CHAPTER ONE

Management: Science,
Theory and Practice

Prepared by Muhammad Abdul Baset 1

 Management Is…

Efficiency
Getting work
done through
others Effectiveness

1
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Efficiency and Effectiveness

 Efficiency
 Getting work done with a minimum of effort,
expense, or waste
 Doings things right—most output for least input
 Effectiveness
 Accomplishing tasks that help fulfill organizational
objectives
 Doing the right things

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Origin and Meaning of the word Management

 Many management scholars said that The

English word ‘Management’ is derived from
the Italian word ‘Menaggiare’ which meaning
is ‘to handle’ or ‘to train up the horses’
 Again many said the word ‘management’
came from the French word ‘Menager’ and
‘Menage’. Here the word ‘Menager’ means ‘to
direct a household’ and the word ‘Menage’
means ‘an act of guiding or leading’.

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Origin and Meaning of the word Management

MANAGE + MEN + T = MANAGEMENT

It means that management is managing people

tactfully to achieve the goal.

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 Definition of Management
 According to Louis Arther Allen, “ Management
is what a manager does”

 Lawrence Appley said, “ Management is getting

things done through the effort of other people”.

 “ Management is the process of designing

and maintaining an environment in which
individuals, working together in groups ,
efficiently accomplish selected aim(s) viz. to
create a surplus(s).” …. Weihrich & Koontz
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 Definition of Management
 Management is the process of ensuring the optimal utilization of ‘6 Ms’
that is man, material, machine, method, money and market.

 Man : Human resources, both inside and outside connected with

an organization;
 Materials: Goods (hard & software, processed or semi-finished)
and services required to create the sellable end product;
 Machines: Technology and expertise deployed towards the
transformation process;
 Methods: Systems, procedures and processes seamlessly put
together for the transformation;
 Money: “ Money” is required for generating all theses Ms –
managers need to acquire, deploy, generate and distribute
money as a primary need for business!
 Market: Market is a set of potential buyers or sellers of a product
or services.
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Definition of Management: Its nature & purpose

 Mc Fardland defines management as

“A process by which managers create, direct, maintain and
operate purposive organization through systematic,
coordinated, co-operative human efforts”.

 Complete definition of management:

“Management is a distinct process consisting of planning,
organizing, staffing, leading and controlling utilizing both
in each science and art and followed in order to
accomplish predetermined objectives of the
organization”.

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 Definition of Management: Its nature & purpose

 So we can say that management is the

process of designing and maintaining the
environment of an organization through the
functions of planning, organizing, leading and
controlling to achieve the pre-determined
organizational goal by the human resources
of the organization effectively and efficiently.

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Definition of Management: Its nature & purpose
(contd.)
The basic definition needs to be expanded:
1. As managers, people carry out the managerial
functions of planning, organizing, stuffing,
leading & controlling.
2. Management applies to any kind of
organization.
3. It applies to managers at all organizational level.
4. The aim of managers is the same: to create a
surplus.
5. Managing is concerned with productivity; this
implies effectiveness & efficiency.
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 Necessity of Management
(1) Management is an essential activity of all
organizational level(Low, middle, and upper
level)
(2) Management applies to:
(i) Small and large Organizations.
(ii) Profit and non profit Organization.
(iii) Manufacturing Organization.
(iv) Service rendering Organization.

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 Importance of Management
 Establishment of objective
 Attainment of objective
 Proper utilization of the factors of production
 Large-scale production
 Reduction of wastage
 Increase in efficiency
 Establishment of discipline
 Development of industrial relations
 Creation of employment opportunity
 Research and development
 Raising the living standard
 Vital role in social advancement
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Management Functions

Management Functions

Planning

Organizing

Staffing

Leading

Controlling

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Planning

Planning

Determining organizational goals and a means for

achieving them

Planning involves selecting mission & objectives & the

actions to achieve them. It requires decision making; that
is choosing future course of action from among
alternatives.

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 Organizing

Organizing: is the part of managing that

involves establishing an intentional
structure of roles for people to fill in an
organization.
 Deciding where decisions will be made

 Who will do what jobs and tasks

 Who will work for whom

 When the work should be done

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The functions of management (contd.)

Staffing: involves filling & keeping filled, the positions

in the organization structure. This is done by
identifying work-force requirements; inventorying the
people available; and recruiting, selecting, placing,
promoting, appraising, planning the careers of
compensation & training or otherwise developing both
candidates & current jobholders so that tasks are
accomplished effectively and efficiently.

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 Leading

Inspiring
Leading
Motivating

Leading is influencing people so that they will contribute to organization

& group goals

For Anne Mulcahy, CEO of Xerox,

the key to successful leadership is
communicating with the company’s
most important constituents:
employees and customers.

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Controlling

Controlling

Monitoring progress toward goal

achievement and taking corrective action
when needed

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The Control Process
Set standards to
achieve goals

Make changes Compare actual

to return performance to
performance to standards
standards

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Time spent in carrying out managerial functions

C
P L O
L E N
Top level
managers A A T
N D R

Middle level
N I O
managers I L
N
L
N G
I
G
First level supervisors N
G

Organizational Hierarchy

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Managerial skills & the organizational hierarchy

1. Technical skill is knowledge of and proficiency in

activities involving methods, processes, and
procedures. Thus it involves working with tools &
specific technique.

2. Human skill is the ability to work with people. It is

cooperative effort. It is teamwork. It is the creation
of an environment in which people feel secure & free
to express their opinion.

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Managerial skills & the organizational hierarchy
(contd.)

3. Conceptual skill is the ability to see the “big picture”

to recognize significant elements in a situation & to
understand the relationships among the elements.
4. Design skill is the ability to solve problems in ways
that will benefit the enterprise. To be effective,
particularly at upper organizational levels,
managers must be able to do more than see a
problem. They must have, in addition, the skill of a
good design engineer in working out a practical
solution to a problem.

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Productivity, Effectiveness & Efficiency

Definition of productivity:
Successful companies create a surplus through
productive operations. Although there is not complete
agreement on the true meaning of productivity. Let
define it as input-output ratio within a time period
with due consideration for quality. It can be expressed
as follows:
Productivity= outputs/inputs

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Definition of productivity: (contd.)

The formula indicates that productivity can be improved

1) By increasing outputs with the same inputs
2) By decreasing inputs but maintaining the same
outputs
3) By increasing outputs & decreasing inputs to change
the ratio favorably

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Definition of Effectiveness & Efficiency

Productivity implies effectiveness & efficiency in

individual & organizational performance.

Effectiveness is the achievement of objectives.

Efficiency is the achievement of the ends with the least

amount of resources. (i.e., With due consideration of
time, cost and effort)

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Managing: science or art?

Managing, like all other practices whether medicine,

music composition, engineering or even baseball- is an
art. It is know-how. It is doing things in the light of the
realities of a situation. Yet managers can work better
by using the organized knowledge about management.
It is this knowledge that constitutes a science.

Thus, managing as practice is an art; the organized

knowledge underlying the practice may be referred to
as a science. In this context science and art are not
mutually exclusive; they are complementary.

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Managing: science or art? (contd.)

As science improves, so should art, as has happened in

the physical and biological sciences. To be sure, the
science underlying managing is fairly crude and
inexact.

In managing, as in any other field, unless practitioners

are to learn by trial & error. There is no place they
can turn to for meaningful guidance other than the
accumulated knowledge underlying their practice.

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 Manager & Kinds of Managers

Manager is also known as leader and administrator.

Manager is a person who under takes the tasks and
function of managing at any level, in any kind of
enterprise.

 Top Managers

 Middle Managers

 First-Line Managers

 Team Leaders

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Top Managers

 Chief Executive Officer (CEO)

 Chief Operating Officer (COO)

 Chief Financial Officer (CFO)

 Chief Information Officer (CIO)

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Responsibilities of Top Managers

Creating a context for change

Developing commitment
and ownership in employees

Creating a positive organizational

culture through language and action

Monitoring their business environments

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Middle Managers

 Plant Manager

 Regional Manager

 Divisional Manager

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Responsibilities of Middle Managers

Plan and allocate resources to meet objectives

Coordinate and link groups,

departments, and divisions

Monitor and manage the performance

of subunits and managers who report to them

Implement changes or strategies

generated by top managers

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First-Line Managers

 Office Manager

 Shift Supervisor

 Department Manager

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Responsibilities of First-Line Managers

Manage the performance of

entry-level employees

Encourage, monitor, and reward

the performance of workers

Teach entry-level employees how to do their jobs

Make detailed schedules and operating plans

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Responsibilities of Team Leaders

Facilitate team performance

Manage external relations

Facilitate internal team relationships

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Managerial Roles

Interpersonal Informational Decisional

Figurehead Monitor Entrepreneur

Leader Disseminator Disturbance

Handler
Liaison Spokesperson
Resource
Allocator

Negotiator

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Managerial Roles
Interpersonal Roles

Figurehead Managers perform ceremonial duties

Leader Managers motivate and encourage

workers to accomplish objectives

Liaison Managers deal with people outside

their units

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Managerial Roles

Informational Roles

Managers scan their environment

Monitor
for information

Managers share information

Disseminator
with others in their company

Managers share information

Spokesperson
with others outside their
departments or companies

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Managerial Roles
Decisional Roles

Managers adapt to incremental change

Entrepreneur
Managers respond to problems that
Disturbance demand immediate action
Handler
Managers decide who gets
Resource what resources
Allocator
Managers negotiate schedules,
Negotiator projects, goals, outcomes, resources,
and raises

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What Companies Look for
in Managers
Technical Skills Human Skills

Conceptual Skills Motivation to Manage

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Managers’ Skills

 Skills Approach
 Technical skills
 Knowledge and proficiency in a specific field
 Human skills
 The ability to work well with other people
 Conceptual skills
 The ability to think and conceptualize about abstract and
complex situations concerning the organization

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What Companies Look for in Managers
Skills are more or less important at different levels of management:

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Mistakes Managers Make
1. Insensitive to others
2. Cold, aloof, arrogant
3. Betrayal of trust
4. Overly ambitious
5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor

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 The First Year Management Transition
Managers’ After Six Months After a Year
Initial Expectations As a Manager As a Manager

 Be the boss  Initial expecta-  No longer “doer”

tions were wrong
 Formal authority  Communication,
 Fast pace listening, positive
 Manage tasks reinforcement
 Heavy workload
 Job is not  Learning to adapt
managing people  Job is to be
problem-solver and control stress
and troubleshooter  Job is people
development

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Competitive Advantage
through People
Management Practices in Top Performing Companies
1. Employment Security
2. Selective Hiring
3. Self-Managed Teams and Decentralization
4. High Wages Contingent on Organizational Performance
5. Training and Skill Development
6. Reduction of Status Differences
7. Sharing Information

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Competitive Advantage through People

Competitive Advantages of
Well-Managed Companies

Sales Revenues Profits

Stock Market Returns Customer Satisfaction

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How The Manager’s Job Is Changing

 The Increasing Importance of Customers

 Customers: the reason that organizations exist
 Managing customer relationships is the responsibility of all
managers and employees.
 Consistent high quality customer service is essential for
survival.

 Innovation
 Doing things differently, exploring new territory, and taking risks
 Managers should encourage employees to be aware of and
act on opportunities for innovation.

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 Thank you so much

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