MANAGEMENT THEORIES

Bureaucratic Theory | Human Relations Theory | Motivational Theory | Leadership

Theory

A Group Requirement
Presented to

Ma. Luisa S. Parreas, RN, RM, MAN, EdD.

In Partial Fulfillment
Of the Requirements for the Course
Principles of and Methods of Nursing Management and
Administration

By
Rose Ann B. Alamo, RN, CNN
John Mikkel E. Balodio, RN
Regima P. Cartagena, RN
Ma. Theresa E. Gabales, RN
Jeremiah B. Nazareno, RN
Kimberlo P. Pasinabo, RN

June 7, 2015

BUREAUCRATIC MANAGEMENT THEORY

The bureaucratic theory of management is one of the oldest in use today.
Organizations of all sizes and in many industries use it. Bureaucratic management
involves a few people at the top making decisions and a chain of middle managers
and lower-level people below them carrying out specific functions with limited
authority. Orders come from the top down in a manner mimicking the military.
Health care organizations -- especially hospitals and insurance companies -have traditionally used bureaucratic management because it creates consistency
and precision. Through specialization, each member of the organization does a
limited number of things frequently and ostensibly very well. For example, nurses
take care of their patients and don't consider larger organizational issues. Similarly,
nurse managers oversee their nurses, but don't concern themselves with issues
involving the medical staff.
An organizational hierarchy is the arrangement of the organization by level of
authority in reference to the levels above and below it. For example, a vicepresident of marketing is below the company's president, at the same level as the
company's vice president of sales, and above the supervisor of the company's social
media department. Each level answers to the level above it, with the ultimate
leader of the organization at the top.
Bureaucratic Theory was developed by a German Sociologist and political
economist Max Weber (1864-1920). According to him, bureaucracy is the most
efficient form of organisation. The organisation has a well-defined line of authority. It
has clear rules and regulations which are strictly followed.
According to Max Weber, there are three types of power in an organization:
1. Traditional Power
2. Charismatic Power
3. Bureaucratic Power Or Legal Power

Features of a Bureaucratic Organization

The characteristics or features of Bureaucratic Organization are as follows:

There is a high degree of Division of Labour and Specialisation.

There is a well-defined Hierarchy of Authority.
It follows the principle of Rationality, Objectively and Consistency.
There are Formal and Impersonal relations among the member of the
organization.
Interpersonal relations are based on positions and not on personalities.
There are well defined Rules and Regulations. There rules cover all the duties
and rights of the employees. These rules must be strictly followed.
There are well defined Methods for all types of work.
Selection and Promotion is based on Technical qualifications.
Only Bureaucratic or legal power is given importance.

Criticism of Bureaucratic Organization

Bureaucratic organization is a very rigid type of organization. It does not give
importance to human relations. It is suitable for government organizations. It is also
suitable for organizations where change is very slow. It is appropriate for static
organizations.

Bureaucratic organization is criticised because of the following reasons:

Too much emphasis on rules and regulations. The rules and regulations are
rigid and inflexible.
No importance is given to informal groups. Nowadays, informal groups play
an important role in all business organisations.
Bureaucracy involves a lot of paper work. This results in lot of wastage of
time, effort and money.
There will be unnecessary delay in decision-making due to formalities and
rules.
Bureaucratic model may be suitable for government organizations. But it is
not suitable for business organizations because business organizations
believe in quick decision making and flexibility in procedures.
Too much importance is given to the technical qualifications of the employees
for promotion and transfers. Dedication and commitment of the employee is
not considered.
There is difficulty in coordination and communication.
There is limited scope for Human Resource (HR).

HUMAN RELATIONS MANAGEMENT THEORY

Human relations theory is largely seen to have been born as a result of the
Hawthorne experiments which Elton Mayo conducted at the Western Electrical
Company. However, the so called Hawthorne Effect was not foreseen by the study.
Instead, the Western Electrical Company wished to show that a greater level of
illumination in a working area improved productivity, hence encouraging employers
to spend more money on electricity from the company. As such, they carried out a
study of how productivity varied with illumination levels. However, the results of the
study showed that any changes in light levels tended to increase productivity levels,
and the productivity level also increased significantly within the control group. This
was completely the opposite of what Mayo expected, and created an entirely new
branch of management theory. The core aspect of Human Relations Theory is that,
when workers were being observed and included in the research, they felt more
important and valued by the company. As a result, their productivity levels went up
significantly. This represented a significant departure from many of the classical
theories, particularly Fordism, as it went against the notion that management
needed to control workers, and remove their autonomy at every step. Instead, it
showed that by engaging with workers and considering their requirements and
needs, companies could benefit from increased productivity.
Another important part of human relations theory came from the other one of
Mayos experiments: the bank wiring experiment. This experiment involved
monitoring the production of a group of workers who were working as a group to
produce electrical components. This investigation showed that, as believed by
Taylor and Ford, the group as a whole decided on the level of production, purposely
failing to produce their maximum output in spite of the potential bonus which was
offered by management. This indicated that factors such as peer pressure, and the
desire for harmony within the group, overrode any economic considerations which
the workers held. This study also first drew management theorists focus to the
informal aspect of the organisation, and the important role that it played in
productivity. However, Mayo argued that managers needed to encourage good
communication with workers and develop a connection with their employees, which
runs counter to Taylor and Fords claims that managers needed to focus on
organisational goals and completely control the workers. Mayo argued that Taylor
and Fords techniques would boost productivity, but only to a certain level. In order
to go above this level, workers needed to feel that they were valued more than
simply on a monetary basis.

The concept that managers need to become involved with workers at a more
individual level is at the core of human relations theory, and is what differentiates it
from scientific management theory. Indeed, the vast majority of management
literature since these competing theories emerged has been dominated by two
points of view. The first is that workers will not support management attempts to
get them to be more productive, and hence management needs to take control of
the working process itself, hence leading to scientific management approaches. The
second is that productivity is largely determined by social and group norms, and by
tapping into these norms and fulfilling their workers needs, managers can
encourage employees to motivate themselves to work harder and be more
productive.
Human Relations Theory has three elements or features. They are, the
Individual, the Informal Organization, and Participative Management.
The Individual
The Theory recognizes the importance of emotions and perceptions of individuals. It
holds the view that the level of workers production and organizational output is
determined by the human relations at work and not so much by the physical and
economic conditions of work.
Informal Organizations
The Human Relations Theory emphasizes the informal organizations. According to
Hicks and Gullet, The informal shadow organization that exists within the structure
of the formal organization is emphasized. Attention is focused on the social aspects
of man whose overriding need is seen as a desire to belong, to be accepted by and
stand well in his work group.
Participative Management
Human Relations Theory advocates the style of participative management. In other
words, the manager should consult the work groups and their informal leaders
before introducing a change of programme. This participative management is
meritorious because it permits the workers to influence the decisions that affect
them, develops a sense of participation in the group, makes the working
environment more pleasant, prevents the alienation of workers from the
management, facilitates the acceptance of organizational goals by the workers, and
above all, results in higher productivity.
Critical Appraisal
Human Relations Theory has a landmark contribution to the evolution of
administrative thought. Its significance lies in discovering and emphasizing the
informal organizations and facilitates teamwork and collaboration. However, it is
also not an unmixed blessing. Some important limitations of and criticisms against
this theory have been summed up below:

It has been criticized that the Human Relations Theory as being promanagement and anti-unionist. The United Auto Workers have labelled the
Human Relation Theorists as Cow Sociologists.
Elton Mayo failed to define sharply the ethical presuppositions of his scientific
work.
It was remarked that the human relations theorists tend to devote much
attention informal relations among workers and between workers and
supervisors, but little to the formal ones. This is a severe limitation of the
theory.

It is also pointed out that the Human Relations Theory could not explore the
multi-dimensional phenomenon of human motivations completely.
Finally, Marxists say that Mayoism is a new technique to exploit workers as it
has de-emphasized the economic factors in an organization. Despite these
limitations, it needs to be taken in to account that the Human Relations
Theory not only brought about a revolution in organizational analysis but also
contributed significantly to the history of administrative thought as well. Even
today, organizations stress on interpersonal relations as tools of improving
the productivity of workers in organizations

MOTIVATIONAL THEORY
Motivation is the psychological process of providing purpose and intention to
behavior, according to the Journal of Extension. By using motivation theories,
management can inspire employees to take action and become self-directed.
Motivation begins with identifying particular needs and providing a solution to meet
those needs. Various theories exist that have been studied and implemented in
management regarding employee motivation.
Motivation is a complex phenomenon. Several theories attempt to explain
how motivation works. In management circles, probably the most popular
explanations of motivation are based on the needs of the individual.
The basic needs model, referred to as content theory of motivation,
highlights the specific factors that motivate an individual. Although these factors
are found within an individual, things outside the individual can affect him or her as
well.
In short, all people have needs that they want satisfied. Some are primary
needs, such as those for food, sleep, and waterneeds that deal with the physical
aspects of behavior and are considered unlearned. These needs are biological in
nature and relatively stable. Their influences on behavior are usually obvious and
hence easy to identify.
Secondary needs, on the other hand, are psychological, which means that
they are learned primarily through experience. These needs vary significantly by
culture and by individual. Secondary needs consist of internal states, such as the
desire for power, achievement, and love. Identifying and interpreting these needs is
more difficult because they are demonstrated in a variety of ways. Secondary needs
are responsible for most of the behavior that a supervisor is concerned with and for
the rewards a person seeks in an organization.

Owen's Theory
Robert Owen, a Welsh social reformer, developed a theory based on his
experience with machines during the Industrial Age of the 1800s. The better a

machine is taken care of, maintained and looked after, the better it performs. This
theory was revolutionary during his time and has continued to be true. Management
that places the workers' needs and desires as first priority will produce efficient and
motivated people

Abraham Maslow's Hierarchy of Needs Theory

Several theorists, including Abraham Maslow, Frederick Herzberg, David
McClelland, and Clayton Alderfer, have provided theories to help explain needs as a
source of motivation.
Abraham Maslow defined need as a physiological or psychological deficiency
that a person feels the compulsion to satisfy. This need can create tensions that can
influence a person's work attitudes and behaviors. Maslow formed a theory based
on his definition of need that proposes that humans are motivated by multiple
needs and that these needs exist in a hierarchical order. His premise is that only an
unsatisfied need can influence behavior; a satisfied need is not a motivator.
Maslow's theory is based on the following two principles:
Deficit principle: A satisfied need no longer motivates behavior because people act
to satisfy deprived needs.
Progression principle: The five needs he identified exist in a hierarchy, which means
that a need at any level only comes into play after a lowerlevel need has been
satisfied.
In his theory, Maslow identified five levels of human needs. Table illustrates
these five levels and provides suggestions for satisfying each need.

Although research has not verified the strict deficit and progression principles
of Maslow's theory, his ideas can help managers understand and satisfy the needs
of employees.

Herzberg's Two-Factor Theory

Frederick Herzberg offers another framework
motivational implications of work environments.

for

understanding

the

In his twofactor theory, Herzberg identifies two sets of factors that impact
motivation in the workplace:

Hygiene
factors include
salary,
job
security,
working
conditions,
organizational policies, and technical quality of supervision. Although these
factors do not motivate employees, they can cause dissatisfaction if they are
missing. Something as simple as adding music to the office place or
implementing a nosmoking policy can make people less dissatisfied with
these aspects of their work. However, these improvements in hygiene factors
do not necessarily increase satisfaction.

Satisfiers or motivators include such things as responsibility, achievement,

growth opportunities, and feelings of recognition, and are the key to job
satisfaction and motivation. For example, managers can find out what people
really do in their jobs and make improvements, thus increasing job satisfaction
and performance.

Following Herzberg's twofactor theory, managers need to ensure that hygiene

factors are adequate and then build satisfiers into jobs.

Alderfer's ERG Theory

Clayton Alderfer's ERG (Existence, Relatedness, Growth) theory is built upon
Maslow's hierarchy of needs theory. To begin his theory, Alderfer collapses Maslow's
five levels of needs into three categories.

Existence needs are desires for physiological and material wellbeing. (In
terms of Maslow's model, existence needs include physiological and safety
needs)

Relatedness needs are desires for satisfying interpersonal relationships. (In

terms of Maslow's model, relatedness correspondence to social needs)

Growth needs are desires for continued psychological growth and

development. (In terms of Maslow's model, growth needs include esteem and
selfrealization needs)
This approach proposes that unsatisfied needs motivate behavior, and that as
lower level needs are satisfied, they become less important. Higher level needs,
though, become more important as they are satisfied, and if these needs are not
met, a person may move down the hierarchy, which Alderfer calls the frustration
regression principle. What he means by this term is that an already satisfied lower
level need can become reactivated and influence behavior when a higher level need
cannot be satisfied. As a result, managers should provide opportunities for workers
to capitalize on the importance of higher level needs.
McClelland's Acquired Needs Theory
David McClelland's acquired needs theory recognizes that everyone prioritizes
needs differently. He also believes that individuals are not born with these needs,
but that they are actually learned through life experiences. McClelland identifies
three specific needs:

Need for achievement is the drive to excel.

Need for power is the desire to cause others to behave in a way that they
would not have behaved otherwise.
Need for affiliation is the desire for friendly, close interpersonal relationships
and conflict avoidance.

McClelland associates each need with a distinct set of work preferences, and
managers can help tailor the environment to meet these needs.
High achievers differentiate themselves from others by their desires to do things
better. These individuals are strongly motivated by job situations with personal
responsibility, feedback, and an intermediate degree of risk. In addition, high
achievers often exhibit the following behaviors:

Seek personal responsibility for finding solutions to problems

Want rapid feedback on their performances so that they can tell easily
whether they are improving or not
Set moderately challenging goals and perform best when they perceive their
probability of success as 5050

An individual with a high need of power is likely to follow a path of continued

promotion over time. Individuals with a high need of power often demonstrate the
following behaviors:

Enjoy being in charge

Want to influence others
Prefer to be placed into competitive and statusoriented situations
Tend to be more concerned with prestige and gaining influence over others
than with effective performance

People with the need for affiliation seek companionship, social approval, and
satisfying interpersonal relationships. People needing affiliation display the following
behaviors:

Take a special interest in work that provides companionship and social

approval
Strive for friendship
Prefer cooperative situations rather than competitive ones
Desire relationships involving a high degree of mutual understanding
May not make the best managers because their desire for social approval and
friendship may complicate managerial decision making

Interestingly enough, a high need to achieve does not necessarily lead to being a
good manager, especially in large organizations. People with high achievement
needs are usually interested in how well they do personally and not in influencing
others to do well. On the other hand, the best managers are high in their needs for
power and low in their needs for affiliation.

LEADERSHIP THEORY
In order for patients to receive the most effective health care from their
nursing staff in hospitals and other health care facilities, nurses must learn from
men and women who have taken leadership training courses and can teach their
own students the leadership skills and abilities that they acquired. As health care
becomes more complex, it will take such strong leadership criteria for nurses in all
fields to continue to improve their own standards and the qualifications of others in
the field.
Leadership can be defined in many different ways. When it comes to nursing,
it's recognized that nurses who have leadership capabilities can improve

motivational levels of others in the work environment. This helps nurses have a
positive attitude about their work, run their daily tasks and responsibilities more
effectively, treat other patients and other staff members with respect, and be able
to reach personal goals and objectives.
As nursing education and training has become more important, a number of
different individuals have suggested learning theories. These theories, however,
involve general nursing education, rather than leadership of others. In addition, a
number of nursing management theories have been suggested, but management
and leadership are different from each other. Nursing leadership theories have
begun to be discussed only recently. Three of these leadership programs that have
been found to be most beneficial for new nurses are quantum leadership,
transformational leadership and dynamic leader follower relationship.
Quantum Leadership
According to Dr. Tom Porter-O'Grady, quantum leadership helps nurses make
better decisions, such as when is the most appropriate time to call in a physician.
The training helps the nurses weigh the pros and cons of different plans and
interventions of care. This leadership theory places an emphasis on self-direction
rather than on being given direction by others.
Transformational Leadership
Scholars such as Eleanor Sullivan and Phillip Decker support transformational
leadership that combines the strengths of leaders and followers. This form of
leadership motivates people to establish their own leadership criteria. It creates
changes in the health care system by encouraging nurses to offer improved
feedback to one another. With its emphasis on change, new nurses are given the
opportunity to evaluate new and old policies and procedures and take an active role
in implementing new programming.
Dynamic Leader-Follower
The dynamic leader-follower relationship is modeled after Ida J. Orlando's
nursing model. It places a focus on identifying the patient's immediate health care
requirements. Therefore, the nurse has the ability to attain specific objectives via
interpersonal points of view. The foundation of Orlando's theory is the dynamic
quality of the leader-follower exchanges that motivate and encourage nurses to
make worthwhile commitments. In this theory, both the leader and the follower are
critical to the success of the nursing unit. In many cases, it's up to the nurse to
determine which leadership theory is most productive for her own learning ability.
It's important to follow through on the theory and put it into practice in order to
enhance nursing and leadership growth and development.

References:
http://kalyan-city.blogspot.com/2011/04/bureaucratic-theory-ofmanagement-by.html
http://study.com/academy/lesson/bureaucratic-management-theorydefinition-lesson-quiz.html
http://www.ehow.com/info_8146054_theories-healthcaremanagement.html
http://www.ehow.com/info_8197637_human-relations-managementtheory.html
https://www.scribd.com/doc/37339807/Human-RelationsTheory#scribd
http://www.ehow.com/about_5192150_nursing-leadershiptheory.html
"Think Sociology"; Paul Stephens, et al.; 2003

"Management, Organisation, and Ethics in the Public Sector";

Patrick Bishop, et al.; 2003
Lahey, B.B. (1998). Psychology: An Introduction (6th Ed.). United
States America:
McGraw-Hill.
Ciccarelli, S.K., & Meyer, G.E. (2006). Psychology (mypsychlab Ed.).
Upper saddle River, NJ: Prentice Hall.
Zimbardo, P.G., & Gerrig, R.J. (1996). Psychology and Life (14th Ed.).
United States of America: Harper Collins.
Valle, V.A., & Frieze, I.H. (1976). Stability of causal attributions as a
mediator in changing expectations for success. Journal of
Personality and Social Psychology, 33, 579-587.
Bernard, W. (1992). Human Motivation: Metaphors, Theories, and
Research. Newbury Park, CA: Sage.
Petri, H.L. (1986). Motivation: Theory and research (3rd Ed.).
Belmont, CA: Wadsworth.
McClelland, D.C., & Winter, D.G. (1969). Motivating Economic
Achievement. New York: The Free Press.
Salgado, A.B. (2009). Psychology for Nurses. (Ed.). Selangor,
Malaysia.: McGraw-Hill.
Pintrich, P. & Schunk, D. (1996). Motivation in Education: Theory,
Research, and Applications.
Englewood Cliff, NJ: Prentice-Hall.
Carol, D. (1999). Self-Theories: Their Role in Motivation, Personality,
and Development.
Philadelphia: Taylor and Francis.
Peutz, B.E., & Peters, F.L. (1981). Continuing Education for Nurses.
Rockville, MD: Aspen
Systems Corporation.
Nalini, D.V. (1991). Hospital Management. New Delhi: Deep and
Deep Publications.
Lester, B.R. (1959). What Every Supervisor Should Know. New York:
McGraw-Hile Book
Co.Inc.
Kalish, R. (1983). The Psychology of Human Behavior (5th Ed.).
Monterey, CA: Brooks/Cole.
Maxlow, A.H. (1970). Motivation & Personality. New York: Harper &
Brothers.