KCS/022/23 THIGE ESTHER WAITHERA

PRINCIPLES AND PRACTICES OF MANAGEMENT

Specific Objectives:

By the end of this sub-module unit, the trainee should be able to:

 Explain the nature and scope of management

 Identify various levels of management
 Explain various levels of management
 Explain the managerial roles

Management is an integrating force or agency consisting of some basic functions for

accomplishing the objectives of an organization. Thus management is the dynamic life giving
element in every organization. So by bringing together factors of production , management
enables societies to get better and increase the supply of goods and services in an organization .

DEFINITIONS OF MANAGEMENT

1. According to McFarland

Management is a process by which managers create, direct, maintain and operate purposive
organizations through systematic coordinated and cooperative human efforts.

2. L.Londy

Management is principally the task of planning, coordinating, motivating, and controlling the
effort of others towards specific objectives.

3. George R Terry

Management is a distinct process consisting of activities of planning, organizing, actuating,

performed on the efforts of group of members in order to utilize available resources of the
group human efforts, materials, machines and methods in order to attain organization goals.

4. According to Mary Parker Follet, management is defined as the art of getting things done
through people in formally organized

These definitions clearly identify four functions of management. However modern management
classifies managerial function into five.

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Characteristics/features of management
Management has the following features.

Management is a process. This refers to the process of getting thing done by working with people to
accomplish.
Management is goal oriented thus aims at achieving organizational goals.
Management is a group activity. It’s concerned with group efforts and not individual efforts.
Management is a economic resource as it aims at reaping rich results in economic terms
Principles of management have universal application. Apply more or less in every situation.
Management is a system of authority. Managers at different levels have varying degree.
Management is integrative; the essence of management is to integrate human and other resources to
achieve desired wants.
Management is both science and an art. management have an organized body of knowledge consisting
of well-defined concepts, principles and techniques that have a wide application of these concepts
principles and techniques require skills thus management is also considered as an art.

PRINCIPLES OF MANAGEMENT

A principle is a fundamental statement of truth that provides a guide to thought and action. It
establishes a cause-and-effect relationship between two more variables.

The principle of management lay down guidelines for improving management practice.

Variable this is something that can change affect the results of something.
Reasons for principles of management

To increase efficiency-it enables a manager to take more realistic view of organizational problems and
their solutions. It avoids the need for trial-and-error methods and improves the quality of managerial.

To crystallize the nature of management job-it helps in analyzing the management of the job and in
defining the exact scope of management process. it provides a framework for training and education.

To improve research in management -it serves as a focal point for useful research in group dynamics,
both to ascertain their validity and to improve their applicability.

To attain social goals-it enables more efficient utilization of human material resources .in this way,
management provides social satisfaction and improves the quality of life.

Criticism of the principles of management

They are based on unrealistic premises.

They represent common sense and are too obvious
Many of them are too contradicting e.g., the principle of unity of command suggests a single boss for
every employee while the principle of specialization advocates those specialists should guide
subordinates in their respective jobs.

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MANAGEMENT AS A PROFESSION

A profession can be defined as:

It is a field where training is intellectual in nature a field in which one enters for the sake of others and in
which financial reward is not considered as a measure of success

A profession is a field which is supposed to possess a well-defined body of knowledge on which is leaned
intellectual and organized one with entry restricted by examination or education and one which is
concerned primarily with service to others above self-reward

Management is a profession since it meets the first criteria the body of knowledge requirement this is
true from the vocational understanding of the function of business the general can discipline found in
typical schools of business, the graduate programs where functions, organizations, social institutions
social responsibilities and policy are emphasized

However, management falls the test of professionalism on other criteria. Anybody can label himself a
manager and apply it to the operation of business. Managers are never self-made instead they are the
product of the classroom and research. Education and training are regarded by socially as vital to
managerial progression and success and typically the educated managers are the ones to whom
positions of power and real responsibility are given.

The question of whether management is a profession is complex because management is abroad subject
parts of the subject do have a professional characteristics and others do not.

The following criteria of a profession will help to identify those parts which may be considered to be
professional:

A profession is based on a proven systematic body of knowledge and thus requires intellectual training.

A profession maintains an experimental attitude towards information and thus requires a search for new
ideas

A profession emphasizes service to other and usually develops a code of ethics that requires that
financial return.

Entrance into a profession is usually restricted by standards established by an association that requires
its members to be accepted by a group composed with people common training.

Conclusion

Management is not a straight profession but it is making stride in that direction every enterprise
presents possibilities for the application of the art and science of management and virtually every
business is a potential source of employment of professional managers

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 FUNCTIONAL AND ROLE OF MANAGEMENT

The process of management consists of several interrelated activities. These activities are known as the
functions of management. There is no universally acceptable classification of managerial functions.
However, the following are main functions of management.

1. Planning

It is the primary function of management. It involves determining the objectives and selecting a course
of action to achieve them it implies looking ahead and deciding in advance what is to be done, how and
by whom it is done.

It is a mental process requiring the use of intellectual faculties, foresight imagination and sound
judgement it consist of forecaster decision making and problem solving

A plan is a predetermined future course of action it is today design for tomorrow and an outline of steps
to be taken in future

The process of planning consists of:

Determination of objectives

Forecasting and choice of a course of action

Formulation of policies programmer’s budgets schedules etc. to achieve the objectives

Laying down of procedures and standards of performance

Planning maybe short term or long term. it is a pervasive function and managers at all levels have to
prepare plans.it is a continuous or an ongoing process. It enables us to do things in an orderly and
efficient manner.it is helpful in achieving the goals and facing uncertainly and change.

2. Organizing

It is the process of establishing harmonious authority-responsibility, relationships among the members

and the enterprise.it is the function of creating a structure of duties and responsibilities. The
organization serves as the framework within which people can work together effectively for
accomplishment of common objectives. It is an important element of management because it is through
organizing that a manager brings together the material and human resources required for the
achievement of goals

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The process of organizing consists of the following steps:

Determining and defining the activities required for the achievement of planned goals

Grouping the activities into logical and convenient units

Delegating authority to these positions and people

Assigning the duties and activities to specific positions and people

Establishing horizontal and vertical authority relationships throughout the organization.

3. Staffing

It is the process of filling all positions in the organization with adequate and qualified personnel

According to Koonts and O’Donnell the management function of staffing involves managing
organizational structure through proper effective selection, appraisal and development of personnel to
fit the roles designated in the structure.

Staffing consists of:

Manpower

Recruitment

Selection

Training

Compensation

Integration and maintenance of employees

4. Directing

It is the managerial function of guiding, supervising, motivating and leading people towards attainment
of planned targets of performance. It is concerned with execution of plans and policies. It initiates
organized actions and sets the whole organizational machinery into action. It is therefore, the life spark
of an organization.

Directing embraces the following activities:

Issuing orders and instructions

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Supervising people at work

Motivating I.e. creating willingness to work for certain organisations

Communication i.e establishing understanding with employees regarding plans

Leadership or influencing the behaviour of employees

5. Controlling

It is the process of ensuring that the organization is moving in the desired direction and that progress is
being made towards the achievement of goals.

The process of controlling involve the following steps:

Establishing standards for measuring work performance

Measurement of actual performance and comparing it with the standards

Finding variances between the two and the reasons

Taking corrective action for deviations so as to ensure attainments of objectives

LEVELS OF MANAGEMENT
The different levels of management are explained as below:

 Top management (strategic level management)

 Middle level management (tactical level management)
 Lower-level management (supervisory or operating management)

Top management- it is the ultimate source of management and it’s the one accountable for overall
management to the shareholders of the company.

Middle management-this level consists of deputy heads of department and sectional officers such as
plant manager, are sales manager, or branch manager, chief accountants, purchase officers etc

These officers serve as a link between top management and operating management.

Lower management-it is the lowest level of management.it consist of plant superintendent foremen and
frontline supervisors, sales officers, accounts officers etc.

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