Principles of Management Sarah Muigai

|
Learning Outcomes
What Do Managers Do?
• Understand the term Management and its scope
• Understand Managerial Hierarchy
• Explain Mintzberg’s managerial roles.
• Describe Katz’s three essential managerial skills and how the
importance of these skills changes depending on managerial
level.
• Discuss Management environment

|
Who Are Managers?

•Manager
– Someone who coordinates and oversees the work of other people so
that organizational goals can be accomplished.
– They can be young or old.
– They may be male or female.

|
NSE Top

|
• On his appointment (which caused a stir)
as the CEO of Kenya Commercial Bank,
Joshua Oigara was one of the youngest
CEO’s in the history of NSE’s publicly
traded companies. However, his
experience and knowledge have stood the
test of time ever since. He takes home
6.3 Million monthly over 200m annually

|
37 years

• He holds a Bachelor of Commerce (Accounting) degree

from University of Nairobi and Master of Business
Administration from Edith Cowan University. He’s a
certified public accountant having taken his exams at
Strathmore University School of Accountancy.

• Other accolades include; Management Development

Program – the University of Pretoria, Program Managers’
Development – Fuqua School of Business (Duke
University), Senior Executive Program – London Business
School, Business Digital Transformation Certificate – IMD
Business School

|
|
40 years

• The current holder of the highest paid CEO in Kenya

with an monthly salary of 14.7 Million. Over 300 m
annually. He is both the Managing Director and CEO of
Centum Investments, positions he acquired after
working his way up the ladder from a clerk.
• Mworia attended Alliance High School before joining
The University of Nairobi from where he holds Bachelor
of Law degree and a Diploma from the Kenya School of
Law. He holds a Chartered Financial Analyst (CFA)
charter earned at Strathmore University. He is a
Certified Public Accountant (CPA-K), a member of the
CIMA, ICPAK, CFA Institute, and LSK

|
Maria Msiska -BOC LTD

|
• Could not get her profile

• Resigned in 2016

|
Nasim Devji - DTB

|
• Mrs. Devji joined the DTB Group in 1996 following which she was
appointed Group Chief Executive Officer of Diamond Trust Banks in
East Africa in 2001.

• She is a Fellow of The Institute of Chartered Accountants of

England and Wales, an Associate of the Institute of Taxation
(United Kingdom) and a Fellow of the Kenya Institute of Bankers.
She is also a member of the Institute of Directors (Kenya). Mrs.
Devji is a director of DTB Tanzania, DTB Uganda, DTB Burundi,
Jubilee Insurance Burundi, Diamond Trust Insurance Agency Limited
and the Nairobi Securities Exchange Limited. She has also
previously served as a member of the Kenya Deposit Insurance
Corporation.

|
• For a long time NSE has had only two women CEO’s

• Maria Msiska – BOC Limited

• Nasim Devji – DTB

• WHY?????

|
Introduction to management : Universal
Nature of Management

• Management principles are universal in

nature. They are applicable in
government organizations, business
enterprises, military organizations,
educational institutions or any other
organization involved in production of
goods and services.

|
Introduction to management

Even though management principles

are universal in nature they are
flexible and provide the working
guidelines, which can be adopted
according to the agreed situation
facing the organization.

|
What is Management?

|
Definition of Management

• The term management has been defined in

many ways. In general management is the
process of getting things done with and through
people in formally organized groups by guiding
and motivating their efforts towards common
objectives.
• It is the act of creating an environment in
which people can perform as individuals and
yet co-operate towards attainment of group
goals.

|
MANAGERIAL FUNCTIONS (Henry
Fayol’s) Course outline discussion

• Planning: is the process of selecting missions,

goals and objectives and the strategies
(actions) to achieve them.

• It involves determining in advance what should

be accomplished and how it should be realized.
Managers develop short, medium and long-term
plans. These are developed at different levels
of management. Managers should evaluate the
results of previous plans and adjust future plans
accordingly.

|
• Organizing: This is the process of arranging and
distributing work among members of the work
group in order to accomplish goals. The
manager defines various job duties and groups
these duties into distinct areas, sections, units
or teams. The manager must specify the duties,
assign them and at the same time, give
subordinates the authority they need to carry
out the task.

|
|
• Staffing: This is the managerial task of
recruiting, selecting and training employees.
This function includes appraising the
performance of employees, promoting
employees as appropriate, and giving
employees opportunities to develop. It also
includes devising equitable compensation
system and rates of pay. In many companies
some activities involved in staffing are handled
by the HR department e.g. compensation.

|
|
• Directing: is the process of guiding the
activities of employees towards accomplishing
objectives.

• Directing plays a major role in employee

morale, job satisfaction, productivity and
communication. It involves motivation,
leadership and communication and all other
aspects of organizational behaviour.

|
• Controlling: This is the process ensuring
that actual performance is in line with
intended performance and taking any
necessary corrective action.
• Controls are necessary to ensure that
performance of activity compares
favorably with plans set for them. This
may mean revising plans as circumstances
require. E.g. budgets, inspection records,
records of labour hours lost etc |
And Stella Kilonzo of CMA

|
Leading an organization involves?

• Making sure there is a connection; everyone should

know where you are going especially senior
management because they are the ones who will be
driving the organization’s vision. This means there has
to be a lot of communication in the organisation.

• Secondly, have monitors to ensure everything is going

on as planned. At this point you are also able to know if
and when to change.

|
Do managers always plan, organize, lead, and then control?

• In reality, what a manager does may not always happen in this

sequence.

• Regardless of the order in which these functions are

performed, the fact is that managers do plan, organize, lead, and
control as they manage.

|
• Assignment Before day two of class

• Managing oneself by Peter Drucker – Harvard

Business review classic.

|
• Summary Video

• My take home
What are my values? What kind of a person do I want to see in the
mirror in the morning

• Resonated a lot with prof Fontrodona challenge

Who am I becoming with every decision am making

|
Management Hierarchy

|
|
Management Hierarchies
Lower/line/Operational management level (supervisory)
These are the managers situated at the lowest level of
managerial hierarchy.
They supervise directly the activities of subordinates. The
managers in this level have to maintain standards of
quality of the product/service and assign duties to the
workers as per plan and schedules given by the top and
middle level management.
They are also responsible for maintaining respect,
discipline among themselves and increase the spirit of
work among the workers. They may be titled as
supervisor/foreman or office manager within a
department or work unit in the organization.

|
 Middle level management level/functional managers

They are responsible for various functional units

in an organization e.g. marketing or finance. They
have supervisory responsibility for line managers
and non-managerial staff in the organization.

More importantly, they are responsible for

implementing the plans and policies of the
organization by focusing on the coordination of
tasks at the functional levels in order to achieve
the organizational goals they consist of divisional
heads or departmental heads.e.g. Division
directors, area managers, plant managers,
department managers.

|
 Top/upper level management (executive):
They are responsible for the overall performance of the
organization. They engage extensively in the formulation
of policies and strategies.

They must provide leadership, evaluate and shape the

method of organizing and controlling the direction of the
organization in moving an effort to accomplish goals.

They have titles such as chief executive officer (C.E.O),

Managing Director (MD) or General Manager (GM).

|
Classifying Managers

• Not all organizations get work done using this traditional

pyramidal form.

• Some organizations, for example, are more loosely configured,

with work being done by ever-changing teams of employees who
move from one project to another as work demands arise.

• someone who coordinates and oversees the work of others, even if

that “someone” changes as work tasks or projects change.

|
What skills do you need to be a
good manager?

|
MANAGERIAL SKILLS:

• Robert L. Katz identified the following types of skills necessary for

managers at different managerial levels. Book- Skills of an
effective administrator
an American social and organizational psychologist

|
Skills Needed at Different
Management Levels

|
Technical skills:
It refers to the technical knowledge and
proficiency in activities involving methods,
processes and procedures.
Enable managers to carry out specific tasks
effectively. It relates to individual expertise to
perform a related task.
It is acquired through education; training and
experience. It is more important and supervisory
/line management level.

|
Managerial skills
Human skills (interpersonal skills, Human relation skills):
It is the managers’ ability to build a cooperative effort within the
team he leads. It involves the ability to work with, motivate and
direct individuals or groups in an organization whether they are
subordinates, superiors or peers.

Human relation skills necessary for managers are:

• Effective communication
• Creation of a positive attitude towards others and the work
setting.
• Development of cooperation within group members.
• Motivation of subordinates:

|
Conceptual skills:
• It’s the ability by a manager to understand degree of complexity in
a given situation. It requires the understanding of how an event is
influenced by and influences other factors.
• it involves a managers ability to coordinate and integrate all the
organization activities and to see the organization as a whole and
understand how a change in any given part/area can affect the
whole organization situations which require conceptual skill
include those dealing with the government legislation affecting the
hiring patterns in the organization, competition changing their
strategies on the re-organization of one department which
ultimately affects the activities of other departments in the
organization.
• Mostly relevant at Middle and top-level of management.

|
The role of a doctor is to heal what
is the role of a manager?

Meet Henry Minztberg

|
The role of managers

• Henry Mintzberg categorizes them as managers’ roles

|
Interpersonal roles • Figurehead
• Leader
• Liaison

Informational roles • Monitor

• Disseminator
• Spokesperson

Decisional roles • Entrepreneur

• Disturbance handler
• Resource allocator
• Negotiator

|
Role of managers

Inter-personal roles( ceremonial and symbolic in nature)

• Roles that involve interacting with the employees to achieve
organizational goals. The manager is not only a source of
inspiration but is an authority figure to his employees.

• Managers engage in inter-personal relationships by performing the

following 3 types of roles:

|
 – Figure Head Role:
This role is required when activities of ceremonial
nature is taking place in an organization. It also
includes routine activities that a manager
performs that are of a ceremonial nature e.g.
signing legal documents.
Example: welcoming visitors delivering a key note
address or congratulating newly trained
employees/personnel.

|
 – Leader Role:
• It requires involvement with the coordination
and control of work.
• It also involves motivating employees to higher
productivity through appropriate leadership.

|
 – Liaison Role:
• It is carried out when managers make contacts with
other individuals who may or may not be residing in the
organization in order to complete the work performed
by their departments or work units.
• Enables managers to develop networking by obtaining
external information that may be useful for completing
current and future work activities of their organization.
E.g. acknowledging mail, doing external board work
and other duties that involve outsiders.

|
Managerial roles( Henry Mintzberg)

Information Roles (collecting, receiving and disseminating

information)
– Monitor Roles:

• It involves continually scanning the environment for

information or activities and events that may identify
opportunities or threats to the functioning of the work
units or the entire organization. While monitoring can
be done through reading of periodicals and reports,
much of the gathering of the information by managers
is through the network of personal contacts.

|
 – Spokesperson Roles:
• Managers perform this function by representing
the work unit to the people inside or outside
the organization.
• Example: A top manager may present a case on
behalf of the organization before the board of
directors (BOD’S) or give information to the
media.

|
 – Disseminator Role:

• It involves transmitting of information gathered

to other members of the organization. It may
be to peers, subordinates or superiors.
Example: Information gathered by marketing
managers may be used for strategic planning by
the top management, making phone calls to
relay information, holding informational
meetings.

|
• Decisions roles- revolve around making
decisions
– Entrepreneur role
• Performed when mangers seek to improve work
unit by adopting a new technique to improve a
particular situation or modifying old techniques
to improve group or individual activities. This
role is achieved through creativity and
innovations.

|
 – Disturbance Handler Role:
• This role establishes a manager as a
responder to change. Due to work
pressure, managers are called upon to
respond to unwelcoming pressures and
are required to act within a very short
time possible with the ultimate goal of
bringing stability back to the
organization.
|
 – Resource Allocation Role:
• They perform this function by deciding to whom
and in what quantity the resources will go.

• Resources include money, time, power,

equipment, information or people. E.g.
scheduling, budgeting etc

|
 – Negotiator Role:
• Managers perform the role by negotiating with
individuals inside or outside the organization to
effectively carry out their responsibilities.
• Example: A production manager may negotiate
with the Human Resource department to obtain
individuals with specialist skills or a college
dean may negotiate with a department head on
course covering and the number of lecturers to
be hired or negotiating with labour unions for
contracts.
|
• Video Application of Bernard a manager
• Case study MTL

|
How long do you think it will
take you to make to
management post?

|
I don’t know either. Its up to to
you to know your strengths and
work from there

|
Home work: personal reading . Is
management an ART or A
SCIENCE OR BOTH