Welcome!

to
Birhan
College
School of Graduate
Studies
2020 (2013 E.C)

1
 Birhan College
School of Graduate Studies
Master of Business Administration (MBA)
Management Concepts and Practice

Instructors:
Amare Worku (PhD Candidate); Email ID: amarew.john@gmail.com

Research Interest:
Human Resource Management Practices, Strategic Management issues,
Organizational learning issues, Organizational Behavior issues

Publications: Journals
 International Journal of Scientific Research and Management (Co-Author)
 Emerging Markets Journal (Author)
 Social Science Research Network (Co-Author)
Self introduction
Give short briefing about Yourself
(max 1min for each student)
Full name;
University/ College you studied;
Specialization;
Work place (Zone, Woreda, …);
Current Organization;
Current job;
Current position;
Work experience;
Expectation
 Class room policy (Our Expectations)

Be on time/ Punctuality

Arrive for work (class) on time - every class.
Late comers are very disturbing
Late assignments will not be accepted without a prior agreement
Be regular
Ignorance is no excuse
Attendance is mandatory for the group task or case analysis
presentations
Be prepared
Your teammates depend on you.
Especially with the readings assigned for each class
Be honest
Cheating and plagiarism will result in a ‘zero’ for assignment/test for
all parties involved.
Do your part on your team.
Listen actively and participate.
Be fully involved as leaders in the new minor.
Provide us feedback along the way.
• Keep mobile silent or switched off
• Please, would you add any more?
 UNIT ONE: MANAGEMENT: AN OVERVIEW

Objectives: After studying this unit, you should be able

to:
Explain management, manager and levels of
management
Describe the basic managerial functions, roles and
skills.
Understand significances and nature of management
 MANAGEMENT: AN OVERVIEW
What is management?
 management is the process of getting things done
through the efforts of people and other resources
• Emphasis on achieving goals/objectives with
efficient and effective use of organizational
resources (i.e., based on managerial concerns)
 Efficiency
• Doing things right
• Getting the most output for the least inputs
 Effectiveness
• Doing the right things
• Attaining organizational goals/objectives
 MANAGEMENT: AN OVERVIEW
Efficiency & Effectiveness in Management
Effectivenes
Efficiency
s

Resource Goal
usage attainment

High
Low waste
attainment

Management strives for;

• low resource waste (high efficiency)
• high goal attainment (high effectiveness)
MANAGEMENT: AN OVERVIEW
 Thus, management implies that:
• Organization depend on performance of people for
achieving their mission, goal & objectives
• Organizational activates require human effort and
capabilities
• Exercise: describe organizational resources
Human Physical
Resources resources
Managerial Effective Goals
activities and
efficient
utilization

Financial Information
Resources resources
MANAGEMENT: AN OVERVIEW
 Management is the process of planning, organizing,
directing & controlling to achieve organizational goals
& objectives
• Emphasis on the function of management
 Management is the process of decision
making/problem solving
• Emphasis is on making proper decision
• Hence, for making proper decision:
• Identify the real problem
• Study the problem
• Identify possible/alternative solutions
• Select the best possible/ alternative solution
 MANAGEMENT: AN OVERVIEW
 Exercise: differentiate b/n goals objectives, what do we
mean by process?
 Goals & objectives are mostly used synonymously
interchangeable
 However, they have to be differentiated
• Goals are broad objectives of the organization
• Objectives are more specific targets of the
organization
• Process is a systematic method/way of handling things
• Process is group of related activities that create values
• Thus, management is a process since managers are required to
perform interrelated activities. i.e., functions of management
 MANAGEMENT: AN OVERVIEW
The definition of management from broad perspective is
given by Peter Drucker as follows:
• According to Drucker (1973:37), management is an organ of an
institution, and the institutions, whether a business or a public
service, is in turn an organ of society, existing to make specific
contribution and discharge specific social functions.
• In view of Gerloff (1985:3), it is largely management which
decides the need of the society and the attempt to define an
organization which can fill them.
• Society ----- institution ----- management ---- create value
 What other definitions of an institution you might know?
 MANAGEMENT: AN OVERVIEW
Who are managers?
 Managers: are persons in the position of authority who
make decisions to commit (use) their resources and the
resource of others towards the achievement of
organizational objective
• Those who coordinate & oversee the works of others
people so that organizational goals can be
accomplished
• They determine the success or failure of organizations
• Managers can be distinguished based on two criteria:
• Levels of management (vertical difference)
• Scope of responsibilities (horizontal difference)
 Is management the same throughout an organization?
Yes/no
MANAGEMENT: AN OVERVIEW
Who are managers?
• Yes because all managers preform the basic managerial
functions
• No; even though they preform all managerial functions,
they perform it with different emphasis and scope
• Thus, the nature & scope of their activities serve as a
basis for the classification of managers
Managerial Levels
Types of managers based on levels of management
• Supervisory level managers
• Middle level managers
• Top level managers
MANAGEMENT: AN OVERVIEW
Who are managers?
Managerial
To levels
p
ma
ng
Middle
ers
managers
First-line managers

Non managerial employees

 MANAGEMENT: AN OVERVIEW
Who are managers?
 First-line managers
• Individuals who manage the works of non-
managerial employees
 Middle managers
• Individuals who manage the works of first-line
managers
 Top managers
• Individuals who are responsible for making
organization wide decisions & establishing plans &
goals that affect the entire organization
 The hierarchy of managers determine their duties &
authorities needed to fulfill those duties
 MANAGEMENT: AN OVERVIEW
Who are managers?
 Types of managers based on scope of responsibility
 Functional managers
• Are responsible for a department that performs a single
functional task
• Have employees with similar training and skills
(specialization)
• Supervise specific areas of operations such as:
• Finance & accounting, marketing, production, etc.
 General managers:
• Are responsible for several departments that perform different
functions
• Are responsible for the entire operations of the organization
with out being specific
• Oversee a complex unit, such as a company, a subsidiary, or
an independent operating division.
 MANAGEMENT: AN OVERVIEW
What managers do?
 Functional approach
 Planning
•Defining goals, establishing strategies to achieve goals,
developing plans to integrate & coordinate activities
 Organizing
• Arranging & structuring work to accomplish organizational
goals (what needs to be done, how it will be done, who is to do it)
• It is concerned with deciding the types of organization structure, degree of
centralization, levels of management, span of control, delegation of authority, unity
of command, line and staff relationship, and staffing.
 Leading
• Working with & through people to accomplish goals
 Controlling
• Monitoring, evaluating, comparing, & correcting
activities.
MANAGEMENT: AN OVERVIEW
What managers do?
 Managerial roles approach (Henry Mintzberg)
 MANAGEMENT: AN OVERVIEW
What managers do?
 Skill approach
 Technical skill
• Knowledge & proficiency in a specific field
 Human skill
• The ability to work well with other people
 Conceptual skills
• The ability to think & conceptualize about abstract
& complex situations concerning the organization
 Note: to become successful managers need a
combination of education & experience
• What is the other important issue that managers
need to accomplish?
MANAGEMENT: AN OVERVIEW
What managers do?
 Skill approach
MANAGEMENT: AN OVERVIEW
Nature of management
 Multidisciplinary:
 it draws knowledge and concepts from various
disciples.
 draws ideas and concepts from such disciplines as
psychology, sociology, anthropology, economics,
ecology, statistics, Operations Research, history etc.
 Dynamic Nature of Principles:
 management has formed certain principles.
 However, these principles are flexible in nature and
change with the changes in the environment.
 No principle is regarded as a final truth.
 There is nothing permanent in the landslide of
management.
MANAGEMENT: AN OVERVIEW
Nature of management
 Relative, not absolute principles:
 Management principles are relative, not absolute, and
they should be applied according to the need of the
organization.
 Each organization may be different from others.
 The difference may exist because of time, place, socio-
cultural factors, etc.
 Thus a particular management principle has different
strengths in different conditions.
 Therefore, principles of management should be applied
in the light of prevailing conditions.
MANAGEMENT: AN OVERVIEW
Nature of management
 Is management –science or art?
 Science is characterized by making a conclusion based on actual
facts & verifies knowledge through cause-effect relationship
 It can be generally learnt, thought & researched to know the
universal truth
 Art is characterized by using common sense, personal feeling
beliefs, etc.
 Art is bringing a desired result through the application of skills.
 Art is concerned with the understanding of how particular work
can be accomplished,
 art has to do with applying knowledge or science or experiences
in performance.
MANAGEMENT: AN OVERVIEW
Nature of management
 Is management –science or art?
 Management as an art:
 Management is know-how, skill or how to accomplish
the desired objectives with insufficient information
 The process of management does involve the use of
know-how and skills like any other arts like music,
painting, sculpture, etc.
 Management is creative like any other art. Creativity is
a major dimension in managerial success.
 Management is personalized meaning thereby that there
is no one best way of managing
 Thus, management as a practice is an art
MANAGEMENT: AN OVERVIEW
Nature of management
 Is management –science or art?
 Management as a science
 They organized knowledge underlying the practice is
considered as a science
• Step-by-step way of solving problems
• Use of scientific methods/technique to make
decisions
 Therefore,
• It is not pure art because it uses scientific methods
(e.g. operations management, etc.)
• It is not pure science because it uses common sense,
intuition & managerial judgment
MANAGEMENT: AN OVERVIEW
Nature of management
 Is management –science or art?
 Managers should:
• Develop new ideas, techniques & strategies
• Be able to communicate them effectively in the work environment
• Be able to make decisions even when there is no sufficient data
 This leads us to the conclusion that the “art of
management begins where the science of management
stops”
 In this context, science & art are not mutually exclusive
but are complementary
 Thus, management requires both (science & art) to be
successful
 Note: management is one of the most creative arts as it
requires vast knowledge in application
MANAGEMENT: AN OVERVIEW
Nature of management
 Management as Profession
 Existence of an organized and systematized body of
knowledge
 Formal method of acquisition of knowledge
 Existence of an association with professionalization as
its goals
 Formulation of ethical codes
 Service motives
 The above points indicate that management does not
fulfill all the requirements of professionalization and
hence it can be labeled as an emerging profession.
MANAGEMENT: AN OVERVIEW
Nature of management
 Is management universal?
 Management is universal for the following reasons:
 Management is applicable in all kinds of organized &
purposeful activity of human efforts be it:
• Business or non-business
• Government or private
• Manufacturing or service giving
• Large firms or small firms
 All managers at different levels of management perform the
five managerial function (in fact, with different emphasis)
 Thus, management theories & principles have
universal application
MANAGEMENT: AN OVERVIEW
Nature of management
 Is management universal?
All size of the
 Arguments against universality
organization  Cultural Characteristics
Small -large  Management Philosophy
 Organizational Objectives
All
organizational All type of
areas
Management organization
Manufacturing, is needed
marketing, HR, Profit ----non
accounting, IS, profit
etc.

all organization
levels
Bottom---------top
MANAGEMENT: AN OVERVIEW
What is the significance of management?
 Effective Utilization of Resources
 Development of Resources:
 To incorporate Innovations:
 Integrating various Interest Groups:
 It is needed to coordinate & direct the efforts of
individuals, groups & the entire organization to achieve
desired objectives
• People couldn’t achieve their objectives as
individuals
• Management has been essential to ensure the
coordination of individual effort
• Without management, the time, effort & energy of
individuals can be wasted
MANAGEMENT: AN OVERVIEW
What is the significance of management?
 It is responsible for the success (serve the public) or
failure (waste resources) of an organization
• When an organization fails it is because of poor
management
• When an organization succeed it is because of good
management
 Briefly, management is needed to achieve the stated
objectives
Thank you!!