Welcome!

to
Alpha
University
College
School of Graduate
Studies
2021/22 (2014E.C) 1
 Course title

Management Theories
and Practices
Course Code MBA 601
(3 Cr. hr)
 Self introduction
• Give short briefing about Yourself (max 20 sec for
each student)
– Full name;
– University/ College where you studied;
– Specialization;
– Current job and position
– Current Organization;
– Current Work place
– Work experience;
– What do you expect from this course?
Instructor’s Information
– Name: Mulatu Takele (MBA, Ph.D)
• Assistance Professor
• Associate consultant of EMI
– Current address:
• Ethiopian Civil Service University
• Mobile: 0938940300
• Email: mulatutbs@gmail.com
• Office: Abay Building; 4th Floor; Room 402/
409
 Ground rules
– Punctuality
– Speaking loudly
– Active participation
– No repeating of ideas
– Feel free to express any ideas, opinion, etc…
– Careful listening than simply hearing
– Team work /spirit
– No side talking (murmuring/whispering)
– No moving after class commences
– Keeping mobile silent or switched off
– Take care of COVID -19 catastrophe
– No sitting in the class without notebook and pen
– Before sitting, always properly arrange your seats – create conducive work
env’t .
– Please, would you add any more ?
 Chapter One

An overview to
the Nature of
Management
• Contents
– Definition of Organizations and Management
– Features and significance of Management
– Functions of Management
– Management as an Art, Science, and Profession
– Universality of Management
– Levels and types of Management
– Types of Managers
– Managerial Roles and Skills
Objectives of the study
• By the end of this course, students will be able to:
– Define the term management, basic concepts and principles of management.
– Explain the general overview of management in relation to its importance,
roles, skills and universality
– Acquire sound understanding of the nature and practice of management.
– Understand the different management thoughts.
– Develop a comprehensive understanding of basic concepts of management
functions.
– Acquire knowledge on managerial functions of planning, organizing, leading
and controlling and apply them in different business organizations.
– Understand how to lead, motivate and inspire people in an organization.
– Describe the different contemporary theories of leadership and styles, and
– Understand how leadership styles and models are put in to practice personally,
locally and globally.
 To refresh our memories about Management
• Backwardness is nothing but a result of
undeveloped human resource and
underdevelopment is the failure to use the
human resources. (Tendon)
• Any nation is developed only when its human
resource is developed, and underdeveloped if
its people are undeveloped. (Bahar Bayrakter)
What do you perceive from these?

Ask yourself these three questions

• Where am I or where are we now?
• Where do I want to go or where do
we want to go?
• How do I get there or where do we
get there?
 Discuss the following

– What is Listening?
– What is organization?
– Describe what management is, and why management is important?
– What is organizational resource? Where organizations get resources?
– What managers do, and how managers utilize organizational
resources efficiently and effectively to achieve organizational goals.
– Does management a Science or an Art?
– Management is universal in its nature. Discuss.
– Everybody is a manager of him/herself. Discuss.
– Discuss about organizational functions and managerial functions.
– Discuss about efficiency and effectiveness.
– Discuss about Managerial roles and skills.
– Discuss about Henry Mintezberg basic managerial roles.
– Discuss the relationship between managerial level and managerial
skills.
What do you perceive from this?
1.0. Introduction
Communication - The art of Listening
• What is the distinction between listening and
hearing?
– Listening and hearing are not one and the same.
• Sometimes we hear noise, words, and music around
us,
• but we are not truly listening.
– Listening and hearing are not the same things.
• Hearing is a natural process,
• whereas listening is a learned set of skills.
• Hearing
• is a natural process where information comes in through
our sense of hearing.
• Listening
– is the process of receiving, attending, understanding,
responding, and remembering.
– is a learned set of skills;
– is the act of processing what is heard.
• is a skill that leaders are supposed to be good enough in
addition to speaking and the other communication skills.
• is a process that requires your active participation.
– As leaders/ managers, we cannot be successful
without developing this skill.
– Studies show that we spend
• 45 % of our communication time in daily life is
listening, and
• 30 % speaking,
• 16 % reading, and
• 9 % writing.
– Studies also suggest that
• we remember only 25 % of what we hear after two
days.
– Listening is important and yet we don’t do it very
well, (Fujishin, 2009).
Step in the listening process
• The first step is receiving or hearing sounds from your
environment.
– Hearing is limited to the physiological process of receiving and
processing the sounds.
• The second step is attending
– which is paying attention to some of the sounds you receive
and disregarding or filtering out the others.
• The third step involves comprehending/ understanding
the message.
• the fourth step is responding,
– includes asking questions or giving feedback to the speaker.
• The final step is remembering what was said.
1.1. Definition of Organizations

and Management
What are Organizations?
• Before studying other detail concepts, it is
desirable to know the meanings of
organization and management.
• Organizations
– are as old as the human race.
– is a group of two or more people working
together in a structured and coordinated fashion
to achieve a set of goals.
– are made up of people and function through
people.
– Without people organizations can’t exist.
• An organization
– is a collection of people who work together to
achieve a wide variety of goals,
• both the goals of
– the various individuals in the organization and
– the organization as a whole.
– composed of groups of people
• that function on a relatively continuous basis to
achieve a common goal or a set of goals.
– have a purpose.
• An organization without goals is that consist of a
mass of people wandering around aimlessly without
any sense of direction.
• Organizations
– are social systems.
• If one wishes to work in or to manage them, it
is necessary to understand how they operate.
– are consciously coordinated social units,
• in which people co-operated reasonably well.
– exist to provide goods and services that
people want.
• These goods and services are the products of
the behaviors of workers.
• Organizations
– are not buildings or other physical constructs
(set ups) but
• abstract building/ construct invented to put the
people in, who work together to achieve a set of
goals; and
• incredibly they are powerful constructs.
– combine science and people
• i.e. technology and humanity
• Unless we have qualified people to design and
implement, techniques alone will not produce
desirable results.
– are nothing but knowledge & learning systems.
• Organizations
– creates surplus as:
• Profit in the case of business organizations,
• satisfaction of the needs in non-profit organizations.
– possess and utilize different kinds of resources.
– use/ get resources from their environment as:
• Human resources
• financial resources
• Physical resources
• Information
• All resources (men, money, materials and machinery) are
– collected, coordinated and utilized through people.
– Therefore, people are the most significant resource of any
organization.
• To the success organizations, people are the
key.
– Technology
• can be purchased and copied,
• levels the playing field.
– The people can’t be copied.
• their ideas, personalities, motivation and organization
cultural values can’t be copied.
• Hence, the HR of an organization and how
they are managed
– represent the competitive advantage of today’s
and tomorrow’s organizations.
What is management?
Meaning and definition of Management
Reflect to the class
–There are no underdeveloped
countries as such but under
managed only.
(Peter Drucker)
What do you observe? Reflect
• For better or worse, organizations and
managers touch or influence our lives in
many ways.
• Management
– is as old as man himself.
• i.e. as a practice as old as human civilization,
but as a discipline young,
• Schools, hospitals, government agencies,
and large & small businesses all require
systematic management.
• Management
–is key to the success all sectors.
–is the main cause for the difference
between developed (wealthy) and
underdeveloped (poor) countries
–is highly recognized by developed
countries than underdeveloped ones.
–is performed in our day to day
activities.
– For Management
• several definitions are given by different scholars or
bodies but all are complementary.
– Management
• is the art of getting things done through people in a
formally organized group. (Mary Parker Follet)
• the process of working with & through others to
achieve organizational objectives efficiently & ethically
(in an efficient & ethical manner).
– The central feature of this definition is
• “working with & through others”.
– Managers
• get results with & through others.
• play a constantly evolving role.
• Management is defined as
– the process of planning, organizing, staffing,
directing/ leading and controlling the use of
resources effectively and economically to attain
objectives, (George R Terry)
– the attainment of organizational goal in an
effective and efficient manner through planning,
organizing, leading and controlling the
acquisition and utilization of resources. (Peter F.
Drucker)
– refers to the functional process of accomplishing
the goals of the organization through the help of
others.
1.2. Significance of

Management
Why do we study Management?
• The knowledge of management
– is vital in all areas everywhere people are
working in group.
– is important in
• families, social life, politics, public sectors,
• all types of organizations (manufacturing or
services rendering),
• for individuals/ personal life.
– Everyone is a manager of him/herself
• We Study Management
– To achieve pre-determined objectives
– To understand the impact of change
• To understand internal and external environmental
factors affecting business
– For best utilization of resources
– For best performance in a given situation
– For formulating corporate strategy
– To face competitive challenges
– To understand the importance of quality
– To understand how to solve any business
problem, etc…
• There is only one boss, whether a
person shines shoes for a living or
heads up the biggest corporation in
the world, the boss remains the same.
It is the customer!
• Customer is the oxygen of any
organization.

35
Efficiency and Effectiveness
• Management
– is the art of securing maximum results with minimum
efforts.
• The basic purpose of management is
– to ensure that organizational goals are achieved in an
efficient and effective ways.
• Organizational Performance
– is a measure of how efficiently and effectively managers
use available resources to satisfy customers and achieve
organizational goals
• Good managers/ best managers
– do the things both effectively and efficiently.
– maintain a clear focus on both effectiveness and
efficiency.
• Being effective means
– doing the appropriate task i.e., fitting the square
pegs in square holes and round pegs in round
holes.
• Being efficient means
– doing the task correctly at least possible cost with
minimum wastage of resources.
• Efficiency
– is the achievement of ends with the least amount
of resources.
– refers to doing things in a right manner.
– A measure of how well productively resources are
used to achieve a goal
• Effectiveness
– is the achievement of objectives.
– refers to doing the right things.
– is adequately accomplishing a purpose; producing
the intended or expected result.
• High-performing organizations are efficient and
effective.
Universality of management
– Management is applied to all type of
organization.
– Management is universal activity or universal in
its nature because
• in all organizations the basic managerial function are
executed
• Management functions performed by every manager
are the same.
– Universality of management is the applicability of the
principals of management in all kind of organizations,
and in different countries of the world.
Management as an Art and a Science
• Science
– is systematically organized knowledge
• derived from observation, study, and experimentation
• carried out to determine the nature and principle of the subject under
study.
– is a systematic/ a systematized body of knowledge
– is acquisition of knowledge
• Art
– is the application of knowledge that constitutes (comprises)
science.
– implies application of knowledge & skill to trying about desired
results.
– is personalized application of general theoretical principles for
achieving best possible results.
• Science provides the knowledge and art
deals with the application of knowledge and
skills.
• Science teaches to ’know’ and art teaches
to ’do’.
• Science is the root and art is the fruit.
• It has been aptly remarked that
management is the oldest of art and
youngest of science.
• Management as an art or a science has been
an issue of debate for a long period of time.
• Managers to manage must have both the
knowledge of science and art. Because:
– without science means
• without the knowledge of management principles
and concepts
• depending on trust/ luck, intuition or past activity.
– without art means
• managing by memorization of principles and
neglecting practical reality
• Hence, Successful managers
– combine both the science and the art of
management as they practice their craft
1.3. Functions of Management
Managerial and Organizational functions
• Organizational functions
– are activities performed within an organization.
– are called functional areas of management such
as
• production,
• finance,
• Marketing,
• Personnel, etc…
– each functional area may have a number of sub-
activities.
• Managerial functions
– are activities performed by managers.
– The five management functionsare
• Planning,
• Organizing,
• Staffing,
• Directing (leading),
• Controlling
• Organizational functions differ from organization to
organization depending upon their nature while
management functions are common or the same to
all.
Functions of Management
 1.6. Classification (levels
and types) of management
Levels of Management
• A manager
– is an individual
• who is given the responsibility for achieving
the goals assigned to him or her as part of the
overall goals of the organization and
• who is expected to get the job done.
– Every manager in an organization performs all
five management functions.
– The relative importance of these functions varies
along the managerial levels.
• Managers/ management can be categorized in
terms of
– Levels (hierarchies/ positions) as:
• Top level management
• Middle level management
• Lower level management
– scope of activities as:
• Functional managers
– with specialized skills in a single area of operation, e.g. Accounting;
Personnel…
• General Managers
– responsible for overall operation of a complex organization
– usually coordinate two or more departments
– areas (organizational functions) as:
• Marketing manages; Financial managers; Operation managers; Human
resource managers, Public relation manager; Research & development
manager
Management in terms of Levels
• People in an organization are arranged in an
hierarchy
– and they all have the relationship of superior-
subordinates.
• The term “Levels of Management’
– refers to a line of demarcation between various
managerial positions in an organization.
• The level of management determines
– a chain of command,
– the amount of authority and
– status enjoyed by any managerial position.
Top Level of Management
• The top management
– consists of board of directors, chief executive or managing director.
– is the ultimate source of authority in an organization
– it manages goals and policies for an enterprise.
– determines goals and objectives.
– devotes more time on planning and coordinating functions.
– Strategic leaders
– performs overall planning, organizing, staffing, directing and controlling.
– integrates organization with environment,
– balances the interest groups and
– is responsible for overall results.
– are concerned with longer time periods and with plans for larger organizational
units.
– Their goals are called strategic goals or objectives.
• Middle management / Middle level
management
– stands between top management and supervisory
management level.
– establishes programs for department and
– carries out functions for achieving specific goals.
– The other functions of middle level management
are
• training and development of employees,
• integrating various parts of the department.
– They devote more time to organizational and
directional functions.
– Their goals are called tactical goals or objectives.
• Lower Level Management
– also known as
• First-level management
• supervisory / operative level of management.
• A supervisor
– concerned with directing and controlling function
of management.
– is concerned with efficiency in using resources of
the organization.
– an executor of policies and procedures
– making a series of decisions with well-
defined and specified premises.
–First-level managers
• involve in day-to-day plans, such as
–scheduling work hours,
–deciding what work will be done and by
whom, and
–developing structures to reach these
goals.
• These goals are called operational
goals or objectives.
Relative amount of time that managers spend
on the four Managerial Functions
The Process of management
• A process
– is a series of actions that achieves something
• As a process, management refers to a
series of inter-related functions.
• It is the process by which management
creates, operates and directs purposive
organization through systematic,
coordinated and co-operated human
efforts.
1.7. Managerial Roles and
Skills
 Roles of a manager
• All managers must play certain roles and
exhibit certain skills to be successful
regardless of level or area within an
organization.
• Managerial role
– roles of a manager in an organization
– is an organized set of behavior or action
expected from the position holder
• Managers perform different roles within an
organization.
• Henry Mintezberg
–studied and identified what managers
actually do as they manage
–identified 10 (ten) basic managerial
roles
• grouped them under 3 (three) basic
categories as:
–Interpersonal Role
–Information Role
–Decision Making Role
• The ten Mintezberg’s managerial roles,
grouped under three categories
Interpersonal Roles Informational Roles Decisional
Roles

Figurehead Monitor Entrepreneur

Leadership Disseminator Disturbance-

handler
Liaisonship Spokesperson Resource-allocator

Negotiator
• Category 1. Interpersonal roles
– dealing with other people/ relationship
1. Figurehead role
– is acting/ playing as public official for the organization.
– is the most basic and the simplest of other roles.
2. Leadership role
– directing and coordinating the activities of subordinates to
accomplish objectives.
3. Liaison ship role
– Horizontal relationship – network relation outside the
organization
– serving as a coordinator or link between people, groups or
organizations
» to seek support from people who can affect the
organization’s success
• Category 2. Informational roles
– is processing information
• collecting, disseminating & transferring information
– flow naturally from the interpersonal roles.
– Figurehead and liaison roles give access to great deal
of important information to managers.
– are:
4. Monitoring role
– receiving information both from internal & external environment
5. Disseminator role
– is transmitting relevant information back to others in the
workplaces.
6. Spokesperson role
– communicating information to people outside the organization.
• Category 3. Decision Making roles
– Crucial part of management activity
– are:
7. Entrepreneurial role
– acting as designer and initiator of change within the group to
improve organization’s position.
8. Disturbance handler role
– deals with problems and changes caused by other factor.
9. Resource allocator role
– is both protecting and using organizations assets
» money, material, HR equipment, data, reputation, time
10. Negotiator Role
– focuses on reaching an agreement with others outside the work
group
Managerial skills
• Managers
– in addition to fulfilling the roles, also need a number of specific
skills to succeed.
• Skills
– are abilities to do something expertly and well, and they are
necessary to operate activities successfully.
• Managerial skills
– the most common ones are
– Technical skill
• the skills necessary to understand and accomplish the specific kind of
work being done in an organization.
• ability to apply specific methods, procedures, and techniques in a
specialized field. e.g. engineers; market researchers; accountants;
musicians; and computer programmers etc…
• highly important for first line managers.
– Interpersonal (human) skill
• focuses on working with people, and vital to every managers job.
• equally important to managers at all levels.
• Conceptual skill
– allows managers to think strategically; to see the “big picture”, and to make
broad-based decisions that serve the overall organization.
– ability to think in the abstract. i.e. mental capacity to understand the
overall workings of the organization and its environment; to grasp how all
the parts of the organization fit together, and to view the organization in a
holistic manner.
– are the most difficult to develop, but highly important to top level
managers.
• Communication skills
– abilities both to convey’ exchange ideas and information effectively with
others
– classified in to verbal and non-verbal
– crucial to all managers
• Others
– Decision making skills
– Time-management skills
– Diagnostic skills
• As Robert Katz’s research surfaced a set
of skills for managers/leadership success.
– Skill 1-“Technical skills”
• involving hands-on activity.
– Skill 2 -“Human skills”
• which is the ability to work with people.
• Greatest asset to have.
– Skill 3 -“Conceptual skills”
• having ability to work with ideas and concepts.
The relationship b/n managerial level and skills

• Marginal skills are closely related.

– Communication skills
• equally important at all level.
– Interpersonal (Human) Skills
• more important to top and middle levels than lower
level managers.
– Conceptual skill
• more important to upper level of management.
– Technical skills
• very important at the operating level.
 Individual Assignment
• Critically assess in your
organization
– how management functions are
exercised / practiced.
– the levels of management and the
roles played at each level.