MANAGEMENT CONCEPT AND PRACTICE

CHAPTER ONE
FUNDAMENTALS OF MANAGEMENT
CONCEPT
 Chapter Objective

After studying this unit, you should be able to:

 Explain management, manager and levels of
management
 Describe the basic managerial functions, roles
and skills.
 Understand significances and nature of
management
 What is Management?

 Management is the process of getting things done

through the efforts of people and other resources
• Emphasis on achieving goals/objectives with
efficient and effective use of organizational
resources (i.e., based on managerial concerns)
 Efficiency
• Doing thing right
• Getting the most output for the least inputs
 Effectiveness
• Doing the right things
• Attaining organizational goals/objectives
 Cont’d…
Efficiency & Effectiveness in Management
 Cont’d…

 Thus, management implies that:

• Organization depend on performance of people for
achieving their mission, goal & objectives
• Organizational activates require human effort and
capabilities
• Exercise: describe organizational resources
Human Physical
Resources resources
Managerial Effective
and Goals
activities
efficient
utilization

Financial Information
Resources resources
 Cont’d…
 Management is the process of planning, organizing,
directing & controlling to achieve organizational goals
& objectives
• Emphasis on the function of management
 Management is the process of decision
making/problem solving
• Emphasis is on making proper decision
• Hence, for making proper decision:
• Identify the real problem
• Study the problem
• Identify possible/alternative solutions
• Select the best possible/ alternative solution
 What Is An Organization?

• An Organization Defined
– A deliberate arrangement of people to
accomplish some specific purpose (that
individuals independently could not
accomplish alone).
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Composed of people
– Have a deliberate structure
Cont’d…
Cont’d…
 Who are Managers?
 Managers:
 are persons in the position of authority who make
decisions to commit (use) their resources and the
resource of others towards the achievement of
organizational objective
 Those who coordinate & oversee the works of others
people so that organizational goals can be accomplished
 They determine the success or failure of organizations
 Managers can be distinguished based on two criteria:
• Levels of management (vertical difference)
• Scope of responsibilities (horizontal difference)
 Is management the same throughout an organization?
Yes/no
 Cont’d…

• Yes because all managers preform the basic

managerial functions
• No; even though they preform all managerial
functions, they perform it with different
emphasis and & scope
• Thus, the nature & scope of their activities
serve as a basis for the classification of
managers
Managerial Levels and Types of Managers

Types of managers based on levels of management

• Supervisory/First-line level managers
• Middle level managers
• Top level managers
 Cont’d…

Top mangers

Middle managers

First-line managers
 Cont’d…
 First-line managers
• Individuals who manage the works of non-
managerial employees
 Middle managers
• Individuals who manage the works of first-line
managers
 Top managers
• Individuals who are responsible for making
organization wide decisions & establishing plans
& goals that affect the entire organization
 The hierarchy of managers determine their duties &
authorities needed to fulfill those duties
 Types of Managers
 Functional managers
• Are responsible for a department that performs a single
functional task
• Have employees with similar training and skills
(specialization)
• Supervise specific areas of operations such as:
• Finance & accounting, marketing, production, etc.
 General managers:
• Are responsible for several departments that perform
different functions
• Are responsible for the entire operations of the
organization with out being specific
• Oversee a complex unit, such as a company, a subsidiary,
or an independent operating division.
 Management Functions

PLANNING ORGANIZING

MANAGER

LEADING CONTROLLING
 1. PLANNING

• Define goals
• Establish strategies for achieving those goals
• Develop plans to integrate and coordinate
activities

Setting goals and plans (how to achieve

them)
 2. ORGANIZING

• Determine
– What tasks are to be done ?
– Who is to do them ?
– How tasks are to be grouped ?
– Who reports to whom ?
– Where decisions are to be made ?

Arrange tasks and other resources to accomplish

organization’s goals
 3. LEADING

• Motivate subordinates(lower positions)

• Help resolve group conflicts
• Influence individuals or teams as they work
• Select the most effective communication channel
• Deal with employee behavior issues

Hire, train, motivate(lead) people

 4. CONTROLLING

• Monitor activities’ performance

• Compare actual performance with the set goals
• Evaluate activities’ performance whether things
are going as planed
• Correct any disturbance to get work back on
track and achieve the set goals

Ensure all activities are accomplished as

planned
Managerial Roles (H. Mintzberg)
 1. Interpersonal Roles

• Figurehead: perform ceremonial duties

like greeting company visitors,
speaking at the opening of a new
facility, or representing the company at
a community luncheon to support local
charities
 1. Interpersonal Roles (Cont’d…)
• Leader: motivate and encourage
workers to accomplish organizational
objectives

• Liaison: deal with people outside their

units to develop alliances that will help
in org. goal achievement
 2. Informational Roles
• Monitor: scan environment for
information, actively contact others for
information, continually update news/
stories related to their business (inside and
outside org.)
• Disseminator: share the information they
have collected with their subordinates and
others in the company
• Spokesperson: share information with
people outside their departments and
companies
 3. Decisional Roles

• Entrepreneur: adapt themselves, their

subordinates, and their units to
change/ innovation

• Disturbance Handler: respond to

pressures and problems demand
immediate attention and action
 3. Decisional Roles (Cont’d…)

• Resource Allocator: set priorities and

decide about use of resources

• Negotiator: continual negotiate

schedules, projects, goals, outcomes,
resources, and employee raises in
order to accomplish the goals
 Managerial Skill

 Technical skill
• Knowledge & proficiency in a specific field
 Human skill
• The ability to work well with other people
 Conceptual skills
• The ability to think & conceptualize about
abstract & complex situations concerning
the organization
 Note: to become successful managers need a
combination of education & experience
Cont’d…
 Nature of Management
 Multidisciplinary:
 It draws knowledge and concepts from various
disciples.
 Draws ideas and concepts from such disciplines as
psychology, sociology, anthropology, economics,
ecology, statistics, Operations Research, history etc.
 Dynamic Nature of Principles:
 Management has formed certain principles.
 However, these principles are flexible in nature and
change with the changes in the environment.
 No principle is regarded as a final truth.
 There is nothing permanent in the landslide of
management.
 Cont’d…

 Relative, not absolute principles:

 Management principles are relative, not absolute,
and they should be applied according to the need of
the organization.
 Each organization may be different from others.
 The difference may exist because of time, place,
socio-cultural factors, etc.
 Thus a particular management principle has different
strengths in different conditions.
 Therefore, principles of management should be
applied in the light of prevailing conditions.
 Cont’d…
 Is management –science or art?
 Science is characterized by making a conclusion based actual
facts & verifies knowledge through cause-effect relationship
 It can be generally learnt, thought & researched to know the
universal truth
 Art is characterized by using common sense, personal feeling
beliefs, etc.
 Art is bringing a desired result through the application of
skills.
 Art is concerned with the understanding of how particular
work can be accomplished,
 Art has to do with applying knowledge or science or
experiences in performance.
 Cont’d…
 Is management –science or art?
 Management as an art:
 Management is know-how, skill or how to accomplish
the desired objectives with insufficient information
 The process of management does involve the use of
know-how and skills like any other arts like music,
painting, sculpture, etc.
 Management is creative like any other art. Creativity is
a major dimension in managerial success.
 Management is personalized meaning thereby that there
is no one best way of managing
 Thus, management as a practice is an art
 Cont’d…
 Is management –science or art?
 Management as a science
 They organized knowledge underlying the practice is
considered as a science
• Step-by-step way of solving problems
• Use of scientific methods/technique to make
decisions
 Therefore,
• It is not pure art because it uses scientific methods
(e.g. operations management, etc.)
• It is not pure science because it uses common sense,
intuition & managerial judgment
 Cont’d…
 Is management –science or art?
 Managers should:
• Develop new ideas, techniques & strategies
• Be able to communicate them effectively in the work
environment
• Be able to make decisions even when there is no sufficient
data
 This leads us to the conclusion that the art of management begins
where the science of management stops
 In this context, science & art are not mutually exclusive but are
complementary
 Thus, management requires both (science & art) to be successful
 Note: management is one of the most creative arts as it requires
vast knowledge in application
 Cont’d…

 Management as Profession
 Existence of an organized and systematized body of
knowledge
 Formal method of acquisition of knowledge
 Existence of an association with professionalization
as its goals
 Formulation of ethical codes
 Service motives
 The above points indicate that management does not
fulfill all the requirements of professionalization and
hence it can be labeled as an emerging profession.
 Cont’d…

 Is management universal?
 Management is universal for the following
reasons:
 Management is applicable in all kinds of organized &
purposeful activity of human efforts be it:
• Business or non-business
• Government or private
• Manufacturing or service giving
• Large firms or small firms
 All managers at different levels of management
perform the five managerial function (in fact, with
different emphasis)
Cont’d…
 Significance of Management

 Effective Utilization of Resources

 Development of Resources:
 To incorporate Innovations:
 Integrating various Interest Groups:
 It is needed to coordinate & direct the efforts of
individuals, groups & the entire organization to
achieve desired objectives
• People couldn’t achieve their objectives as individuals
• Management has been essential to ensure the coordination
of individual effort
• Without management, the time, effort & energy of
individuals can be wasted
 Cont’d…

 It is responsible for the success (serve the public)

or failure (waste resources) of an organization
• When an organization fails it is because of poor
management
• When an organization succeed it is because of
good management
 Briefly, management is needed to achieve the
stated objectives
Thank You!!!