UICT MGT DEPT

CONCEPT OF MANAGEMENT
Abstract:
Management is cornered with human beings whose behavior is highly un predicable. Ever since
people began forming groups to achieve as individuals. Management has been essential to provide
the coordination of individual efforts. Therefore management is found in every walk of individuals
Management does not perform specific jobs rather it motivates other people to perform specific
jobs.
Management is not doing the work but getting the work done through the efforts of others.

Definition of Management:
Several people have attempted to define the term management differently but all agree that it’s very
essential in every organization, as well as at all levels of the organisation. The common definitions
include:
Management is the process of utilizing human and material resources in order to accomplish
given desired ends.
Creating an environment in which people, working together in groups can make their best
contribution to effectively and efficiently achieve organisational goals.
Management is the process of getting things done with and through other people in an
organisational setting – Mary Parker Follet
Management is an imposition of order on chaos – Henry Boettinger.
Management is the process of planning, organizing, leading, staffing and controlling the
work of organizational members and of using all available organizational resources to reach
stated organizational goals – Stoner & Wankel.

Key concepts in management definition

 A leader/manager – emergent of one to lead others in order to have work undertaken in the
org.
 Goals/objectives – what the organisation intends to achieve or aim at achieving some stated
goals.
 People - individuals and groups.
 Organisations- a group of people working together in a structured way to achieve common
objectives.
 Organisational resources- there is an effort to direct and coordinate work using a number of
resources like manpower, machines, materials, money and minutes

Features of management
 Management is a process; it is a process and not merely a body of individuals .Those who
perform this process are called managers. Management is process that involves planning,
organising, directing and unifying human efforts for the accomplishment of given tasks
 Management is a social process: it takes place through people. The importance of human factor
cannot be ignored; it is a manager’s job to get the things done with the support and cooperation
of subordinates. it is the human element which gives management its special character
 Balancing effectiveness and efficiency:
Effectiveness means achieving targets and objectives on time. Efficiency refers to optimum
or best utilization of resources. Managements always try to balance both and get the work
done successfully. Only effectiveness and only efficiency is not enough for an organization:
a balance must be created in both.
 Management is a continuous process:
TE-IO NOTES-BM
 Management is a continuous or never ending function. All the functions of management are
performed continuously, for example planning, organizing, staffing, directing and
controlling are performed by all the managers all the time.
 Decision-making: Management process involves decision making at all levels. Decision-
making describes the process by which a course of action is selected as the way to deal with a
specific problem
 Organized Activities: Management is a process of organized activities. Groups of people
cannot be involved in the performance of activities without organized activities.
 Management involves achieving results through the efforts of others i.e. is art of getting things
done through others
 Management is a group of an activity; it is not an isolated individual activity but an activity of a
group.
Management is intangible i.e. Is not directly visible but its presence is noticed in the form of
concrete results
 Management is a universal activity; it covers all departments, activities and employees.
Managers are working at different levels but their functions are identical.
 Management is dynamic: it is influenced by changes in the atmosphere making suitable
forecasts and changed in policies; hence management is treated as dynamic activity.
 It aims at achieving predetermined objectives.
 Management is different from ownership i.e. It is concerned with management of business
activities , managers are not owners but they manage the business on behalf of the owners
 Management has different operational levels: these include upper level, middle level and lower
level of management.
 The major aim of management is coordination of activities in the whole organisation. This
brings unity and harmony in whole business unit.
Importance of management
 Management facilitates the optimum utilisation of available human and physical resources,
which leads to the progress and prosperity of any organisation.
 It encourages team spirit and raises efficiency of the organisation
 Expansion, growth of the business is possible through efficient management.
 It creates good cooperate image to the business enterprise
 Management facilities the introduction of new machines and new methods in conduct of
business activities
 It motivate employees to take more initiative in the work assigned and contribute for raising
productivity and profitability of the enterprise
 It develops good industrial relations , ensures better life and welfare to employees
 Management develops competitive strength in an enterprise. this enables an enterprise to
develop and expand its assets and profits
 Reduces turnover and absenteeism which ensures continuity in the business activities
and operations
 Management ensures effective use of managers so that the benefits of their experience,
skills, and maturity are available to the enterprise.
 A dynamic and progressive management ensures development of sound organisation ,
which can any situation
 Effective management enables the organisation and business enterprise to achieve its
objective

Note: The people responsible for managerial activities, duties and tasks are called managers
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Manager’s aims
All managers aim at effectiveness, efficiency and productivity;
Effectiveness- ability to achieve intended results (output and impact) - “Doing the right things”
this is part of the process of management that entails achieving a stated organizational objective.
Efficiency- reaching the stated goal using minimum resources achievement of ends with the best
amount of resources. “Doing things right” This is part of the process of management that balances
the amount of resources used to achieve an objective against what was actually accomplished
Productivity refers to a comparison between the quantity of goods or services produced and the
quantity of resources employed in turning out these goods or services. It is the ratio of output to
input. But output can be compared with various kinds of inputs: hours worked, the total of labor and
capital inputs, or something in between or ability to use less input to produce greater output, avoid
waste of time, money, materials, etc.
Therefore, it’s the responsibility of every manager to put the available resources to optimum use.

What managers do
It’s known now that managers work with and through people to achieve organizational goals. They
get things done through people or a manager directs the work of others and who does his work by
getting others to do theirs.
 Managers work with or through people
 Managers are responsible and accountable
 Managers balance competing goals and set priorities
 Managers take decisions
 Managers are channels of communication and mediators
 Managers are leaders or politicians

Types of managers
Managers’ classification usually takes two forms i.e. by the level in the organization and by range
of activities they are responsible for in the org.
By level (assume that all people in the org. are managers)

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 TOP LEVEL

MIDDLE LEVEL MGRS

FIRST/LOWER LEVEL MGRS

First/lower level managers

This involves the operatives in the org. and the foremen and supervisors who tend to spend most of
their time doing things. Constitute almost 75% of the orgs’ employees.
Middle level managers
This covers the group of policy implementers who receive policy from top and interpret it and put it
into action through and with lower level managers. This may constitute 20% of the employees
Top managers
This is the cream of the org. and may constitute only 5% of the employees. These originate policies
and are the final arbitrators in case of a below-upward policy. They consist of CEO supported by
functional heads.

By range of activities
Functional managers
Responsibilities are assigned according to specific functions. this means managers are designated
according to specific roles or functions undertaken in the org. e.g. marketing manager, sales
manager, finance manager, production manager etc.

General Managers
Contrary to functional managers, orgs can designate general managers with no specific functional
roles but rather oversee all the functions in the org. or division e.g. supervisors or ordinarily used to
refer to top managers in the org.

Managerial Skills and organizational hierarchy

There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to see the “big picture” to recognize the significant elements in the
situation and to understand the relationships between the elements i.e. to be able to analyze and
diagnose a situation and find the cause and effect.

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2. Human skills: the ability to work with people and to understand, change, leads, and control
people’s behavior. It’s a creation of an environment in which people feel secure & free to
participate.
3. Technical skills: this is the knowledge of and proficiency in activities involving methods,
processes or procedures. Covers working with tools & specific techniques (the job-specific
knowledge required to perform a task) e.g. engineer use tools and accountants use techniques.

All three skills are enhanced through formal training, reading, and practice.

Skill Type Needed by Manager Level

1-22

Skill Type Needed by Manager Level

Top
Managers

Middle
Managers

Line
Managers

Conceptual Human Technical

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000

Key
Line/lower level - Technical skills are of greatest importance at this level, Human skills are also
helpful for frequent interaction with subordinates and conceptual skills are critical for this level.
Middle level - The need for Technical skills decreases; Human skills are still essential and
Conceptual skills gain in importance.
Top level - Conceptual and Human skills are very valuable but there is relatively little need for
Technical skills.

Role of Managers - (as described by Mintzberg).

A role is a set of specific tasks a person performs because of the position they hold.
Roles are directed inside as well as outside the organization.
For the manager are broadly categorized as Interpersonal, Informational and Decisional
Interpersonal Roles
Roles managers assume to coordinate and interact with employees and provide direction to the
organization.
1. Figurehead role: performs ceremonial and social duties as the organization representative.
2. Leader role: train, counsel, mentor and encourage high employee performance.
3. Liaison role: link and coordinate people inside and outside the organization to help achieve
goals.
Informational Roles

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Associated with the tasks needed to obtain and transmit information for management of the
organization.
1. Recipient role: receiving and analyzes information from both the internal and external
operations and environment.
2. Disseminator role: manager transmits/passes information to subordinates to influence attitudes
and behavior of employees.
3. Spokesperson role: use of information to positively influence the way people out of the
organization respond to it.
Decisional Roles
Associated with the methods managers use to plan strategy and utilize resources to achieve goals.
1. Entrepreneur role: deciding upon new projects or programs to initiate and invest.
2. Disturbance handler role: assume responsibility for handling an unexpected event or crisis.
3. Resource allocator role: assign resources between functions and divisions, set budgets of lower
managers.
4. Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or
shareholders.

Personal characteristics needed by managers

 Desire to manage – will
 Ability to communicate
 Integrity and honest
 Personal experience

MANAGEMENT FUNCTIONS:

The 4 basic management functions that make up the management process are described in the
following sections:

1. PLANNING
2. ORGANIZING
3. LEADDING
4. CONTROLLING.

PLANNING: Planning involves choosing tasks that must be performed to attain organizational
goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning activity focuses on attaining goals. Managers outline exactly what organizations should do
to be successful. Planning is concerned with the success of the organization in the short term as well
as in the long term.

ORGANIZING:

Organizing can be thought of as assigning the tasks developed in the planning stages, to various
individuals or groups within the organization. Organizing is to create a mechanism to put plans into
action.

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People within the organization are given work assignments that contribute to the company’s goals.
Tasks are organized so that the output of each individual contributes to the success of departments,
which, in turn, contributes to the success of divisions, which ultimately contributes to the success of
the organization.

LEADING /INFLUENCING:

Influencing is also referred to as motivating, leading or directing. Leading can be defined as guiding
the activities of organization members in the direction that helps the organization move towards the
fulfillment of the goals.

The purpose of influencing is to increase productivity. Human-oriented work situations usually

generate higher levels of production over the long term than do task oriented work situations
because people find the latter type distasteful.

CONTROLLING:

Controlling is the following roles played by the manager:

1. Gather information that measures performance

2. Compare present performance to pre-established performance norms.
3. Determine the next action plan and modifications for meeting the desired performance
parameters.

Controlling is an ongoing process.