group, seriously RELATIONAL MANAGEMENT THEORIES Relationship management involves strategies to KURT LEWIN (1890-1947) build client support for a business and its offerings Kurt Lewin's major contributions to management theory and increase brand loyalty. are: Most often, relationship building occurs at the 1. the concepts of field theory customer level, but it is valuable between 2. action research (the interweaving of laboratory businesses as well. experiment, systematic research in the field, and In the era of the Human Relations Theory, the client service) concept of ‘labor motivation’ is given a new 3. the study of group dynamics meaning compared to the Scientific Management 4. aspects of sensitivity training techniques era. The fact that personal attention led to improved performances was a completely new perspective. The term workers is gradually replaced with employee, which more explicitly implies that these people are thinking people who can positively contribute to the organization. 12  DOUGLAS MC GREGOR (1906 – 1 October 1964) THEORY X Theory X managers tend to take a pessimistic view of their people and assume that they are naturally unmotivated and dislike work. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Work in organizations that are managed like this can be repetitive, and people are often motivated with a "carrot and stick" approach. Performance Figure 4. Change Model by Lewin appraisals and remunerations are usually based on MARY PARKER FOLLET tangible results, such as sales figures or product Mother of Conflict Management output, and are used to control staff and "keep Coordinating Sociological and psychological tabs" on them. aspects of management This style of management assumes that workers: Superiors and subordinates mutually influence o Dislike their work. one another o Avoid responsibility and need constant direction. FОLLЕTT’Ѕ MAJOR IDEAS o Have to be controlled, forced and 1. Constructive Conflict threatened to deliver work. Fоllеt аrguеѕ that conflict, аѕ a natural аnd o Need to be supervised at every step. inevitable раrt оf lifе, does not nесеѕѕаrilу o Have no incentive to work or ambition, have tо lеаd tо deleterious outcomes. and therefore need to be enticed by Rаthеr, if аррrоасhеd with thе right аnаlуtiсаl rewards to achieve goals. аnd imаginаtivе tооlѕ a соnfliсt саn рrеѕеnt According to McGregor, organizations with a аn opportunity fоr роѕitivе оr constructive Theory X approach tend to have several tiers of dеvеlорmеnt. managers and supervisors to oversee and direct workers. Authority is rarely delegated, and control 2. Coordination remains firmly centralized. Managers are more Coordination mеаnѕ to intеgrаtе (i.е. bring authoritarian and actively intervene to get things together) thеѕе асtivitiеѕ for асhiеving thе done. objectives of thе оrgаnizаtiоn. Although Theory X management has largely fallen out of fashion in recent times, big 3. Power, Authority, and Control organizations may find that adopting it is Pоwеr аѕ “thе ability tо mаkе thingѕ happen, unavoidable due to the sheer number of people to be a саuѕаl аgеnt, to initiate сhаngе.” that they employ and the tight deadlines that they have to meet. Authоritу аѕ vеѕtеd роwеr– thе right to dеvеlор аnd еxеrсiѕе роwеr THEORY Y Cоntrоl tends tо bе self-control. Theory Y managers have an optimistic, positive 4. Leadership opinion of their people, and they use a a leader iѕ “thе man whо саn energize hiѕ decentralized, participative management style. This group, who knоwѕ hоw tо еnсоurаgе encourages a more collaborative, trust-based initiаtivе, hоw to drаw frоm аll whаt еасh hаѕ relationship between managers and their team tо givе.” members. People have greater responsibility, and managers BEHAVIORAL MANAGEMENT THEORIES encourage them to develop their skills and suggest The behavioral management theory is often called the improvements. Appraisals are regular but, unlike in human relations movement because it addresses the human Theory X organizations, they are used to encourage dimension of work. Behavioral theorists believed that a open communication rather than control staff. better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, Theory Y organizations also give employees improved productivity. frequent opportunities for promotion. 13  This style of management assumes that workers are: challenges, and behaving in a way that will o Happy to work on their own initiative. lead to the satisfaction of one’s life goals o More involved in decision making. o Self-motivated to complete their tasks. o Enjoy taking ownership of their work. o Seek and accept responsibility and need little direction. o View work as fulfilling and challenging. o Solve problems creatively and imaginatively. Theory Y has become more popular among organizations. This reflects workers' increasing desire for more meaningful careers that provide Figure 5. Maslow’s Hierarchy of Needs them with more than just money. ABRAHAM MASLOW Abraham Maslow is among the most prominent psychologists of the twentieth century, and the hierarchy of needs, accompanied by the pyramid representing how human needs are ranked is an idea familiar to most business students and managers. Maslow’s theory is based on a simple premise: Human beings have needs that are hierarchically ranked. Some needs are basic to all human beings, and in their absence, nothing else matters. As we satisfy these basic needs, we start looking to satisfy higher- order needs. Once a lower-level need is satisfied, it no longer serves as a motivator. The most basic of Maslow’s needs are physiological needs. o Physiological needs refer to the need for air, food, and water. Imagine being very hungry. At that point, all your behavior will probably be directed at finding food. Once you eat, though, the search for food ceases and the promise of food no longer serves as a motivator. o Once physiological needs are satisfied, people tend to become concerned about safety. Are they safe from danger, pain, or an uncertain future? One level up, social needs refer to the need to bond with other human beings, to be loved, and to form lasting attachments. In fact, having no attachments can negatively affect health and well-being o The satisfaction of social needs makes esteem needs more salient. Esteem needs refer to the desire to be respected by one’s peers, feeling important, and being appreciated. Finally, at the highest level of the hierarchy, the need for self-actualization refers to “becoming all you are capable of becoming.” This need manifests itself by acquiring new skills, taking on new 14  FAR EASTERN UNIVERSITY INSTITUTE OF HEALTH SCIENCES AND NURSING DEPARTMENT OF NURSING NUR 1220 NURSING LEADERSHIP AND MANAGEMENT NURSE AS A LEADER MODULE 4 MANAGERIAL FUNCTION: process of guiding the business enterprise toward PLANNING clearly specified objectives with the clearest Topic Outline possible view of the future. Deciding what is 1. Basic Features of a Good Management Plan desired and determining the actions required are 2. Steps in Planning Process both involved in planning. 3. Four Types of Plans It is known as the process of matching the a. Operational Planning resources with opportunities. b. Strategic Planning c. Tactical Planning It is a future oriented activity. d. Contingency Planning It specifies in detail what will be done, by whom, 4. Elements of Planning with what and when to achieve the objective of a. Organizational Vision, Mission, the undertaking. Philosophy, Goals and Values It should be noted that planning is not a b. Forecasting c. Budgeting “blueprint” of future operations. It is basically a i. Zero-based budgeting problem of choosing. ii. Fixed Budgeting The essentials of planning lie in the provision of iii. Flexible Budgeting integrated decision-structure for an undertaking iv. Capital Budgeting as a whole. It demands thinking of shaping the v. Operating Budgeting future of the undertaking instead of expecting the 5. Barriers to Effective Planning organizations to adapt to a future as shaped by PLANNING directionless forces. It is in this sense that Planning is the primary function of management. planning is the determination of desired results Its purpose is to ensure optimum utilization of and the ways and means to achieve them. human and economic resources in the business processes. It precedes all other activities of the NINE BASIC FEATURES OF A GOOD MANAGEMENT PLAN business undertaking. 1. It should define objectives. Objectives are the It is the process of charting out the path for ultimate goals towards which all activities are attaining the ultimate purpose of business directed. A statement which lays down objectives operations by outlining the sequence of events should be clear and definite and everyone in the forecast with reasonable degree of certainty. It organization should understand it in the same involves not only anticipating the consequences sense. of decisions but also predicting events that may 2. It should be simple. If a plan is expressed in a have effects on a business. language which is not understandable by the Thus, planning is deciding in the present what to personnel of the concern or it is complicated, it do in the future. It directs efforts and resources of may create problems for those who are to actually an enterprise toward the common objectives. put it into action. “Planning function of management is the 3. It should be clear. A good plan must not contain continuous process of making present anything that is ambiguous or indefinite. entrepreneurial (risk-taking) decisions 4. It should be comprehensive. A good plan should systematically and with the best possible contain all that is necessary for the attainment of knowledge of their futurity, organizing the objectives of the enterprise. If a master plan is systematically the efforts needed to carry out prepared for the whole organization, it will be these decisions, and measuring the results of these more useful as it can be seen that nothing is left decisions against the expectations through from it. organized systematic feedback.”- Drucker 5. It should be flexible. A flexible plan adjusts the Planning requires both creativity and analysis in changes in the plans without any delay. Hence a defining business opportunities and constraints. plan must not be rigid. A plan should be broad Hence it is called the art of the possible. It is the 15  enough to meet the future challenges and 4. Select best alternative. This is the real point of uncertainties. decision-making. An analysis and evaluation of 6. It should be economical. A plan should be made alternative courses will disclose that two or more keeping in mind the resources available with the are advisable and beneficial. The fit one is concern and making optimum utilization of the selected. available resources. In other words, a plan must recover its cost and should result in the least 5. Implementation and evaluation. The next step operating cost. is to implement and evaluate the plan. 7. It should establish standards. A plan must lay Implementation in large organizations, such as down the standards to be achieved. The actual governmental agencies or large corporations, will performance is compared with these standards be done by a different set of organizational and deviations if any are noted. members than the members that created the plan. 8. It should be balanced. It is necessary ensure that there is a proper co-ordination between different There is a need to constantly monitor and assess types of plans such as short-term and long-term the implementation of the plan to determine if the plans, “plans of different departments etc. A plan is achieving the objectives leading to the business enterprise usually has a number of strategic goal. If not, then adjustments to the long- department’s viz., production, marketing, finance term strategy will be necessary. etc. Each department frames its own plans. It is for the management to see that all these plans are THE FOUR TYPES OF PLANS OPERATIONAL PLANNING well balanced. “Operational plans are about how things need to 9. It should be practicable. A plan is worth only if happen,” motivational leadership speaker Mack Story said it is practically workable and realistic. It should at LinkedIn. “Guidelines of how to accomplish the mission be formulated keeping in view the limitations of are set.” planning. If a plan is good in theory but bad in practice, it is of no use. Similarly, if the desired This type of planning typically describes the day-to-day results are not achieved by a plan, it leads to running of the company. Operational plans are often frustration at all levels in the organization. described as single use plans or ongoing plans. Single use STEPS IN PLANNING PROCESS plans are created for events and activities with a single 1. Analysis of the current state and forecasting occurrence (such as a single marketing campaign). the future environment. SWOT analysis and/or Ongoing plans include policies for approaching problems, other organizational analysis measures may be rules for specific regulations and procedures for a step-by- done to examination of your organization's step process for accomplishing particular objectives. strengths, weaknesses, opportunities, and threats. STRATEGIC PLANNING Then develop an organizational vision and a “Strategic plans are all about why things need to mission statement as how you describe the future happen,” Story said. “It’s big picture, long-term thinking. of your organization - where it wants to be, its It starts at the highest level with defining a mission and essential values, and what it wants to do. casting a vision.” 2. Determination of objectives and strategies. A Strategic planning includes a high-level overview of the comprehensive planning effort to be successful entire business. It’s the foundational basis of the requires that managers in each department be organization and will dictate long-term decisions. The involved in the planning process. These scope of strategic planning can be anywhere from the next objectives and strategies will direct the future two years to the next 10 years. Important components of a course of the organization must be clear, concise strategic plan are vision, mission and values. and specific. TACTICAL PLANNING 3. Identify alternatives. Various alternatives can be Tactical plans are about what is going to happen,” Story identified based on the organizational objectives said. “Basically at the tactical level, there are many and planning premises. The concept of various focused, specific, and short-term plans, where the actual alternatives suggests that a particular objective work is being done, that support the high-level strategic can be achieved through various actions. plans.” 16 Tactical planning supports strategic planning. It includes It nurtures a service-oriented and environment- tactics that the organization plans to use to achieve what’s conscious community which seeks to contribute to outlined in the strategic plan. Often, the scope is less than the advancement of the global society. one year and breaks down the strategic plan into actionable chunks. Tactical planning is different from operational Core Values planning in that tactical plans ask specific questions about Fortitude. A Tamaraw is characterized by what needs to happen to accomplish a strategic goal; fortitude. Moral courage and strength of character operational plans ask how the organization will generally allow Tamaraws to persevere and achieve more do something to accomplish the company’s mission. than is expected of them. Excellence. A Tamaraw is characterized by CONTINGENCY PLANNING excellence. The FEU academic community is Contingency plans are made when something unexpected committed to perform to its fullest potential thus happens or when something needs to be changed. Business creating a culture of excellence. experts sometimes refer to these plans as a special type of Uprightness. A Tamaraw is characterized by planning. uprightness. Full development of morality and integrity is among the primary purposes of FEU Contingency planning can be helpful in circumstances that as an educational institution. call for a change. Although managers should anticipate changes when engaged in any of the primary types of FORECASTING planning, contingency planning is essential in moments Forecasting is a decision-making tool used by many when changes can’t be foreseen. As the business world businesses to help in budgeting, planning, and estimating becomes more complicated, contingency planning future growth. In the simplest terms, forecasting is the becomes more important to engage in and understand. attempt to predict future outcomes based on past events and management insight. ELEMENTS OF PLANNING ORGANIZATIONAL VISION, MISSION, There are two forecast types: judgment-based (e.g. PHILOSOPHY, GOALS AND VALUES “gut feel”) and quantitative (e.g. statistics). The most Vision- future-oriented, purposeful statements trustworthy forecasts combine both methods to support designed to identify the desired future of an their strengths and mitigate their weaknesses. organization; Note for timeline Mission- tells the reason why an organization exists Ex. Gantt Chart o describes an organization what it will be and what it should be BUDGETING Objectives- specific statements to be achieved in an Budgeting is the process of designing, individual unit implementing and operating budgets. It is the o S. M. A. R. T. (Specific, Measurable, managerial process of budget planning and Attainable, Realistic & Time Bound) preparation, budgetary control and the related Philosophy- statement of beliefs and values that procedures. directs one’s values Budgeting is the highest level of accounting in o Contains value statement about terms of future which indicates a definite course of human beings, about work, clients, action and not merely reporting. education, service, competencies Values- an organization’s values can be defined as TYPES OF BUDGET the moral guide for its business practices. 1. Zero-based budgeting As one of the most commonly used budgeting EXAMPLE methods, zero-based budgeting starts with the FEU’s Vision-Mission assumption that all department budgets are Guided by the core values of Fortitude, Excellence zero and must be rebuilt from scratch. and Uprightness Far Eastern University aims to be a Managers must be able to justify every single university of choice in Asia. expense. Committed to the highest intellectual, moral and No expenditures are automatically “okayed”. cultural standards, Far Eastern University strives to Zero-based budgeting is very tight, aiming to produce principled and competent graduates. avoid any and all expenditures that are not 17  considered absolutely essential to the year to bring actual results into line with the company’s successful (profitable) operation. operating budget. This kind of bottom-up budgeting can be a An operating budget tends to become less highly effective way to “shake things up”. accurate for periods further in the future. To The zero-based approach is good to use when offset this issue, some organizations routinely there is an urgent need for cost containment, update their budget based on the latest for example, in a situation where a company is available information. going through a financial restructuring or a major economic or market downturn that BARRIER TO EFFECTIVE PLANNING requires it to reduce the budget dramatically. LACK OF LEADERSHIP Zero-based budgeting is best suited for Being a leader is about more than a title following your name. It requires developing a strategy and then addressing discretionary costs rather than expressing the vision in a clear way, so the entire team essential operating costs. understands the goal. When a vision is clearly laid out, 2. Fixed Budgeting is a budget that remains constant, business leaders must inspire team members to join the irrespective of the levels of activity, i.e. the budget program for the new vision and implement new strategies. is created for a standard volume of production. Even when leaders do all this well, they still need to be constant motivators, project managers and evaluators of 3. Flexible Budgeting. Budget created for different the strategy's implementation. Without motivation, new production levels or capacity utilization, i.e. it strategies fall behind as workers return to their habitual ways of doing things. changes in accordance with the activity level. 4. Capital Budgeting. It is the planning process used to determine which of an organization’s long-term EXCESSIVE DISTRACTIONS PREVENT investments are worth pursuing. EFFECTIVE PLANNING Too many distractions present a significant barrier to It is the planning process used to determine effective planning. It could be that a leader is trying to whether an organization's long term implement too many things at once, and the team is investments such as new machinery, confused about the priorities. Another way that a replacement of machinery, new plants, new distraction prevents effective planning implementation products, and research development projects occurs when a leader attempts to roll out a new program are worth the funding of cash through the during a peak business season. Your team can't focus on firm's capitalization structure (debt, equity or new strategies and processes if they are working overtime retained earnings). taking care of clients. As the leader, understand that timing It is the process of allocating resources for the implementation of new strategy carefully is as major capital, or investment, expenditures. important as the strategy itself. One of the primary goals of capital budgeting investments is to increase the value of the firm LACK OF SYSTEMS to the shareholders Having the right systems in place to support a new strategy is important for success. Systems could include hardware 5. Operating budgeting. It is a forecast of the or software systems or could be something as simple as the revenues and expenses expected for one or more fulfillment process chain of events. Leaders need to look future periods. at the resources in place before implementing a new It is typically formulated by the management strategy. For example, a new customer-retention team just prior to the beginning of the year and management program might help the team become more shows expected activity levels for the entire efficient from the sale through the delivery of goods. year. However, if the computer systems haven't been upgraded, This budget may be supported by a number of the new program could overload the computers and cause subsidiary schedules that contain information crashes and freezes. Team members can't be productive