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Learning Objectives: By the end of this topic, participants should be able to:
 Define Management.  Explain the difference between management and leadership.  Explain the functions of management.

 Discuss the principles of management
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Introduction Not unexpectedly, the variety of approaches to the theoretical background of management has produced a number of versions of what is meant by such key words as ‘management’ and ‘organisation’. This paper looks at the most typical interpretations of such words and offers some explanation The meaning of management There is no generally accepted definition of ‘management’ as an activity, although the classic definition is still held to be that of Henri Fayol. ‘To manage is to forecast and plan, to organise, to command, to coordinate and to control.’ H Fayol (1916) Management is a social process... the process consists of ...planning, control, coordination and motivation. E F L Brench (1957) Someone defined management as the process of acquiring and combining human, financial, and physical resources to attain the organisation’s primary goal of producing a product or service desired by some segment of society. This process is essentially of the functioning of all organisations – profit or non profit; essential resources must be acquired and combined in some way to produce an output. ‘Deciding what should be done and getting others to do it.’ Rosemary Stewart

Sensible working arrangements Working with and through other people

Mary Parker Follet

Mintzberg has attempted to move away from this generalised approach towards a more detailed and behaviour oriented analysis of what managers actually do. Mintzberg highlights key roles that seem to appear regularly in a manager’s job. He describes these roles as ‘ organised sets of behaviours identified with a position’ and gathers them into three main grouping: Interpersonal Figure Head Leader Liaison Informational roles Monitor Disseminator Spokesman Decisional roles Entrepreneur Disturbance Handler Resource Allocator Negotiator
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Differences between management and leadership LEADERSHIP AND MANAGEMENT At times management and leadership are seen as synonymous. There is, however, a difference between the two and it does not follow that very leader is a manager. Management is more usually viewed as getting things done through other people in order to achieve stated organizational objectives. The manager may react to specific situations and be more concerned with solving relatively short-term problems. Management is regarded as relating to people working within structured organisations and with prescribed roles. To people outside of the organization the manager might not be seen in a leadership role. On the other hand, leadership’s emphasis is on interpersonal behaviour in a broader context. It is often associated with the willing and enthusiastic behaviour of followers. Leadership does not necessarily take place within the hierarchy structure of the organization. Many people operate as leaders without their role ever being clearly established or defined. A leader often has sufficient influences to bring about long-term changes in people’s attitudes and to make change more acceptable.

Distinction between Leadership and Management: Distinction between Leadership and Management Leaders take a personal and active interest in achieving goals whereas managers tend to play a relatively passive role in accomplishing the goals. Managers need power to be entrusted to them by the organization to deal with people. Leaders have power within themselves and the required drive to lead people and motivate them to work enthusiastically towards achieving goals. Managers limit their interactions with people to the minimum extent required to carry out their managerial responsibilities. Leaders interact with people frequently and in a more natural way. In the process they inspire people, motivate them and lead them.
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Leadership and management must go hand in hand. They are not the same thing. But they are necessarily, and complimentary. Any effort to separate the two is likely to cause more problems than it solves. In his 1989 book “On Becoming a Leader,” Warren Bennis composed a list of the differences: Leader innovates An original Focuses on people Inspires trust Has long-range perspectives Ask what and why Eye is on the horizon Challenges the status quo Is his/her own person Does the right thing Manager administers copy /imitates Focuses on systems and structure Relies on control Has short-range perspective Ask how and when Eye always is on the bottom line Accepts status quo Classic good soldier Does things right

Organisation ‘Organisations are systems of inter-dependent human beings.’ Pugh (1990) A group (of two or more people who are) working together towards a common goal or objective over a certain period of time. Management is not an activity that exists in its own right. These activities have generally been grouped in terms of planning, organising, motivating and controlling activities.

The process of Management As Drucker (1955) first put it, over forty years ago management is concerned with the ‘systematic organisation of economic resources’ and its task is to make these resources productive. Management is a description of a variety of activities (functions) carried out by those members of organisations whose role is that of a ‘manager,’ i.e. someone who either has formal responsibility for the work of one or more persons in the organisation, or who is accountable for specialist advisory duties in support of key management activities. These activities have generally been grouped in terms of planning, organising, motivating and controlling activities. The grouping of management activities (functions) can be summarised as follows: Planning Deciding the objectives or goals of the organisation and preparing how to meet them.

Planning is an activity which involves decisions about ends (organisational aims/objectives), means (plans/strategies), conduct (policies) and results (outcomes). It is an activity which takes place against a background of: 1. The organisation’s external environment, and 2. The organisation’s internal strengths and weaknesses. Planning can be long-term, as in strategic and corporate planning, or short-term, as in the setting of annual departmental budgets, work plans etc. Long-term usually implies a time-horizon of about five years, although this may be ten or twenty years in certain industry (e.g. oil extraction, pharmaceuticals etc). Short-term can be any period from immediate future (crisis management) up to about one year. Organising determining activities and allocating responsibilities for the achievement of plans; coordinating activities and responsibilities into appropriate structures. Plans have to be put into operation. This involves detailed organisation and coordination of tasks and the human and material resources needed to carry them out. A key issue here is that of formal communication. Motivating meeting the social and psychological needs of employees in the fulfilment of organisational goals.

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The motivating activities of managers, however, are essentially practical in their intent for, in setting plans and executing them, managers have to gain the commitment of their employees. This is primarily a question of leadership, or style of management. Controlling monitoring and evaluating activities, and providing corrective mechanisms. It has to be recognised that these traditional groupings – the POMC approach- are the ones chosen to represent the framework for this paper. It is appreciated that they do not tell the whole story about what constitutes management, but they are a convenient way of describing most of the key aspects of the work of managers in practice.
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Controlling Controlling activities are concerned essentially with measuring progress and corrective deviations. The basic functions of control are:  to establish standard of performance  to measure actual performance against standards  to take corrective measures where appropriate. Control activities acts as the feedback mechanism for all managerial activities. Their use is, therefore, crucial to the success of management.

Fayol’s principles of management
1. Division of Labour

Reduces the span of attention or effort for any one personal for any one person or group. Develops practice and familiarity. 2. Authority The right to give (lawful) orders. Authority should not be considered without reference to responsibility. 3. Discipline Outward marks of respect in accordance with formal or informal agreements between firm and its employees.

4. Unity of command One man one superior 5. Unity of direction One head and one plan for a group of activities with the same objective. 6. Subordinate of individual interest to the general interest The interest of individual or one group should not prevail over the general good. 7. Remuneration Pay should be fair to both the employee and firm 8. Centralisation Is always present to a greater or lesser extent, depending on the size of company and quality of its managers. 9. Scalar chain The line of authority from top to bottom of the organisation. 10. Order
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A place for everything and everything in its place; the right man in the right place. 11. Equity A combination of kindliness and justice towards employees. 12. Stability of tenure of personnel Employees need to be given time to settle into their jobs, even though this may take a length period in case of managers. 13. Initiative Within the limits of authority and discipline, all levels of staff should be encouraged to show initiatives.
14. Esprit de corps

Harmony is the great strength to the organisation; teamwork should be encouraged.

In your opinion, are the 14 principles of management advocated by Henri Fayol still relevant in the today’s 21st century of modern management? Discuss.

Relevance of Fayol’s Principles of Management Fayol’s General Principles have been adopted by the later followers of the classical school such as Urwick and Brech. Present theorist, however, would not find much of substance in these precepts. From our present day view point, the following general comments may be made:
1. The reference to division of work, scalar chain, unity of command

and centralisation, for example are descriptive of the kind of formal organisation that has come to be known as bureaucracy. Fayol’, in true classical fashion, was emphasising the structural nature of organisation.
2. Issues such as individual versus general interests, remuneration

and equity were considered very much from the point of view of a paternalistic management. Today’s questions concerns fairness, or the bona fide conflict of interest between groups, have to be worked out between management and organised labour, often with third party involvement by the State.
3. Although emphasising the hierarchical aspects of the business

enterprise, Fayol was well aware of the need to avoid an excessive mechanistic approach towards employees. Thus reference to initiative and esprit de corps indicated his sensitivity to people’s needs as individuals and as groups. Such issues are of major interest to theorists of today, the key difference being that whereas Fayol saw these issues in the context of a rational organisation structure, the modern organisation development specialist sees them in terms of adapting structures and changing people’s behaviour to achieve the best fit between organisation and its customers.
4. Fayol was the first to achieve a genuine theory of management

based on a number of principles which could be passed on to others. Many of these principles have been absorbed into modern organisations. Their effect on organisational effectiveness has been subject to increasing criticism over the last twenty years, however, mainly because such principles were not designed to cope with modern conditions of rapid change, flatter structures, and
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increased employee participation in the decision process of the organisation. References: • Bennett. R, (1991) Management, Pitman Publishing, Singapore • Cole, G.A., (2000) Management Theory and Practice, Continuum, London, UK

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