THE INSTITUTE OF FINANCE

MANAGEMENT
MSD 06202: FUNDAMENTALS OF
MANAGEMENT
Lecture 1
The Nature Of Management
By
Mr. Lema, F
Office No: 608- Block A
Mobile: 0783-229535 or 0673-944224
 Topic coverage
 Meaning of management
 Management as an Art, Science or

Profession
 Features of Management
 What do managers do?
 Understand of key management

concept;-
 ◦ Managerial levels
 ◦ Managerial functions
 ◦ Managerial skills
 Meaning of management
  Is the process of designing and maintaining

an
 environment in which individuals working
 together in groups efficiently accomplish
 selected aims (koontz et al, 2010)
  Is the art of getting things done by group of
 people with the effective utilization of available
 resources (Hellriegel, D & Slocum, J., 1989)
  "Henry Fayol" say to manage is forecast, and
 plan, to organize, to compound, to co-ordinate
 and to control
 Management as an Art, science
or profession
 Management as an Art
 ◦ It is an art in a sense of possessing

managing skills by a person

 ◦ Art implies application of knowledge &

skill to trying about desired results.

 Mgt as a science
 ◦ It is a science because of developing

certain principles or laws which are

applicable in a place where a group of
activities are coordinated.
 Features of Management
 Management is;-
 A Goal-Oriented process
 Getting things done through people
 A Continuous, never ending or an

ongoing process of handling problem

and issues
 All Pervasive function - Management

is required in all types of organization

 A Group Activity and less concerned

with
 Features cont….
 Follows established principles or rules
 Aided but not replaced by computers
 Situational in nature
 Need not be an owner of the company
 Both an art and science
 Management is intangible
 Uses a professional approach in

work-
 Dynamic in nature
 What do managers do?
 Managers aims at INCREASING Productivity.
 Productivity refers to Output-Input Ratio within a

time period with due consideration of quality. This

mean that, productivity can be increased by;-
 ◦ Increasing output with the same output
 ◦ Decreasing inputs but maintaining the same level

of output
 Productivity effectiveness and efficiency in

individuals and
organizational performance
 Efficiency refers to “doing things right”

◦ Focuses on the inputs (less input –more output of

the same quality)
 Effectiveness refers to “doing the right things”
 Management Levels (types)
 There are three kinds of Managers, each with

different jobs and responsibilities; those are top

managers, middle managers,
first line managers
 TOP MANAGERS e.g. CEO/CIO/CFO, Presidents &

Vice P, Corporate heads

 MIDDLE MANAGERS e.g. General Manager, plant

Manager, Regional Manager, Divisional Manager

 FIRST LINE MANAGERS e.g. office Manager, shift

supervisor, department
 Managerial Functions
 Planning - is deciding in advance what objectives

to pursue during a future period and what to do to

achieve those objectives.
 Organizing - is the grouping & assigning of

activities
and providing the authority necessary to carry out
the activities
 Staffing - process of determining human resource

needs (how many, what kind) and recruiting,

selecting, training, and developing HR
 Leading - providing guidance to employee to

perform their duties through directing and

channelling human behaviour towards goal
accomplishment
 Functions cont…
 Controlling - A manager measures how the

business perform against objectives, determining

the causes of deviation (if any) and taking
corrective action where necessary
 Other functions include;-
 ◦ Directing
 ◦ Co-ordinating
 ◦ Motivating or Actuating
 ◦ Innovation
 ◦ Representation
 ◦ Decision making
 ◦ Communication
 ◦ Forecasting
 Managerial Roles
 By Henry Mintzberg. He observed and

interviewed CEO's for different industries.

He came up with 10 roles which are then
grouped into three major groups
 Interpersonal role - Includes; being a

figurehead, providing leadership and being

a
liaison both within the company and to
stakeholders outside the company
 Informational role
 Managerial Skills
 These are the skills required by a

manager to be able to perform a

particular job. there are three
basic
managerial skills
 Conceptual skills
 Human Relation skills
 Technical skills
 Other Skills include;-
 Management Responsibilities To
other Stakeholders includes;-
 Shareholders/owners
 Employees
 Suppliers/ other business
 Customers
 Government
 Local community
 Importance of Management
 Management encourages initiatives
 Management also encourages

innovation in
 the organization.
 Management facilitates growth and

expansion by making optimum

utilization of
available resources.
 Improves life of workers
 It improves/enhance corporate image
 Importance cont….
 Motivates employees
 Provide optimum/effective utilization

of
 resources
 Management reduces the wastage of
 human, material and financial

resources.
 Increases efficiency
 Improves relations
 Encourages Team Work
 Revision Questions (Topic 1)
 What is Management?

 Describe the Levels of Management

 Name and describe the basic functions of

Management.
 Describe the basic features of management

 Define the basic skills required to perform the work of

 management

 Explain the roles of a manager

 "Management can be stated as an art, science or a

 profession" discuss

 How will you classify the levels of management?

Briefly
 describe the functions of different levels of

 management
 Questions Cont .....
 Explain with examples the roles of a
 manager as described by Mintzberg
 Give an example of a managerial activity
 for each of the following managerial roles:
 figurehead, Liaison, spokesperson,
 resource Allocator.
 Name the Various functions which
 constitute the process of management
 and discuss each of them briefly.
 A manager plans, organizes, staffs, directs