Topic One NATURE OF MANAGEMENT

Learning Outcomes

 Analyse the role that business organisations play in modern economy.

 Evaluate the different levels and kinds of management in an organisation.

 Examine managerial roles performed by managers.

 Evaluate managerial skills needed at the different levels of management.

 Analyse the major challenges faced by management in SA.

 Introduction
 Organisation acquire human, financial, physical & information resources in
order to produce a product / service for which there is a need in society.

 An organisations that satisfy the complex needs of society, they depend on

business.

 Government organisations such:

 Hospitals and clinics provide health care.

 South African Police Services provide protection against crime.

 Municipalities provide water and electricity.

 Non-profit organisations also help to satisfy society’s needs.

 ROLE OF BUSINESS ORGANISATIONS IN MODERN
SOCIETY

 In any organisation, whether private or public is complex because of

the needs of society through the utilisation of resources, namely:

 People (human resources with specific knowledge, skills, abilities)

 Money (capital of financial resources)
 Raw materials (physical resources)
 Knowledge (information resources)
 Fundamental Management Functions
 Planning: Involves the process of defining goals, establishing strategy for

achieving those goals, & developing plans to integrate & coordinate activities.

 Organising: Includes the process of determining what tasks are to be done,

who is to do them, how the tasks are to be grouped, who reports to whom at

what level.
 Leading /Commanding: Influencing of people so that they will contribute to

organisation and group goals. Involves motivating, communicating employees to

accomplish goals & objectives of an organisation.

 Controlling: Measuring & correcting of activities of subordinates to ensure that

events conform to plans. Measures performance against goals & puts in motion

actions to correct deviation, helps ensure accomplishment of plans.

 Different types & levels of Management
Levels of Management Types of Management

 Top Level Management Board of directors, managing directors or

executive committee members.

 Middle Level Management Consists of managers such as personnel,

production, sales, marketing, resource,
finance etc.

 Lower Level Management Consists of foreman, supervisors, daily

labourers etc.
 Top Level Management
 Final authority and responsibility of the management process rests on them.

 They are responsible for the business as a whole. It is concerned with long term
planning.

 Also monitors the environment within which the organization operates.

 Examples: Board of directors, partners, managing director, chief executives, as

well as management committees .
 Middle Level Management
 Is responsible for specific departments of the organisation and is primarily
concerned with implementing the strategic plan formulated by top
management.

 The middles management consists of heads such as the marketing,

purchasing and personnel manager.

 The responsibility of the middle management is medium/ long term planning

and organising within the own functional areas.
 Lower Level Management

 Is responsible for even smaller segments of the organisation, namely the different
sections within an organisation.

 Lower management is often called line management; note that Supervisors &
foremen are included in lower management.

 Their duties involve the day-to-day activities of a particular section.

 First-line managers deal with the monthly, weekly and daily management of their
sections.
 Role of Managers
1.Decisional Role
2.Interpersonal Role
3. Informational Role
 DIFFERENT MANAGERIAL SKILLS
 Conceptual skills: Involves the managers planning abilities and
thinking.

 Interpersonal skills: Ability to work with other people, managers

should be able to communicate with and motivate groups.

 Technical skills: How one has to use the knowledge & ability or
technique of a particular discipline.
 Conceptual skill
 Allows manager's ability to see the organisation as a whole, as a complete
entity.

 Involves understanding how organisational units work together & how the
organisation fits into its competitive environment.

 This skill is still necessary for middle /supervisory managers, who must use
this skill to envision, example how work units & teams are best organised.
 Interpersonal skill
 Involves human relations, or the manager's ability to interact effectively
with organizational members.

 Communication is a critical part of interpersonal skill, and an inability to

communicate effectively can prevent career progression for managers.

 Managers who have excellent technical skill, but poor interpersonal skill
are unlikely to succeed in their jobs.
 Technical skill

 Involves understanding and demonstrating proficiency in a particular

workplace activity.

 Technical skills are things such as using a computer word processing

program, creating a budget, operating a piece of machinery, or preparing a
presentation.

 Technical skills used will differ in each level of management.

 SCOPE OF MANAGEMENT

 Study of management traditionally focused on business management & therefore, the

management of business organisations.

 Effective and efficient management practice is equally important in smaller business

organisations as well as in non-profit organisations.

 Good management practice is applicable to every organisation where one, two or more people
work together to achieve a set of goals.

 Scope of management practice is virtually unlimited or necessary to the success of all kinds and
sizes of organisation.
 Prescribed Textbook
Smit, P. 2016. Management Principles: A Contemporary Edition for Africa. 6th
ed. South Africa: Juta Publishers.