Principles and Practice of Management

Dr. Zaharaddeen Abdullahi

Abdullahizaharaddeen@gmail.com

Being a Lecture Notes for Introduction to

Management/Element of Management/ The
practice and principles of
Management/Management Theory
IRS1315/BUA1315/BUA1319/BUA1331
FALL 2022 SEMESTER

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Introduction
 What is Management?
 Management is the act of getting things done through

others (Marry Parker Follet)

 “ Management is the art of getting things done through

and with the people in formally organized groups.”

_ Koontz H.
 Weihrich and Koontz sees management as a process of

designing and maintaining an environment in which

individuals, working together in groups, efficiently
accomplish selected aims.

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Introduction…cont’d
 Management is the process of Planning, Organizing,
Staffing, Directing and Controlling to accomplish
organizational objectives through the coordinated use of
human and material resources.
 The attainment of organizational goals in an effective and
efficient manner through planning, organizing, leading,
and controlling organizational resources
 It can be more scientifically defined as the co-ordination of
all the resources of an organization through the process of
planning, organizing, directing, and controlling in order to
attain organizational objectives

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Introduction…cont’d
 Management is a comprehensive activity, involving the combination
and co-ordination of human, physical and financial resources, in a
way which produce a commodity or a service which is both wanted
and can be offered at a price which will be paid, while making the
working environment for those involved agreeable and acceptable.

 Furthermore, management involves the achievement of goals set for

the organisation. This means that managers of any organisation – a
bank or a university, try to attain specific ends. These ends are
unique to each organisation.

 Whatever is the goal of the organization concerned, management is

the process by which the goals can be attained

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Introduction…cont’d
 An organization is a formally structured collection of
individuals working toward common (shared) goals.
 Effectiveness : the degree to which the organization
achieves a stated goal
 Efficiency : the use of minimal resources (input) to
produce a desired volume of output.
 Efficient, but not Effective:

- Goals not achieved

 Effective, but not Efficient

- Wasted Resources

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Dynamic Nature of Mgt
 Principles of management are not rigid or
static.
 Rather they change with environment.
 They are diagnostic and flexible guidelines

and are not absolute truth.

 Continuous research is modifying many
golden principles by developing new ones.
 Nothing is permanent in management, except

change

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Is management a science or an art?
 A recurring question among academics

 A needless debate

 Mgt is both a science and an art

 Science is a systematic study of the

environment through: observation,
experimentation and reasoning

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Is management a science or an
art? ....cont’d
 A manager systematically studies his
environment (internal & external) and
observes what is going on around him with
regards it
 He experiments, by trying different ways of

doing things, thus, monitoring results and

taking note of information

 Then he takes an informed decision based on

the above information

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Is management a science or an art? ....cont’d
 To this extend, then management is a science

 We also know that scientific activities such as

marketing research is always being conducted in
business

 Art, on the other hand, is the employment of certain

skills to achieve goals

 Again, managers employ skills like: motivating,

interviewing, communicating to accomplish
organisational goals

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Is management a science or an
art? ....cont’d
 Therefore, After considering the above
arguments of science and art, we cant but
agree that management is both an art and a
science
 One of the objectives of NIM is to encourage

and develop the art and science of good

management

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Universality of management
 Management principles are applicable to any
organisation: private/public, big/small etc

 Management principles can be applied at all

levels of management: top, middle & lower

 Managers at all levels need some combination

of 3 basic skills: technical, human and
conceptual

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Managerial skills- Katz (1974)
 Technical skills
 The skills necessary to achieve specialised tasks

 The know-how for performing activities in

different functional areas

 Activities as dictated by job description

 Such activities involve method, procedures and

techniques
 Entry level staff and first line managers need

this skill
 E.g. accountant, electrical engineer

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Managerial skills…cont’d
 Human/Interpersonal skills
 Necessary for effective communication and
interaction with colleagues
 Ability to motivate, manage conflicts and build
teams
 Where as technical skills emphasize on working
with “things” human skills focus on people
 This skill is crucial for managerial effectiveness
because most works involve working with
others

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Managerial skills…cont’d
 Conceptual skills
 Ability for innovativeness, imaginativeness, creativity
and abstraction
 Ability to diagnose and assess different types of
management problems and foresee possible solutions
 Ability to distinguish between cause and effect, root
causes and symptoms, between minor and major
issues
 Organisation and its relationship to the external
environment
 Understanding of how the whole system works

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Skill mix
 Lower level managers: substantial technical,
moderate human and small amount of
conceptual

 Middle level managers: substantial human,

moderate technical and conceptual skills

 Top level managers: substantial conceptual,

moderate human and less technical skills

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Levels of Management

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Functional areas of business

Customer
services
Administration
Operations and IT support

The main functional

areas Marketing and
sales
Finance

Human
Research and
resources
development

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Functional areas of business…cont’d
 Businesses vary – many will not have all these
different functions, others may have even
more, some may have additional areas, such
as design
 In a small business, all functions will be done

by individuals

 In a medium/large business, will be done by

individuals working in functional areas or
departments

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Cooperation among depts

• All functional areas HR R&D

must link together Ops
to achieve the
overall aims and IT Admin Sales
objectives
• This means
cooperation and CS Marketing
good Financ
communications e

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HRM
Recruitment, retention
and dismissal
Health and
safety Working
The main conditions
responsibilities of the
human resources
function
Employee Training,
organisations development
and unions and promotion

Includes the legal rights and responsibilities of

employer and employees
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HRM…cont’d
 In a large organisation HRM would be the first
point of contact for all job applicants.
 Working conditions relate to the facilities

available, hours of work, pay rates.

 Continual training and development is a key

feature of many organisations but is often

more structured in larger organisations –
where there is also more scope for
promotion.

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HRM…cont’d
 Not all firms have employee organisations or
unions – and the former can be known by
different names, eg staff association or works
council.
 Fundamentally, however, it is an employee
group which represents employee interests if
there is no union.
 Health and safety may be part of HR but could
be under the remit of a separate Health and
Safety Officer who may – or may not – be
working in the HR department

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Finance
Involves but not limited to the following activities
 Finance is concerned with current money
received/to be paid out and how to finance future
plans (eg for expansion).
 Preparing accounts, eg invoices, management

accounts, financial accounts for shareholders and

Inland Revenue
 Preparing wages and salaries

 Obtaining capital and resources, eg money for

expansion or to pay for resources such as

equipment and materials.

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Administration and ICT
Clerical work, eg
mail, record keeping
Cleaning and
maintenance Health and
The role of safety
administration and ICT
function

Security
Support for software applications,
electronic communications and
electronic transactions

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Administration and ICT ...cont’d
 Admin function is often decentralised in that
admin staff work in all departments, cleaning
and security may be sub-contracted,
maintenance may be in a separate ‘Estates’
department in large organisations (such as a
hospital) and
 IT support may be a separate department!

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Operation/production

• Concerned with the main business activities

• Obtains and converts resources of the
business into goods/services, ie
– Buildings and land
– Equipment
– People
– Materials

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Operation/production…
 Operations is easy to see in a manufacturing
industry, e.g. Ford’s operation is producing
cars.
 This involve a factory, assembly equipment,

assembly workers and car parts.

 Operations can be more difficult to

understand in a service organisation.

 Examples are airlines, hospitals, hotels and

supermarkets.

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Marketing & Sales

Both are concerned with customer needs.

Market research

Activities
include:
Sales Promotion

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Marketing & Sales
 The processes are designed to meet the
needs of the consumer
 Market research can be both primary and

secondary research
 Primary – collecting information first hand

e.g. questionnaires
 Secondary – analysing information which has

already been gathered e.g. company reports

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Marketing & Sales
 Marketing also deals with what is commonly
known as the 4 Ps: product, price, place and
promotion
 Most well known is promotion – deals with
advertising, sales promotions and PR (public
relations) and publicity campaigns.
 Businesses can sell in many ways through
channel members such as retailers
 Personal selling – through sales reps e.g.
insurance
 Mail order and Internet selling

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Customer service
Concerned with customer relationships
Activities which include:
 Providing information
 Giving advice
 Providing credit facilities
 Delivering goods
 Providing after-sales service

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R&D
This function deals with
 Developing new products

 Making improvements to existing products

 Often the result of research carried out –

products developed with designers so that
they are useable

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R & D…cont’d
 Research and development usually depends
on marketing to obtain information on
customer needs.
 However, it needs to design products which

can be made by operations and (usually) sold

at a competitive price
 Aeroplanes and pharmaceutical
manufacturers place huge investment in R &
D

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IT
IT is like a service department
 Electronic communications (e.g. Intranet,
email)
 Data sharing (e.g. databases)
 Security systems (e.g. virus protection)
 External communications (e.g. Internet)
 Online support for customers (e.g. order

tracking)
 Electronic transactions (e.g. EFT)

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Differences in functions
Functions will vary because of:
 Size and scale of business
 Activities of business
 Type of customers
 Needs of customers
 Preferences of owner(s)

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Functions of Managers
 Basically, the functions of managers in organisations include
the following:
 Planning entails examining the future and drawing up a
course of action capable of bringing the goals of an
organization to limelight.

 Controlling It is a dynamic process, requiring deliberate and

purposeful actions in order to ensure compliance with the
plans and policies previously developed.

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Functions of Managers…cont’d
 Organizing is the process of coordinating individuals’ efforts to
accomplish a common objective. This is because the organization is
a group of people bound together to provide unity of action for the
achievement of a predetermined objective.

 Communication is defined as “the process of passing information

and understanding from one person to another” (Kazmier, 1977).
Peter Drucker (1954), a manager does not handle people; he
motivates, guides and organises people to accomplish their goals.
His effectiveness depends upon his ability to communicate well
with the employees.

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Functions of Managers…cont’d
 Directing/Leading comprises the managerial function
of guiding, overseeing and leading people. The primary
element in an organisation is the human element. For
human to strive toward a particular target or goal,
directing is an inevitable duty that all managers must
discharge diligently and effectively.

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You have been a great
audience!