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PRINCIPLES OF MANAGEMENT 1. Explain the significance of management with a special reference to the Healthcare sector. Ans: Introduction: Management is the most important area of human activity. It is seen in every walk of life. It can be said as organized/coordinated efforts so as to accomplish the tasks, goals or results. Definition: Mary Parker Follett defined management as an art of getting things done through people. Koontz and Weihrichdefined management as the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Management means: - Achieving predetermined goals - Through and with people - Efficiently and effectively. Otherwise there will be confusion and chaos in any organization. Functions of Management: Luther Gullickhas coined a term POSDCORB to describe management functions. They include: Planning: It is deciding objectives and charting out the methods to achieve them. It is determining in advance, what should be done, looking ahead and preparing for the future. Organising: A process of arranging and allocating work, authority and resources among members of organization to achieve goals. Staffing: It involves recruitment, selection and training.

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Directing: Leading, influencing, motivating and communicating come under this head. Controlling: This enables compliance and ensures things are done in conformity with the adopted plans. Reporting and Budgeting.

Significance of Management: Management is essential in all organized efforts. A business is a system created to satisfy the needs and desires of the society which has to generate a continuous surplus. It is a product of environment comprising of several external and internal forces which determine its success. The synthesis, analysis and integration of these forces constitutes management Todays environment can be described by the acronym LPGi.e. liberalization, privatization and globalization. There is a drastic change from the time of protection, licensing and nationalization. This has changed the role of management to a great extent. Stiff competition in every field has led to customer satisfaction being the most important. Customers are truly considered as kings. Easy access to excellent products and services everywhere has led to an increase in expectations. All these factors have necessitated a drastic shift in the style of managing. Organizations need to be customer driven, cost effective, fast, flexible and continuously improving. It has become very necessary to manage the organizations in a way to ensure continuous success. Only dynamic and progressive management will be able to address these challenges. Healthcare Sector:Mere infrastructure, latest technology, knowledgeable and experienced doctors do not make a good hospital. It requires coordination of peoples efforts and proper synchronization of all activities. This coordination of individual efforts to achieve the predetermined goals itself is management. Health care institutions are unique in several ways. These are the only places where we come across wide skill differential among the people working there

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On the one hand we see highly skilled physicians and paramedics, on the other hand very large number of people who are easily substitutable. Managing an organisation characterised by such a high level of differential knowledge throws up unique management problems. They are also a very critical part of the society. Their ability to make an impact on the well being of the community is undisputable. Another important consideration is communities' dependence on the health care institutions. From birth to death, which are normal events in ones life one cannot do away without health care institutions. Better management of these institutions is very essential, so that they can be run profitably and add value to society. All these call for proper organisation of these institutions. And one of the fundamental requirements of proper organisation is to develop methodically trained professionals who will beable to infuse meaning and purpose for the institutions, and also add value to the stakeholders. To achieve this the first requirement is to develop trained manpower who will be in charge of these institutions.

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3.Define Organizations, discuss the characteristics,importance and its significance. Ans: Introduction: Organizing is one of the important function of management. It involves: -Arranging and allocating work, authority and resources among members of an organization so as to achieve the goals. -Designing and maintaining a system of roles. Definition: AmitaiEtzionidefined organization as a social unit or human grouping deliberately structured for the purpose of attaining specific goals. -It means two or more people who work together in a structured way to achieve specific goal/s. -It is a formalized intentional structure of roles and positions, having interwoven relationships. Types of Organizations: Organizations can be divide intoFormal: They are organisations where activities of the persons are consciously coordinated towards a given objective. E.g. Hospitals, Banks etc. Informal: There is no structured way / hierarchy, formalities in an informal organization. E.g. Hobby clubs, voluntary groups etc. Thus, while the informal organisation is spontaneous, the formal organisation is the result of a deliberate and planned effort to pattern activities and relationships in a specific manner to facilitate achieving the specified objectives. A formal organisation is the result of explicit decision-making, deciding how people and activities should be related to one another.However, there is no such decision-making involved in an informal organisation which may simply evolve over time. Characteristics of an Organization:

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o Common or shared objectives: E.g. the main objective of a hospital will be to alleviate human suffering and maintenance of optimum health. This will be common to all employees from the doctors to ward boys. o Clear concept of major duties and activities involved so that work is carried out in a systematic manner. For e.g. all the concerned departments other than doctors are informed about the various emergency codes in a hospital and the role of every department in case of such emergencies. o An understood area of authority and discretion so that people occupying a post are aware of their powers as well as responsibilities. This is known as hierarchy or chain of command. o Proper coordination between different activities. o Set of rules and regulations, systems and procedures. For e.g. there are defined preset standard operating procedures or SOPs to be followed for every process in a hospital. o Channels of Communication: They may be official or unofficial. Mails, memos, telephones are official channels of communication. The grapevine in an office may be considered an unofficial channel through which many important news/happenings in an office pass to the employees. Importance / Significance of Organizations: An organization is the foundation of management. It has the following benefits: o It facilitates administration and ensures success. o It gives strength to a group of people. o It improves managerial efficiency. o It accelerates growth and diversification.

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o It encourages proper utilization of human resources, gives rise to workers participation and avoids duplication. o It ensures a proper coordination of work, authority and resources. o It creates a healthy work climate. o It stimulates creativity and initiative through well-defined areas of work. o It provides for optimum use of technological improvements. o It provides for supply of systematic information. Thus, an organization is a mechanism through which management directs, co-ordinates and controls the business.

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2.Compare the management theory advocated by FW Taylor and Henry Fayol. Which theory, you feel is more suitable in hospital management? Why? Ans:
Taylor's theory Focus Shop floor management Fayol's theory Total organisational management

Renumeration

Advocated differential payment-where a worker was paid a lower rate for standard production andat a higher rate if he Advocated a fair renumeration which would afford maximum exceeded standard. He thought this would motivate workers possible satisfaction to both the employees and employer. to produce more. Fayol suggested division of labour in which different managerial processes like planning, controlling etc were to be divided amongst specialistswhich in turn would increase skill and produce more and better work Fayol stressed on Initiative i.e. freedom to conceive and carry out their plans even if they make mistakes, Equity i.e. fair treatment without any discrimination and Stability of tenure i.e. job security for workers.

Taylor suggested that the supervisor should plan the work Supervision/Managers and instruct the worker as to how to do it.He introduced the principles of (a) separation of planning and doing and (b) functional foremanship

Recruitment and training Taylor stressed on need for scientific selection and development/ training of workers to bring out the best in them

Frederick W. Taylor laid down his famous management theory based on: Time and motion study: He measured each motion in respect of time with the help of a stopwatch. Thus he arrived at a standard measure for carrying out a given job and the best way to do it. Limitations: Taylors theory was widely criticized for the following reasons: o Time and motion study is not entirely scientific as two people may do a job differently and in different amount of time. Hence there is no the way to do a particular job.

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o His assumption that incentives are strong motivators has also been proven wrong as they do not work beyond a certain limit. Henri Fayolclassified the industrial undertakings into: i. ii. iii. iv. v. vi. Technical: production, manufacture and adaption. Commercial: buying, selling and exchange. Financial: search for and optimum use of capital. Accounting: stock taking, balance sheets, costs and statistics. Security: protection of property and persons. Managerial: planning, organizing, commanding, coordinating and controlling.

He also defined qualities of a manager which included physical health, mental ability, moral responsibility, educational, technical and experience. He also defined fourteen principles of management which were flexible. They are: i. ii. Division of labour: described above. Authority and responsibility: manager should have authority to command obedience. Responsibility arises when authority is exercised. Discipline: means observance of rules and regulations. It is essential for the smooth running of business. Unity of direction: activities or operations within the organization having the same objective should be directed by only one manager using one plan. Unity of command: employees should receive directions/orders form one supervisor only avoiding confusion. Subordination of individual interest to general interest: interests of organization should get highest priority.

iii. iv.

v. vi.

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vii. viii. ix. x. xi. xii. xiii. xiv.

Remuneration:described above Centralization: means decision making is concentrated in the superiors. Scalar chain: means that orders should pass along the proper levels of hierarchy. It may be short chained if necessary. Order: means that things should be in proper order. Equity: means fair treatment without any discrimination. Stability of tenure: described above. Initiative: described above. Esprit de corps: Promoting team spirit to give a sense of unity.

Fayolstheory is more suited for hospitals as: It takes into consideration organizational management as a whole as against Taylors theory which deals with shop floor management only. It also lays emphasis on division of labour which is routinely used in hospitals as harmonious functioning of various departments leads to smooth functioning of hospitals. For e.g. a surgeon cannot anesthetize the patient and perform his surgery and give post operative care. As such these functions are taken care of by the anesthetists, physicians and ward doctors. Taylors theory of time and motion cannot be applied to the medical field as medical procedures cannot be standardized. Fayols principle of discipline is also very important in hospital management as it will lead to total chaos if not followed. Overall, all the principles mentioned by Fayol in his theory are more apt for smooth functioning of a hospital as they take into consideration the major requirements of a hospital.

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5. Write about Maslow need of hierarchy and Herzberg two factor theory. Ans. Maslows hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation. Maslow subsequently extended the idea to include his observations of humans innate curiosity. People become actualized to accomplish highermotives only after they have fulfilled certain basic needs. Abraham Maslow identified seven categories of basic needs common to all people. Maslow represented these needs as a hierarchy in the shape of a pyramid. According to Maslow, individuals must meet the needs at the lower levels of the pyramid before they can successfully be motivated to tackle the next levels. The lowest four levels represent deficiency needs, and the upper three levels represent growthneeds. Physiological Needs The physiological needs are the foundation of the pyramid. Maslow suggested that the first and most basic need people have is the need for survival: their physiological requirements for food, water, and shelter. If any of these physiological necessities is missing, people are motivated above all else to meet the missing need. Safety and Security Needs After their physiological needs have been satisfied, people can work to meet their needs for safety and security. Safety is the feeling people get when they know no harm will befall them, physically, mentally or emotionally; security is the feeling people get when their fears and anxieties are low. Love and Belongingness Needs After the physiological needs and the needs for survival and for safety and security have been met, an individual can be motivated to meet the needs represented at higher levels of the pyramid. The third level of the pyramid is needs associated with love and belonging. These needs are met through satisfactory relationships relationships with family members, friends, peers, classmates, teachers, and otherpeople with whom individuals interact. Satisfactory relationships imply acceptance by others.

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Self-Worth and Self-Esteem Needs Once individuals have satisfactorily met their need for love and belonging, they can begin to develop positive feelings of self-worth and self-esteem, and act to foster pride in their work and in themselves as people. The Deficiency Needs The first four levels of Maslows hierarchy of needs are essential for a persons well-being and must be satisfied before the person is motivated to seek experiences that pertain to the upper levels. If a person cannot meet any of these needs, that person will not be motivated to pursue any of the needs in the succeeding levels. Because of this, the first four levels of needs are called deficiency needs. After a deficiency need has been satisfied, a persons motivation to satisfy it lessens. The Need to Know and Understand The fifth level of Maslows pyramid represents an individuals need to know and understand. According to Maslows hierarchy, this motivation cannot occur until the deficiency needs have been met to the individuals satisfaction. Aesthetic Needs Aesthetics refers to the quality of being creatively, beautifully, or artistically pleasing; aesthetic needs are the needs to express oneself in pleasing ways. Decorating your living room, wrapping birthday presents attractively, washing and waxing your car, and keeping up with the latest styles in clothing are all ways of expressing your aesthetic sense. People are motivated to meet this need only after the previous five needs have been met. The Need for Self-Actualization At the top of the pyramid is the need for self-actualization, which is a persons desire to become everything he or she is capable of becomingto realize and usehis or her full potential, capacities, and talents. This need can be addressed onlywhen the previous six have been satisfied. It is rarely met completely; Maslow(1968) estimated that less than 1% of adults achieve total self-actualization. The Growth Needs The upper three levels of the pyramid constitute a persons growth needs.

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Growth needs can never be satisfied completely. Contrary to the deficiency needs, for which motivation diminishes when a need is satisfied, as growth needs are met, peoples motivation to meet them increases. The more these needs are satisfied, the more people want to pursue them. For example, the more one comes to understand, the more ones motivation to learn more increases.

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Drawbacks: In their extensive review of research based on Maslows theory, Wahba and Bridgewell found little evidence for the ranking of needs Maslow described, or even for the existence of a definite hierarchy. Chilean economist and philosopher Manfred Max-Neef has also argued fundamental human needs are non-hierarchical, and are ontologically universal and invariant in naturepart of the condition of being human. The order in which the hierarchy is arranged (with self-actualization as the highest order need) has been criticized as being ethnocentric by Geert Hofstede. Hofstedes criticism of Maslows pyramid as ethnocentric may stem from the fact that Maslows hierarchy of needs neglects to illustrate and expand upon the difference between the social and intellectual needs of those raised in individualistic societies and those raised in collectivist societies. Maslow created his hierarchy of needs from an individualistic perspective, being that he was from the United States, a highly individualistic nation. Since the hierarchy was written from the perspective of an individualist, the order of needs in the hierarchy with self actualization at the top is not representative of the needs of those in collectivist cultures. In collectivist societies, the needs of acceptance and community will outweigh the needs for freedom and individuality. Maslows hierarchy has also been criticized as being individualistic because of the position and value of sex on the pyramid. Maslows pyramid puts sex on the bottom rung of physiological needs, along with breathing and food. It views sex from an individualistic and not collectivist perspective: i.e., as an individualistic physiological need that must be satisfied before one moves on to higher pursuits. This view of sex neglects the emotional, familial and evolutionary implications of sex within the community.

Herzberg Two Factor Theory The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. It was developed by Frederick Herzberg, a psychologist, who theorized that job satisfaction and job dissatisfaction act independently of each other. Attitudes and their connection with industrial mental health are related to Maslow's theory of motivation.

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According to Herzberg, individuals are not content with the satisfaction of lower-order needs at work, for example, those associated with minimum salary levels or safe and pleasant working conditions. Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. Herzberg added a new dimension to Maslows theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction at work, while another and separate set of job characteristics leads to dissatisfaction at work. Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena. This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to decrease in unpleasurable dissatisfaction. The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews with a large number of engineers and accountants in the Pittsburgh area. From analyzing these interviews, he found that job characteristics related to what an individual does that is, to the nature of the work one performs apparently have the capacity to gratify such needs as achievement, competency, status, personal worth, and self-realization, thus making him happy and satisfied. However, the absence of such gratifying job characteristics does not appear to lead to unhappiness and dissatisfaction. Instead, dissatisfaction results from unfavorable assessments of such job-related factors as company policies, supervision, technical problems, salary, interpersonal relations on the job, and working conditions. Thus, if management wishes to increase satisfaction on the job, it should be concerned with the nature of the work itself the opportunities it presents for gaining status, assuming responsibility, and for achieving self-realization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on the job environment policies, procedures, supervision, and working conditions. If management is equally concerned with both, then managers must give attention to both sets of job factors. Two-factor theory distinguishes between:

Motivators (e.g. challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth,]and Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions) that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.

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Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed to motivate an employee to higher performance. Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related action because you have to then that is classed as "movement", but if you perform a work related action because you want to then that is classed as "motivation". Unlike Maslow, who offered little data to support his ideas, Herzberg and others have presented considerable empirical evidence to confirm the motivation-hygiene theory, although their work has been criticized on methodological grounds. Herzbergs factors can be defined as: Motivational Factors Growth This includes actual learning of new skills, with greater possibility of advancement within the current occupational specialty as well as personal growth. Work Itself The actual content of the job and its positive or negative effect upon the employee whether the job is characterized as interesting or boring, varied or routine, creative or stultifying, excessively easy or excessively difficult, challenging or non-demanding. Responsibility This includes both the responsibility and authority in relation to the job. Responsibility refers to the employees control over his or her own job or being given the responsibility for the work of others. . Achievement This includes the personal satisfaction of completing a job, solving problems, and seeing the results of ones efforts. Advancement The actual change in upward status in the company. Increased opportunity changes with no increase in status are considered under responsibility. Recognition This is the recognition by others for a job well doneor personal accomplishment.

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Hygiene Factors Company Policies & Administration The feelings about the adequacy or inadequacy of company organization and management. This includes poor communications, lack of delegated authority, policies, procedures, and rules. Supervision The competency or technical ability of the supervisor.This includes the supervisors willingness to teach or delegate authority, fairness, and job knowledge. Interpersonal Relations The relationships between the worker and his or her superiors, subordinates, and peers. This includes both job related interactions and social interactions within the work environment. Status Factors that involve some indication of status: private office, important sounding title, secretary,company car, and other perks. Working Conditions Factors that involve the physical environment of the job: amount of work, facilities for performing work, light, tools, temperature, space, ventilation, and general appearance of the work place. Job Security The employees job tenure and/or the companys stability or instability objective signs of the presence or absence of job security, not the feelings of security. Salary This includes all forms of compensation and focuses on wage or salary increases or unfulfilled expectation of increases.

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7. Write short notes on any two: (c) Steps in controlling: Functions of management can be divided into: i. ii. iii. iv. v. Planning Organising Directing / Coordinating Staffing and Controlling.

Controlling: Controlling is an important function of management. It is the process of monitoring the effectiveness of planning, organizing and leading activities. Brechdefines controlling as checking current performance against predetermined standards contained in the plans with a view to ensuring adequate progress and satisfactory performance. In short, controlling means: -to measure progress -to ascertain deviations if any and -to initiate remedial actions. Steps in Controlling: i. Establishing Standards necessary for measuring the results. Organizations should develop their own standards and key areas e.g. productivity, profitability, employee performance, customer grievances etc. They should be preferably in quantitative terms, should be precise i.e. in clear measurable terms, specific time bound limits etc.

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e.g. reduction in costs by 10%, to improve employee skills in communication etc. ii. Measuring and Comparing actual results against standard ( i.e. measuring performance). This is an ongoing process. The frequency may vary from activity-to-activity and depending upon the circumstances. Then this performance will be compared with the predetermined standards by using various control systems, say by observing actual work or studying the figures, reports etc. Taking corrective action: After comparing the performance and ascertaining the deviations, the next step is to correct these deviations. Remedial action should be fast, without wasting time to restore normalcy without delay. This will ensure smooth accomplishment of organizational goals and save avoidable wastage of resources, energy, money and manpower. The remedial action taken will depend on the nature of causes of deviation.

iii.

(d) Difference in co-ordination and co-operation. Ans. Cooperation refers to the collective efforts of people who associate voluntarily to achieve specified objectives. It indicates merely the willingness of individuals to help each other.It is the result of voluntary attitudes of a group of people. Coordination is much more inclusive, requiring more than the desire and willingness to cooperate of the participants. It can be defined as achieving harmony among individual efforts towards achievement of group objectives. It involves a deliberate and conscious effort to bring together the activities of various individuals in order to provide unity of action. It requires concurrence of purpose, harmony of effort and concerted action. Cooperation provides the foundation for coordination by enlisting voluntarily efforts. Cooperation facilitates coordination but by itself it cannot guarantee cooperation. Coordination does not arise automatically from the voluntary efforts of people; rather it has to be achieved through conscious and deliberate efforts of the manager. For instance, a group of six persons who attempt to move a heavy object are willing and eager to cooperate with one another.They are fully aware of their common purpose and trying their best to move the object. But they cannot be successful in their attempt unless one of them coordinates their efforts.

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He must give proper directions to all members of the group to apply the right amount of effort, at the right place and at the right time. Cooperation is a necessary but not a sufficient condition of coordination. According to McFarland, "Coordination is a far more inclusive, term embracing the idea of cooperation. Cooperation, that is mere willingness of individuals to help each other, cannot serve as a satisfactory substitute for coordination. Cooperation is for the most part the result of voluntary attitudes on the part of people in an organisation. Cooperation is valuable element in coordination, but cannot substitute for it." "Coordination, on the other hand, cannot be voluntarily produced by a number of cooperating persons. Coordination is a state of affairs which an executive brings about through deliberate action on his part". Cooperation has no time, quantity or direction elements whereas coordination is the concerted effort of requisite quantity and quality arranged at the proper time through deliberate executive action. Thus, coordination is much more than cooperation. Co-operation is the collective bargaining efforts of people who associate voluntarily to achieve specified objectives. It indicates merely the willingness of individuals to help each others. Co-ordination is much more inclusive, requiring more than the desire and willingness to co-operate of the participants. It involves the conscious efforts to bring together the activities of various individuals in order to provide unity of action. There are some major points of difference between cooperation and coordination. These points are given as below. Points Coordination Cooperation

Nature of work

In organization the nature of work is such that it needs to be divided and then integrated. Co-ordination of all activities is utmost necessary

but co-operation does not arise out of any limitations of organisation structure.

Deliberate

Co-ordination requires deliberate and intentional efforts of a manager. In other words, co-ordination is a contrived process

On the other hand, co-operation is voluntary. In other words, co-operation is a natural

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process.

Scope

Co-ordination is broader in scope than co-operation. It includes both co-operation and deliberate efforts to maintain unity of action & purpose

Co-ordination is broader in scope than cooperation.

Thus it can be concluded that: Co-ordination is the basis of all managerial functions while co-operation is an attitude of an individuals or group. Need for coordination arises due to limitations of formal organization structure but co-operation is necessary even in case of noninterdependent activities.