Understand professional management and leadership in health and social care services
Handout 6: A brief history of management theories
Learning outcome 1/Assessment criteria 1.1, 1.2
What is a ‘theory’?
A ‘theory’ is the result of a type of abstract, rational thinking. In essence, it is a testable framework that describes some aspect of the natural or social world and how it works. Management theories define, describe and predict the most effective ways of organising people to accomplish desired goals and objectives using available resources efficiently and effectively. (See Cole and Kelly (2011), Maclean and Connors (2012) or Jones and Bennett (2012) for more on the nature of ‘theory’.)
A history of management theory
Scientific management theory
F.W. Taylor was the first person to develop a scientific theory ofmanagement, which
he outlined in his classic book The Principles of Scientific Management (1911).Taylor argued that management is best accomplished by standardising, specifying and measuring work tasks wherever possible. The aim of scientific management theory was to improve economic efficiency and workerproductivity.
Scientific management theory has proved to be popular and useful in some areas of assembly-lineindustrial manufacturing, yet it has limited application to health and social care work. In fact, a focus on the kinds of systematic, routine-driven, task-focused employmentassociated with scientific management theory has tended to lead to institutionalised, impersonal care, and so this approach is now avoided in care settings.
Administrative management theory
Henri Fayol (1841–1925)was a successful mining engineer and senior executive prior to publishing his principles of ‘administrative science’. Fayolviewed management as a functional activity, and he identified the six core functions of management as being:
- Forecasting
- Planning
- Organising
- Commanding
- Co-ordinating
- Controlling.
Fayol’s Industrial and General Administration(1930), translated into English by Coubrough, has been influential in shaping management practice in many settings.
For instance, Fayol’s theoryhas influenced the way in which many organisations are structured, such as creating departments to deal with each core function. However, administrative management theory is restrictive in the way it sees management as a form of business administration.
Fayol also believed that personal effort and team dynamics were part of an ‘ideal’ organisation. The effect of this was tomove thinking on from the much more impersonal approach of scientific management theory.
Bureaucratic management theory
Bureaucratic management theory suggests that management occurs best within a
well-defined hierarchy with a clear chain of command. Those in higher organisational positions have the authority to control those in the lower positions. Within this system, there is a clear division of labour and specialisation of tasks within the workforce. To facilitate effective management, the bureaucratic organisation produces and enforces comprehensive rules and regulations to guide employees’ behaviour. Managers and employees are also expected to have a distant, impersonal relationship.
This approach to management is associated with Max Weber (1968), an influential
20thcentury German sociologist. Weber believed that Western societies were shifting towards more rational, technologically-basedand formally ordered ways of organising work and everyday life. Bureaucracies were the organisational outcome of this. Weber saw bureaucratic organisation as a large machine for attaining specified goals in the most efficient manner possible (Weber, 1968).
Human relations management theories
This approach to management focuses on the social situation of work and the ways in which workers are treated. In particular, relationships, group dynamics, team work and the ‘social systems’ of an organisation are seen to have an important impact on workers’ motivation and behaviour (Wren and Greenwood, 1998).
The human relations approach to management developed as a response to the impersonal, efficiency-focused scientific and bureaucratic management theories.
It argued that the needs, interests, diverse qualities and talents of an organisation’s human assets had beenoverlooked. Furthermore, an organisation’s group dynamics and social makeup are seen as having a profound impact on productivity and the quality of work in a work setting (Bruce and Nylan, 2011).Human relations theorists therefore suggest that managers should:
- facilitate greater participation for workers in organisational decision-making
- create trust and openness in the working environment
- pay attention to the creation of effective teams and groups in the workplace.
Systems theory
The systemsapproach to management within an organisation argues that organisations are composed of different, interacting subsystems. The dynamics of relationships between and within subsystems are considered critical, with internal and external changes seen as impacting on organisational performance and effectiveness. All parts of the organisational system must function effectively and interact appropriately for the organisation to achieve its goals.Management is viewed as a process of understanding these dynamics and maintaining an effective relationship between the organisation’s subsystems (Cole and Kelly, 2011).
Systems theory provides managers with a way of identifying and interpreting patterns and events in the workplace. It enables managers to recognise that the different parts
of an organisation need to relate to each other and that these relationships really matter.
In the past, managers typically looked only at one part or function of an organisation (the part where they were employed) and focused on that. This could lead to dysfunctional organisations where the lack of connection and understanding between the variousparts of the system and competition between departments (subsystems) led to inefficient,
self-interested and ineffective organisational performance (Cole and Kelly, 2011).
Solution-focused management
This relatively new approach to management draws on principles and approaches used in counselling and family therapy (De Shazer, 1985). Maclean and Connors (2012) suggest that solution-focused principles can be adapted to leadership and management of health and social care services by:
- focusing team members on finding solutions rather than on discussing and becoming fixated with ‘problems’
- focusing attention and effort on the present and future rather than on the past
- finding out about individuals’ strengths and skills, and working out ways to develop and use them effectively
- making relationships goal-orientated.
The key is to move people away from a preoccupying and undermining problem-focus towards a more constructive and goal-orientated solution-focus.
Contingency theory
Contingency theory is a contemporary approach to management theory. The basic assertion of this approach is that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation. No specific management style is recommended as an appropriate solution to all management problems (Morgan, 2007); rather, contingency theory suggests that different management systems and approaches will be needed in different situations. For contingency theorists, the best management style therefore depends on the situation being faced. In some situations, such as crises that require an immediate and decisive management response, this might be an autocratic style. In other situations, a more participative and facilitative management style is probably best. As a result, contingency theorists argue that managers need to be adaptive and flexible (Cole and Kelly, 2011).
References
Bruce, K. & Nylan, C. (2011), ‘Elton Mayo and the Deification of Human Relations’, Organization Studies, Vol 32, No 3, pp 383–405
Cole, G. A. Kelly, P. (2011) Management Theory and Practice, 7th ed.Andover: Cengage Learning EMEA
DeShazer, S. (1985) Keys to Solution in Brief Therapy. New York: Norton
Fayol, H. (1930) Industrial and General Administration. Translated by J.A. Coubrough.London: Sir Isaac Pitman & Sons
Maclean, S.Connors, P. (2012), Leadership for Health and Social Care: A Straightforward Guide to the Diploma.Lichfield:Kirwin Maclean Associates Ltd
Morgan, G. (2007) Images of Organisation. Thousand Oaks: Sage
Taylor, F.W. (1911) The Principles of Scientific Management. New York: Harper & Brothers
Weber, M. (1968) Economy and Society. New York: Bedminster Press
Wren, D. Greenwood, R. (1998) Management Innovators: The people and ideas that have shaped modern business. New York: Oxford University Press