Lecture 2 - Management Planning

1. definition

2. roles and skills

3. historical and current management philosophies

4. functions and process

MANAGEMENT IS EXAMINED IN FROM THE FOUR FOLLOWING PERSPECTIVES:

“Working with and through people to accomplish a common mission”

core of the short descriptions that have been proposed

1. mission

2. authority

3. resources

4. responsibility

5. accountability

FIVE CONDITIONS FOR MANAGEMENT TO SUCCEED

MISSION

organization or sub-unit expects to accomplish

AUTHORITY

to direct the team toward the goal

RESOURCES

(people, equipment, supplies, and money)

RESPONSIBILITY

for achieving the goals assigned

ACCOUNTABILITY

for using the resources established

MANAGERS

must recognize the many roles they are asked to play and obtain the expertise and skills necessary to accomplish the missions for which they are held accountable

PROFESSIONAL MANAGERS

to wear many hats in performing their duties.

MANAGERS

must preside over events that have a direct impact on the well-being of the organization and its individual members

• people

• servants

• representatives

managers are required to play three basic roles:

1. The manager as a person: Talent and Knowledge

2. The primary role of the manager is one of

   instrumentality

3. The manager is a paid representative of the owners

   or board of directors

human factors forms the core for all management theories:

Chief Executive Manager (CEO)

top administrator or manager of an organization; usually reports directly to the board of directors

MANAGERS

responsible for, and to, other people with similar fears, dreams, hopes, life problems, aspirations, potential, and expectations

the ability to deal with both people and things

what is essential to management?

THE MANAGER AS A SERVANT

second role of a manager is that of servant

INSTRUMENTALITY

primary role of the manager

TRADITIONAL

Board of Directors → CEO/Administrator → VP/Asst. Administrator → Department Manager → Section Supervisor → Line Workers → Patient/Customer

PATIENT-FOCUSED

Patient/Customer ← Line Workers ← Section Supervisor ← Department Manager ← VP/Asst. Administrator ← CEO/Administrator ← Board of Directors

traditional organizational chart

where the patient or customer comes into contact with the organization

PATIENTS AND CLIENTS

top priority of any organization

patient-focused organizational chart

“patient” at the point of contact, and then flip the organizational chart upside down

THE MANAGER AS A REPRESENTATIVE

a paid representative of the owners or board of directors in both for-profit and not-for-profit organizations

MANAGERS

they are responsible for supplying their needs and presenting their concerns to the owners

THE MANAGER AS A REPRESENTATIVE

most important role of a manager in the successful operation of any business.

• material goods

• services

mission of an organization is to produce either:

MANAGEMENT SKILLS

must have a basic understanding of the organization's product and be proficient in organizing the physical and human resources of the corporation to deliver a high-quality product

• Organizational Skills

• People Skills

• Financial Management Skills

• Technical Skills

4 MANAGEMENT SKILLS:

Organizational Skills

ability to conceptualize and apply the management process, systematize work flow, make decisions, and communicate with coworkers

People Skills

understanding of the basic theories of human needs and work motivation

Financial Management Skills

effective use of and accounting for the monetary assets of the company

Technical Skills

synthesis of the first three skills and the management of physical resources (supplies, equipment, facilities) into the operational parameters (products/services) unique to each organization

• SCIENTIFIC MANAGEMENT

• BUREAUCRACY MANAGEMENT

• BEHAVIORAL SCIENCE

• SYSTEMS ANALYSIS MANAGEMENT

four major groups of management:

SCIENTIFIC MANAGEMENT

application of a systematic or scientific approach to the study of organizations.

SCIENTIFIC MANAGEMENT

first orderly efforts to examine the functioning of complex organizations

SCIENTIFIC MANAGEMENT

The idea was to apply the scientific method of cause-and-effect analysis

Henri Fayol (1841-1925)

first introduced the concept that management should be an orderly process of tasks and duties, of which planning was the most important.

Henri Fayol (1841-1925)

provides the base for the theory called the functions of management, or management process, presented later in this chapter.

Frederick Taylor (1856-1915)

called the father of scientific management

Frederick Taylor (1856-1915)

broke down each task into segments that could be analyzed for ways to improve efficiency.

Frank Gilbreth (1868-1924) and Lillian Gilbreth (1878-1972)

perfected Taylor's motion study method and developed methods analysis

Parker Follett (1868-1933)

who pointed out that management is essentially coordination

Lyndall Urwick (1891-1983)

who introduced the role of the management consultant and attempted to classify and codify the work done on management theories.

BUREAUCRACY MANAGEMENT

process of examining the organizational aspects of companies and their work flow to explain bow institutions functions and how to improve their performance

BEHAVIORAL SCIENCE

also known as ORGANIZATIONAL BEHAVIOR MANAGEMENT

BEHAVIORAL SCIENCE

management approach that focuses on the performance and interaction of people within the organization

SYSTEMS ANALYSIS MANAGEMENT

views the organization as a continuous process interacting within itself and with its environment

SYSTEMS ANALYSIS MANAGEMENT

analytical view of an organization as a complete, self- contained unit that interacts within itself and with its environment

PLANNING

thought and analysis process that results in a formal strategy for realizing the goals of the organization

ORGANIZING

process of assembling the necessary resources and people for implementing a plan of action

DIRECTING

Leading in achieving the day-to-day tasks

CONTROLLING

process of monitoring the standards, measurements, and feedback mechanisms

Henri Fayol (1841-1925)

first proposed that the management process was a continuum of functions that the manager must perform to ensure the smooth operations of an organization.

Peter Drucker

a recognized modern authority on management, who stated, “There are five basic operations in the work of the manager. Together they result in the integration of resources into a viable growing organism”

• setting objectives;

• organizing;

• motivating

• communicating;

• standards or measurements

• developing

Drucker’s five basic management operations are:

STAFFING

set apart from the organizing function

DECISION MAKING

set apart from controlling

GOAL

A broad, long-term ambition of the organization

OBJECTIVES

A measurable standard or task, set in a designated time frame.

PLANNING

the thinking and analyzing portion of the management process;

MANAGEMENT BY OBJECTIVES (MBO)

A program for managing an organization by setting and monitoring performance objectives.

Management Process Cycle

1. Determine the goals the organization wishes to accomplish.

2. Collect information and evaluate the current situation, compared with where the enterprise wishes to be.

3. Establish a time frame or period in which to achieve the goals

4. Set objectives that will move the company toward the desired future.

5. Forecast needs and the use of resources.

6. Determine the steps necessary to implement the plan

7. Provide for a feedback mechanism to continually review the success of the plan and to implement necessary revisions.

The Management Planning Process can be divided into SEVEN STEPS:

PLANNING

• Identify your goals

• Evaluate Current Situation

• Establish Time Frame

• Set Objectives

• Forecast Resource Needs

• Implement Plan

• Obtain Feedback

BASIC CHARACTERISTICS OF A GOOD OBJECTIVE

• It is clearly defined and understood.

• It is obtainable and realistic.

• It has a strict time period in which it is to be accomplished.

• It is measurable.

ORGANIZING

• Formal Hierarchy

• Informal Relationships

DIRECTING

• Leadership

• Time Allocation

CONTROLLING

• Instruction

• Follow-up

• Modification

Identify your goals

Where, or what, does the institution wish to be?

Evaluating the current situation

• Knowing where you are and how you got there

• Understanding what resources are currently available

Establishing Time Frame

• the potential of the laboratory to achieve these goals within an acceptable time period can be evaluated

• ensure that the situation improves over a longer period

SETTING OBJECTIVE

• identifying the target and select the best route to reach it

GOAL

more philosophical, elusive, and admirable marker

OBJECTIVE

a specific benchmark, for which there is no question as to whether the standard has been met

1. Tools for persuasion

2. Tools of control

two basic avenues for implementing a plan or obtaining the desired performance:

Tools for persuasion

focus on working with through people

Tools of control

involve the allocation of resources

1. formal hierarchy

2. informal relationships

organizational process has two dimensions:

HUMAN FACTOR STAGE

both leadership and managerial skills come to the forefront

DIRECTING

most visible of all management functions

DIRECTING

seeing that the day-to-day tasks necessary to ensure a smooth-running facility are done.

CONTROLLING

process of checking up on the priorities established in the previous three management functions

CONTROL FUNCTION

measurement and feedback mechanism of setting objectives

TOOLS OF PERSUASION AND CONTROL

primary mechanisms for success in the controlling function

MANAGEMENT BY OBJECTIVES (MBO)

a program that embodies all of the concepts in the management process.

Joint Commission on Accreditation of Healthcare Organizations (JCAHO)

a return to quality assessment and performance improvement standards

COMMUNICATIONS

Core of MBO

SETTING OBJECTIVES

Heart of the MBO method

Follow well-thought-out plans and long-term goals.

Although objectives are short-term by nature, they should be an orderly part of the continuing management review cycle and should not be set according to arbitrary, aimless, and hastily made decisions.

Be a collaborative agreement between supervisor and employee to provide for accountability and ownership of the objectives by the employee.

The individual must identify with, and accept, the expected result.

Be person specific.

objectives should be customized so that members understand their roles in meeting the mission of the organization.

Be within the power of the individual to accomplish.

objectives must be realistic and obtainable, yet at the same time encourage employees to reach toward their potential.

Be measurable.

There must be a way of knowing when the objective has or has not been accomplished.

Have a designated time frame.

objectives must be assigned a time period during which it is to be completed.

Have built-in feedback mechanisms.

Employees must know how they are progressing so that they can make timely and independent adjustments.

THREE PHASES IN IMPLEMENTING AN MBO PROGRAM:

1. Managers must set the goals and objectives for the

   organization

2. These objectives should be shared with the staff.

3. The manager and each employee must meet and come to

   a manual agreement on the goals and objectives of the

   individual.