Chapter 5: Introduction to Management

Definitions of Management
Henry Fayol
To manage is to forecast, to plan, to organize, to command, to coordinate, and to control.
Harold Koontz
Management is the art of getting things done through and with people in formally organized groups.
Functions of Management
1. Planning: setting goals and deciding how best to achieve them. Planning is predetermining future.
Planning is deciding in advance about what to do how to do it when to do it and who is to do it.
2. Organizing: establishing structure. It includes grouping tasks, producing authority –responsibility
structures, creating channel of communication and creating a coordinating mechanism.
3. Staffing: hiring and assigning people to carry out tasks. It is filling and keeping filled positions in
the organization structure. It is human resource management.
4. Leading: influencing, communicating and motivating people to perform tasks for goal
achievement.
5. Controlling: maintaining, comparing and correcting organizational performance toward goal
achievement.

Individuals at work
An individual at work is perceived by others in three principal ways:
• As a physical person having gender, age, race, size and characteristics,
• As a person with a range of abilities (i.e. intellectual, physical and social);
• As a personality (i.e. some one having a particular kind of temperament).
Accepting that each person, ultimately, is a unique blend of all three dimensions, it is nevertheless
important, from an organizational behaviour perspective, to ask whether it is possible to categorise
individuals in some way. Much of the work on measurement of human performance is devoted to
developing standards of comparison between individuals. This enables us to describe individuals in terms
of broad types, such as similar ability groups and personality types.

Employees in Organization
An employee is an individual who was hired by an employer to do a specific job in exchange for payment.

Employees have the following rights and responsibilities.

Employees Rights
Employees Rights are a group of legal rights and claimed human rights having to do with labor relations
between workers and their employers, usually obtained under labor and employment law. These rights
include;
• Right to privacy,
• Fair compensation
• Freedom from discrimination including during hiring process
• Right to be free from harassment of all types
• Safe and health working condition

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 • Right to fair wages for work performed.
• Receive correct holidays
• Treated the same as other employees
• Joining a Union
• Receive a contract of employment

Employees Responsibilities

Employee responsibility is a duty or obligation to satisfactorily perform or complete a task (assigned by

someone, or created by one's own promise or circumstances) that one must fulfill, and which has a
consequent penalty for failure. The employee responsibilities include;

• Carry out their duties as stated in their contract of employment

• Honest and trustworthy
• Employee should do a fair day’s work
• Be on time for work
• Respect the property of employer
• Be loyal to their employer and not disclose confidential business information
• Treat customers, co-workers and the employer with respect and ensure they don’t
• bully or discriminate against other employees
• Follow workplace rules and safety instructions
• Attend all training provided by the business.

Power and politics in an organization

Power in organizations
Power is the ability or capacity of a person, team or organization to influence others.
Three categories of people are always involved in the power game of an organization
• The owner(s) of the businesses can influence the decision-making process in their favor and also
influence promotions of workers.
• The top level management are also involved in the power-play as they oversee daily activities and
have high influence on the decision making of the organization.
• the ‘top performers.’ The company can actually not do without them due to the high productive
input they bring into the organization, and that enable them to wield some decision making
powers in the organization.

Importance of power in organization

• Providing direction
• Get fast access to decision makers
• Maintain regular, frequent contact with decision makers
• Assisting in the management process
• Structure to the organizations
• Assist to the employees on performing better
• Articulate goals

Sources of Power in an organization

There mainly five sources of power in an organization which include;
a) Legitimate Power
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Legitimate power is also known as positional power. It's derived from the position a person holds in an
organization’s hierarchy. Job descriptions, for example, require junior workers to report to managers and
give managers the power to assign duties to their juniors. or example, it is the CEO who decides on the
overall direction of the company and also determines the resource needs of the organization.
b) Expert power
This is a type of power that comes from one’s skills, knowledge and experience. People naturally respect
and follow those who are experts in a certain field. Possession of expert power is normally a stepping
stone to other sources of power such as legitimate power. For example, a person who holds expert power
can be promoted to senior management, thereby giving him legitimate power.

c) Referent Power
Referent power is derived from the interpersonal relationships that a person cultivates with other people
in the organization. Referent power arises from charisma, as the charismatic person influences others via
the admiration, respect and trust others have for him or her. Referent power is also derived from personal
connections that a person has with key people in the organization's hierarchy, such as the CEO. It's the
perception of the personal relationships that she has that generates her power over others.

d) Coercive Power
Coercive power is derived from a person's ability to influence others via threats, punishments or sanctions.
A junior staff member may work late to meet a deadline to avoid disciplinary action from his boss. Coercive
power is, therefore, a person's ability to punish, fire or reprimand another employee. Coercive power
helps control the behavior of employees by ensuring that they adhere to the organization's policies and
norms.

e) Reward Power
Reward power arises from the ability of a person in an organization to give some type of reward to an
employee as a means to influence the employee to act. These incentives include salary increments,
positive appraisals and promotions.

Power tactical dimensions or strategies

• Reason: Use of facts and data to make a logical or rational presentation of ideas
• Friendliness: Use of flattery, creation of goodwill, acting humble, and being friendly prior to making a
request
• Coalition: Getting the support of other people in the organization to back up the request
• Bargaining: Use of negotiation through the exchange of benefits or favors
• Assertiveness: Use of a direct and forceful approach such as demanding compliance with requests,
repeating reminders, ordering individuals to do what is asked, and pointing out that rules require
compliance
• Higher authority: Gaining the support of higher levels in the organization to back up requests
• Sanctions: Use of organizationally derived rewards and punishments such as preventing or promising
a salary increase, threatening to give an unsatisfactory performance evaluation, or withholding a
promotion

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Politics in organizations
The earliest definition of politics was offered by Lasswell, who described it as who gets what, when, and
how.
Organizational politics is the use of power and social networking within an organization to achieve changes
that benefit the organization or individuals within it. Influence by individuals may serve personal interests
without regard to their effect on the organization itself.

Political behavior in organizations as those activities that are not required as part of one’s formal role in
the organization, but that influence, or attempt to influence, the distribution of advantages and
disadvantages within the organization.

why is politics required?

• To come in the limelight and gain undue attention and appreciation from the seniors.
• To obtain advantages which are beyond their control.
• Getting thing done at right time.

Examples of politics
• Attacking and blaming
• Controlling information (e.g withholding key information from decision makers)
• Forming coalitions
• Cultivating networks
• Creating obligations
• Managing impressions
• Exchanging favors with others in the organization for mutual benefit
• whistleblowing

Effects of politics
• Decrease job satisfaction
• Increased anxiety and stress
• Decreased in overall productivity
• Affects Concentration
• Spoils the Ambience
• Changes the Attitude of employees
• Demotivated employees
• Wrong Information

Politics is in the eye of the beholder

A behavior that one person labels as “organizational politics” is very likely to be characterized as an
instance of “effective management” by another. The fact is not that effective management is necessarily
political, although in some cases it might be. Rather, a person’s reference point determines what he or
she classifies as organizational politics. Take a look at the following labels used to describe the same
phenomenon. These suggest that politics, like beauty, is in the eye of the beholder.

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Ways in which Political Strategies can be used to Attain Power in Modern Organizations
• Ability to make strategic replacements
• Ability to exhibit confidence
• Controlling access to persons and information
• Formation of a winning coalition
• Ability to develop expertise and build personal stature
• Restriction of communication about actual intentions
• The use of a research data to buttress one’s point of view

How to Limit the Effects of Political Behavior in modern Organizations

• Provision of sufficient resources
• Introducing clear rules
• Measuring performance and not personalities
• Hiring of low-politics employees
• Increasing opportunities for dialogue
• Allow free flow information and open communication.

Ways to improve on your political skill

• Spend time networking.
• Actively work to reduce tension and to make other comfortable.
• Work on your communication skills.
• Connect with others beyond your workgroup.

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 • Don't be invisible to your bosses; telling them what you've accomplished isn't bragging, it's
communicating.
• Listen deeply to others, so you'll not only understand what they're saying, but what they're
feeling.

Organizational Culture
Organizational Culture refers to the system of shared actions, values, and beliefs that develops within an
organization and guides the behavior of its members.

Importance of Organizational Culture.

• Promotes code of conduct in employees
• Facilitates motivation through recognition
• Promotes self-satisfaction
• Acts as a guide to employee thinking and actions.
• Providing a sense of identity to members
• Improving the readiness of members and strengthening organizational values
• Shaping behavior through a control mechanism

Examples of Organizational Culture

a) Arte facts
It refers to the total social and physically developed environment of an organization for example office
space, equipment’s, rules, systems and procedures.
b) Language
It refers to basic ways in which the organization understands its world for example jokes, stories, myths
and legends.
c) Behaviour patterns
Behaviour patterns are repetitive patterns of behaviour which are characteristics of organizational life. It
includes rites, rituals, ceremonies and celebrations.
d) Norms of Behaviour
It refers to rules of behaviour that determine what are considered to be suitable and unsuitable responses
from employees in different conditions.
e) Heroes
Heroes help to attain success present role models and represent the organization to the people outside
of the organization. Heroes are the persons who influence other employees.
f) Symbols and Symbolic action
These may be defined as words, objects, conditions, acts or features of the organization that are important
to organizational members. It includes corporate logos, policies and products.
g) Believes, values and attitudes
Values are closely attached with moral standards and ethical standards; they examine what people think
should be done. Beliefs on the other side are what is true and what is not. Attitudes relate belief and
values to emotions and feelings; they may be thought as a learned inclination of responding consistently
in a suitable and unsuitable way

Vision and Mission

Vision is an aspirational description of what an organization would like to achieve or accomplish in the
mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future
courses of action.

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Mission communicates the organization’s reason for being, and how it aims to serve its key stakeholders.
Stakeholders include Customers, employees, investors, government or communities. Mission statements
are often longer than vision statements.

Roles of a clear vision and Mission statement

Mission and vision statements play three critical roles:
(1) communicate the purpose of the organization to stakeholders,
(2) inform strategy development
(3) develop the measurable goals and objectives by which to gauge the success of the organization’s
strategy.

Figure 5.2 Key Roles of Mission and Vision

Values
In the context of management, values are the principles or beliefs that will guide the organization in
fulfilling its purpose (achieving its objectives, accomplishing its mission and realizing its vision).

Values might include:

• Customer focus
• Leadership
• Involvement of people
• Process approach
• System approach to management
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationships
• Honesty, integrity, and trust
• Responsibility, respect, and loyalty
• Relationships, privacy, openness, individual contribution
• Freedom, confidentiality and financial security, life, environment and equality
• Diversity, innovation, growth and competitiveness

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Strategy formulation process
Strategy is a broad plan developed by an organization to take it from where it is to where it wants to be.
Strategy Formulation requires a defined set of six steps for effective implementation.
1. Define the organization
2. Define the strategic mission
3. Define the strategic objectives
4. Define the competitive strategy
5. Implement strategies
6. Evaluate progress.

1. Define the Organization

Defining an organization is to identify the company’s customers. A company must identify the
factors that are valued by its customers. Is the value based on a superior product or service
relative to the competition? Are your customers buying your products for your low prices?

2. Step 2. Define the Strategic Mission

An organization’s strategic mission offers a long-range perspective of what the organization
strives for going forward. Elements of a strong strategic mission statement should include the
values that the organization holds the nature of the business, special abilities or position the
organization holds in the marketplace, and the organization’s vision for where it wants to be in
the future.

3. Step 3. Define the Strategic Objectives

This requires an organization to identify the performance targets needed to reach clearly stated
objectives. These objectives may include: market position relative to the competition, production
of goods and services, desired market share, improved customer services.

4. Step 4. Define the Competitive Strategy

Its requires an organization to determine where it fits into the marketplace. This applies not only
to the organization as a whole, but to each individual unit and department throughout the
enterprise. Each area must be aware of its role within the company and how those roles enable
the organization to maintain its competitive position. Three factors must be considered when
determining the overall competitive strategy: the industry and marketplace, the company’s
position relative to the competition, and the company’s internal strengths and weaknesses.

5. Step 5. Implement Strategies

Developing a strategy is only effective if it is put into place. An organization may take all the
necessary steps to understand the marketplace, define itself, and identify the competition.
However, without implementing the strategy, the organization’s work will be of little to no value.
The methods employed for implementing strategies are known as tactics. These individual actions
enable an organization to build a foundation for implementation. Companies are able to identify
which of their efforts are more successful than others and will uncover new methods of
implementation, if necessary.

6. Step 6. Evaluate Progress. As in any plan, a regular evaluation of processes and results is vital to
ongoing success. An organization must keep track of the progress it is making as defined by its
strategic plan.

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