CHAPTER ONE
DEFINITION AND DEVELOPMENT OF MANAGEMENT
INTRODUCTION
This chapter is intended to give the learner the definition of management and the purpose for
learning the subject as a health records and Information Officer, the origin and development
of management as a subject of study in order to be able to understand the basic concept and
appreciate the importance of the subject.
Objectives
The learner should be able to:
• Define management
• State the main reasons for learning management as a Health Records and Information
Officer.
• Explain the origin and development of management as a discipline of study.
Definition of management
Originally, the term management comes from Latin word “manus” referring to the driver
controlling a team of horses pulling a cart. This image helps us in considering other
definitions.
The examples of definitions of management as defined differently by different scholars are
that, it is the;
• Process of getting things done through other people (in simple terms).
• Process through which resources in an organization are made available and effectively
used in accomplishing the organizational goals.
• Process of working with and through individual and groups and other resources to
accomplish organizational goals or objectives.
• Planning, organizing, co-ordinating, commanding and controlling.
• Process of creating and maintaining of an internal environment of an organization in
which individuals and groups perform effectively towards the attainment of the
organization goals.
• Process of integrating (bring together) all the organizational aspects for instance the
structure, people and technology in order to achieve the organizational goals.
Note
The definitions of management are non-exhaustive, they vary greatly because of the nature,
and types of organizations in terms of products produced or services rendered. However, the
most important elements in most definitions are: -
• Process
• Resources
• Utilization and
• Goals
The reasons for learning management
There are broad and specific reasons for learning management as a health worker.
Broad reasons
The two reasons for learning management are:
• Our society depends on specialized institutions, hospitals and organizations to provide
health services we desire and;
• Individuals not trained in managerial skills find themselves in managerial positions
e.g. head of department, head of faculty, principal, head of any other institutions etc.
Specific reasons
The 10 specific reasons for learning management as a health records and information officer
student are that, the subject will equip him/her with the necessary knowledge, skills and
attitude in: -
• Planning on how resources such as personnel, finance, equipment, stationary etc will
be acquired and properly utilized.
• Organizing and co-ordinating departmental activities such as filing, statistics,
appointment system, waiting list, registration and admission of patients, reception,
consultant clinics, coding and indexing etc for effective provision of patient service.
• Preventing and solving problems pertaining to staff within the department and
problems related to the use of resources.
• Communicating effectively with the departmental staff, other departments, patients
and general public, hence reducing conflict.
• Making concrete and workable decisions in relation to activities of the department.
• Monitoring and evaluating departmental activities and patient’s health care services.
• Motivating staff by creating conducive working environment in order for them to
work effectively and efficiently in providing quality health care services to the
patients.
• Implementation of the government policies related to health.
• Delegating his/her responsibilities and authority to his junior.
• Leading others well (staff) in managerial functions such as meetings, committees etc.
The origin and development of management
You have just finished on the reasons for learning management. In this topic, you are going
to learn on the origin and development of management as an area of study.
Origin
Management has been there since the beginning of mankind. People had their ways of doing
things or carrying out their daily activities such as planning, Organizing, co-ordinating and
controlling, but the methods used were crude, that is, they had no standards for measuring
work, there was no training of workers (formal). Work was not studied to determine the
most desirable way to complete a task, and psychological and physical aspect of a job-like
boredom, monotony and fatigue - were not studied or considered in designing of most jobs.
Development of Management
The development of management as a discipline of study came as a result of important
development (events) in both Europe and America from 16th century namely: -
• In 16th Century, there was the development of administrative technology in Austria
and Germany, aimed at improving particular functions and activities of the
government system.
• In 19th Century, there was the need to establish a reputable civil service in Europe,
especially Britain. These developments helped to portray management as an area that
could be studied and taught. In preparing civil servants in managerial skills, it was
found out that they could interpret and implement government policies more
effectively and efficiently.
• Within the same period (19th) during United States (U.S.) Industrial revolution, the
engineers wanted to design, build, install and make operative the production systems
(systems used in production of goods and services).
• There was also need to increase profits in industries through a system of lowering the
unit cost of producing goods. This led to the development of management theories
such as classical (see chapter 2).
CHAPTER TWO
THOERIES OF MANAGEMENT
INTRODUCTION
For an individual to manage effectively, it is important for him/her to know the existing
management approaches, how successful are they in any given management situation and
finally use the most appropriate approach in his/her area of operation.
Learning Objectives
The learner should be able to:
• Name the 5 common management approaches.
• Name the 3 branches of classical theory/approach/design.
• Explain scientific management theory.
• Explain administrative principle’s theory.
• Explain bureaucratic management theory.
• Describe the human relations' theory.
• Explain the situational organization design (contingency approach to management).
• Describe the management by objectives as a modern approach.
• Explain the systems approach to management.
Management theories
There are various management approaches used but in this manual you are going to learn 5
common ones namely:
• Classical management.
• Human Relations
• Situational/Contingency.
• Management by Objectives
• Systems approach to management
• Bureaucratic Management
Classical approach
This approach was developed between 1900 and 1910 and extended through to early 1950s.
The theory had 3 branches. These are:
• Scientific Management
• Administrative/Principles of Management
• Bureaucratic Management
Scientific management theory
Introduction
This is one of the branches of classical theory of management where things or activities are
done in a scientific way. This helps the learner apply this theory in his area of work where
necessary.
Learning Objectives
The learner should be able to:
• Explain the term scientific management theory.
• Name the scholar who was behind the development of the theory.
• State the principles of scientific management theory.
• State limitations of scientific management theory.
What is scientific management?
This is a technique of management whereby the work methods are scientifically studied and
standards established.
It is a philosophy about the relationship between the people and work - not technique or
efficiency device.
Who developed it?
The scientific Management approach was developed by an American engineer called
Frederick Winslow Taylor, (1856 - 1915). He came up with this theory because the
systematic approach (formally used) failed to lead to widespread production efficiency. He
discovered that:
• Pro5duction and pay were poor.
• Inefficiency and waste were common.
• Many companies had unused potential.
Principles of Scientific management theory
The scientific management theory has 4 principles. These are: -
• Developing scientific methods of designing jobs to replace the rule of thumb methods.
This involves collecting and analyzing data to arrive at the best way of performing
tasks or series of tasks.
• The Scientific selection and progressive teaching and developing employees to
improve performance.
• Integrating scientifically selected employees and developed methods of designing
jobs. The Scientific methods of job design should be well explained by management
to reduce resistance.
• A division of work resulting in the interdependence between management and
workers. Taylor believed that if they were truly dependent on one another, then co-
operation would naturally follow.
NOTE:
1. Scientific management theory emphasized on specialization and division of labour.
2. Taylor and other scientific management pioneers believed that employees could be
motivated by economic rewards, provided those rewards were related to individual
performance. “The more you work the more you earn”.
Limitations of scientific management
These are:
• Simplistic motivational assumptions.
• Workers were viewed as part of machine.
• Exploitation of labour.
• Ignored relationship between the organizations and its environment.
• Excluded senior management tasks.
These limitations prompted the development of administrative management theory.
Administrative/principles of management theory
Introduction
Administrative management theory helps the learner appreciate the guiding principles
developed by management experts in order to build his managerial skills.
Objectives
The learner should be able to:
• Explain administrative principles' theory.
• Name the person who developed the theory.
• Name the five elements comprising the management as stated by management
specialist.
• State the 14 principles of management defined by Fayol.
• State the limitation of the theory.
Administrative management theory
It is also referred to as principles of management. This type of management places emphasis
on the members of the organization usually referred to as “body corporate”, that is, the
personnel or employees.
The person who developed the theory
The Administrative theory was developed by a French top Management specialist called
Henri Fayol, (1841-1925). The theory emerged in 1916 and it emphasized the perspective of
senior managers within the organization. Taylor argued that management was a profession
and could be taught.
He then stated 5 functions or elements of management and 14 principles.
Elements
Fayol in his contribution, defined management as comprising of five (5) elements. These are:
• Planning
• Organizing
• Commanding
• Co-ordinating and
• Controlling
These elements are carried out continuously in an organization (see figure 2.1)
Plan Organize Command Coordinate Control
Fig. 2.1 Elements of management process.
Principles of the theory
In addition, Fayol stated 14 principles that he wanted them applied flexibly. These are:
• Division of work.
Divide work into specialized tasks (elements) and assign responsibility to specific
individual.
• Authority
Delegate authority a long with responsibility (workers are given the right to command
to get the work done).
• Discipline
Rules and regulations should be enforced fairly and judiciously. There should be
well- defined procedures of dealing with disciplinary matters.
• Unity of command
Each employee should be assigned to only one supervisor, otherwise conflict and
confusion in authority and instructions would result.
• Unity of direction
The principle of Fayol states that “there should be one head and one plan ”for group
of activities/tasks having the same objectives. For example, the personnel
department should have only one personnel officer with a specified plan for personnel
policies, feeding personnel in all departments of the organization.
• Subordination of individual interest to organization interest
Interests of the organization must take priority over the interests of an individual or a
group, whenever there is a conflict between the two.
• Remuneration of employees
All workers should be fairly paid with appropriate additional incentives for additional
efforts.
• Centralization
All major policy formulation and decisions should be made at the top management
level (central point).
• Scalar chain
Communication should follow the formal channel in the hierarchy. Keep the
communication within the chain of command.
• Order
Place for everything and everything in its place.
• Equity
Fair discipline and order enhance employee commitment.
Managers should be fair and friendly to subordinates and they should exercise
impartiality.
• Initiative
Encourage employees to act on their own in support of the organization’s direction
regardless of the mistakes made.
• Esprit de corps
Promote a unity of interests between employees and management. Workers should
work as a team.
• Stability of staff/tenure of employees
Employee turnover should be minimized. Tenure and long term commitment should
be encouraged. It results in a sense of belonging to organization giving rise to
dedication and better outcome/results/output.
Although in his contributions, management was viewed as a profession that could be
trained and developed, emphasized the broad policy aspect of top - level managers
and offered universal management prescriptions, it had limitation: -
Limitation
The universal prescriptions need qualifications for environmental, technological and
personnel factors.
Bureaucratic management theory
Introduction
This is the third branch of classical organization theory, which the author believed could
work better than the rest of the theories. This will assist the learner apply the guiding
principles developed by management specialists in their area of work.
Learning Objectives
The learner should be able to:
• Explain bureaucratic management theory
• State 6 characteristics of bureaucratic management theory
• State 6 shortcomings of the theory
What is Bureaucratic Management Approach?
It was developed by a German Sociologist, Lawyer and Historian called Max Weber (1864 -
1924). He was interested in the work of Taylor. His theory was based on authority
structures (hierarchy) of a form of an organization. He was specifically concerned with the
administration, that is, how the organizations are structured in terms of “who is responsible
for who or to who along with the activities to be carried out. He thought bureaucracy would
be:
i) Fairer
ii) More impartial and
iii) More rational
Characteristics of bureaucratic theory
• Workers are selected and promoted on the basis of technical competence and
experience (merit).
• A system of rules covering the duties and rights of employees that must be adhered to.
• Well defined hierarchy of authority.
• A division of labour by functional specialization.
• A system of procedures for dealing with work situations.
• Job- holders are expected to be impartial, that is, practice fairness and no favourism.
Limitations
The shortcomings to this theory are:
• It had limited organizational flexibility and it is slow in decision making.
• It ignores the importance of people and interpersonal relations.
• It accumulates power that could result in authoritarian management.
• Rules may become ends in themselves.
• Difficult to dismantle once established.
• Too much specialization that could result, for example, patient to die in hospital if the
person assigned to that responsibility is not there.
These limitations come because of the complexity of organizations. It is better for small
organizations, although it is mainly applied in the government organizations.
Bureaucratic theory served to fit the traditional organizations which were less innovative in
their operations and later around 1930's, human relations theory was developed to look at the
human aspect of the organization.
Human relation theory
Introduction
This theory was not part of the classical organization theory but very important in dealing
with human beings in an organization. The theory is designed to equip the learner with the
principles of human relation theory to be able to understand and motivate staff under him in
his area of operation for better services to the patients and the public at large.
Learning objectives
The learner should be able to:
• Name the theorist who developed the human relations theory
• State 4 crucial factors to be considered in achieving the goals of the organization
• State the two important factors that determine the success of a manager (good
manager).
The scholar who developed the human relations theory
The theory was developed by Professor Elton Mayo around 1930s and it was backed up by A.
Maslow, Mcgregor (1960), Hersberg, Likert, Argyris and Chester Bernard (1938).
It emphasized the human factor at work situation rather than the machines. It aimed at
understanding how psychological and social progress, interact with the work situation to
influence performance.
Factors to be considered in achieving the goals of the organization.
It was realized that the crucial factors in achieving the organizational goals were: -
• Individual and group morale
• Group dynamics
• Democratic supervision and
• Interpersonal relations.
Factors determining the success of a Manager
A good manager was, therefore seen as a person who dealt with:
- The needs of the consumer and the employees.
- The organization’s strategies of achieving the goals such as:
• Making profit
• Becoming effective and efficient
• Motivating employees to achieve the goals of the organization.
Not all organizations are the same in terms of the culture, climate, the people and the
technology. Therefore, the management approach used in one organization may not be
applicable to another organization. The prevailing circumstances dictate the use of one
theory, hence contingency/situational theory.
Situational/contingency theory
Purpose
The main purpose of learning this theory is to open up a learner’s mind to use any theory
applicable to the prevailing situation at that time.
Objectives
You should be able to:
1) Explain situational/contingency theory
2) Name 2 key situational characteristics shared by many organizations.
3) State 4 contingencies that have to be addressed on a case by case basis.
4) State the limitation of this theory
Situation/contingency approach
This approach is the most suitable for modern management practices because of its
characteristics.
It states that there is not best single approach to management. Managers should use various
principles of all the other approaches in handling management issues. He can apply any
approach depending on the prevailing circumstances. It is argued that the approach to be
used should be relevant and effective to the management situation at hand.
This gives managers freedom to think and see which principle(s) can be applicable to a
particular situation. Because of the freedom employed in handling management issues, the
theory appears to be the most suitable to be adopted because the approach which worked in
another situation, may not work in another situation; the conditions may not be the same.
Shared key situational characteristics
However, many organizations share key characteristics that can be grouped together as:
1) Growth and Market
2) Uncertain environment or
3) Corporate strategies (plans)
These and other situational characteristics are called contingencies. Understanding
contingencies help mangers know which sets of circumstances dictate which management
actions.
Contingencies
Contingencies all management issues would need to be addressed on a case by case basis.
These contingencies include:
1) The rate of change and degree of complexity in the organization’s external
environment.
2) Internal strength and weakness of the organization.
3) The value, goals, skills and workers in the organization.
4) The types of tasks, resources and technologies the organization uses.
Limitation
Not all-critical contingencies have been identified and the theory may not be applicable to all
managerial issues.
Among the people who developed this theory were Pugh, Lawrence and Lorsch.
Another approach to management that is related to situational approach in terms of modern
principles is the management by objectives.
Management by objectives (MBO)
Introduction
The theory is designed as a modern approach to management. The idea behind the theory
was advocated by Peter Drucker (1970). He stressed that “business performance requires
that each job be directed towards the objective of the whole business” and, therefore, it will
assist the learner to carry out management functions using the modern approach.
Learning objectives
You should be able to:
• Define the term management by objectives
• State 5 elements of MBO process.
• State the five main purposes of review and appraisal of performance.
• State 7 advantages of management by objectives
• State 5 disadvantages of management by objectives
Definition
It is a process by which managers and subordinates work together in identifying goals and
setting as well as setting up objectives and plans in order to achieve these objectives.
It can also be referred to as management by results or goal management. It is based on the
assumption that involvement leads to commitment and if an employee participates in goal
setting standards for measurement of performance towards that goal, then the employee will
be motivated to perform better in a way that contributes directly towards the achievement of
organizational objectives.
N/B Management by objectives is a goal -oriented process and not a work-oriented
process. To be busy and work is not important, if it does not effectively lead to
achievement. It is an aid to planning as well as a motivating factor for employees.
Elements of MBO process
Five common elements of MBO can be identified as follows:-
i Central goal setting
This is the basic stage in MBO process where central management sets the definition
and clarification of the organizational objectives usually in consultation with other
managers (group and top manager jointly involved). The objectives should be
specific and realistic.
ii Manager - Subordinate involvement
Here, the subordinates work with the manager in setting individual goals. These
goals (subordinates) are specific and short range and primarily indicate what the
subordinate’s unit is capable of achieving in a specified period of time. The
subordinates must set goals in consultation with individuals who comprise his unit. In
this manner, everyone is involved in the goal setting. The importance of joint
consultation is that people get more motivated in achieving objectives that were set by
them.
iii Matching goals and resources
Objectives can only be achieved if resources are available. Therefore, the
management should provide the subordinates with the necessary tools and materials to
effectively achieve these goals. The resources should be allocated precisely in line
with the goals set and should be done in consultation with the subordinates.
iv Freedom of implementation
There should be adequate freedom for the manager - subordinate task force in
deciding on the utilization of resources and means of achieving the objectives.
This should be done within the larger framework of organizational policies and with
minimum superior’s interference.
v Review and appraisal of performance
There should be regular reviews of progress between managers and subordinates.
These reviews would: -
a) Determine if the individual is making satisfactory progress.
b) Reveals if any unanticipated problems have developed.
c) Help the subordinates understand the process of MBO better.
d) Improve the morale of the subordinates.
e) Assist the manager and subordinates to modify either the objectives or
methods, if need be.
However, the performance appraisal should be conducted fairly and with measurable
standards.
MBO has both advantages and disadvantages
Advantages of MBO
• It makes individuals more aware of the organizational goals.
• It often highlights the area in which the employees need further training
• Due to periodic evaluation, the subordinates know how well they are doing
• It improves communication between management and subordinates
• There is proper utilization of human resources
• It encourages managers to do detailed planning. Due to the improvement in planning
process, the overall management system is improved.
• Both the manager and subordinates know what is expected of them and hence there is
no role ambiguity or confusion.
Disadvantages
The MBO has also some disadvantages. There are:
• Managers lack the necessary skills in inter-personal interaction such as counseling
and coaching.
• Poor interaction of MBO system with other systems such as budgeting and
forecasting etc.
• It is difficult to achieve group goals
• The emphasis is mainly on short- term goals.
• Due to considerable paperwork, a lot of manager's time is wasted.
You have just finished on the sub-topic on management by objectives and the next sub-topic
is on the systems approach to management, which is also a modern management approach.
Systems approach to management
Purpose
The purpose of learning this topic is to equip the learner with the basic ideas, principles and
application of the theory in managerial situation.
Objectives
The learner should be able to: -
• Define the term system
• State the three aspects of the definition of system
• List at least 4 variables/components/parts which must be explained in dealing with
systems theory
• Explain 2 types of systems
• State 8 characteristics of a system
The systems approach to management is one of the modern management approaches in
addition to situational and management by objectives. The Systems' approach was initially
developed by Ludwig Von Bertalanfy (1969) who propagated the idea via his publication
called, “General systems”.
Definition
It is a group of interrelated parts operating as a whole to achieve stated goals or to function
according to plan or design.
An orderly grouping of separate interdependent components for the purpose of attaining some
pre-determined objectives. This definition leads to three important aspects.
Aspects of the definition
• Management components must be orderly and hierarchical, no matter how complex
the “whole” may be.
• There must be communication among the independent components of the system.
• Any interaction among the components must be designed to achieve the stated
objective.(see figure 2.3).
Kenya Medical Training College
Fig. 2.3 Interacting components of an organization
Therefore, systems approach to management is a theory that looks at the organization as a
whole, examining all relevant organizational variables/components/parts simultaneously.
Organizational variables
These important variables are:
• The people
• The tasks
• Technology
• Environment
The approach is to identify the parts of the organization and to discover how these parts
operate independently. The important concepts from systems theory include the closed and
open systems.
Closed System
Closed system is a set of interacting elements without any interaction with the outside
environment. It does not depend on outside input. An example is a battery operated digital
watch. Once the battery is inserted in it, it does not require any element from outside to
operate.
NB: It is not easy to have a system that is totally closed. Usually, there is an element of
external environment.
Open System
It is a system that is dependent on external environment for its survival. An example is the
human body as a system and must depend upon external input and energy for survival.
All organizational systems are open systems, as they usually depend on the external
environment for feedback and resources for the disposal of the finished product. All
organizations transform inputs into outputs. The inputs may be in form of: -
- Human
- Energy
- Raw materials
- Equipment
- Information etc and by using certain technology to change these inputs into outputs of
finished goods, services and information.
In this process of conversion, the organization must take into consideration the dynamics of
outside environment and must continually interact with external variables. For example,
when producing and selling a product, the management must analyze: -
(a) Internal Operations
(b) External factors of availability of resources
(c) Current technological trends
(4) Market trends and
(5) Social changes
The common characteristics of a system
These characteristics are: -
(1) Each System is comprised of many sub-systems that interact with each other.
(2) Each system is part of a larger one.
(3) It is complex and inter-related such that a change in one variable will affect a change
in the others.
(4) Each system has a special purpose to which all its parts and sub- systems contribute
for achieving that purpose.
(5) Every entity of the system gets information or energy from the other components
within the system and from the system’s environment.
(6) Every entity processes this information or energy in its own way and sends its input to
the rest of the system and external environment (world).
(7) A system can not exist in isolation. It must get inputs from other systems etc.
(8) A system has a tendency to remain in equilibrium by maintaining a balance among the
various forces operating within and upon it.
NB Systems approach to management focuses on organization as a unified system made
up to many interrelated parts which provides the managers with the necessary
perspective in:
(1) Planning
(2) Organizing
(3) Leading and
(4) Controlling functions
NB These theories of management evolved between 1890 and 1970 (see figure 2.4)
Illustration of evolution of these theories
Figure 2.4 Evolution of management theories.
You have just finished part one of this manual where you have defined management, stated
reasons for learning management as health records and information officer, explained the origin
and development of management, named five common management approaches, named the
three branches of classical theory, explained the origin and development of management, named
five common management approaches, named the three branches of classical theory, explained
the scientific management theory, Administrative, Bureaucratic, Human relations, situational,
management by objectives and systems approach (theory) to management. You are now going
to learn on the functions of management. What a manager does in order to be said he/she is
managing an organization effectively.