Nurses function as leaders because of their expertise and specialized knowledge. Nursing leadership takes on many different roles within practice, depending upon the environment and organizational need.

The purpose of this chapter is to introduce the management process, select management and motivational theories, and discuss historical and current trends in management. Additionally, leadership characteristics are individually reviewed, differentiating characteristics, theories, styles, and behaviors.

Management is defined as a process of coordinating actions and allocating resources in order to achieve organizational goals. In the early 1900s, the management process is described as a function to plan, organize, coordinate, and control. This process often includes additional principles such as planning, staffing, and directing. Three manager roles are explored. They are: information processing, interpersonal, and decision making roles. Three levels of managers are also reviewed, including the typical amount of time allocated to specific duties.

Management theories date back to 3000 BC; however, the majority of current understanding is based upon classical theories. Scientific management, bureaucratic theory, administrative principles and human relations (organizational development) movements are described to provide a historical perspective.

Motivation theories grew from the conclusion that worker output is greater when the worker is treated humanistically. Theories such as Maslow’s needs hierarchy, Aldefer’s expectancy – relatedness – growth (ERG) theory, Hertzberg’s two factor theory, and McClilland’s manifest needs theory help explain behaviors and how managers can relate to individuals and workers.

Leadership is defined as a process in which the leader influences others toward goal achievement. Leadership involves interaction with a follower, and can take on a formal or informal role. Leadership is about creating, envisioning, and inspiring change. Management is about controlling complexity and coping with change. There are no widely accepted leadership effectiveness characteristics. Personality traits are currently relied upon to describe and define leaders.