Managment Notes 2021

09/07/2021
Management
Principles of Management
2021 Class
With Ngandalo J.
Zabtuc Business School
Contact 0950 159 324
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Principles of Management 1
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Welcome to the business management Class
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What is Management?
‘Management is Getting things done through other people’

[Steward]
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Introduction to Management Cont’d
“Management is the effective, efficient, correct and timely use of another persons property
and resources for the purpose for which they were delegated with a view to producing the
expected added value” (MM)
What do you think about the definition above?
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Introduction to Management Cont’d
Management is about:
• Achieving expected Performance and results (effectiveness)
• Working with others (Social Process)
• Efficiency (Doing more with less)
• Stewardship of another person’s property/resources (Faithfulness)
• Value addition (growing the entrusted investment)
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Session One [1]
Business and non-commercial

Organizations
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Focus
• Benefits and limitations types of organizations

• Types of organizations
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What is an Organization?
✓ A group of people who work together in a structured way for a shared purpose
✓ An organization is a social arrangement which pursues collective goals, which controls its
own performance and which has a boundary separating it from its environment
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Benefits of an Organization
• Overcomes individual limitations: physical/intellectual

• Saves time: working together, doing different aspects of the same task may save time
• Accumulates and shares knowledge
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Benefits of an Organization Cont’d
• Enables synergy: combined output is higher than if individuals worked in isolation

• Enables specialisation: do what you do best
• Organisations can be looked at as vehicles of wealth creation and preservation
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Types of Organizations
• Sole trader or sole proprietor

• Partnerships (also include LLP)
• Limited liability company (Public/Private)
• Cooperative
• Non-governmental organizations (NGO’s)
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Sole Trading Organization
• A business owned and controlled by one individual.
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Sole Trading Organization Cont’d
Attributes:
• Owned by one person (Sole means One)
• Unlimited liability: Owner is personally liable for business debts
• Simple to set up: does not require a huge amount of Capital
• Relatively small in size
• Relatively common
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Advantages
• Flexible
• Owners control over the business is total
• No need for disclosure of accounts
• Less or minimal regulations
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Demerits
• Unlimited liability for the owner
• Possible discontinuity without owner
• Restricted access to Finance
• Poor or no internal controls
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Partnership Business
Business owned by two or more entrepreneurs .
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Partnership Business Cont’d
Attributes:
• Two or more People Join together in order do business
• Common among professions
• Partners run/control business
• Partners are bound by a partnership contract
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Attributes:
• Two or more People Join together in order do business
• Common among professions
• Partners run/control business
• Partners are bound by a partnership contract
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Attributes:
• In the absence of a contract the partnership Act can be used as an implied contractual
agreement
• Most partnerships have no limited liability cover
• Number of partners can exceed 20 people
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Merits
• Easy to set up
• Shared Risk
• Shared Skills, Knowledge and Resources
• Better continuity Prospects
• No requirement to Publish accounts
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Demerits
• Delayed decision making due to disputes/disagreements
• Unlimited liability
• Restricted access to capital
• Resignation/death of key partner can greatly disrupt business
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Limited liability Company
A commercial organization owned by shareholders.
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Limited liability Company Cont’d
Attributes:
• Separate legal identity: The company has its own identity
• limited liability :Owners liability for Company debts is restricted to their
share value
• Owned by shareholders: Shares holders are the beneficial owners of
limited liability company
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Attributes:
• Divorce of ownership and control: Management control the business and shareholders
own it
• Governed by the companies act
• Relatively large in size
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Advantages
• Limited liability
• More stable compared to sole trader or partnership
• Separate Legal identity
• Better access to capital
• Economies of scale
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Disadvantages
• Stricter regulatory control
• Requirement to file audited accounts
• Difficult to manage and Control
• Dilution of control where a company is owned by several shareholders
• Need for an audit
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Cooperative
• Business jointly owned and managed by its members who share profits and benefits.
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Cooperative Cont’d
Attributes
• Open Membership
• Members join by buying shares
• Members are Guided by membership Rules
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Attributes
• Democratic rule : One member , One Vote
• Profit is shared among members: Usually in Kind
• Promotes education among members
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Advantages
• Improves the social/economic status of members
• Improved market Bargaining power of members
• Not dominated by one individual/group
• Socially and economically progressive
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Demerits
• Can be difficult to organize when membership grows
• Restricted access to capital resulting in failure to grow
• Poor management resulting from lack of decisive and clear authority
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Non-Governmental Organization [NGO]
• A service organization which is not under government control.
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Non-Governmental Organization Cont’d
Attributes :
• Independent of government
• Formed voluntarily
• Not formed for private profit or gain
• Aims to improve warfare of target group
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Advantages
• Flexible or able to adopt to the need/wants of beneficiaries
• Advocacy role - act on behalf of the beneficiaries
• Trusted by the external stakeholders
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Demerits
• Prone to political bias or abuse
• Over reliant on external funding
• Difficult to regulate
• Can be ineffective due to lack of coordination
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Thank you!
Remember , we don’t have a money problem in our world, but we definitely have a
management problem!
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Session Two [2]
Business stakeholders
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Focus
• Identify business stakeholders and explain their objectives

• Explain stakeholder conflict management
• Explain the Mendolow’s Matrix
• State the attributes of Small to medium entrepreneurship
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Who is a stakeholder?
• A stakeholder is a person or group of persons with legitimate interest in the

affairs of an organization.
• A stakeholder is an individual or group of people who have an interest in the organization
and can be affected by the goals, operations or activities of the firm.
• Think about stakeholders of a college or university?
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Stakeholder analysis
Three stakeholder categories

• Internal [Management and Employees]
• Connected [Shareholders, Trade contacts, Debt Capital providers]
• External [Public]
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Stakeholder analysis cont’d

Stakeholder Interest
Shareholders Investment growth and returns
Management Stewardship concerns and personal benefits
Employees Job security, career progress and pay increment
Suppliers Ability to pay off obligations within terms of trade
Customers Reliable suppliers or continuity of supply
Government Tax compliance, employment opportunity
Public CSR actions, employment opportunity
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Conflict of interest
• It is impossible for an organization to satisfy the interest of all

stakeholders!
• Organizations must identify and prioritize stakeholder interests .
• A good example of conflict of interest is one involving management and
shareholders – short termism
• Let us look at the matrix on the next slide which attempts to manage stakeholder interest
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Mendelow’s Matrix
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Mendelow’s Matrix Cont’d
• Power – ability to influence organisational strategy or project resources

• Interest – interest of stakeholders in the success of organisational strategy
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Stakeholder Management
• Segment D: strategy must be acceptable – key players e.g. key customer/Key

member of staff
• Segment C: keep satisfied – e.g. Shareholder/financial lender
• Segment B: keep informed – e.g. employees
• Segment A: minimal effort – e.g. member of the public
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Small to medium entrepreneurs
SMEs:
• foundation for strong economies
• Restricted access to capital
• NOT listed on the stock Markets
• viewed as Risky clients by Banks
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Small to medium entrepreneurs Cont’d
SMEs:
• Lack strong internal controls
• May not attract and retain a talented management team
• Growth attract stricter regulation
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Thank you!
Remember , we don’t have a money problem in our world, but we definitely have a
management problem!
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Session Three [3]
Theories of Management
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Focus
• Principles of management
• Management skills
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Role of Management
Management may be defined as the control and organization of something

The role of the manager includes;
• Planning
• Allocating resources
• Project Management
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Role of Management Cont’d
Planning
involves task sequencing, task time tabling, checks/controls, contingency
plans and coordination
Allocating resources
involves proper employment of human, material and financial resources
Project mgmt.
involves the ability to foresee as many contingencies as possible and to plan
,organize ,coordinate and control activities
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Henry Fayol’s Five functions of Management
Function Explain
1 Planning Choosing objectives and related strategies
for achieving objectives.
2 Organising Establishing structured tasks
3 Commanding Issuing instructions to subordinates
4 Coordinating Harmonising goals and related activities
5 Controlling Measuring and correcting actual results
against set plans or standards
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Criticism of Henry Fayol
Critics point out that Fayol did not appreciate the concepts of:
• Motivation
• Communication
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The Fourteen Principles of Henry Fayol
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to the general interest
7. Remuneration of personal
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The Fourteen Principles of Henry Fayol Cont’d
8. Centralization
9. Scaler chain
10. Order
11. Equity
12. Stability of tenure of personal
13. Initiative
14. Esprit de corps
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Management Skills
1. Technical skills :acquired through education

2. Social skills: skills used in managing people (workers ,fellow managers and customers)
3. Leadership skills: skill used to influence others
4. Conceptual skills: Business knowledge skills
The skills mentioned are necessary tools for effective business management which require
informed judgment to enforce
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Theories of management
FW Taylor – Classical management writer

His work essentially involved:
• Development of the true science of work
• Scientific selection and progressive development of workers
• Planning measuring and control of work
• Cooperation between mgt and workers
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Time and Motion study
• Division of big tasks into smaller tasks

• Employment of specialised skills or labour
• Division of labour + Specialisation = Efficiency
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Weber and Bureaucracy
The arguments for bureaucracy

• Need for a Hierarchy
• Bureaucracy is Impartial - Procedures overrides personal views
• Division of labor and specialization
• Promotion based on performance
Weber argued that an ideal bureaucracy will perform successfully if it is well
implemented
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Weber and Bureaucracy Cont’d
Demerits
• Emphasis on rules and procedures can result in losing sight of the bigger picture
• Officious behavior can be counter productive
• Procedures can discourage initiative
• Managers can use rules to hide from unwanted responsibilities
• Not responsive to change
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Human Relations Management theory
Elton Mayo experimental findings:

• Changes in working conditions did not affect productivity
• Workers attitude and group relationships is directly linked to good performance
• Employee motivation is therefore of vital importance if expected goals are to be met
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Human Relations Management theory Cont’d
Conclusions of Elton Mayo:

• There is need to recognize the social value of work
• Workers self esteem must be encouraged
• Workers satisfaction can increase performance
• Positive relationship between management and workers is a needful mgmt. tool
• Workers motivation improves performance
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Peter Drucker - Management process
Drucker’s Management tasks include:

• Managing business by creating a customer and innovation
• Managing managers through mgmt. performance objectives, structuring, culture,
successions and sound principles
• Managing workers and work
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Peter Drucker - Management process Cont’d
Drucker’s Management Process

• Setting objectives for the organization(quantify and communicate objectives)
• Organizing the work (work division and allocation)
• Motivating
• The job of measurement
• Developing people
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Mintzberg - Manager’s Role
Interpersonal role
✓Figurehead (ceremonial)
✓Leader (hiring, firing, motivating)
✓Liaison (With other Depts.)
Informational
✓Monitor
✓spokesperson
✓disseminator
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Mintzberg - Manager’s Role Cont’d
Decisional
✓Entrepreneur
✓Disturbance handler
✓Resource allocator
✓Negotiator
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Mintzberg - Manager’s Role Cont’d
Conclusion of Mintzberg:
• Managers are not reflective systematic planners
• Mgt. work is disjointed and unsystematic
• Mgt. work is non-routine
• Mgt. prefer informal to formal systems
• Mgt. cannot be reduced to a profession or science.
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Roseberth Moss Kanter
Roseberth criticized the inefficiencies of bureaucratic organizations

She proposed that business survival depended on:
• Innovation (development of new products/services)
• Entrepreneurship (Taking Business Risks)
• Participative management (Greater empowerment)
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Thank you!
• Remember , we don’t have a MONEY problem in our world, but we definitely have a
MANAGEMENT problem!
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Session Four [4]
Strategic Positioning
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Focus
• What is strategy?
• Levels of strategy
• Implementing strategy
• Assessing the Micro-environment: position Audit
• Assessing the Macro environment: PESTEL
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Introductory thought
• What is a strategy?????
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Introduction to Strategy
What is strategy?
• A Course of action which is intended to archive specified objectives with
resources that are allocated to it.
• The strategy of an organization is set out in a business plan
• The responsibility of business strategy rests in the hands of top
management…..
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Attributes of Strategic Decisions
• Strategic decisions are complex

• Strategic decisions incorporate uncertainty
• Strategic decisions affect operational decisions
• Strategic decisions the affect entire organization
• Strategic decisions can lead to change within an organization
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Mission Goals and Objectives
• Mission is the overriding purpose of an organization (reflects values or

expectations of stakeholders)
• Vision or strategic intent is state desired by organizations strategists
(the directors)
• Goal is a statement of general aim or purpose that support the mission
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Mission Goals and Objectives Cont’d
• An objective is a more specific aim/purpose and will probably be

quantified
• Target is something that an organization aims to achieve within a specific
time frame (deadline)
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Objectives
Drucker writes in his book that effective objectives should be:

• Specific (Decisive/Focused) action
• Measurable (quantifiable)
• Achievable (within Reach)
• Realistic (possible to attain)
• Time related (deadline)
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Objectives Cont’d
The reasons for setting objectives include the following:-

• P-Planning: objectives define what a plan is about and what it should be trying to
achieve.
• R-Responsibility: objectives define the responsibilities of managers and department
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Objectives Cont’d
• I-Integration: objectives should support one another and be consistent with each other,
so that the activities and efforts of different departments are properly integrated.
• M-Motivation: managers need to know what their objectives are before they can be
motivated to achieve them. Objectives must be created for all areas of performance.
• E-Evaluation: performance is assessed by comparing actual results with objectives
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Levels of Strategy
• Corporate strategy concerned with the overall purpose/ scope of an organization and
how value will be added to different departments.
• Business strategy is deals with how a company can compete in particular markets.
• Functional or operational strategy concerns the activities of the individual business
departments.
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Levels of strategy
Strategic Objectives attributes

• Scope: Activities of entire organization
• Aims to meet stakeholder expectations
• Strategy is about allocating resources
Attributes of business strategy
• Product development
• Market assessment
• Achieving competitive advantage
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Levels of strategy cont’d
Functional strategies
Function comment
Marketing strategies may involve developing products and services, and pricing,
promoting and distributing them in order to satisfy customer needs at a
profit. Marketing and corporate strategies are interrelated.
Production strategic decisions may involve decisions about factory locations,
manufacturing techniques, improving capacity and so on.
Finance financial strategy involves making plans for the organization to have
enough financial resources to fund it’s other strategies, by identifying
sources of finance and ways of using them.
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Levels of strategy cont’d
Functional strategies
Function comment
Human human resource strategy deals with how to recruit and retain managers
resource and other employees with the right skills in the right quantity at the right
management time.
Information information systems are becoming an increasingly important part of
systems business operations as an item of expenditure, as administrative support
for other departments and as a way of gaining competitive strength.
Research and research and development strategy is concerned with setting objectives
development and making plans for the development of new products or services. There
should be also be strategic plans for the amount of resources to invest in
R&D and deciding how R&D resources should be targeted.
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Implementing Strategy
Strategy implementation involves the following:-

• Making individual managers responsible for each part of the strategy and for the overall
strategy.
• Formulating detailed plans for each strategy and setting targets for each plan.
• Ensuring that managers have the resources to achieve their planned targets.
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Implementing Strategy cont’d
For strategy to work well, the following must be considered:-

• Structuring - there must be an organization strategy with systems and processes for
implementing plans. Plans can not be implemented if there is no organization structure,
systems and procedures for putting them into practice.
• Enabling - there must be sufficient resources available i.e. money, materials, people and
equipment- to implement the strategic plans and achieve the strategic objectives.
• Change - change is often a consequence of new business strategies and the problem of
managing it is an important feature of successful strategic implementation
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Implementing strategy cont’d
The rationale model suggests the following steps in implementing strategy:

1. Identification of Mission /objectives
2. Cooperate appraisal including environmental analysis
3. Strategic options
4. Strategic choice
5. Implementation
6. Strategic control
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Assessing the Micro - environment
• Microeconomics is the study of the economic problems of businesses and people and the
way particular parts of an economy behave
• It concerns the immediate operational environment which constitutes suppliers (both
internal/external ), competitors, customers, intermediaries and other stakeholders
• An important point to understand under micro environment is the competition which exists
between organizations primarily driven by the need to win more customers, obtain
affordable quality supplies and access best intermediaries
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Assessing the Micro – environment cont’d
Position audit
• An assessment of all aspects of an organization's capacities
Resource audit
• Part of a position audit which looks at available resources
• No organization has unlimited resources but each organization has it own strength and
weaknesses
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Assessing the macro environment
• Macroeconomics is that branch of economics that deals with the performance, structure
and behavior of the economy as a whole
• Macro economic policy refers to policies and actions which the government takes to
control economic issues including economic growth ,inflation, employment and trade
performance
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Assessing the macro environment Cont’d
PESTEL
• Political environment
• economic environment
• Social culture environment
• Technological
• Ecological Environment
• Legal environment
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Limitations of PESTEL
• It is not easy, using PESTEL, to identify the key factors that will affect the business
environment in the future, or what their effect will be.
• It is a method of qualitative analysis, it does not quantify the importance of environmental
factors
• It does not provide any answers to problems although it is a tool for analysis by
management.
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Thank you!
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Session Five [5]
Organizational Structure
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Focus
• Core Functions of an Organization

• Types of organization structure
• Internal Relationships
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Introductory Thoughts
An organizational structure exist when an organization has more than one person…..
Large organizations will have a formal structure.
(Please take time to look an organizational charts on the internet after this recording)
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Qualities of a Suitable Organisation structure
• Economical or at low cost

• Efficient in resource usage
• Effective in meeting organization objectives
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Qualities of a Suitable Organisation structure
A suitable organization structure may not in itself produce good but a poor organization
structure will frustrate positive growth Peter Drucker
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Results of a Poor organisational structure
John child promotes the adverse impact of a poor organization structure including
• Demotivated work force
• Delayed decision making processes
• Conflict and lack of coordination
• Poor response to change, opportunities and threats
• Rising costs
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Types of organisational structures
1) Simple structure
2) Functional structure
3) Divisional structure
4) Matrix structure
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Simple Structure
• The simple structure /entrepreneur organization were an executive and his/her team
work together is associated with small enterprises.
• Control or power is essentially concentrated in the hands one person who manages the
whole organization.
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Simple Structure cont’d
• Appropriate for small organizations

• While the simple structure above may offer the benefit of flexibility and control there may
be succession challenge.
• The structure is often informal and individuals do not have job titles or formal roles. They
take orders from the same person, who may be the owner or manager, so that all decision
making is centralized.
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• May not be suitable for big or complex organizations

• Owner may suffer from information overload
• Dominant personality issue (Motivation, conflict of interest etc.)
• Continuity problems
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• May not be suitable for big or complex organizations

• Owner may suffer from information overload
• Dominant personality issue (Motivation, conflict of interest etc.)
• Continuity problems
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Functional Structure
• This type of structure is organized around functional specialization, thus structuring an

organization by grouping similar and related occupational specialties together. E.g.
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Functional Structure Cont’d
Merits
• Use of expert knowledge (specialization)
• Reduced effort duplication
• Staff recruitment and development
• Suitable for a centralized company
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Functional Structure Cont’d
Demerits
• Emphasizes on internal processes rather than the need of the customer
• Communication breakdown may result from usage of department Jargon
• Poor coordination between departments.
• Vertical communication barriers problem.
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Divisionalisation
• Often times, very large organizations may have a divisional structure, consisting of
several divisions or strategic business units.
• Each division specializes in one area of business operation or a different geographical
market. For example:
• A large manufacturer of food and drinks products may have a food products division and a
drink products division.
• A company may have a division for its domestic markets and another for foreign markets.
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Divisionalisation Cont’d
Prerequisites for a division:

• Proper delegation of authority
• Adequate investment
• Minimum supervision from HQ
• High growth potential
• Scope and challenge
• Fair value transactions with other units
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Divisionalisation cont’d
Advantages :
• Focused management effort
• Loss leading unit/divisions can be easily identified
• Cost efficiency via cost reduction based targets
• Careers progress opportunities for junior managers
• Reduction management levels
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Divisionalisation cont’d
Disadvantages :
• Increased competition for resource allocation
• Only possible at a fairly high level in the management hierarchy.
• Products/Markets may not be readily identifiable.
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Matrix structure
• A matrix organization is characterized by dual reporting lines which are primarily caused
by project which cuts across the traditional organizational structures.
• This is an organization design that combines functional organization with project
managers.
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Matrix structure cont’d
Advantages
• Enhanced flexibility
• Interdisciplinary cooperation
• Employee development
• Market awareness
• Horizontal work flow
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Matrix structure cont’d
Disadvantages
• Conflict of interest between functional mangers and project managers
• Dual reporting may adversely affect employee motivation
• Additional administration costs
• Delayed decision making due to organization complexity
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Internal Relationships
Internal relationship refers to working relationships between workers working in an

organization. Matters to consider here include
• The concept of specialization
• Flat and tall organization
• Span of control
• Delayering
• Formal and informal relationships
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Internal Relationships cont’d
Delaying is reduction in the number of management levels made possible through

among other things
• Technological advancements
• Delegation/empowerment
• Economical measures
• Fashion trends
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Types of internal relationships:

• Line relationship (exists between employee and immediate supervisor)
• Functional relationship ( exists System admin and other department heads)
• Staff relationship ( exist between CEO and personal assistant)
• Lateral relationship (exists between two employees from different department at the same
leve)
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• Modern companies are embracing structures which accommodate IT advancements,

empower staff, cost effective and fashionable
• Remember that non - core activities can be outsourced or offshored
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Centralisation and decentralization
In a centralized organization authority is concentrated in one place

Advantages
• Central decision point/better coordination
• Senior management support and accountability
• Balanced resource allocation
• Reduced administration costs due to few managers
• Crisis management can be better addressed by head office
• Standardized policies or procedures
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Centralisation and decentralization cont’d
Demerits
• Overwhelmed top management Team
• Demotivated Junior managers
• Lack of greater awareness of the local needs individual depts.
• Delayed response time to urgent needs of the individual departments
• Untapped potential of junior managers
• Junior managers may not commit fully to their responsibility due to lack of separate
sphere of responsibility
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Mintzberg organization Structure
• Strategic apex which sets out the organization mission

• Operating core which obtains inputs and convert these into output
• Middle line which fulfill the desire of the strategic apex
• Techno structure consisting of analysts and planners
• Support staff which is made up of support staff such legal council, cafeteria e.t.c
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Mintzberg organization Structure Cont’d
• The analysis above is indicative of a standing organization and may not be applicable to
a small organization.
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Thank you!
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Session Six [6]
Organizational Culture
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Focus
• Explain the importance of culture in an organization
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What is Culture????
• The way things are done here! (schein)

• The complex body of shared beliefs, attitudes and values in an organisation.
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Nature of culture
• Beliefs and values: underlying attitudes and overtly expressed beliefs.

• Customs: norms, ways of behaving, ‘unwritten rules’.
• Artefacts: buildings, decor, dress rules, display of ‘trophies’, relationship styles, types of
people employed.
• Rituals: repeated behaviors, ceremonies, celebrations
• Symbols: signs of status and success, corporate logos, badges of identity and so on.
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Elements of Culture
Schein suggests that culture has three major elements:

• Observable expression of culture which include behavior, artifacts and attitude
• Values and beliefs e.g. slogans, or the regard for privacy
• Assumptions or unspoken rules (Very difficult to control)
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What Modes Culture?
• Management style
• The extent to which initiative is encouraged
• Attitude to quality
• Attitude to risk
• Attitude to the customer
• Attitude to technology
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Influence on organizational culture (Further aspects)
• Founder’s personality
• Organization's history
• Leadership and management style
• The organization's environment
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Harrison/Handy powers of organizational culture
• Power culture (Zeus) results from a dominant personality

• Role culture (Apollo) facilitated by a bureaucratic rules and procedures
• Task culture (Athena) driven by the need for performance
• Existential/personal (Dionysus) culture shaped by individual interest
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Management
Thank you!
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Session Seven [7]
Management and Leadership
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Management
Focus
• Management and leadership

• Theories of leadership
• Styles of leadership
• Leadership in modern organization
• delegation
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Management
Key thought
• We have an acute shortage of leaders in Management positions.

• We need leaders in management positions.
• What will happen to the corporate world if followers ascend to and keep management
positions?
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What is leadership?
• Leadership is the activity of influencing people to strive willingly for group objectives
• Leadership and management are distinct ideas that is the two concepts are NOT the
same.
Management
Management
What is leadership? Cont’d
• Management is about copying with complexity

• Leadership is about copying with change
Management
Management
What is leadership? Cont’d
• Management can be exercised on anything other than man, but in leadership man
becomes the subject of control.
• Bennis looks at a manager as an administrator and a leader as a visionary
• The manager does things right but the leader does the right thing
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Key Leadership Skills
• Entrepreneurship skills
• Interpersonal skills
• Decision making and problem solving
• Time management and personal organization
• Self development skills
Management
Management
Management leadership - a social process
The manager should emphasis the importance of work, create an atmosphere of trust,
encourage initiative and endeavor to impart hope in their subordinates.
Management
Management
Warren bennis mgmt. competence
• Management of attention which is a compelling cause or vision to give focus

• The management of meaning which is the ability to communicate
• The management of trust which require consistency and honesty
• Management of self being aware of personal weaknesses and strength
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Management Theories Overview
• Trait theories based on leaders personality/preference

• Behavioral theories based on mgt behavior
• Style theories based on mgmt. style of leadership (leadership is an interpersonal process
and different style have different ways of influence)
• Contingency theories state that there not a one best way of leading and the suitable mode
of leadership will depend on circumstances or behavior
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Management
Trait or Quality Theories
Looks at the extent to which a leaders personality/qualities can influence the organization.
(leaders are born not made)
Common leadership trait include!!!
• Judgment
• Initiative
• Drive
• Fairness
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Management
Trait or Quality Theories cont’d
• Energy • Co-operation
• Human relation skills • Foresight
• Ambition • Reliability
• Emotional stability • objectivity
• Integrity
• Decisiveness
• Dedication
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Behavioral theory –
Blake and Mouton’s managerial grid
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Management
Blake and Mouton’s managerial grid
The above theory looks at leadership behavior with regard to:
• Concern for production and, (CFPr)
• Concern for people (CFPe)
• Management behavior is grouped into five categories
• Impoverished manager (No CFPr /No CFPe)
• Country club (CFPe but no CFPr)
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Management
Blake and Mouton’s managerial grid cont’d
• Task management (CFPr /no CFPe)
• Middle road/dampened pendulum( Mediocre mgmt.)
• Team management (High CFPr/High CFPe)
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Blake and Mouton’s managerial grid cont’d
Criticism :
• People’s concern is reduced with increased mechanization
• Theory is not absolute but simply a starter analytical tool
• Ignores organization factors such as culture
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Management
Leadership continuum
Tannenbum and Schmidt suggest that leadership progresses from authoritive style to
democratic style .A leader will,
• Tells
• Tells and sell
• Tells and Talks
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Management
Leadership continuum cont’d
• Consults
• Involves
• Delegates
• abdicates
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The Ashridge mgmt. college model
• Tells
• Sells (persuasive)
• Consults
• Joins (Consensus)
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Management
The Ashridge mgmt. college model cont’d
Conclusion made
• Modern practice encourage consultative approach
• A consult manager improves Workers Attitude
• Subordinates feel important
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Management
Action oriented Leadership (John Adair)
Three leadership functions

• Concern for the task ( initiating work, evaluation etc.)
• Concern for the team as a whole (motivating ,clarifying , standard seeking etc.)
• Concern for individuals within the team Goal setting, feedback, recognition etc.)
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Action oriented Leadership (John Adair) cont’d
The action based model promotes:

• Defining task
• Planning
• Briefing
• Controlling
• Evaluating
• Motivating
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Management
Contingency Approaches to Leadership
• There is no one right way of leading….

• The leadership style adopted is dictated by circumstances……
• Leaders must entertain change which the dynamic environment poses……
• There no one shoe fits all solution to all leadership challenges……
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Management
Fiedler’s Contingency Theory
• Psychological distant manager (PDM’s) (Performance manager)

• Psychological close manager (PCM’s) (Micromanagement)
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Fiedler’s Contingency Theory
A work group effectiveness is influenced by:

• Leader/subordinates relations
• Task structure
• Leader power in relation to team
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Management
Modern organization leadership
• Pervasive or evident in modern leadership style are following factors:

• Emotional leadership (based on emotional intelligence)
• Team leadership ( The ability to get the team to strive for common interest)
• Moral leadership ( Leadership actions must be founded on sound moral principles)
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Management
Delegation
Key terms:
• Authority: right to do something
• Power :ability to do something
• Delegation: act of handling down authority from a high rank to a lower rank
• Accountability: the state of being answerable for acting or not acting in a specific way.
• Responsibility: a liability of a person to discharge certain duties.
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Delegation cont’d
Merits:
• Best usage of mgt time
• Limited senior mgt time
• Staff development
• Better Exploitation of specialist skills
• Sound economics
• Motivated workforce
• Overcomes Geographical barriers
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Management
Delegation cont’d
Demerits:
• Compromised output from subordinate
• Shared accountability
• Shared glory which puts superiors in bad light
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Management
Empowerment
A process of making workers responsible for archiving work objectives with the autonomy to
make decision on how objectives should be achieved….
Implication of empowerment include:
• Delayering
• The need for flexibility
• New technology
Empowerment requires a change in organization culture!!!!!
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Thank you!
• We need leaders in management positions!
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Management
Session Eight [8]
Motivation
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Management
Focus
• The nature of motivation

• Theories of motivation
• Personal achievement and career development
• Role of job design in career development
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Question???
What will happen if a demotivated worker continues to work for an organization?
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Management
Nature of Motivation
• To motivate is to cause someone to behave in a particular way……..

• A process through which the individual (Manager) chooses desired outcome and sets in
motion the behavior appropriate to acquiring them.
• Motivation boarders around the phrases: goals and outcomes, process of choosing
outcomes and the social process……….
Management
Management
Nature of Motivation cont’d
• The social process by which the behavior of an individual is influenced by rewards,

incentives and sanctions applied by others
• Extrinsic rewards: for work, e.g. pay, benefits
• Intrinsic rewards: in work, e.g. responsibility, challenge, interest
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Nature of Motivation Cont’d
Influences on Needs and goals

• Childhood environment and education
• Experience
• Age and position
• Culture
• Self concept
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Management
Assumptions of Motivation
• People behavior is related to their need/goal fulfillment

• An organization is an avenue of fulfillment for some of these needs
• Organization can therefore motivate employees based on these needs
• The fulfillment of these can enhance positive attitude
Management
Management
Importance of Motivation
• Motivation can cause employees to put in an extra effort on the job…….

• Improved performance is not necessarily a sign of job satisfaction…….
• The key is to work smarter and not necessarily hard.
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Importance of Motivation (Cont’d)
• Morale A state of mind or spirit of a group with regard to discipline and confidence
Signs of low morale include:
• Low productivity
• High labor turnover
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Management
Theories of Motivation
• Content motivation theories ask the question what are the things that motivate people
(Writers include Maslow's hierarchy of needs and Herzberg's two factor theory)
• Process motivation theories ask the question how can people be motivated (writers
include expectancy theory and Handy’s motivation calculus)
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Management
Maslow's Hierarchy of needs
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Maslow's Hierarchy of needs cont’d
Two other need of Maslow:

• Freedom of enquiry and expression
• Knowledge and understanding
Maslow's theory is a content theory
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Management
Value of Maslow's Hierarchy of needs
• The need to pay employees as this helps to meet the Physiological need.
• The need for an adequate pay as this meet the Esteem needs.
• The need to provide a safe work environment as this meets the Safety need.
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Management
Criticism of Maslow's Hierarchy of needs
• Maslow's idea assumes that people have the same needs

• Some individuals can only be satisfied by a combination of several different needs
• Self actualization is abstract rather and is not conclusive
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Herzberg’s two Factor Theory
The Hygiene or (Dissatisfiers) Factors which include:
• Company policy/admin
• Interpersonal relations
• Salary
• Working conditions
• The quality of supervision
• Job security
A short supply of the above causes dissatisfaction

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Management
Herzberg’s two Factor Theory cont’d
The motivator factor include

• Status
• Challenging work
• Career progress
• Sense of achievement
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Management
Herzberg’s two Factor Theory cont’d
In order to motivate mgmt. should offer

• Job enlargement
• Job rotation
• Job Enrichment
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McGregor theory X and Theory Y
Theory X:
• People are work averse or lazy
• They dislike responsibility
• They have to be controlled or closely supervised
• Characterized by carrot and stick motivation
• Authoritarian leadership styles
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Management
McGregor theory X and Theory Y cont’d
Theory Y:
• Mental/physical effort are as natural play and rest
• People do necessarily dislike work unless there is reason
• People like challenges
• Mgt should seek to align employee’s interests to the interests of the company
• This management style is consultative
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Management
Theory of Needs McClelland
David McClelland gives us his ideas about the three types of influences on
management motivation:
• A need for achievement (N-arch)
• A need for authority and power (N-pow)
• A need for affiliation (N-affil)
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Theory of Needs McClelland cont’d
• N-ARCHS make good leaders although they may demand too much from subordinates
• N-AFFILS make poor leaders as they suffer from indecision
• N-POWS make poor leaders ,who have the work ethic but no people skills
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Management
Likert-Organizational management styles
• Exploitative styles
• Benevolent exploitative style
• Consultative style
• Participative styles
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Management
Adams Equity Theory
Equity in theory means fairness or being even handed……

Employee expect their rewards to be reflective of their input…...
Input includes
• Hard work
• Skills
• Ambition
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Adams Equity Theory cont’d
• long service
Output include
• Pay
• Praise
• Promotion
• Status
• Professional development
What would employees do if their inputs are not justified by output
Management
Management
Goal Setting theory (Lock and Latham)
Theory above is based on motivation driven by goal….

In order to motivate goals should have the qualities of:
• Clarity (specific/clear)
• Challenging (But realistic)
• Commitment (Involved)
• Feedback (timeous)
• Task complexity (Not very simple)
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Management
Management by objective (MBO’s)
A style of management which seeks to align individual managers performance to

organization objectives
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Reinforcement Theory (Skinner)
States that behavior is driven by consequences

• Positive reinforcement encourages repeats past behavior by providing positive
consequence
• Negative reinforcement encourages past behavior by removing negative consequence
• Extinction discourages the employee from repeating the behavior by removing a
reinforcing consequence…….
• Punishment discourages adverse behavior by delivering a negative consequence…….
Management
Management
Personal Achievement and Career development
• Man is a progressive being…..

• He craves for personal recognition……
• Career development is a vital motivational tool
• Employees should be able with time and experience grow out their current positions and
take up new challenging tasks
Management
Management
Methods of Personal Development
• Delegation
• Job rotation
• Secondment
• Deputizing
• Performance appraisals
• Mentoring
• Training
• Personal development plans can be handy tools for career building…..
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Job Design
Looks at how tasks are combined to create jobs

• Micro job design facilitates
• Little training
• Replacement
• Flexibility
• Control
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Management
Job Design cont’d
Drawbacks:
• Monotonous /repetitive
• Demotivated staff
• Negative Social effects
• Lower output quality
•
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Management
Job enrichment
• Job enrichment is a planned deliberate action to build greater responsibility ,challenge

and breadth on the job…..
• Job enlargement is an attempt to widen jobs by increasing the number of operations in
which the job holder is involved…….
• Job rotation is a planned transfer of workers from location to another to increase task
variety…….
• Job optimization arises where a job provides ,skill variety, task identity, tasks significance,
autonomy and feedback…….
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Thank you!
• What would a demotivated worker archive if they remain under the employ of an
organisation?????
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Management
Session Nine [9]
Change Management
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Management
Focus
• Strategic change
• Types of change
• Triggers for change
• Managing change
• Resistance to change
• Organization culture and change
• Ethical issues
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Introduction
• Change is the only constant thing in life……

• Change cannot be avoided, change should be managed……..
• The proper management of change can assure the long term survival of any
organization…….
• Organizations should respond appropriately to internal and external changes………
• Change is therefore a test of management leadership skills……..
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Management
Strategic Change
• Strategic planning can initiate change!!!!

• A position audit which is an assessment of organization resources can reveal
weaknesses which may need urgent management……
• Change can also result from external development in a business environment……..
• Adopting to change is critical for long term survival of an organization…………
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Management
Types of Change
• Planned (proactive) and unplanned (Reactive) change

• Incremental (non-significant) and transformational (Major) change
• One off (complete turn around) and gradual (Overtime) change
• This chapter is concerned with a one off type of change…….
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Nature of Change
Org’s Change may involve:

• Change in org’s structure and m.g.t responsibilities
• IT driven change (new system)
• Change in physical location of the businesses
• People transfer change
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Management
External Triggers of Change
PESTEL Factors:
• Political reasons
• Economic reasons
• Social culture
• Technological
• Ecological
• Legal
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Management
External Triggers of Change cont’d
Strategic change may include:

• Need to respond to international market demands
• The need for new products/ Markets
• Need to respond to competitors activity
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Internal Triggers of Change
• Change in senior management

• Acquisition driven changes
• Reorganization downsizing
• Mgt sense of improvement
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Management
Internal Triggers of Change cont’d
• Need to respond to customer concerns

• The need to fully utilize resources…….
• Concern for poor performance indicators
• Poor relationship btwn workers and the management team
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Management
Greiner’s growth model
• Growth through creativity: the founder (s) can only exercise control over the business to
an extent before the business outgrows his capacity
• Crisis: Need for professional mgmt. team
• Growth through direction: a professional mgt team is in place to direct and control
operations (centralized mgmt.)
• Crisis: need for decentralization
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Greiner’s growth model cont’d
• Growth through delegations: increased divisionalisation which pause a control threat to

HQ
• Crisis: Need to change organization structure
• Growth through co-ordination: HQ closely monitors divisions through sophisticated
reporting systems to the annoyance of divisional managers
• Crisis: excessive report writing and beauracracy
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Management
Greiner’s growth model cont’d
• Growth through collaboration: greater emphasis on team work and problem solving and
less formal reporting systems and accountability
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Management
Managing Change
Steps for managing planned change include:

• Identifying the desired change
• Recognition of impact of change on current systems/ culture
• Recognition of the social impact of change on employees
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Managing Change
Steps for managing planned change include:

• Careful planning and implementation of change
• Post change monitoring (sticking to the change)
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Management
Proper response to Change
• Management should see change as an opportunity for progress and not a threat in order
to maximize value for their key stakeholders…….
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Management
Rosebeth Moss Kanter change management
Attributes of Change:
• Triable
• Reversible
• Divisible
• Concrete
• Familiar
• Congruent
• Sexy
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Rosebeth Moss Kanter change management cont’d
Change mgmt. skills

• Tuning into the environment
• Challenging the status quo
• Communication a compelling aspiration
• Building coalition
• Transforming ownership to a working team
• Learning to persevere
• Making everyone hero
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Management
Lewin force field analysis
Kurt Lewin suggests the two field forces:

Driving forces
• Involving people
• Good habits and customs
• Good attitude
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Management
Lewin force field analysis cont’d
• Good relations
• Availability of resources
• Appropriate organisation structure
• Favorable regulations
• Favourable events
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Lewin force field analysis cont’d
• Restraining forces [The opposite of the above !!!!!!!]

Management Approach
• Foster driving forces
• Reduce restraining forces
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Management
Managing change-Kotter and cohen
K & C admit that change is complex and not simple. They propose the steps
highlighted below
• Increase urgency
• Build a guiding team
• Get the vision right
• Communicate for buy in
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Management
Managing change-Kotter and cohen cont’d
• Empower action
• Create short term wins
• Don’t let up
• Make change stick
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Barriers to Positive Change
• Boss Barrier
• System barrier
• Barrier of the mind
• Personal information Barrier
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Management
Resistance to Change
Humans are naturally change averse! Reasons for resisting change may be:
• Job related
• Personal related
• Social reason
Their has to be an attempt to get stakeholders to understand and accept change which
requires mgt skills
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Management
Lewin three stage change process
• Unfreeze (Prepare for change)

• Change (Transition towards desired outcome)
• Refreeze (Adopt the new mode of doing things)
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Kotter and Schlesinger model to change
The writers seek to explain the reasons for resisting change which include:
• Parochial self interest
• Misunderstanding
• Low tolerance to change
• Different assessment to the situations
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Management
Kotter and Schlesinger model to change cont’d
The Solution to the above therefore is therefore:

• Education and communication
• Participation and involvement
• Facilitation and support
• Negotiation and agreement
• Manipulation and co-option
• Explicit and implicit coercion
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Management
Organisational Culture and Change
• All organizations must anticipate change....

• There has to be a change culture in a proactive organisation……
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Organization Culture and Change Cont’d
Roseberth Kanter suggest that organizations should do the following to implement change
successfully:
• Imagination and innovate
• Professionalism to perform
• Openness to collaborate
NB! The change in organization structure may foster positive change….
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Management
Thank you!!!!
• Change crisis is a test of management quality…….......
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Management
Session Ten [10]
Strategic Human Resource Management
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Focus
• Human resource management

• Recruitment and selection
• Training and development
• Performance evaluation
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Management
Introduction
• Human resource management is concerned with assessing org’s human resource needs,
finding people to meet those needs and getting the best performance out of them……
• Proper management of human capital is essential for the long term survival of a business
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Management
Nature of Human Resource Management
Terminology:
• Human resource means people who work for an organization.
• Human resource management (HRM) is the process of identifying human resource
needs, meeting these needs and getting the best performance from each employee
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Objective of HRM
• Develop an effective human component

• Obtain and develop human resource
• Create and maintain corporative climate
• Meet social and legal responsibility
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Management
Objective of HRM cont’d
S Tyson and A Fell also suggest that HRM will:

• Represent org’s central value system (culture)
• Maintain org’s boundaries
• Provide org’s stability
• Adept the org to change
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Management
Importance of HRM
• Increased employee productivity

• Enhanced group learning
• Reduced staff turnover
• Encourages initiative
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The Human Resource Cycle
• Recruitment
• Selection
• Performance Appraisal
• Training and development
• Reward system
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Management
Recruitment and Selection
• Recruitment is part of the process concerned with finding applicants (positive process)
• Selection involves choosing between the applicants for jobs (Negative process)
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Management
Recruitment and Selection cont’d
The two processes involve:

• Defining job requirements
• Attracting the right applicants
• Selecting appropriate candidate (s)
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Advertising:
• Internally
• Externally
• Both internally/externally
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Management
Merits of internal recruitment:

• Increased morale/motivation
• May help retain staff and therefore reduce employee turnover
• The employer knows the applicant
• The applicant understands the organization culture
• More economical
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Management
Merits of external recruitment:

• Suitable skills which are not available internally can be sourced externally
• New employees can bring new ways ideas/ways of thinking
• Where human resource needs exceed current internal supply external recruitment can
be a remedy (expansion)
• A specialized technical vacancy may only be satisfied by an external recruitment
• Existing employees may not express interest in the job
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Questions for your home work!
• What is a job application form?

• What are its limitations?
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Management
The Selection Process
When making the next recruitment HRM requires Managers to consider:

• Role Analysis
• Job purpose
• Content of the job
• The responsibility
• Accountability
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Management
Role analysis
Role analysis details:

• Behavior competence
• Work based competence
• Generic competence
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Job Description
The job description is a full description of the job. It will among other things explain issues
relating to:
• Fit the job in Organization
• Right Recruit
• Legal contractual terms
• Performance expectations
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Management
Selection Methods
• Many methods can be employed when head hunting for a suitable candidate including
• Selection tests (intelligence, aptitude, personality, proficiency & medical)
• Work sampling (portfolios, trial periods)
• Group selection: method assessment Centres
• Interviewing: individual, interview panel.
(Read information from other sources on the above portion as it is highly examinable)
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Management
Indicators of Ineffective recruitment
• Inadequate number of applicants (PR)

• Unsuitable applicant selected(PS)
• Decline of offer by a suitable applicant
• Premature resignation of the job holder
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Training and Development
• Training is the planned systematic modification of behavior through learning events

,programs and instructions which enhance individuals level of knowledge ,skills and
competence ….
• Development is growth/ realization of persons ability and potential through learning and
educational experiences.
Management
Management
Training
An education training may cover:

• Basic literacy skills (reading/writing)
• Technical skills (Accounting experience)
• Interpersonal skills (social)
• Problem solving skills (improvising)
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Management
Benefits of training
To the Organization:
• Minimized costs
• Improved productivity
• Fewer accidents
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Benefits of training cont’d
• Minimal supervision required

• Flexibility through usage of different skills
• Recruitment/succession planning
• Retention of employees
• Change management
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Management
Benefits of training cont’d
Benefits to the employee:

• Enhanced skills
• Psychological benefits(employees esteem)
• Social benefits as people network
• Job satisfaction
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Management
Training Methods
• On the Job Training

• Off the Job Training (Please research on the two)
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Induction and development
Induction is a process of introducing/integrating new staff into an org system. Purpose of

induction include:
• Helps recruits to find their feet in the org’s
• Introduce recruits to org’s culture
• Support recruit’s performance
• Identifying ongoing training and development needs
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Management
Induction and development cont’d
Approaches to development include:

• Management development
• Career development
• Professional development (CPD)
• Personal development
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Management
Mentoring and Coaching
• Mentoring means giving guidance and advice…..

• A mentor is an expert personality who gives advise and support to a novice with an
intention of guiding and supporting them.
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Mentoring and Coaching cont’d
• Coaching on the other hand is on the job training given to an individual by a person with
experience who has the prerequisite coaching skills…..
• Can you think of other ideas which distinguishes mentorship and coaching?
Management
Management
Performance Evaluations
• In principle performance appraisal is aimed at Rewarding and identifying potential.

• Can be used to identify areas in which training and development is needed.
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Management
Performance Evaluations cont’d
Three Component of (PA):

• Performance reviews
• Reward reviews
• Potential reviews
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Importance of a Performance Appraisal
• Provides a coherent ,complete unbiased picture of an employees performance

• An opportunity for identifying staff training needs
• Help managers to assess staff performance objectively
• A stimulant for management feedback on staff performance
• Provides a rational basis for providing rewards
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Management
Basic Requirements of a PA
• Formulation of targets /standards/behavior

• Recording assessments
• Feedback
• Deciding what to do
What is assessed?
• Work performance against targets
• Behavior and attitudes
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Management
PAs and Motivation
• The expectancy theory of motivation holds that employees will work harder on the job if
their effort can be appropriately rewarded
• Therefore, a clear and concise appraisal may help to motivate workers
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Types of PA’s
• Immediate supervisor
• Appraisal by the supervisor’s supervisor
• Peers
• Immediate subordinates (upwards appraisal)
• Self evaluation
• 360 degree appraisal
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Management
Barriers to an Effective Appraisal
• Confrontational process
• Judgmental process
• Mere chat
• Bureaucratic process
• Wrapping up unfinished business process
• Annual one off event
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Management
Appraisal and Pay Misconceptions
• A positive appraisal does not necessary mean Automatic reward will follow-reward
depend on the success of the company as a whole
• PA is about Continuous improvement must form part of an org’s culture
• PA is supposed to be futuristic and not just past evaluations
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Management
Attributes of an effective PA
• Relevance (Purpose)
• Fairness (Equity)
• Serious intent (Communicate expectations)
• Co-operation (Unify)
• Efficiency (benefit outweigh costs)
Management
Management
Thank you!
• Companies may not employ the best candidates but they must be able to train and
develop one.
Management
Management
Session Eleven [11]
Public Sector Organizations
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Management
Focus
• Nature of Public sector organizations

• Community non-profit making organization
Management
Management
Public Sector and Private Sector
• Public Sector refers to org’s owned and run by the government and its agencies
• Private sector refers to org’s owned and run by private individuals/firms
Management
Management
Scope of Public Sector
Public sector organizations include:

• The armed forces (defense forces)
• The government Ministries departments
• Most schools and universities
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Management
Categories of Public Sector Organisations
• Statutory bodies: established to promote/ enforce/regulate/monitor some socially or

politically desirable activities (example include ERB, CCPC)
• Parastatal (Para means- close to):Public corporation which are fully or partly government
owned (examples include ZNBC,ZESCO,ZSIC)
Management
Management
Categories of Public Sector Organisations cont’d
• Government departments: refers to ministries and their departments (e.g. the Human
resource department under a relevant ministry)
• Board: Public institutions established by Gov’t outside the structures of government
Ministries and departments to provide oversight supervision.
Management
Management
Attributes of Public Sector Bodies
The following characteristics are related to public sector organization:

• Accountability: Answerable to Parliament
• Funding: Funded through taxes, fees, borrowing, donations etc.
• Limited resources
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Management
Advantages of Public Sector Organisations
• Fair distribution of public goods/services

• Private sector service partnership role
• Public interest ownership role
Management
Management
Dis-advantages of Public Sector Organisations
• Inefficient usage of resources

• Lack of adequate Accountability
• Political Interference
Management
Management
Non-Governmental Organisation
• An NGO is an independent, voluntary association of people acting together for a common

purpose(other than archiving gov’t office or profit)
• NGO’s exist to provide a service through several activities including; social welfare
promotions political and environmental change. Government may fund some NGO’s.
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Management
Characteristics of NGO’s
• Fund allocation and accountability

• Cost effectiveness
• Democratic management
• Goals/values
• Informal/simple administrative structure
Management
Management
Advantages of NGO
• Better Resource Mobilisation and Utilisation

• Improved standards of living for target communities
• Better communication with grass root beneficiaries
• Play a complimentary role in supporting both private and public sectors
Management
Management
Demerits of NGO’s
• Political interference
• Limited sources of funding
• Wastage owing to poor management
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Management
Thank you-----End of Syllabus Coverage
• Management is required in non-trading organisations partly because such bodies also

control or manage assets and obligations.
Management
94

Managment Notes 2021

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Managment Notes 2021

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09/07/2021

Welcome to the business management Class

‘Management is Getting things done through other people’

Introduction to Management Cont’d

What do you think about the definition above?

Introduction to Management Cont’d

Session One [1]

Business and non-commercial

• Benefits and limitations types of organizations

• Overcomes individual limitations: physical/intellectual

Benefits of an Organization Cont’d

• Enables synergy: combined output is higher than if individuals worked in isolation

• Sole trader or sole proprietor

Sole Trading Organization

• A business owned and controlled by one individual.

Sole Trading Organization Cont’d

Sole Trading Organization Cont’d

Sole Trading Organization Cont’d

Business owned by two or more entrepreneurs .

Partnership Business Cont’d

Partnership Business Cont’d

Partnership Business Cont’d

Partnership Business Cont’d

Partnership Business Cont’d

Limited liability Company

A commercial organization owned by shareholders.

Limited liability Company Cont’d

Limited liability Company Cont’d

Limited liability Company Cont’d

Limited liability Company Cont’d

Non-Governmental Organization [NGO]

• A service organization which is not under government control.

Non-Governmental Organization Cont’d

Non-Governmental Organization Cont’d

Non-Governmental Organization Cont’d

Session Two [2]

• Identify business stakeholders and explain their objectives

• A stakeholder is a person or group of persons with legitimate interest in the

Three stakeholder categories

Stakeholder analysis cont’d

• It is impossible for an organization to satisfy the interest of all

Mendelow’s Matrix Cont’d

• Power – ability to influence organisational strategy or project resources

• Segment D: strategy must be acceptable – key players e.g. key customer/Key

Small to medium entrepreneurs

Small to medium entrepreneurs Cont’d

Session Three [3]

Management may be defined as the control and organization of something

Role of Management Cont’d

Henry Fayol’s Five functions of Management

Criticism of Henry Fayol

The Fourteen Principles of Henry Fayol

The Fourteen Principles of Henry Fayol Cont’d

1. Technical skills :acquired through education

FW Taylor – Classical management writer

Time and Motion study

• Division of big tasks into smaller tasks

Weber and Bureaucracy

The arguments for bureaucracy

Weber and Bureaucracy Cont’d

Human Relations Management theory

Elton Mayo experimental findings:

Human Relations Management theory Cont’d