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Raising a new Generation of Leaders

PRINCIPLES OF MANAGEMENT
(BUS 211)

GENERAL OVERVIEW OF MANAGEMENT: NATURE

AND PURPOSE
LEARNING OBJECTIVES
• At the end of this lecture, students should be able
to
• Define the term management and know who a
manager is.
• Distinguish between effectiveness and efficiency
in relation to organizational performance
• Explain the functions of management
2
 LEARNING OBJECTIVES
• Describe the different levels of management
• Explain the types of skills managers possess and their
roles respectively
• Determine whether management is a science or an art

3
 INTRODUCTION
• Every human endeavor involves management:

- Business ventures
- Non-Business activities

4
Management Is…

Efficiency
Getting work
done through
others Effectiveness

5
 DEFINITIONS
Management Is…

The process of getting activities completed efficiently

and effectively with and through other people.

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 DEFINITIONS (contd.)
 It is the process by which managers create, direct,
maintain, and operate purposive organizations through
coordinated, cooperative human effort.

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 DEFINITIONS (contd.)
The attainment of organizational goals in an effective
and efficient manner through planning, organizing ,
leading , and controlling organizational resources.

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Efficiency and Effectiveness

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 Characteristics of Management
1. Management is an Art as well as Science
2. Management is an activity.
3. Management is a continuous process
4. Management achieving pre-determined objectives
5. Organized Activities

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 Characteristics of Management
(contd.)
6. Management is a factor of production
7. Management as a system of activity
8. Management is a discipline
9. Management is a purposeful activity
10. Management is a distinct entity

11
 PRINCIPLES OF MANAGEMENT
• The Principles of Management refer to the essential,
fundamental truths, underlying factors that form the
foundations of successful management.

12
 PRINCIPLES OF MANAGEMENT
(contd.)
• Henri Fayol propounded 14 principles of management
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of direction

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 PRINCIPLES OF MANAGEMENT
(contd.)
7. subordination of individual interest
8. Remuneration
9. Centralization
10. scalar chain
11. Order
12. Equity
13. Stability of tenure or personnel, initiative and
14. Esprit de Corps
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ORGANIZATION
• A formal and coordinated group of people who
function to achieve particular goals WITHIN A
GIVEN STRUCTURE. These goals cannot be
achieved by individuals acting alone.

15
 Organizational Structure and Control/Decision-Making

• Tall structure
• Flat structure
• Centralization
• Decentralization
• Formalization

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 CHARACTERISTICS OF AN ORGANIZATION

• Distinct Purpose
• Deliberate Structure
• People

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 Organizational Inputs
• Human (Man)
• Capital resources (Money)
• Raw materials Material)
• Technological Application (machine) Managerial
Skills (Information)

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 Organizational outputs
• Products
• Services
• Satisfaction
• Goal Achievement
• Profits

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 STAKE HOLDERS of organisations
• Owners
• Employees
• Consumers
• Suppliers
• Stock Holders
• Government
• Community
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 MANAGEMENT SYSTEM
• A system is a set of inter-related and inter-dependent
parts arranged in a manner that produces a unified
whole.
• A management system is the framework of processes
and procedures used to ensure that an organization can
fulfill all tasks required to achieve its objectives.

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TYPES OF SYSTEM
• OPEN SYSTEM

• CLOSED SYSTEM

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 Universality of Management
• The basic characteristic of successful management is
its applicability to all organizations

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 Universality of Management (contd.)
• Universality of management refers to the
transferability of its principle, techniques, functions
and skills from one time, place or job to another.

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 Functions Of Management
• Planning
• Organizing
• Leading
• Controlling

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26
 MANAGERIAL SKILLS
• A skill is the ability to engage in a set of behaviours that are
functionally related to one another and that lead to a desired
performance level in a given area. For managers, these skills
are necessary for high performance. Managerial skills include;
• Conceptual
• Design
• Human
• Technical
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 LEVELS OF MANAGEMENT
• THREE LEVEL EXISTS.
• Top level (Top Managers)
• Middle level (Middle level Managers)
• First- Line / Lower Level (supervisors)

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 Levels and Areas of Management
Levels of Management
Top managers

Middle managers

First-line managers

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Areas of Management

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MANAGERIAL ROLES
• A role is a set of behaviours associated with a
particular job
• Henry Mintzberg studied CEOs at work and
created a scheme to define what managers do on
the job.
• These are commonly referred to as Mintzberg’s
managerial roles.

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 MANAGERIAL ROLES (contd.)
• These can be grouped into three primary headings:
- Interpersonal
- Informational
- Decisional

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 Managerial Roles
• Manager

Interpersonal Informational Decisional

Figurehead Monitor Entrepreneur

Leader Disseminator Disturbance

Handler
Liaison Spokesperson
Resource
Allocator

Negotiator

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Interpersonal roles

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INFORMATIONAL ROLES

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DECISIONAL ROLES

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