NCM 4102 Leadership and Management in Nursing PDF

NCM 4102 LEADERSHIP AND MANAGEMENT IN NURSING Clinical Instructor: Federico Miguel Martinez Monte, RN, MSN LEADERSHIP THEORIES I. THE GREAT MAN THEORY - is mostly assoc...

NCM 4102 LEADERSHIP AND MANAGEMENT IN NURSING Clinical Instructor: Federico Miguel Martinez Monte, RN, MSN LEADERSHIP THEORIES I. THE GREAT MAN THEORY - is mostly associated with Thomas Carlyle, who looked for a source of strength and direction during the Napoleonic wars. - leaders are born, not made; this naturally predisposes certain people to leadership, making them naturally suited to lead and inspire others. - According to the Great Man Theory, people in positions of power deserve to lead because of characteristics granted to them at birth, which ultimately help them become heroes. - “No great man lives in vain. The history of the world is but the biography of great men” - Thomas Carlyle, Scottish historian and author of On Heroes, Hero-Worship, and the Heroic in History - Ultimately, there could be six archetypes: the hero as divinity, prophet, poet, priest, man of letters, and king. Carlyle argued that studying great men was profitable to our own heroic sides: examining heroes’ lives and greatness could help us uncover aspects of our character. 3 - The Great Man Theory of Leadership centers on two main assumptions: a. Great leaders are born possessing certain traits that enable them to rise and lead. b. Great leaders can arise when the need for them is great. II. CONTEMPORARY LEADERSHIP THEORIES A. TRANSACTIONAL TYPE o also known as managerial leadership, is a leadership style where leaders rely on rewards and punishments to achieve optimal job performance from their subordinates. o relationship between leader and subordinates is based on theories that assume individuals are not self-motivated and need structure, instruction and supervision to accomplish their jobs. The theory also postulates that workers will perform their tasks as the transactional leader wants them to do in exchange for the leader's offering something the workers want, such as pay o transactional leader seeks to have subordinates deliver specific results that are articulated and measurable. o The three approaches to transactional leadership are the following: 1. Contingency. Transactional leadership uses reinforcement theory and extrinsic motivation based on a system of rewards, incentives and punishment. Employees earn contingent rewards and perks if they reach their goal. Flexible leadership based on the situation. 2. Active management by exception. Transactional leaders rely on by default to anticipate issues and take corrective action in response to problems. Constant monitoring and quick corrections. 3. Passive management by exception. Transactional leaders stay out of the team's way by default and only intervene when employee performance expectations aren't met. Leader steps in only when o Characteristics: problems ▪ not self-motivated; happen. ▪ Solicits minimal employee input ▪ Uphold the Status Quo ▪ motivated by reward and punishment; uses a structured system of rewards and punishment ▪ follow clearly defined goals; and ▪ must be closely monitored and managed; Closely monitors employees’ work o Transactional leadership implementations generally: ▪ aim to follow rules precisely; ▪ encourage efficiency;  ▪ favor structure over flexibility; ▪ focus on short-term goals; ▪ involve less personal connection; and ▪ use rewards and reprimands. Advantages and disadvantages of transactional leadership o Advantages: ▪ Efficiency ▪ Consistency ▪ Clarity ▪ Stability o Disadvantages: ▪ Inflexible ▪ Lack of Motivation ▪ Demotivating ▪ Rigidity ▪ Incrementalism B. TRANSFORMATIONAL TYPE o Promotes a style of guidance that emphasizes motivating employees, and creating a vision and encouraging them to fulfill it. o The fundamental skills of a transformational leader include being able to mobilize employees, inspire them and boost their morale. o They typically incorporate empathy, support and inspiration into their leadership method and often exhibit confidence and selflessness when leading. o Four distinct components that embody its essential aspects in any organization: 1. Intellectual Stimulation 2. Individualized Consideration 3. Inspirational Motivation 4. Idealized Influence o Characteristics of Transformational Leadership ▪ Self-management ▪ Can accurately calculate and take risks ▪ Inspirational ▪ Adaptable ▪ Encourages the development of employees ▪ Leads by example and holds high moral standards ▪ Emphasizes open communication between leaders and workers ▪ Allows employees to make decisions and take responsibility ▪ Proactive ▪ Open to new, viable ideas and willing to try them ▪ Attuned to the needs of employees ▪ Not afraid to make difficult decisions o Advantages: ▪ Addresses employees on a personal level ▪ Reduces turnover rates ▪ Focuses on the ethics of a company ▪ Increases company-wide morale o Disadvantages: ▪ Transformational leaders are not successful if employees do not agree with them:  ▪ Concerned with individuals rather than teams ▪ Can overlook necessary details C. SERVANT LEADERSHIP o phrase “servant leadership” was coined by Robert K. Greenleaf in The Servant as Leader, an essay that he first published in 1970 o Greenleaf said “The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions…The leader-first and the servant-first are two extreme types. Between them there are shadings and blends that are part of the infinite variety of human nature” o focuses primarily on the growth and well-being of people and the communities to which they belong. o 10 Servant Leadership Characteristics - Servant leadership seeks to involve others in decision making, is strongly based in ethical and caring behavior, and enhances the growth of workers while improving the caring and quality of organizational life,” writes Larry C. Spears a. Listening b. Empathy c. Healing d. Awareness e. Persuasion f. Conceptualization g. Foresight h. Stewardship i. Commitment to the growth of people j. Building communities D. MULTIPLE INTILLEGENCIES o Gardner’s Theory of Multiple Intelligences can help us better understand intelligence and improve our problem-solving capability. o few standard dictionary definitions of ‘intelligence’: “The ability to learn, understand, and make judgments or have opinions that are based on reason” – Cambridge Dictionary “Capacity for learning, reasoning, understanding, and similar forms of mental activity; aptitude in grasping truths, relationships, facts, meanings, etc” – Dictionary.com o Divides human intelligence into eight different types instead of looking at a single ability. He deemed intelligence as the biopsychological potential for processing information. o Emphasized 3 statements about the intelligence: a. There is no single measure of intelligence b. Each person possesses a spectrum of intelligences that are combined and used in personal ways c. Intelligence evolves with development and application o 8 Types of Intelligence: i. Musical – Rhythmic: people who possess a high degree of musical intelligence have good thinking in rhythms, sounds, or patterns  ii. Visual – Spatial: can visualize objects better, such as images, illustrations, maps, charts, videos, and the like. iii. Verbal – Linguistic: enables people to master the use of words, both verbally and in written form. iv. Logical – mathematical: can solve complex math problems in minutes or even seconds, whereas; others find it hard to grasp them even after spending a long time pondering how they work. v. Bodily – Kinesthetic: Farmers, mechanics, carpenters, dancers, and athletes possess good hand-eye coordination and agility. vi. Interpersonal: are proficient at coaching, customer service, mental health counseling, sales, etc. vii. Intrapersonal: like to better understand and evaluate their own emotions, motivations, and relationship with others viii. Naturalistic: These people have real intelligence that allows them to be in tune with nature. III. TRAIT THEORY - postulates that successful leadership arises from certain inborn personal traits and characteristics that produce consistent behavioral patterns - is tied to the “Great Man” theory of leadership first proposed by Thomas Carlyle in the mid-1800s - This ability to lead is something that people are simply born with, Carlyle believed, and not something that could be developed. - Carlyle’s Approach based on the rationale that: o Certain traits produce certain patterns of behavior. o Patterns are consistent across different situations. o People are born with leadership traits. - Leadership Traits: o Adaptability and flexibility: Effective leaders don't get stuck in a rut. They are able to think outside of the box and adapt quickly to changing situations. o Assertiveness: A great leader is able to be direct and assertive without coming off as overly pushy or aggressive. o Capacity to motivate people: A great leader knows how to inspire others and motivate them to do their best. o Courage and resolution: The best leaders are brave and committed to the goals of the group. They do not hide from challenges. o Creativity: Perhaps most importantly, great leaders not only possess their own creativity, but they are also able to foster creativity among members of the group.5 o Decisiveness: A great leader is capable of making a decision and is confident in his or her choices. o Eagerness to accept responsibility: Strong leaders take on responsibility and don't pass the blame on to others. They stand by their success and take ownership of their mistakes. o Emotional stability: In addition to being dependable overall, strong leaders are able to control their emotions and avoid overreactions. o Intelligence and action-oriented judgment: Great leaders and smart and make choices that move the group forward.  o Need for achievement: Strong leaders have a need to succeed and help the group achieve goals. They genuinely care about the success of the group and are committed to helping the group reach these milestones. o People skills: Excellent interpersonal skills are essential for leading effectively. Great leaders know how to interact well with other leaders as well as with team members. o Perseverance: Strong leaders stick with it, even when things get difficult or the group faces significant obstacles. o Self-confidence: Many of the best leaders are extremely self-assured. Because they are confident in themselves, followers often begin to share this self-belief. o Task competence: A great leader is skilled and capable. Members of the group are able to look to the leader for an example of how things should be done. o Trustworthiness: Group members need to be able to depend upon and trust the person leading them. o Understanding their followers and their needs: Effective leaders pay attention to group members and genuinely care about helping them succeed. They want each person in the group to succeed and play a role in moving the entire group forward. - TYPES OF TRAIT THEORIES: 1. AUTHORITARIAN o describe that all forms of communications are under the control of the governing elite or authorities or influential bureaucrats o There is also Censorship: Political, Moral, Religious, Military, Corporate 2. DEMOCRATIC o a form of organizational leadership that can be characterized as the redistribution of power and authority inside an organization between managers and the employees of those managers to increase employee participation in the company's decision-making processes. o works best for those who want their team to be involved with problem-solving and decision- making o With this approach, the leader’s main goal is to boost employee engagement within their role and in the company o Characteristics: a. Encourage creativity and collaboration. b. Regularly ask for feedback. c. Maintain a “team player” attitude. d. Keep flexibility at the forefront. e. Place high importance on transparency and communication 3. LAISSEZ – FAIRE o emphasizes delegation and minimal supervision o In a laissez-faire environment, team members enjoy a high level of autonomy and are often the primary decision-makers. o Also known as “delegative leadership” o Characteristics of Laissez-Faire Leadership includes the the following: Hands-off approach Leaders provide all training and support  Decisions are left to employees Comfort with mistakes Accountability falls to the leader Limited feedback and guidance, Creative and innovative culture, Autonomous decision-making, Flexible work environment, Minimal intervention, and High trust. o Advantages: ▪ It encourages personal growth. ▪ It encourages innovation. ▪ It allows for faster decision-making. o Disadvantages: ▪ Lack of Role Clarity ▪ Poor Involvement with the group ▪ Low accountability ▪ Passivity 4. BUREAUCRATIC LEADERSHIP o that is characterized by a hierarchy of authority o is a top-down approach and doesn't involve employee participation in management decisions. o Characteristics: ▪ Official Duties: Under bureaucratic leadership, different duties and tasks are set up and assigned to departments and employees under strict guidelines. ▪ Hierarchy of Authority: a clear understanding and arrangement for employees on their position in the company. ▪ Technical Expertise: In bureaucratic leadership, roles are usually based on the expertise of an employee. ▪ System of Rules: A bureaucratic leader follows rules closely and regulations that are set up by the company or the organization. There are two systems of rules for them to follow, behavioral rules and technical rules. ▪ Written documentation: it is important for the organization to have a set of regulations and guidelines to follow. o Elements: ▪ The system needs systematic and strict discipline among the subordinates. ▪ The framework clarifies leaders' power position. ▪ Leaders bear authority, and subordinates follow the managers' guidance. ▪ The system requires a promotion and reward system. o Qualities: ▪ Attention to detail - Bureaucratic leaders require detail-oriented skills because this management approach prioritizes rules and enforcement. ▪ Ability to work hard - Bureaucratic leaders may work hard to achieve objectives. This framework prioritizes performance. ▪ Task – Oriented Focus - The bureaucratic framework requires performance and pursuing objectives. Leaders can determine the goals and define how employees can handle tasks efficiently  ▪ Passion - Bureaucratic leaders need passion for executing their duties. Being passionate allows them to prioritize objectives, concentrate and work hard to ensure everything works well. THEORIES OF MANAGEMENT FOCUSED ON ORGANIZATIONAL STRUCTURE A. SCIENTIFIC MANAGEMENT THEORY - Frederick Winslow Taylor; 1856 to 1915 - “Father of Management” - Also known as the “Classical Management Theory” - Focuses on simplifying jobs to increase efficiency, collaboration, and progress towards company goals - “The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee,” Taylor wrote. “The words ‘maximum prosperity’ are used, in their broad sense, to mean not only large dividends for the company or owner, but the development of every branch of the business to its highest state of excellence, so that the prosperity may be permanent.” - Taylor gave much concentration on the supervisory level of management and performance of managers and workers at an operational level. - Principles of Scientific Management: 1. Science, Not Rule of Thumb - Managers make decisions based on their judgments as a rule of thumb. 2. Harmony, Not Discord - Taylor underlined the need for total harmony between staff and management. 3. Mental Revolution - approach entails a shift in the attitudes of staff and supervisors toward one another. Both parties must recognize the value of the other and act in tandem. 4. Cooperation, Not Individualism - is an outgrowth of the concept of ‘Harmony, not Discord,’ emphasizes reciprocal collaboration between employees and management. 5. Individual growth to achieve maximum efficiency and profitability - efficiency of every organization is determined by the talents and competencies of its people. As a result, providing workers with training was deemed necessary for them to understand the best way established via a scientific methodology. - Factors that lead to low productivity and inefficiency: o Poorly designed personal tools for production o Inefficiency in working-level and unorganized training o Inefficient hiring procedure o Lack of proper planning, working, and improper management - Techniques were mainly proposed for the manufacturing and production industry: o Functional Foremanship: it is necessary to have tactical skills, intelligence, knowledge, education, energy, leadership, honesty, and good health o Work-study: The work-study was proposed to analyses the details of human work and investigate various factors like time study, motion study, fatigue study, and method study. o Standardization of tools and Equipment: Taylor suggested improving the standardization of tools and couplings to reduce production costs and enhance material quality in the production process. o Scientific task setting: Taylor felt the need to introduce a scientific task setting to decide a payday’s work for a worker.  o The scientific setting of wage rates: Fedrick Winslow Taylor suggested fixing workers’ wages to produce the standard output. o Scientific selection and training: A systematic selection procedure should be done so that the organization can get its potential workers. o Differential piece-rate plan: The different piece-rate plan was suggested to attract the workers to contribute to the organization. B. SYSTEMATIC MANAGEMENT THEORY - - Jules Henri Fayol; 1841 to 1925 - “Father of Scientific Management” - gave a new perception on the concept of management. He introduced a general theory that can be applied to all levels of management and every department. He envisioned maximizing managerial efficiency. - Fayol’s theory is practiced by the management to organize and regulate the internal activities of an organization - Fourteen Principles of Management ▪ Division of Work - Henri believed that segregating work in the workforce amongst the workers will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level. ▪ Authority and Responsibility - These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership. ▪ Discipline - Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees’ good behaviour also helps them smoothly build and progress in their professional careers. ▪ Unity of Command - This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion ▪ Unity of Direction - Whoever is engaged in the same activity should have a unified goal. This means all the people working in a company should have one goal and motive which will make the work easier and achieve the set goal easily. ▪ Subordination of Individual Interest - This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organisation. This refers to the whole chain of command in a company. ▪ Remuneration - This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have put forth. ▪ Centralization - In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organisation. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power. ▪ Scalar Chain - Fayol, on this principle, highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior also they should be able to contact any, if needed. ▪ Order - A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity. ▪ Equity - All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination. ▪ Stability - An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees.  ▪ Initiative - The management should support and encourage the employees to take initiatives in an organisation. It will help them to increase their motivation and morale. ▪ Esprit de Corps - It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment C. ORGANIZATIONAL THEORY - Maximillian Karl Emil Weber; 1864 to 1920 - “Father of Organizational Theory” - Also known as the “Bureaucratic Theory” - German sociologist and author of The Protestant Ethic and the Spirit of Capitalism (1905), Max Weber, also famous of the Social Action Theory who was the first to use and describe the term bureaucracy. This is also known as the bureaucratic theory of management, bureaucratic management theory or the Max Weber theory. - He believed bureaucracy was the most efficient way to set up an organization, administration and organizations. - Believed that Bureaucracy was better than traditional structures. What is Bureaucratic Organization? - “Bureaucracy is an organizational structure that is characterized by many rules, standardized processes, procedures and requirements, number of desks, meticulous division of labor and responsibility, clear hierarchies and professional, almost impersonal interactions between employees”. - According to the bureaucratic Max Weber theory, such a structure was indispensable in large organizations in structurally performing all tasks by a great number of employees. In addition, in a bureaucratic organization, selection and promotion only occur on the basis of technical qualifications. - According to this theory of Max Weber, bureaucracy is the basis for the systematic formation of any organization and is designed to ensure efficiency and economic effectiveness. - an ideal model for management and its administration to bring an organization’s power structure into focus. With these observations, he lays down the basic principles of bureaucracy and emphasizes the division of labor, hierarchy, rules and impersonal relationships. - Three Elements that support Bureaucratic Management: ▪ All regular activities within a bureaucracy can be regarded as official duties; ▪ Management has the authority to impose rules; ▪ Rules can easily be respected on the basis of established methods. - Six Characteristics of a Bureaucracy: o Task Specialization/Specialization and Division of Labor ▪ Tasks are divided into simple, routine categories on the basis of competencies and functional specializations. ▪ Every employee is responsible for what he/she does best and knows exactly what is expected of him / her. By dividing work on the basis of specialization, the organization directly benefits. Each department has specific powers. o Hierarchal Layers of Authority ▪ Managers are organized into hierarchical layers, where each layer of management is responsible for its staff and overall performance.  ▪ In bureaucratic organizational structures, there are many hierarchical positions. This is essentially the trademark and foundation of a bureaucracy o Formal Selection ▪ All employees are selected on the basis of technical skills and competences, which have been acquired through training, education and experience. o Rules and Requirements ▪ Formal rules and requirements are required to ensure uniformity, so that employees know exactly what is expected of them. In this sense, the rules and requirements can be considered predictable. o Impersonal (Impersonality and Personal Indifference) ▪ Regulations and clear requirements create distant and impersonal relationships between employees, with the additional advantage of preventing nepotism or involvement from outsiders or politics. These impersonal relationships are a prominent feature of bureaucracies. o Career Orientation ▪ In a bureaucracy, it is possible to build a career on the basis of experience and expertise. As a result, it offers lifetime employment. FOCUSED ON HUMAN RELATIONS A. SOCIAL PROCESS THEORY - Mary Parker Follet; 1868 to 1933 - “Mother of Modern Management” - used psychology and human relations within industrial management to revolutionize organizational behavior theory. - a social worker, author, lecturer and management consultant who provided personal advice to countless individuals, including President Theodore Roosevelt. - believed management was “the art of getting things done through people.” - Though she never managed a for-profit enterprise, she offered valuable insight into the importance of managers and supervisors “powering with” employees, rather than “powering over” them, and collaborating with workers to solve conflicts - “Leadership is not defined by the exercise of power but by the capacity to increase the sense of power among those led,” Follett famously said. “The most essential work of the leader is to create more leaders.” - Follett Practiced these Principles of Coordination: o Direct Contact: Direct contact between employees and managers helps organizations avoid conflict and misunderstandings. o Early Stages: Managers should learn and master coordination right away. o Reciprocal Relationships: Every worker, regardless of their level in the hierarchy, is responsible for pulling their weight and integrating with the rest of the organization. o Continuous Process: Managers must maintain coordination. - The Mary Parker Follett Theory of Management is marked by such principles as the following: o Conflict Resolution through Integration ▪ Often results in a win – win situation ▪ Follett’s approach to conflict resolution through integration often produces beneficial results for all parties. Her “push versus pull” concept illustrates the importance of meeting every side of a conflict’s underlying needs rather than its spoken desires. Identifying and addressing each group’s needs can lead to a win-win outcome. o genuine power is not "coercive" ("power over") but "coactive" ("power with")  ▪ “power with” philosophy provides an alternative to the coercive, traditional “power over” approach. In the latter, managers have power over employees, supervisors have power over managers, and business owners have power over supervisors, managers and employees. o "create group power, rather than expressing personal power." ▪ leaders should value group power over personal power. Her theory suggests that true leaders create power for the group rather than keeping it for themselves. After all, organizations do not exist for one person’s benefit but rather for the entire company and customers. If this selfless mindset prevails, everyone involved will feel like they’re on the same team rather than in competition. B. HAWTHORNE EFFECT - George Elton Mayo; 1880 – 1949 and Fritz Jules Roethlisberger; 1898 to 1974 - The Hawthorne Studies were conducted by a team of researchers from Harvard Business School, including Elton Mayo, Fritz Roethlisberger, and William J. Dickson - considered the father of the Hawthorne Studies, played a crucial role in shaping the research and interpreting the findings. - The Hawthorne effect is also known as the observer effect and is closely linked with observer bias - What is Hawthorne Effect? o The Hawthorne effect occurs when a participant’s behavior changes as a result of being observed, rather than as a result of an intervention. o It’s important to note that participants must be aware that they are under observation for this effect to occur. Thus, the Hawthorne effect is a subtype of performance bias. o Originally initiated to examine the relationship between lighting levels and worker productivity. The researchers believed that by increasing lighting levels, they could improve worker efficiency. o the results of the initial experiments surprised them. Not only did productivity increase when lighting was increased, but it also increased when lighting was decreased. This unexpected finding prompted further investigations into the psychological and social factors that influence worker motivation and performance. - Factors to keep in mind that can also explain behavioral changes in study participants. These include: o Performance feedback ▪ Participants who receive feedback may also have improved performance. For instance, in the context of employee productivity, increased attention from researchers can result in increased productivity. o Demand characteristics ▪ are subtle cues that can reveal the study’s research objectives to the participants. o Novelty effect ▪ A temporary improvement in performance resulting from participation in a research study for the first time ▪ This improvement can also occur when a new element, technology, feature, or process is introduced into an experimental setting. - How to reduce the Hawthorne Effect? o Invest in interpersonal relationships at the study site. o Give participants tasks unrelated to the purposes of the study. o Whenever possible, opt for a naturalistic or covert observation. In this way, you can observe people in their natural surroundings without being seen. FOCUSED ON LEADER – MANAGER THEORIES MANAGEMENT BY OBJECTIVES (MBO) - Peter Ferdinand Drucker; 1909 to 2005 - he worked as a financial journalist and an investment analyst. In 1939, he published his first book, The End of Economic Man: The Origins of Totalitarianism, which chronicled the rise of fascism. - The father of modern corporate management Peter Drucker is often considered to be the world’s most influential corporate guru. - An important aspect of the MBO approach is this agreement between employees and managers regarding performance which is open to evaluation. - Drucker believed the only way to prevent a second coming of fascism was to create a “functioning society,” - “Management is doing things right; leadership is doing the right things.” - definition most agree on is management in pursuit of shared organizational goals. - - MBO goals are expected to be S.M.A.R.T. - From there, teams establish business goals and delegate specific tasks according to skill sets and interests. The process comprises five basic steps: o Managers and team members review and set organizational goals together. o Team members distill organizational goals into individual objectives. o Managers and team members monitor progress toward individual and shared goals. o Managers and team members evaluate performance based on measurable milestones. o Team members receive feedback and rewards relative to progress. - MBO embodies many modern concepts which includes the following: o Decentralization: or democratizing – workplace management. He wanted businesses to empower their staff so all employees would feel valued and know their contributions and voices mattered. o Knowledge work: Knowledge workers, such as engineers and analysts, are white-collar employees whose jobs require handling or using information. o Workforce development: Drucker felt strongly that managers should improve and develop themselves and their team members. Investing in employee training is intrinsic to Drucker’s philosophy. o Corporate social responsibility: Instead of looking at businesses as discrete entities, he saw them as components of a larger social system. In that context, he argued that businesses should see themselves as part of a community and make decisions in that regard – with equal respect for their external and internal impact. o Organizational culture: Companies have always had cultures, be they positive or negative, helpful or harmful. But Drucker was among the first to suggest that managers could – and should – shape and change workplace culture. o Customer experience: , Drucker insisted that businesses have only one real purpose: to create customers. - Every level of management in the organization participates in the strategic planning process and creation of performance systems. The managers of the firm are expected to participate in the strategic planning process to ensure the effectiveness in the implementing of the plan. The managers are expected to apply a range of performance systems, designed to help in the effective functioning of the organization. - An MBO system calls for each level of managers to identify their goals for ever area they are responsible for. These goals are shared then with their individual units. Shared targets guide individuals in fulfilling their role. The role of the management now is to monitor and evaluate performance. The focus is on future rather than on past. They check progress frequently and over a set period of time. There is external and internal control in this system with routine assessments. An evaluation is done to understand as to which extent the goals have been met. MANAGEMENT AS DECISION – MAKING - Herbert Alexander Simon; 1916 to 2001 - Two Approaches in Decision – Making: 1. Optimizing – “Economic Man” ▪ Research for the best alternative practice 2. Satisfying – “Administrative Man” ▪ First workable solution - The Herbert Simon decision-making theory helps us understand how public servants make choices. Instead of perfect thinking, they have "bounded" thinking because of limits. And they "satisfice" using simple heuristics and routines, not optimizing - Three Phases Of Herbert Simon's Decision-Making Theory: According to the Herbert Simon decision- making theory, there are three main phases in how decisions are made within public administration. The phases are intelligence, design and choice. It can be simplified as gathering information, making options and picking an option. - The 3 step approach can provide a structured process for decision-makers to analyze a problem in an organized way, come up with potential solutions and ultimately select a workable option - Herbert Simon's decision-making theory talks about two important things that affect how government workers make choices - heuristics and routines. o HEURISTICS ▪ are easy rules that government workers use because they do not know and think of everything. ▪ help decision-makers deal with "bounded rationality". ▪ o ROUTINES ▪ are set procedures, normal ways and regular processes within agencies that shape how choices are made ▪ simplify and make administrative tasks automatic, reducing the need for effort and thinking when recurring decisions arise.  - Key concepts of Simon’s Decision – Making Theory o Bounded Rationality: ▪ suggests that individuals are limited in their ability to process information and make fully rational decisions. o Satisficing ▪ decision-makers often settle for a solution that is “good enough.” o Decision – Making Process Simon’s model breaks down the decision-making process into three main stages: ▪ Intelligence ▪ Design ▪ Choice o Incrementalism: ▪ where decisions are made through small, manageable steps rather than large, radical changes. o Organizational Influence MANAGERIAL ROLES - Henry Mintzberg; 1939 - He envisioned it as an essential categorization that eliminates ambiguities and supports professional development. - managerial position involves a combination of three essential activities: gathering information, sharing information, and strategic decision-making. - Managerial roles are a set of ten behaviors and functions adopted by managers, grouped into three basic categories. These categories include the manager’s role as a figure of authority, an essential point of contact and information, and a decision-maker. - He sees them as separated into three larger groups/ Three Management Roles: 1. Interpersonal Role o the manager is in charge of a unit in an organization, giving him a special authority within the business. This results in three specific roles: ▪ the figurehead, who represents the organization formally; ▪ the liaison, who interacts with people outside of the organization; ▪ and the leader, who leads their subordinates. 2. Informational Role o the manager has the necessary information to serve as a focal point for his company, team, or department. This category is separated into three roles: ▪ the monitor, who receives and collects information; ▪ the disseminator, who shares it internally; ▪ and the spokesman, who shares it externally. 3. Decision – Making Role o the manager is also in the position to make strategic business decisions. These roles include: ▪ the entrepreneur, who initiates change; ▪ the disturbance handler, who resolves risks and challenges; ▪ the resource allocator, who decides how the organization uses its resources; and the negotiator, who resolves situations that involve external circumstances. MOTIVATIONAL THEORIES HIERARCHY OF NEEDS - Abraham Maslow first introduced the concept of a hierarchy of needs in his 1943 paper, titled "A Theory of Human Motivation," and again in his subsequent book, "Motivation and Personality." - Maslow believed that people have an inborn desire to be self-actualized, that is, to be all they can be. - Maslow believed that these needs are similar to instincts and play a major role in motivating behavior. There are five different levels of Maslow’s hierarchy of needs, starting at the lowest level known as physiological needs. - Needs: o Physiological Needs - those that are vital to survival ▪ Food, water, breathing, homeostasis ▪ In addition to the basic requirements of nutrition, air, and temperature regulation, physiological needs also include shelter and clothing. ▪ Maslow included sexual reproduction o Security and Safety Needs ▪ People want control and order in their lives. ▪ Financial Security, health and wellness, Safety against accidents and injury ▪ Finding a job, obtaining health insurance and health care, contributing money to a savings account, and moving to a safer neighborhood are all examples of actions motivated by security and safety needs. o Love and Belonging Needs ▪ the need for emotional relationships drives human behavior. ▪ In order to avoid loneliness, depression, and anxiety, it is important for people to feel loved and accepted by others. o Esteem Needs ▪ is the need for appreciation and respect ▪ Once the needs at the bottom three levels have been satisfied, the esteem needs begin to play a more prominent role in motivating behavior. o Self – Actualization Needs ▪ Self – actualized people are self-aware, concerned with personal growth, less concerned with the opinions of others, and interested in fulfilling their potential. ▪ "It may be loosely described as the full use and exploitation of talents, capabilities, potentialities, etc. Such people seem to be fulfilling themselves and to be doing the best that they are capable of doing. They are people who have developed or are developing to the full stature of which they capable." - Maslow's hierarchy of needs can be separated into two types of needs: deficiency needs and growth needs.4 Deficiency needs: Physiological, security, social, and esteem needs are deficiency needs, which arise due to deprivation. Satisfying these lower-level needs is important to avoid unpleasant feelings or consequences. Growth needs: Maslow called the needs at the top of the pyramid growth needs. These needs don't stem from a lack of something, but rather from a desire to grow as a person. - The Expanded Hierarchy of Needs : In 1970, Maslow built upon his original hierarchy to include three additional needs at the top of his pyramid, for a total of eight: o Cognitive needs. This centers on knowledge.  o Aesthetic needs. This addresses the appreciation of beauty and form. o Transcendence needs. Maslow believed that humans are driven to look beyond the physical self in search of meaning. MOTIVATION HYGIENE THEORY / TWO FACTOR THEORY - The two-factor theory (also known as Herzberg’s motivation-hygiene theory) argues that job satisfaction and dissatisfaction exist in two different ways - Herzberg and his collaborators investigated fourteen factors relating to job satisfaction in their original study, classifying them as either hygienic or motivational factors. Motivation factors increase job satisfaction, while hygiene factors prevent job dissatisfaction. - What is Two – Factor Theory? otherwise known as Herzberg’s motivation-hygiene theory or dual-factor theory, argues that there are separate sets of mutually exclusive factors in the workplace that either cause job satisfaction or dissatisfaction - To Herzberg, motivators ensured job satisfaction, while a lack of hygiene factors spawned job dissatisfaction. - The traditional view of job satisfaction entails that job satisfaction and job dissatisfaction exist on the same continuum - These so-called “satisfiers” (motivational factors) and “dissatisfiers” (a lack of hygiene factors) are dynamic, constantly interacting, highly subject to change, and relative to the employee - Motivation Factors: Herzberg et al. (1959) argue that motivation factors are necessary to improve job satisfaction. ▪ Motivation factors: factors that are related to workplace satisfaction. They cover intrinsic needs such as achievement, recognition, and advancement o Advancement o The work itself o Possibility for growth o Responsibility o Recognition o Achievement - Hygiene Factors: are those which decrease job dissatisfaction ▪ : factors that are not related to workplace satisfaction but must be present in the workplace in order to prevent dissatisfaction. o Interpersonal Relations o Salary o Company Policies and Administration o Supervision o Working Conditions o Motivation Factors THEORY X AND THEORY Y - In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behavior at work, or in other words, two different views of individuals o Theory X and o Theory Y - He referred to these opposing motivational methods as Theory X and Theory Y management. Each assumes that the manager’s role is to organize resources, including people, to best benefit the company. - Theory X assumes the following: o Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. o Most people are not ambitious, have little desire for responsibility, and prefer to be directed. o Most people have little aptitude for creativity in solving organizational problems. o Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs. o Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve organizational objectives. o Most people resist change. o Most people are gullible and unintelligent. - Theory Y assumes the following: The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, are never completely satisfied o Work can be as natural as play if the conditions are favorable. o People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. o People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. o The capacity for creativity spreads throughout organizations. o Most people can handle responsibility because creativity and ingenuity are common in the population. o Under these conditions, people will seek responsibility. - Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behavior at work, while Theory Y presents an optimistic view of the employees’ nature and behavior at work. - Implications of Theory X and Theory Y o Quite a few organizations use Theory X today. Theory X encourages use of tight control and supervision. It implies that employees are reluctant to organizational changes. o Many organizations are using Theory Y techniques. Theory Y implies that the managers should create and encourage a work environment which provides opportunities to employees to take initiative and self-direction.  THEORY Z BY WILLIAM OUCHI - well-known management theorist and lecturer who has contributed significantly to the subject of organizational behavior. - Theory Z is a management theory based on Japanese management ideas that stresses the value of employee participation, team spirit, and long-term employment. - Apart from Theory Z, Ouchi has made significant contributions to management, including studies on organizational culture, leadership, and performance assessment - According to Theory Z, the following are the main characteristics of effective companies: High employee participation: According to Theory Z, employees should be given a sense of ownership and involvement in decision-making Long-term employment: The Japanese management style is distinguished by long-term work, which provides employees with job stability and a sense of devotion to the organization Theory Z emphasizes the significance of collaborative decision-making, which entails soliciting opinions from all employees before making significant choices. Theory Z stresses that organizations should be concerned with their employees’ holistic well- being, which includes their physical, social, and emotional requirements - These are some of Theory Z’s important features: Mutual Trust: According to Theory Z, trust between employees and management is essential Strong bond between organization and employees: Theory Z proposes that organizations should develop a strong bond with their employees Employee involvement: According to Theory Z, employee involvement in decision-making and problem-solving is critical Integrated organization: Theory Z proposes that organizations should be integrated and cohesive with a focus on teamwork and collaboration Coordination: Theory Z emphasizes the importance of coordination among different parts of the organization Informal control System: Theory Z proposes that organizations should rely on informal control systems like shared values and peer pressure rather than formal control systems like rules and regulations. Emphasis on teamwork: Teamwork and collaboration are highly valued in Theory Z. Employees can accomplish better outcomes by working together than they might separately, according to the theory. Long-term employment: Another distinguishing element of Theory Z is its emphasis on long- term employment. Organizations may establish a loyal and devoted workforce by providing employees with job stability and opportunity for promotion. Consensus decision-making: The need for consensual decision-making is also emphasized in Theory Z. This indicates that choices are made by a group of people who collaborate to find a solution on which everyone can agree. Focus on employee well-being: Theory Z places a high value on employee happiness. This implies that firms must provide a safe and healthy work environment for their employees, as well as possibilities for personal growth and development. TOTAL QUALITY MANAGEMENT (TQM) - describes a management approach to long-term success through customer satisfaction - In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. - TQM can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement - What Is Total Quality Management (TQM)? o Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing. It streamlines supply chain management, improves the customer experience, and ensures that employees are up to speed with training. - the 8 principles of total quality management: o Customer-focused: The customer ultimately determines the level of quality o Total employee involvement: All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred, and when management has provided the proper environment. o Process-centered: A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (internal or external). o Integrated system: Although an organization may consist of many different functional specialties often organized into vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM o Strategic and systematic approach: A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission, and goals. o Continual improvement: A large aspect of TQM is continual process improvement. Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting stakeholder expectations. o Fact-based decision making: TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history o Communications: During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. - Key Takeaways Total quality management (TQM) is an ongoing process of detecting and reducing or eliminating errors. TQM is used to streamline supply chain management, improve customer service, and ensure that employees are properly trained. The focus is to improve the quality of an organization’s outputs, including goods and services, through the continual improvement of internal practices. Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service. There are often eight guiding principles to TQM that range from focusing on customers, to continually improving, and adhering to processes. -