Hpad 201 Session 5, July 14 Fundamentals of Management - 201 v.2.0-Fsc

7/31/2019 Hpad 201 Session 5, July 14 Fundamentals of Management - 201 v.2.0-Fsc

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FUNDAMENTALS of

MANAGEMENTand Introduction to TQM

Francisco S. Cruz, MD, MPHHPAD 201, Session 5, July 14

Reference:EMER FARAON, MD, MBA

DHPA, CPH, UPM


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Learning Objectives

Definition and Concept of Management

Four Functions / Elements of Management

Overview of the Evolution of ManagementThought (Basic Timeline and Categorization)

Modern Approaches to Management

Introduction to TQM


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ManagementEnvironment

Managers

Organizations

Resources


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Managers

The people responsible

for supervising the use of

an organizations

resources to meet itsgoals


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All managers work in

organizations

Organizationscollections of people who work

together and coordinate their

actions to achieve a widevariety of goals or desired

future outcomes


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Resources

include people, skills,

know-how and experience,machinery, raw materials,

computers and IT, patents,

financial capital, and loyal

customers and employees


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GOALS OF BUSINESS OR

MANAGEMENT

Business/economics traditionally definedas based on a sole primary motive ofself-interest

Lead to thinking about profit-maximization as the major goal ofenterprise

Modified meaning today especially in thehealthcare industry

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Is Administration and

Management the same?

Administration refers to the

activities of the higher level of the

management group who identifiesthe major aims and policies.

Administration is a part of

management

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FOUR FUNCTIONS

First stated by Henri Fayol (1841-1925)- French CEO

Now stated plainly as:

1. Planning

2. Organizing

3. Directing/Leading

4. Controlling

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PLANNING & ORGANIZING

Planning -- Setting firms goals plus the

way to accomplish them

Organizing -- deciding structure ofdecision-making

What will be done, by whom, for

whom

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LEADING & CONTROLLING

Leading/Directing-- Motivating

employees to achieve firms objectives

Controlling --

Monitoring progress toward goals

Taking corrective action

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EVOLUTION OF

MANAGEMENT THOUGHT


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MAJOR CLASSIFICATION OF

MANAGEMENT APPROACHES

CLASSICALAPPROACH

SCIENTIFICMANAGEMENT

BUREAUCRATICMANAGEMENT

ADMINISTRATIVEMANAGEMENT

BEHAVIORAL

APPROACH

HAWTHORNE

STUDIES

MASLOWS

NEEDHIERARCHY

THEORY X AND

THEORY Y

QUANTITATIVEAPPROACH

MANAGEMENTSCIENCE

OPERATIONSMANAGEMENT

MANAGEMENTINFORMATIONSYSTEM

MODERNAPPROACH

THE SYSTEMSTHEORY

CONTINGENCYTHEORY

EMERGINGAPPROACHES


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Classical Approach to Management

There are 3 classical approaches to

management;

1. Scientific Management

2. Administrative Principles

3. Bureaucratic Organization


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Classical Approach to Management

All 3 Classical Approaches share a common assumption;

People at work act in a rational manner that is

primarily driven by economic concerns

Workers are expected to rationally consider

opportunities made available to them and do

whatever necessary to achieve the greatestpersonal and monetary gain


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Classical Approach to

Management


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Scientific Management

Emphasizes careful selection and

training of workers and supervisory

support with an emphasis onimproving efficiency


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SM has 4 guiding action principals;

1. Develop rules of motion, standardized work

implements, and proper working conditions for every

job2. Carefully select workers with the right abilities for the

job

3. Carefully train workers and provide proper incentives4. Support workers by carefully planning their work and

removing obstacles


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This approach called MOTION STUDY is the science of

reducing a job or task to its basic physical motions,

which eliminating wasted motions, improves

performance and productivity

In one study, Taylor reduced the number of motions

used by bricklayers and in turn tripled their

productivity


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CLASSICALAPPROACH




BEHAVIORAL

APPROACH

HAWTHORNE

STUDIES

MASLOWS

NEEDHIERARCHY

THEORY X AND

THEORY Y


MANAGEMENTSCIENCE



MODERNAPPROACH

THE SYSTEMSTHEORY

CONTINGENCYTHEORY

EMERGINGAPPROACHES


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Administrative Principles

Fayol developed 14 guiding principles ofmanagement, that he felt should be taught to allaspiring managers;

1. DIVISION OF LABOR - specialization of work willresult in continuous improvement in skills and

methods2. AUTHORITY - managers and workers need to

understand that managers have the right to giveorders

3. DISCIPLINE - behavior needs to be grounded inobedience and derived from respect

4. UNITY OF COMMAND - each employee shouldhave one, and only one manager


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5. UNITY OF DIRECTION - the leader generates a singleplan, and all play their part in executing it

6. SUBORDINATION OF INDIVIDUAL INTERESTS - whileat work, only work issues should be undertaken orconsidered

7. REMUNERATION - all should receive fair paymentfor their work; employees are valuable and notsimply an expense

8. CENTRALIZING - decisions are primarily made from

the top9. CONTROL - organizations must have a clear, formal

chain of command running from the top to thebottom of the organization


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10.ORDER - there is a place for everything andall things should be in there place

11.EQUITY - managers should be kind and fair

12.PERSONNEL TENURE - unnecessaryturnover is to be avoided, and there shouldbe lifetime employment for good workers

13. INITIATIVE - undertake work with zeal and

energy14.ESPRIT DE CORPS - work to build harmony

and cohesion among personnel


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What can we learn from Fayol?

He believed that

Management can be taught

Management can be seen as

a variety of activities oractions that can be worked

on in order to improve ones

managerial skill set


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Another contributor to Administrative Principles was MARY

PARKER FOLLETT

She displayed a deep understanding of groups and

commitment to human cooperation. She believed that

Groups are mechanisms through whichindividuals can combine their talents for a

greater good

Organizations are cooperating communities

of managers and workers

It is the managers job is to help people in the

organization cooperate and achieve an

integration of interests



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Folletts perspectives lead to many modern dayapplications of her management insights. Follett believedthat

Making every employee an owner in the business creates

a sense of collective responsibility --Today we talk aboutprofit sharing, gain-sharing, etc.

Business problems involve a variety of interrelatedfactors --- Today we talk about an organization as anopen system

Company profits relative to public good Today we talkabout managerial ethics and social responsibility



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CLASSICALAPPROACH




BEHAVIORAL

APPROACH

HAWTHORNE

STUDIES

MASLOWS

NEEDHIERARCHY

THEORY X AND

THEORY Y


MANAGEMENTSCIENCE



MODERNAPPROACH

THE SYSTEMSTHEORY

CONTINGENCYTHEORY

EMERGINGAPPROACHES


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Bureaucratic Organization

Max Weber developed the idea of the Bureaucracy

because he felt that many organizations largely

failed to reach their performance potential

A BUREAUCRACY is an ideal, intentionally rational,

and very efficient form of organization, based on

principles of logic, order, and legitimate authority.


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Characteristics of Bureaucratic Organizations

CLEAR DIVISION OF LABOR - jobs are well defined, and workersbecome highly skilled at their job

CLEAR HIERARCHY OF AUTHORITY authority and responsibilityare well defined for each position, and each position reports to ahigher level

FORMAL RULES written guidelines direct behavior and decisionsin jobs, and written files are kept for historical record

IMPERSONALITY rules and procedures are impartially and

uniformly applied, with no special treatment

CAREERS BASED ON MERIT workers are selected and promotedon ability and performance


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The term bureaucracy is now often used

with negative connotations

Some possible disadvantages of bureaucracy

include:

Excessive paperwork or red tape

Slowness in handling problems

Rigidity in the face of shifting needs

Resistance to change

Employee apathy (a state of indifference)


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Behavioral Approaches to

Management


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Behavioral (Human Resource)

Approaches to Management

There are 3 behavioral approaches to management;

1. The Hawthorne Studies

2. Maslows Theory of Human Needs

3. McGregors Theory X and Theory Y

All 3 Behavioral Approaches share a common assumption;

People at work are assumed to seek satisfying social

relationships, respond to group pressures and search for

personal fulfillment


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The Hawthorne Studies

In 1942, the Western Electric Company had a research

program conducted to study individual productivity at one

of their plants

Initial study examined how economic incentives and

physical conditions of the workplace affected worker output


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The Hawthorne StudiesRelay Assembly Test-Room Studies

Examined the effect of worker fatigue on output

Six assembly workers were isolated for intensive study in a specialroom

They were given various rest pauses, workday and workweek lengths,all while measuring productivity

However, regardless of the changes made, productivity increased

Researchers believe this increased productivity is due to

GROUP ATMOSPHERE workers shared pleasant social relations andwanted to do a good job

PARTICIPATIVE SUPERVISION workers were made to feel important,given lots of information and asked their opinion


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The Hawthorne Studies

Lessons Learned

Peoples feelings, attitudes and relations with co-workersaffected their work

Group influence plays an important role in the decisions

made by individuals The HAWTHORNE EFFECT is the tendency of people who

are singled out for special attention to perform as expectedmerely because of the expectations created by the situation

Helped contribute to the emergence of the HUMAN

RELATIONS movement, which suggests that managers usinggood human relations will achieve productivity

Set the stage for what has now developed into the field ofORGANIZATIONAL BEHAVIOR; the study of individuals andgroups in organizations


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Abraham Maslow

His theory rested on these assumptions.

Physiological needs;

Safety or security needs

Belongingness or social needs;

Esteem or status needs

Self actualization or self-fulfillment needs.


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Maslows Need Hierarchy

Self actualization needs

Esteem needs

Social needs

Safety needs

Physiological needs


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Maslows Theory of Human Needs

Maslows theory implies that

managers who help people satisfytheir important needs at work will

achieve productivity


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Douglas Mcgregor

Theory X Theory Y

Most People dislikework

Work is a natural activitylike play.

Most People must becoerced and threatenedbefore they work.

People are capable of selfdirection and self control

Most people prefer tobe directed. They avoidresponsibility and havelittle ambition.

People become committedto organizationalobjectives if they arerewarded in doing so.


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McGregors Theory X

and Theory Y

McGregor believed that managers should

give more attention to the social and

self-actualization needs of people atwork

Called upon managers to shift their view

of human nature away from a set ofassumptions he called Theory X and

toward what he called Theory Y


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Chris Argyris

Maturity Immaturity theory

People progress from a stage of

immaturity and dependence to a state ofmaturity and independence.

Model I and Model II organization

analysis.1. Model I organization are manipulative

2. Model II organization are open to learning


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Quantitative Approach

It includes the application of statistics,

optimization models, information models and

computer simulations. More specifically, this

approach focuses on achieving organizational

effectiveness. Three main branches:

Management Science

Operations Management and Management Information Systems.


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Management Science

It stresses the use of mathematical

models and statistical methods for

decision-making.

Another name is the Operations

Research.


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Operations Management

It deals with the effective

management of the production

process and the timely delivery of

an organizations products and

services.


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Management

Information Systems

Management information

systems focuses on designingand implementing computer-

based information systemsfor business organizations.

M d A h


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Modern Approaches

to Management

Systems Theory

Contingency Theory


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Systems Theory

Resources

Labor Materials Capital Machinery Information

Managerial andTechnological

Abilities Planning Organizing Staffing

Leading Controlling Technology

Goods

Services Profits and

losses Employee

satisfaction

Inputs Transformation process Outputs

Feedback


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Contingency Theory

Systems ViewpointHow the parts fittogetherIndividual

GroupOrganizationenvironment

Behavioral ViewpointHow managers influence

othersInterpersonal RolesInformational RolesDecisional Roles

TraditionalviewpointWhat managersdoPlan

OrganizeLead Control

ContingencyViewpoint

Managers

use of otherview points tosolveproblems

Externalenvironment

Technology

Individuals


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Contingency Theory

There is no best way to organize a

corporation, to lead a company,

or to make decisions. Instead, theoptimal course of action is

contingent (dependent) upon theinternal and external situation.

E i A h I


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Emerging Approaches In

Management Thought

William Ouchi, outlined new theorycalled Theory Z.

It is the blend of positive aspects ofboth American and Japanesemanagement styles.

i h


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Emerging Approaches In

Management Thought

Quality Management is a managementapproach that directs the efforts ofmanagement towards bringing about

continuous improvement in product andservice quality to achieve higher levelsof customer satisfaction and build

customer loyalty.


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Total Quality Management:

An Introduction


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DefinitionTotal Quality Management (TQM)is a management strategy aimed at

embedding awareness of quality inall organizational processes.
http://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Awarenesshttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Awarenesshttp://en.wikipedia.org/wiki/Management


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TQM requires that the company

maintain this quality standard inall aspects of its business.

This requires ensuring thatthings are done right the first

time and that defects and waste

are eliminated from operations.

Evolution of quality Means & Focus
http://en.wikipedia.org/w/index.php?title=Quality_standard&action=edithttp://en.wikipedia.org/w/index.php?title=Quality_standard&action=edit


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Evolution of quality Means & Focus1975

1980 1985 1990 19952000

Operation Customers Innovations

QualityofWork life

QualityCircle

Productivity

EmployeeInvolvement

Quality

EmployeesEmpowerment

TotalQuality

Self

DirectedTeams

TQC/TQM

Self

Directed/Managd

Teams


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Basic Approach

A committed and involved management to

provide long-term top - to - bottom

organizational support.

An unwavering focus on the customer, bothinternally and externally.

Effective involvement and utilization of the

entire work force.


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Basic Approach

Continuous improvement of the business and

production process.

Treating supplier as partners.

Establish performance measures for the

processes.

TQM FRAMEWORK


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TQM FRAMEWORK


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Principle of Health AdministrationPreparing for the Next (6th) Session

Reading Materials for July 21, 2012

Principles and Practices in Health Administration

Any reading materials on: ZOPP, Logical Framework

Approach/Analysis DOH Department Order 2011-0188 Kalusugan Pangkalahatan

DOH LGU Scorecard

Any Provincial Investment Plan on Health

Hpad 201 Session 5, July 14 Fundamentals of Management - 201 v.2.0-Fsc

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