Course Title:

Management Theory and Practice

1
 Course Overview

• Chapter One: Overview of Management

• Chapter Two: Evolution of Management
• Chapter Three: Planning
• Chapter Four: Organizing
• Chapter Five: Staffing
• Chapter Six: Directing
• Chapter Seven: Controlling

Management Theories 2
Chapter 1: General Overview of Management

• Definition of Management
• Nature and Characteristics of Management
• Significance of Management
• Levels of Management
• Managerial Roles
• Managerial Skills
• Universality of Management

Management Theories 3
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
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.
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.

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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
 Managers…..

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

resources to meet its goals

1-20
 WHAT DO MANAGERS DO?
Three categorization schemes:

Management Functions
Management Roles
Management Skills

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MANAGEMENT FUNCTIONS….

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

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UNIVERSALITY OF MANAGEMENT

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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

Management Theories 29
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
 Management Roles

•Roles are specific actions or behaviors

expected of a manager.

•Mintzberg identified 10 roles grouped

around three major categories:
1) interpersonal relationships,
2) the transfer of information,
3) 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
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•Informational: Roles that
involve receiving, collecting
and disseminating
information- monitor,
disseminator, spokesperson

Management Theories 38
•Decisional: Roles that involve
making choices- entrepreneur,
disturbance handler, resource
allocator, negotiator

Management Theories 39
 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 Skills

• There are three main forms of Managerial Skills (Skills of

Management)
1. Conceptual Skills
2. Human Skills
3. Technical skills

Management Theories 43
 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
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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 45
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 46
Managerial Skills vs levels of management
 Environment of Management
Environment of Management: it explains the forces (both inside and outside of
the company that affects (positively or negatively) the overall function of the
company.
There are two types of environment which are divided as internal and external
environment. The internal environment is controllable but the external one is
uncontrollable.

External Environment: InternalEnvironment:

Economy of the country: Management of the company
inflation, cost of living etc… Employees skill
Politics: the countries overall Machineries
politics Financial capital
Social and Cultural forces: the
countries social and cultural issues
Technology: the overall
technological forces related to the
company’s products

Management Theories 48