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College of Public Health & Tropical Medicine Health Services Management 414 Management Theories and Health Services Management Dr. Mohammed Almalki College of Public Health and Tropical Medicine Jazan University Almalki, M. J. (2023). Theories of Management. Health Services Management 414. Jazan: Jazan University, College of Public Health and Tropical Medicine. Friday, 22 December 202 3 1 College of Public Health & Tropical Medicine Health Services Management 414 Theories of Management Friday, 22 December 202 3 2 College of Public Health & Tropical Medicine Health Services Management 414 Concept of management theory Management theory is a collection of observations about how the process of managing people and things occurs in the real world. (Healey & Marchese, 2012) Management theories are frameworks of principles and practices derived from the experiences and observations of managers and theorists. These theories serve as valuable tools for managers and workers, providing insights into organizational structures, (Almalki, 2023) techniques, and effective task- 3 Friday, 22communication December 202 3 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management They can be classified under three approaches I. Classical (Traditional) Approach (CA) II. Non-Classical Approach (NCA) (Healey & Marchese, 2012) Friday, 22 December 202 3 4 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management I. Classical Approach Outgrowth of the Industrial Revolution. The Industrial Revolution led to improvements in productivity and sales. The invention of machines to produce goods =  the productivity +  consumers   demand   factories and workers   profits (Hartzell, 2013; Healey & Marchese, 2012) Friday, 22 December 202 3 5 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management I. Classical Approach Cont’d Management was not as oriented toward the individual employee. Employees were dissatisfied with their working conditions. Many lack the necessary training for how to do their work efficiently. (Hartzell, 2013) Friday, 22 December 202 3 6 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management I. Classical Approach Cont’d Managers, then started looking for possible solutions to fix these challenges and to discover the one best way to perform and mange work activities.  The researchers then came out with the Classical Management Approach. (Goodwin, Gruen, & Iles, 2006; Hartzell, 2013) Friday, 22 December 202 3 7 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management CA: 1. The Scientific Management Theory (1890-1940) Developed by Frederick Winslow Taylor in the USA. The Father of Scientific Management. Taylor published “The Principles of Scientific Management” in 1911. Taylor believed that there is a science to manage work! (Hartzell, 2013; Healey & Marchese, 2012; KadianBaumeyer, 2014) Friday, 22 December 202 3 8 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory Tasks should be standardized as much as possible. Workers should be rewarded and punished. Work and worker relationship! Employees are “biological machines.” “If workers worked like machines, there would be increased productivity.” All perspectives of this theory focus on the technical side of the work – On the employees’ performance! (Healey & Marchese, 2012; KadianFriday, 22 December 202 3 Baumeyer, 2014) 9 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory All attempts and experiments sought to increase productivity using the same productive potentials. Classical Scientific Theorists such as Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth spent their time researching:  how a specific job was done?  What steps were taken by an employee to complete the work?  The amount of time it took a worker to complete a (Hartzell, 2013) task using different methods Friday, 22 December 202 3 10 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory The results of their work were used to determine the most effective way to do tasks. They also led to the development of the (4) Principles of Scientific Management: (Hartzell, 2013) Friday, 22 December 202 3 11 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory Management should: 1. decide how employees must complete individualised tasks. 2. choose and train each employee on one specific task. 3. supervise and communicate with employees 4. divide the work equally among workers. (Hartzell, 2013) Friday, 22 December 202 3 12 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory Henry Ford provides an excellent example of classical scientific management by developing the car production assembly line. (Hartzell, 2013) Friday, 22 December 202 3 13 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory Assembly Line Friday, 22 December 202 3 14 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory Even though the arguments around this Theory techniques, it seemed to work very well at increasing productivity and profits for employers! But what about human resources? Taylor did not pay high attention to human elements! (Healey & Marchese, 2012) Friday, 22 December 202 3 15 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management CA: 2. The Administrative Principles Theory Generalized by Henri Fayol, an engineer and manager in a large coal mining company in France (1888 – 1925). He published “Fayol's 14 Principles of Management in 1888 and “Administration Industrielle et Generalein” (General and Industrial Management) in 1916. Fayol is widely regarded as the father of management! (Peter F. Drucker is considered by many (Healey sources the father & Marchese, 2012; KadianBaumeyer, 2014) of 22 modern Friday, December 202 management). 3 16 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 2. The Administrative Principles Theory Henri Fayol believed that organizational and managerial practices are essential for driving predictability and efficiency in organizations. Thus, Fayol focused on the role of managers in their organizations. Fayol started his studies with managers at higher levels and moved down, While the Scientific Management Theory focused on the performance of employees and the lower levels of management! (Healey & Marchese, 2012; KadianFriday, 22 December 202 3 Baumeyer, 2014) 17 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 2. The Administrative Principles Theory Fayol’s theory communicates that:  Managers have few resources and tools to manage people. Managers need specific roles (management elements) to manage work and workers. Authority and control of employees are essential; however, flexibility is also essential for managers to consider. Friday, 22 December 202 3 (Healey & Marchese, 2012; KadianBaumeyer, 2014) 18 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 2. The Administrative Principles Theory Fayol’s Five Functions of Management:      Planning including forecasting Planning Organizing Organizing Commanding Leading Coordinating Controlling Controlling (Healey & Marchese, 2012; Kadian-Baumeyer, 2014 Friday, 22 December 202 3 19 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 2. The Administrative Principles Theory Fayol's 14 Principles of Management (that could be used by managers to coordinate the internal activities of organizations): 1. Division of Work 2. Balancing authority and responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual Interests to the General Interest Friday, December 202 7. 22Remuneration 3 7. The Degree of Centralization 8. Hierarchy Chain 10.Order 11.Equity 12.Stability of Tenure of Personnel 13.Initiative 14.Esprit de Corps (e ˌsprē dǝ kồr) 20 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management CA: 3. The Bureaucratic Organization Theory (1930-1950) Developed by Max Weber (maks fybr), a German philosopher and architect of this theory. Friday, 22 December 202 3 (Hartzell, 2013; Healey & Marchese, 2012) 21 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 3. The Bureaucratic Organization Theory Bureaucracy refers to a more formalized and rigid structure of organization. Max criticized organizations’ managers for running businesses like their families. Bureaucracy become the dominant model for organizations throughout the world. The bureaucratic organizations increased their efficiency and made profits, which defined success for organizations. (Healey & Marchese, 2012) Friday, 22 December 202 3 22 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 3. The Bureaucratic Organization Theory The characteristics of a bureaucratic organization include:  A well-defined formal hierarchy and chain of command  Management by rules and regulations  Division of work for specialization  Managers should maintain an impersonal relationship with employees  Competence, not personality, is the basis for job appointment(Healey & Marchese, 2012; Schermerhorn, 2010  Formal written records (example: a policy and Friday, 22 December 202 23 3 procedure manual) College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Transition to the non-classical theories of management Many businesses realized that Classical Approach theories did not function well in a changing world. The classical school neglected the human side and under-emphasized the socio-psychological aspect of the organization. Thus, businesses started to focus on the people who make the product or deliver the service. (Healey & Marchese, 2012) Friday, 22 December 202 3 24 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Transition to the non-classical theories of Cont’d management The new world of business needed engaging workers and inspirational managers. Employee engagement is an increased emotional and intellectual connection between employees and their workplace. (Branham & Hirschfeld, 2010; Healey & Marchese, 2012 Friday, 22 December 202 3 25 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management . NCA: 1. The Human Relations Theory The human relations theory is the ideology that emphasizes the need to prioritize satisfaction among workers. Evolved from the Hawthorne Studies. (Healey & Marchese, 2012) Friday, 22 December 202 3 26 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management . NCA: 1. The Human Relations Theory Cont’d Hawthorn Studies, which Elton Mayo led at a Western Electric Company plant in Illinois (1924 to 1932). They are a research on people’s behavior in groups and how it affects individuals in the workplace. Involved experimentation with several factors, including wage incentives, to motivate employees toward increased productivity. (Healey & Marchese, 2012) Friday, 22 December 202 3 27 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management . NCA: 1. The Human Relations Theory Cont’d These studies concluded that human behavior, workers’ attitudes concerning work, and the informal work group contribute to worker motivation. People desire to be part of a supportive team facilitating development and growth. (Healey & Marchese, 2012, Peek, 2023) Friday, 22 December 202 3 28

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