Management Theory and Practice

Yohannes W. (BA, MSc, Ph.D.)

Assistant Professor of Business, Organization, and Strategy

Management Theories- Yohannes W. (Ph. D.) - with due credit to Pearson Education Inc.
1
Chapters - Parts

• Part 1 - Overview of Management

• Part 2 - Management Theory/Development of Management
Thought
• Part 3 - Management Functions (Students papers and presentations)
1. Planning
2.Organizing
3.Staffing
4.Directing/Leading
5.Controlling

Management Theories 2
Evaluation

•Test 20%
•Group paper 30%
•Presentation 10%
•Final Exam 40%
-
Total 100%

Management Theories 3
Representatives

Done! ---- all sections

Management Theories 4
Chapter 1: General Overview of
Management

•Definition of Management
•Levels of Management
•Functions of Management
•Managerial Roles
•Managerial Skills
•Universality of Management
•Nature/Characteristics of
Management
Management Theories 5
Reference books

1. Stephen P. Robbins & Mary Coulter

(2012). Management (11th Edition),.
Prentice Hall.
2. ROBERT KREITNER (2009). Management.
11th Edition, Houghton Mifflin Harcourt
Publishing Co.

Management Theories 6
Four key realities for modern managers:

1. Change is always there – accept

change and deal with it
2. Speed, teamwork, and flexibility
3. Staying close to the customer
4. Continuous improvement and lifelong
learning- towards better quality

Management Theories 7
Why study management?

1. Reduction in Wastage (efficiency)

2. Achieving Company Targets
(effectiveness)
3. Simplifies organizational
Structure
4. Increases Stability
5. Provides the “Feel Good Factor” 
6. Maximize Profits

1-8
What is management
and mangers?

Management Theories 9
WHAT IS MANAGEMENT?

 .... The process of coordinating

work activities so that they are
completed efficiently and
effectively with and through
other people.

 ….. the process of working with

and through others to achieve
organizational objectives in a
changing environment 

Management Theories 10
Key Aspects of Management

11
Management Theories
Key concepts…..

• Central to these process is the effective and efficient use of limited

resources to attain organizational goals.

Management Theories 12
1. Efficiency and effectiveness

Management Theories 13
Efficiency and Effectiveness Cont’d….

• Efficiency - “doing things right”- ….. getting the

most output from the least amount of inputs.
• Because managers deal with scarce resources,
they’re concerned with the efficient use of
resources, that is, not wasting resources. What
are the organizational resources?
• Effectiveness ... described as “doing the right
things” - that is, doing those work activities
that will help the organization reach its goals.

Management Theories 14
Effectiveness and Efficiency

You@ 6 kilo

Your goal (4 kilo)

Management Theories 15
Definitions

1.Management is the process of coordinating all

resources through the five major functions of
planning, organizing, staffing, directing /leading
and controlling to achieve organizational
goals/desired objectives. - Henry L. Sisk
2. Management is the art of getting things done
through and with the people in formally organized
groups - Koontz H.
Definitions Cont’d

3. Management is the process of getting

things done, effectively and efficiently,
through and with other people – Mary Parker
Follett
 Efficiency
 Means doing thing right; refers to the
relationship between inputs and outputs;
seeks to minimize resource costs
 Effectiveness
 Means doing the right things; goal
attainment
Manager
Manager – The person responsible for
supervising the use of an organization’s
resources to meet its goals

Note! Everybody is the manager of his/her

time, energy and talents.
Organization
Organization is a systematic arrangement of
people brought together to accomplish
some specific purpose

Common Characteristics of Organizations

 Have a distinct purpose (goal)
 Composed of people
 Have a deliberate structure
Resources

•What are resources?

•What are organizational resources?
•Why are they important/imperative?
•Types of resources?
•Creditors favorite form of resource?
•Resource Based View (RBV) model?
Etc….
Management Theories 20
7 categories of resources (there may be
other):

 People
 Money
 Time
 Work Procedures
 Energy
 Materials
 Equipment

Management Theories 21
Characteristics of management

1. Management is goal oriented

2. Management is universal
3. Management is an integrative force – unifies
human and other resources
4. Management is a social process
5. Management is multidisciplinary
6. Management is intangible
7. Management is a continuous process
8. Management is both a science and an art
Management Theories 22
• Friday, November 30……………I will be away from Addis for a
conference - - paper presentation

Management Theories 23
Characteristics of management

1. Management is goal-oriented:
 Management is not an end in itself, it is a means
to achieve certain goals.
The basic goal of management is to ensure
efficiency and economy in the utilization
of human, physical and financial resources.
2. Management is universal:
 Management is an essential element of every
organized activity irrespective of the size or type of
activity
Characteristics Cont’d

3. Management is an integrative Force – unifies

human & other resources
 As a unifying force, management creates a whole
that is more than the sum of individual parts
 It integrates human and other resources
4. Social Process
Management is done by people, through people
and for people.
It is a social process because it is concerned with
interpersonal relations.
Characteristics Cont’d

5. Multidisciplinary
Management has to deal with human behavior
under dynamic conditions.
Therefore, it depends upon wide knowledge
derived from several disciplines like engineering,
sociology, psychology, economics etc.
6. Management is intangible
 Management is an unseen or invisible force
It cannot be seen but its presence can be felt
everywhere in the form of results.
Characteristics Cont’d

7. Management is a continuous process

Management is a dynamic and an on-going
process.
The cycle of management continues to operate so
long as there is organized action for the
achievement of group goals.
Management process/Functions
There are five functions of
management/Managerial Functions
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
The functions of management provide a useful
framework for organizing management
knowledge.
 organogram – organizational structure
Planning

1. Planning – Process of identifying and

selecting
appropriate organizational goals and
courses of action
 Planning is an exercise of forethought
 It is concerned with what? Who? How?
When? Where? How much?
 It is deciding in the present about the
future objectives and the course of actions
for their achievement.
Management Theories 29
Planning Cont’d

Planning involves:
Determination of short range and long range
objectives
Development of strategies and courses of action
to be hold for achievement of the objective
Formulation of policies, procedures and rules for
the implementation of strategies and plan
Organizing

 It involves:
 determining what tasks to be done
 who is to do them
 how the tasks are to be grouped
 who reports to whom, and
 where decisions are to be made
Staffing

 refers to filling and keeping filled the positions in

the organization structure

 concerned with locating prospective employees

to fill the jobs created by the organizing process
Staffing Cont’d

Staffing involves:
 Determination of number and kind of
employees needed
 Recruitment of employees (creating potential
employees from whom selection is to be
made)
 Selection of the most efficient employee
suitable for job
 Placement and induction
 Training and development, etc.
Directing/Leading

It is aimed at getting the members of

an organization move in the direction
that will achieve its objectives.
 Leading/leadership is the heart and
soul of management.
 It involves influencing others to
engage in the work behavior necessary
to reach organizational goals
Controlling

The process of:

monitoring performance,
comparing it with goals, and
correcting any significant
deviations
 Where do managers work?

• They work in organizations

• It is defined as
• A deliberate arrangement of people to
accomplish some specific purpose
• Common Characteristics of
Organizations
• Have a distinct purpose (goal)
• Composed of people
• Have a deliberate structure
 WHO ARE MANAGERS

• Someone who works with and through other

people by coordinating their work activities in
order to accomplish organizational goals.

Management Theories 37
 Managers…..

• The people responsible for supervising the use of an organization’s

resources to meet its goals

1-38
WHAT DO MANAGERS DO?

Management Theories 39
 WHAT DO MANAGERS DO?
Three categorization schemes:

Management Functions
Management Roles
Management Skills

Management Theories 40
MANAGEMENT FUNCTIONS….

Management Theories 41
Management functions …?
IS MANAGEMENT UNIVERSAL ?
Why or why not?

Management Theories 43
UNIVERSALITY OF MANAGEMENT

Management Theories 44
Management science or art?
Management knowledge exhibits characteristics
of both art and science, the two not mutually
exclusive but supplementary.

 mgt as a science contains a systematic body of

knowledge in the form of general principles which
enjoy universal applicability.
Management science or art Cont’d
 The art of management is personal creative
power and skill in performance.
 If science teaches one to know, art teaches one
to do

 Managers have to know and do things efficiently

and effectively to be successful, so there is
unique scientific and artistic combination in
practice.
Universality of Management
 Management functions and principles have universal
application in :

 All levels of management with different emphasis

 All type of organization be it business, non-business,
governmental, private. It is useful from individual to
institutional efforts
 All organization areas - production, marketing, HR, etc rely on
management.
 All organizations varying in size - from small to large utilize
management
 Managerial Levels – Pyramid
of management

Management Theories 48
Levels of management

 Refers to a line of demarcation between

various managerial positions in an
organization
 Determines:
 a chain of command
 the amount of authority and
 status enjoyed by any managerial position(s)
Levels of management Cont’d

 The levels of management can be

classified in three broad categories:
1. Top level/administrative level/ strategic
level
2. Middle Level/Tactical/Execution level
3. Lower level/supervisory/operative/first
line manager
 Mangers at all these levels perform
different functions
Top level management

 Top management is the ultimate source of

authority and it manages goals and policies for
an organization
 It devotes more time on planning and
coordinating functions
 consider how the organization interacts with its
environment
 Ultimately responsible for the success or failure
of an organization
Middle level management

 They execute the plans of the organization

in accordance with the policies and
directives of top level management
 They make plans for sub-units of the
organization
 They interpret and explain policies from top
level management to lower levels
 They are also responsible for inspiring lower
level managers towards better performance
Lower Level Management
 Refers to those executives whose work has to
be largely with personal oversight and direction
of operative employees
 They are concerned with direction and
controlling functions of management
 They are directly responsible for the production
of goods and services
Types of Managers based on scope of
responsibility
Two types:
1.Functional Managers
managers who are responsible for a department
that performs a single functional task and has
employees with similar training and skills
2. General Managers
 managers who are responsible for several
departments that perform different functions.
 They are responsible for the entire operations of
the organization without being specific
Roles of managers

• Discussion points

• What is a role?
• What are the three broad categories of
managerial roles? And what do they mean?
• What specific roles are identified under
each broad category?
Management Theories 55
 Management Roles
• Roles are specific actions or behaviors
expected of a manager.
• Henry Mintzberg, a well-known
management researcher, identified 10 roles
grouped around three major categories:
1) Interpersonal Roles - interpersonal
relationships,
2) Informational roles - the transfer of
information,
3) Decision making roles - decision
making
 MANAGERIAL ROLES

•Interpersonal Roles are roles

that involve interacting with
people (subordinates and
persons outside the
organisation) and other duties
that are ceremonial and
symbolic- figurehead, leader,
liaison
Management Theories 57
•Informational: Roles that
involve receiving, collecting
and disseminating
information- monitor,
disseminator, spokesperson

Management Theories 58
•Decisional: Roles that involve
making choices- entrepreneur,
disturbance handler, resource
allocator, negotiator

Management Theories 59
 INTERPERSONAL
Role Description Identifiable
Activity
Figurehead Manager serves as an official Greeting visitors;
representative of the signing legal
organization or unit documents
Leader Manager guides and motivates Staffing, training
staff and acts as a positive
influence in the workplace
Liaison Manager interacts with peers Acknowledging
and with people outside the mail/email; serving
organization to gain on boards;
information performing activities
that involve
outsiders
 INFORMATIONAL
Role Description Identifiable Activity
Monitor Manager receives and Reading magazines
collects information and reports;
maintaining personal
contacts
Disseminat Manager distributes Holding meetings;
or information within the making phone calls to
organization relay information;
email/memos
Spokespers Manager distributes Holding board
on information outside the meetings; giving
organization information to the
media
 DECISIONAL
Role Description Identifiable Activity
Entrepren Manager initiates change Organizing sessions to
eur develop new programs;
supervises design of
projects
Disturbanc Manager decides how Steps in when an
e Handler conflicts between employee suddenly
subordinates should be leaves or an important
resolved customer is lost
Resource Manager decides how the Scheduling; requesting
Allocator organization will use its authorization; budgeting
resources
Negotiator Manager decides to Participating in union
negotiate major contract negotiations or
contracts with other in those with suppliers
organizations or
individuals
Managerial Roles

 Managerial roles represent specific tasks that

managers undertake to ultimately accomplish the
five managerial functions
 Henry Mintzberg identified 10 managerial roles
which are in turn grouped into three categories:
 Interpersonal
 Informational and
 Decisional Roles.
Interpersonal Roles

 involves developing and maintaining positive

relationships with significant others in the
organization. It includes:
1. Figurehead Role:
 officially representing the organization or unit
 symbolic duties of a legal or social nature
E.g. Signing documents, presiding at a ceremonial
event, greeting visitors, attending a
subordinate’s weeding, etc.
Interpersonal Cont’d

2. Leadership Role:
 guiding and motivating staff and acting as a
positive influence in the workplace
 building relationship and communicating with
employees & coaches them.
 As a leader, the manager is responsible for
hiring, training, motivating and encouraging
employees/subordinates.
Interpersonal Cont’d

3. Liaison Role:
 Manager interacts with peers and with people
outside the organization to gain information
 The top management uses this role to gain
favors and information, while the superiors use
it to maintain the routine flow of work.
Informational Role
 relate to receiving and sending information so
that managers can serve as the nerve centers of
their organizational unit. Three roles:
1. Monitor role: refers to seeking, receiving,
screening and getting information.
2. Disseminator role: transmit information
internally that is obtained from either internal or
external sources.
3. Spokesperson role: transmits information about
the organization to outsiders
Decisional Roles
 Roles that involve making significant decisions
that affect the organization.
 Four roles:
1. Entrepreneur (change agent) - acts as initiator,
designer, and encourager of change and
innovation
2. Disturbance handler - takes corrective action
when organization faces important , unexpected
difficulties
Decisional Roles Cont’d
3. Resource allocator - distributes resources of all
types, including time, funding, equipment, and
human resources.
4. Negotiator
 Involves interacting with superiors, persons in
other departments, and subordinates.
 Negotiation affects resource allocation,
resolution of disturbances, implementation of
change, and interpersonal behavior.
Managerial Skills

•There are three main forms of

Managerial Skills (Skills of
Management)
1.Conceptual Skills
2.Human Skills
3.Technical skills

Management Theories 70
 Conceptual skills

• It is a mental ability to think,

ponder, and solve problems
(complex organizational problems)
• The ability to analyze and diagnose
a situation and distinguish between
cause and effect.
• The ability to think and
conceptualize about abstract and
complex situations concerning the
organization
1-71
Human skills

• This is the ability to interact

with people and prevail upon
them
• The ability to understand, alter,
lead, and control the behavior
of other individuals and groups.
Management Theories 72
Technical skills

• Job-specific skills required to

perform a particular type of
work or occupation at a high
level.
• E.g A manager of a research company
needs to have technical knowledge in the
field of research such as statistical tools –
SPSS, STATA etc….

Management Theories 73
Managerial Skills vs levels of management
Managerial Skills

A manager’s job is diverse and complex and it

requires a range of skills.
 Skills are specific abilities that result from
knowledge, information, practice, and
aptitude.
 Robert L. Katz identified three basic kinds of
skills:
1. Technical skill,
2. Human skill,
3. Conceptual skill
4. Political skill
Technical skills

Knowledge & proficiency in activities

involving methods, processes and procedures
The use of tools, techniques, and procedures
in a specialized manner
most important at the lower levels of
management.
It becomes less important as we move up the
chain of command
Human relation skills
skills associated with a manager’s ability
to work well with others, both as a
member of a group and as a leader who
gets things done.
Because all work is done when people
work together, human relation skills are
equally important at all levels of
management.
Conceptual skills
 Skills related to the ability to:
visualize the organization as a whole
discern relationships among organizational parts,
and
 understand how the organization fits into the
wider context of the industry, community and
world
Conceptual skills are more important in strategic
level
Political skills

 These days some authors are

introducing a fourth managerial skill,
which is known as political skill

A manager’s ability to build a power

base and establish the right
connections
What Makes a Good/Not-so-good Manager?
Management Skills

Good Manager Not-so-good Manager

Technical
• Professional, • Lack of Knowledge
• Goodwill, willing to share his knowledge
• Not Organized
Human
• Difficult to find, always not in
• Good coordinator the office
• Gain People’s support
• Talking but not working
• Charming
• Friendly • Seeks only high pay with less
work
• Nice
Conceptual • Not presentable
• Ability to think • Careless
• Logical • Not communicate with Team
• Fast mover members
• Chance/ Risk Taker • Not care about group members
Management Theories 80
 Traits of a manager
Best Traits
– Fair/just in decisions
– Trusting/trusted at the same time
– Caring & analytical in thought
– Empowering & capable/responsible
– Always punctual
Worst Traits…. Bad traits
– Deceiving
– Dishonest
– Shows favouritism/nepotism
– Lazy
– Unorganized/disorganized
 Understanding managerial Challenges in
the 21st century

Nothing is constant this days, except change itself…

1
 New Workplace Issues and Challenges – all of the following
do matter in modern day management profession/duty
Pr
e
ne mis
ed e –
to
Technology and Speed de Mod
al e
wi rn d
th a
the y m
Networking and se ana
iss ge
Globalization u e rs
Boundaryless s
and Diversity
Relationships
(e.g Virtual organizations)

Ethics and Knowledge,

Social Learning,
Responsibility Quality, and
Continuous
Improvement
Participative
Management,
Empowerment, Knowledge
and Teams, no glass Management
ceiling
GENERATIONAL DIFFERENCES Change, Creativity, Innovation,
and Entrepreneurship
cont’d….
1. Knowledge, Learning, Quality, and Continuous
Improvement
• Information is the foundation of knowledge which,
in turn, is the foundation of competitive advantage.
People (employees) are the competitive advantage!
• Knowledge workers
• The learning organization
2. Knowledge Management
• Involves everyone in an organization in sharing
knowledge and applying it to continuously improve
products and processes.

1–84
cont’d…….
3. Change, Creativity, Innovation, and Entrepreneurship
• The speed of change in modern business has
increased because of globalization and changes in
technology. And other factors listed.
• Creativity is coming up with new ideas for
improvements, and innovation is implementing
those ideas.
• Entrepreneurship is about generating creative ideas
and using them through innovation.
cont’d…..
4. Participative Management, Empowerment, and Teams
• Empowering employees to share in performing
management functions by working in teams.
• Learning organizations manage knowledge well by
empowering teams to be creative and innovative.
5. Ethics and Social Responsibility
• Managerial integrity
• Situational responses
cont’d....
6. Networking and Boundaryless Relationships
• Electronic networks
• Beware the informality of e-mail, miss-
interpreted messages and first impressions
• Can be distracting/off task
• Relationship networks
• Virtual integration

QUESTION – ARE ELECTRONIC “TOOLS” CHANGING THE QUALITY OF

RELATIONSHIPS? E-Mail, NetMeeting, Video Conferences?
cont’d…….
7. Technology and Speed
• E-commerce and E-business: work done by using
electronic linkages (including the Internet)
between employees, partners, suppliers, and
customers.
8. Globalization and Diversity
• Mergers are creating larger globalized firms.
• Firms competing globally have to act locally.
• Diversity is increasing as minorities grow and
markets globalize.
• Thank you

Management Theories 89