Unit2-Management Theories and Health Service Management (1).pptx

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: J...

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 Contact Details For more assistance and support: [email protected] Friday, 22 December 202 3 2 College of Public Health & Tropical Medicine Health Services Management 414 Contents * Goals & objectives * Concept of management theories * Development of management theories * Classical theories of management * New theories of management Friday, 22 December 202 3 * Conclusion & review questions * Glossary/key terms * References 3 College of Public Health & Tropical Medicine Health Services Management 414 Goals and Objectives * By the end of this lecture, you should be able to:  Define the concept of management theory  Explain how management theory developed  Know the various types of management theories  Understand the classical theories of management  Understand the non-classical theories of management  December 202 the key terms of the presentation Friday, 22Know 3 4 College of Public Health & Tropical Medicine Health Services Management 414 Theories of Management Friday, 22 December 202 3 5 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- 6 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 7 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 8 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 9 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 10 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management I. Classical Approach 2. The Administrative Principles Theory 1. The Scientific Management Theory Cont’d 3. The Bureaucratic Organization Theory Classical Management (Image: clipartbest.com) Theory Friday, 22 December 202 3 11 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 12 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) 13 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 14 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d CA: 1. The Scientific Management Theory Frederick Taylor Friday, 22 December 202 3 Henry Gantt Frank & Lillian Gilbreth 15 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 16 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 17 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 18 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 19 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 20 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 21 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) 22 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) 23 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 24 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) 25 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) 26 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 27 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 28 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 29 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 30 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 31 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 32 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 33 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management . NCA: 1. The Human Relations Theory Cont’d These studies realized that productivity depends largely upon employees’ satisfaction in work situations. This theory concludes that people have unique preferences and perspectives and can't be treated as machines. (Healey & Marchese, 2012) Friday, 22 December 202 3 34 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management NCA: 2. The Hierarchy of Human Needs Theory Developed by Abraham Maslow and published in 1943. Self-actualization Self-esteem Love/belonging Safety "What a man can be, he must be.“ Maslow, 1954; pp 91 Spiritu al Needs Physiological needs (Healey & Marchese, 2012; Maslow, 1954,1998) Friday, 22 December 202 3 35 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d NCA: 2. The Hierarchy of Human Needs Theory According to this theory, to continue to motivate individuals, the manager has to consider more than money as a primary motivator (money is not everything!). (Healey & Marchese, 2012; Maslow, 1998) Friday, 22 December 202 3 36 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management I. NCA: 3. Theory X and Theory Y Developed in the 1960s by a social psychologist, Douglas McGregor. Theories of human work motivation and management. Two contrasting theories explain how managers' beliefs about what motivates their people can affect their management style. (Healey & Marchese, 2012) Friday, 22 December 202 3 37 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management I. NCA: 3. Theory X and Theory Y Y Theory X involved mostly negative (pessimistic) managers’ assumptions about employees (Usually lazy and needing to be watched while at work). Theory Y involved positive (optimistic) managers’ assumptions about employees (employees are interested in more responsibilities, are naturally creative, and enjoy work). (Healey & Marchese, 2012) Friday, 22 December 202 3 38 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management I. NCA: 3. Theory X and Theory Y Cont’d The workplace needed managers who could empower their workforce and workers who wanted to be empowered. (Healey & Marchese, 2012) Friday, 22 December 202 3 39 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management II. NCA: 4. Reengineering Theory Also known as Business Process Reengineering (BPR). Developed by Michael Hammer from the Massachusetts Institute of Technology. Hammer is recognized as the Father of Reengineering. (Healey & Marchese, 2012) Friday, 22 December 202 3 40 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management II. NCA: 4. Reengineering Theory Cont’d Hammer introduced the concept of the Process Audit in 1990. He published the Reengineering Work: Don’t Automate, Obliterate in the Harvard Business Review. In 1993, he published a book with a top organizational theorist, James Champy – Reengineering the Corporation: A Manifesto for Business Revolution. (Healey & Marchese, 2012) Friday, 22 December 202 3 41 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management II. NCA: 4. Reengineering Theory Cont’d Concentrated on redesigning the entire work process of a given business. Managers simplify existing business practices by starting with the customer’s desires and working backward. Lower-level employees, who are usually closer to the customer, especially when delivering a service, are empowered to act immediately. (Healey & Marchese, 2012) Friday, 22 December 202 3 42 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management II. NCA: 4. Reengineering Theory Cont’d It eliminates bureaucratic control, affording employees greater freedom to deliver quality service to the consumer. Improves speed, quality, and profitability for organizations. Needs more training for all members of the organization. It doesn't suit every business need as it depends on factors like size and availability of resources. In some cases, the efficiency of one department43 Friday, 22 December 202 3 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management NCA: 6. The Contingency Management Theory Proposed in 1964 by the Austrian psychologist Fred Edward Fiedler.  There is no one best way to lead an organization. There are too many external and internal constraints. The managerial solutions need to be casespecific to develop the best response to perceived problems. (Buchanan & Huczynski, 1997; Goodwin, Gruen, & Iles, 2006 Friday, 22 December 202 3 44 College of Public Health & Tropical Medicine Health Services Management 414 Theories of management Cont’d NCA: 6. The Contingency Management Theory Finding appropriate managerial solutions in any specific case depends on context and interrelated elements – or contingencies. (Buchanan & Huczynski, 1997; Goodwin, Gruen, & Iles, 2006 Friday, 22 December 202 3 45 College of Public Health & Tropical Medicine Health Services Management 414 Questions for discussion Why do we study these theories? Are they important? And how can they impact on our practical performance? Considering the theories of management you have studied in this course, please analyze the management structures of the local health organizations. Friday, 22 December 202 3 46 College of Public Health & Tropical Medicine Health Services Management 414 Questions for discussion Cont’d Healey and Marchese (2012) stated, “the bureaucratic management structure will no longer work in the delivery of health services.” Do you agree or disagree with this statement? Justify Friday, 22 December 202 3 47 College of Public Health & Tropical Medicine Health Services Management 414 Review questions Define the concept of management theory. Mention the main two approaches of management. Give three branches for each. Discuss the central concept of the Reengineering Theory of Management. Friday, 22 December 202 3 48 College of Public Health & Tropical Medicine Health Services Management 414 Review questions Cont’d Write a short review of Theory X and Theory Y, including the principal concepts. Discuss in detail the Hierarchy of Human Needs Theory. In brief, compare the three branches of the Classical Management Approach regarding the founders, essential concepts, advantages, and disadvantages. Friday, 22 December 202 3 49 College of Public Health & Tropical Medicine Health Services Management 414 Review questions Cont’d ‘Hawthorn studies’ are a landmark of a popular management theory. Mention the theory and discuss its development history. Friday, 22 December 202 3 50 College of Public Health & Tropical Medicine Health Services Management 414 Key terms  Abraham Maslow  Administrative Principles Management  Assembly line  Authority  Bureaucratic Management  Capabilities  Centralisation  Chain of command  Classical Management Approach Friday, 22 December 202  Commanding 3  Controlling  Coordinating  Discipline  Dissatisfied  Division of work  Douglas McGregor  Employee engagement  Equity  Espirt de corps  Experimentation  Fast-paced change  Forecasting  Formal written records  Frank & Lillian Gilbreth  Frederic Taylor  Hammer  Hawthorn studies  Workforce  Henri Fayol  Henry Ford  Henry Gantt  Hierarchy 51 College of Public Health & Tropical Medicine Health Services Management 414 Key terms  Human behaviour  Human Relations Theory  Individualised tasks  Industrial Revaluation  Informal work group  Initiative  Invention  Legitimate authority  Maintain  Management Friday, 22 December 202 Innovation 3  Management is impersonal  Management Theory  Max Weber  Negative & positive assumptions  New Management Approach  Order  Organising  Planning  Principles of Scientific Management Cont’d  Productive team  Productivity  Profitability for organization  Profits  Quality  Reengineering Theory  Remuneration  Robert Owen  Rules & regulations  Scalar chain 52 College of Public Health & Tropical Medicine Health Services Management 414 Key terms  Scientific Management  Self-actualisation  Self-esteem  Stability of tenure of personnel Friday, 22 December 202 3  Stable environments  Subordination of individual interests to the general interest  The Hierarchy of Human Needs Theory  Theory Cont’d  Theory X and Theory Y  Unity of command  Unity of direction  Workers’ attitudes 53 College of Public Health & Tropical Medicine Health Services Management 414 References Branham, L., & Hirschfeld, M. (2010). Re-engage. New York: McGraw-Hill Professional. Fiedler, F. E. (1964). A contingency model of leadership effectiveness. In Advances in experimental social psychology (Vol. 1, pp. 149-190). Academic Press. Hamel, G. (2007). The future of management. Boston: Harvard Business. Hartzell, S. (2013). Bureaucracy: Max Weber's Theory of impersonal management. Retrieved Jan 12, 2015, from www.youtube.com/watch? v=fika9BHS5c0: Education-Portal.com Healey, B. J., & Marchese, M. C. (2012). Foundations of health care management: Principles and methods. San Francisco: John Wiley & Sons, Inc; Jossey-Bass. Kadian-Baumeyer, K. (2014). Fayol's management principles. Retrieved from www.youtube.com/watch?v=buLAbL3uHQU: Education-Portal.com Maslow, A. (1954). Friday, 22 December 202 3 Motivation and personality. New York, NY: Harper. 54 College of Public Health & Tropical Medicine Health Services Management 414 References Cont’d Mind Tools Content Team. (2022). Henri Fayol's Principles of Management: Early Management Theory. Retrieved Jan 27, 2023, from https://www.mindtools.com/asjiu77/henri-fayols-principles-ofmanagement Muzio, E. (2010). Make work great: Supercharge your team, reinvent the culture, and gain influence - one person at a time. New York: McGrawHill Professional. Peek, S. (2023). Human Relations Management Theory Basics. Retrieved Jan 27, 2023, from https://www.business.com/articles/human-relationsmanagement-theory-basics/ Schermerhorn, J. R. (2010). Exploring management. Hoboken: Wiley. Friday, 22 December 202 3 55 College of Public Health & Tropical Medicine Health Services Management 414 Thank you! Friday, 22 December 202 3 56