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46177 ch03

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  • 1. 51Todays Concept ofOrganizationalManagement3CHAPTERCHAPTER OBJECTIVES Define management and differentiate between the art and scienceof management. Review the basic functions of management. Describe the major phases of the development of organizationalmanagement. Present the concept of the work setting as a total system. Introduce the concept of clientele network and describe the appli-cation of this concept to the health care setting.51THE NATURE OF MANAGEMENT:ART OR SCIENCE?Management has been defined as the process of getting things done through andwith people. It is the planning and directing of effort and the organizing and em-ploying of resources (both human and material) to accomplish some predeterminedobjective. Within the overall concept of management, the function of adminis-tration can be identified. The practical execution of the plans and decisions on aday-to-day basis requires specific administrative activities that managers may assign46177_CH03_4828.qxd 7/25/07 3:12 PM Page 51 Jones and Bartlett Publishers. NOT FOR SALE OR DISTRIBUTION

2. to executive officers or administrators. Managers may find that their role includesspecifically administrative activities in addition to overall management responsi-bilities. The workday of a typical department head in a health care institution con-tains a mix of broad-based managerial functions and detailed administrative actions.Especially since the turn of the 20th century, managements scientific aspectshave been emphasized. The scientific nature of management is reflected in the factthat it is based on a more or less codified body of knowledge consisting of theoriesand principles that are subject to study and further experimentation. Yet, man-agement as a science lacks the distinct characteristics of an exact discipline, such aschemistry or mathematics.The many variables associated with the human element make management asmuch an art as a science. Even with complex analytical tools for decision making,such as probability studies, stochastic (random) simulation, and similar mathemat-ical elements, the manager must rely on intuition and experience in assessing suchfactors as timing and tactics for persuasion.FUNCTIONS OF THE MANAGERA managers functions can be considered a circle of actions in which each com-ponent leads to the next. Although the functions can be identified as separate setsof actions for purposes of analysis, the manager in actual practice carries out theseactivities in a complex, unified manner within the total process of managing. Otherindividuals in the organization carry out some of these activities, either periodicallyor routinely, but the manager is assigned these specific activities in their entirety,as a continuing set of functions. When these processes become routine, the role ofmanager emerges.The traditional functions of a manager were identified by Gulickand Urwick1 based on the earlier work of Henri Fayol.2 Chester Barnard broughttogether the significant underlying premises about the role of the manager in hisclassic work The Functions of the Executive.3Classic Management FunctionsManagement functions typically include planningthe selection of objectives, the establishment of goals, and thefactual determination of the existing situation and the desired future state. decision makinga part of the planning process in that a commitment to oneof several alternatives (decisions) must be made. Others may assist in plan-52 CHAPTER 3 TODAYS CONCEPT OF ORGANIZATIONAL MANAGEMENT46177_CH03_4828.qxd 7/25/07 3:12 PM Page 52 Jones and Bartlett Publishers. NOT FOR SALE OR DISTRIBUTION 3. ning, but decision making is the privilege and burden of managers. Decisionmaking includes the development of alternatives, conscious choice, andcommitment. organizingthe design of a pattern of roles and relationships that contributeto the goal. Roles are assigned, authority and responsibility are determined,and provision is made for coordination. Organizing typically involves thedevelopment of the organization chart, job descriptions, and statements ofwork flow. staffingthe determination of personnel needs and the selection, orientation,training, and continuing evaluation of the individuals who hold the requiredpositions identified in the organizing process. (Some theorists class thestaffing function within the organizing function, rather than viewing it asa separate function.) directing or actuatingthe provision of guidance and leadership so that thework performed is goal-oriented. It is the exercise of the managers influence,the process of teaching, coaching, and motivating workers. controllingthe determination of what is being accomplished, the assess-ment of performance as it relates to the accomplishment of the organizationalgoals, and the initiation of corrective actions. In contemporary managementpractice, the larger concepts of performance improvement and total qualitymanagement include controlling.Figure 31 summarizes the classic functions of managers and their relationshipto each other. In addition, managers must continually establish and maintain in-ternal and external organizational relationships to achieve an effective workingrapport. They must monitor the organizations environment to anticipate changeand bring about the adaptive responses required for the institutions survival.At different phases in the life of the organization, one or another managementfunction may be dominant. In the early stages of organizational development, forexample, planning is the managers primary function. When the organization ismature, however, controlling functions are emphasized.The Health Care Practitioner as ManagerIn the specialized environment of a health care institution, qualified professionalpractitioners may assume the role of unit supervisor, project manager, or depart-ment head or chief of service. The role may emerge gradually as the number ofpatients increases, as the variety of services expands, and as specialization occursF U N C T I O N S O F T H E M A N A G E R 5346177_CH03_4828.qxd 7/25/07 3:12 PM Page 53 Jones and Bartlett Publishers. NOT FOR SALE OR DISTRIBUTION 4. within a profession. A physical therapy staff specialist, for example, may develop asuccessful program for patients with spinal cord injury; as the practitioner mostdirectly involved in the work, this individual may be given full administrative re-sponsibility for that unit. The role of manager begins to emerge as budget projec-tions need to be made, job descriptions need to be updated and refined, and thestaffing pattern needs to be reassessed and expanded.An occupational therapist may find that a small program in home care flourishesand is subsequently made into a specialized unit. Again, this credentialed practi-tioner in a health care profession assumes the managerial role. The medical tech-nologist who participates in the development of a nuclear medicine unit and thedietitian who develops a nutrition counseling program for use in outpatient clin-ics may also find themselves in this position.Practitioners who develop their own independent professional practices as-sume the role of manager for their business enterprises. The role of the profes-sional health care practitioner as manager is reinforced further by the variouslegal, regulatory, and accrediting agencies that often require chiefs of service ordepartment heads to be qualified practitioners in their distinct disciplines. Therole of manager then becomes a predictable part of the health care practitionerstenure in an institution. Table 31 shows how activities in a typical workday ofa department head in a health care institution reflect the functions of a managerin their classic form.54 CHAPTER 3 TODAYS CONCEPT OF ORGANIZATIONAL MANAGEMENTFIGURE 31 Interrelationship of Management FunctionsPlanningControlling measuring accomplishmentsagainst stated goals correcting deviations from goals developing feedback mechanisms identifying goals & objectives stating premises & assumptions developing specific, detailed plans communicating objectives to members leading members to objectives training and supervising integrating individuals into organization breaking work down into components grouping related work activities & units defining authority relationships developing organization chart developing position descriptionsOrganizingAchieving the ObjectiveActuating/Motivating46177_CH03_4828.qxd 7/25/07 3:12 PM Page 54 Jones and Bartlett Publishers. NOT FOR SALE OR DISTRIBUTION 5. THE HISTORY OF MANAGEMENTKnowledge of the history of management provides a framework within which con-temporary managerial problems may be reviewed. Modern managers benefit fromthe experiences of their predecessors. They may assess current problems and plansolutions by using theories that have been developed and tested over time. Con-temporary executives may take from past approaches the elements that have beenproved successful and seek to integrate them into a unified system of modern man-agement practice.In an examination of the phases in management history, it must be rememberedthat history is not completely linear and that any period in history involves a dy-namic interplay of components that cannot be separated into distinct elements.The analysis of selected processes of the various historical periods tends to obscurethe fact that each period is part of a continuum of events. The specific features ofmanagement history phases given here are intended to exemplify the predominantemphasis of each period and are only highlights. The second caution is in regard todating the various periods. The dates given here are intended as guides. There is noprecise day and year when one school of thought or predominant approach beganor ended. As with any study of history, the dates suggest approximate periods whenthe particular practices were developed and applied with sufficient regularity as toconstitute a school of management thou