Management Theories and

Practice

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 CHAPTER ONE

MANAGEMENT: AN OVERVIEW
MEANING AND DEFINTION OF MANAGEMENT

• Management refers to a group of people who are

responsible for guiding and controlling the
organization (Managerial personnel).
• Management is the process of running an
organization (planning, organization, staffing,
directing, and discipline).
• Management is a body of knowledge, a discipline
• Management is a factor of production, economic
resource as land, labour and capital

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 What Is Management?
Management is the
•art of getting things done through and with people in a formally
organized group.
•art of knowing what you want to do in the best and cheapest way.
•art of securing maximum results with a minimum of efforts so as
to secure maximum prosperity and happiness.
•utilization of scientifically derived principles to examine and
improve collective efforts or production.
•Process of planning, organizing, staffing, directing & controlling
the use of a firms resources to effectively & efficiently attain its
objectives.
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 Effectiveness and Efficiency
• Efficiency • Effectiveness
– “Doing things right” – “Doing the right things”
– Getting the most output – Attaining organizational
for the least inputs goals

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 Why do the definitions of management
differ?
• Management has various aspects.
• The theorists who had different areas of interest
or training, defined management from their
perspective (engineering, sociology, psychology,
mathematics, etc)
• Management as a discipline is young and there
is a lack of clarity of concepts and principles.

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 Who are managers?
• Persons in the position of authority who make decisions
to commit (use) their resources and the resources of
others towards the achievement of organizational
objectives.
• They help other members of the organization and the
organization itself to set and reach goals and objectives.
• The work of managers is, therefore, to make people
productive.
• Everybody is the manager of his/her time, energy and
talents.

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How are Managers Different from
Nonmanagerial Employees?
• Nonmanagerial Employees
– People who work directly on a job or task and have
no responsibility for overseeing the work of others.
– Examples, associates, team members
• Managers
– Individuals in organizations who direct the activities
of others.

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 Where Do Managers Work?
• Organization
– A deliberate arrangement of people brought together
to accomplish a specific purpose.
– Two or more persons engaged in a systematic effort to
produce goods and/or services
• Common Characteristics: distinct purpose, deliberate
structure, and people

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 Why is management important?
• Helps in setting objectives
• Optimum utilization of resources
• Keeps a close watch on changing technology being
adopted in various fields.
• Make decisions scientifically
• To ensure the coordination of individual efforts.
• Effective Administration
• Social Obligation: quality products at reasonable price.
• Develop analytical and conceptual ability of managers
• It affects the accomplishment of social, economical,
political organizational goal.
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 Is management a science or an art?
• Science: systematized knowledge derived from
observation, study, and experimentation carried on
in order to determine the nature and principles of
the subject under study.
• Management is not as comprehensive or as exact as
the other pure sciences.
• The reason is that the variables with w/c managers
deal differ. Managers deal with the human elements
and the behavior of human beings is unpredictable.

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Is management a science or an art?
• Art: the application of knowledge and skills to
accomplish results”.
• Art is grounded in the knowledge or principles
developed by science.
• A manager uses the knowledge of management
theory while performing his managerial functions.
• Management is an art b/c It is knowhow, it is the
application of knowledge; and it is doing things in
the light of the realities of the situation.
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Is management a science or an art?
• Management principles are not developed for
the sake of knowledge. But, their application for
specific situation,
• Thus, in the art side of management managers
make decisions and try to solve problems based
on their intuition experience, instinct and
personal insight.
• Management is therefore considered as both a
science and an art.

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What Titles Do Managers Have?
• Top Managers
– Responsible for making decisions about the direction of the
organization.
– Individuals who are responsible for making organization-wide
decisions and establishing plans and goals that affect the entire
organization.
– Examples; President, Chief Executive Officer, Vice-President
• Middle Managers
- Individuals who manage the work of first-line managers.
– Manage the activities of other managers.
– Examples; District Manager, Division Manager
• First-line Managers
– Responsible for directing nonmanagerial employees
– Examples; Supervisor, Team Leader

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board of directors, executive
committee and chief executive, or
president, or general manger, etc

divisional heads, department

heads, section heads, plant
managers,branch management,
etc.
the largest managerial group
in most organizations

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 Top – level Management Functions
• Establishing broad objectives, designing major strategies
& outlining Principal policies
• Providing effective organizational structure that insures
integration
• Providing overall leadership and direction, & control of
the organization
• Dealing with external parties such as the government,
community, business, etc. by representing the
organization, and
• Analyzing the changes in the external environment and
respond to it.
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 Middle – level Management Functions

• Acting as intermediary between top and operating level

management;
• Translating long-term plans of top management into
medium range plans;
• Developing specific targets in their areas of reasonability;
• Developed specific schedules to guide actions and
facilitate control;
• Coordinating inputs, productivity and outputs of
operating level management

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 Operating level management Functions
• Plan daily and weekly activities based on the quarterly
and yearly plans.
• Assign operating employees to specific tasks.
• Issue instructions at the workplace.
• Motivate subordinates to charge or improve their
performance.
• Provide subordinates feedback about the ongoing
performance.
• Take action to resolve performance problems.
• Identifying ways of improving communication among
subordinates.
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 Functional and General Managers
• Functional managers are managers appointed to
supervise single operations which require
specialized skills.
• E.g. Accountants, personnel, marketing and production
managers
• General Managers are responsible for the
overall operations of a more complex unit, such
as company or division.
• General Managers usually coordinate two or more
departments and hold functional managers
accountable for their specialized areas.
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 What Roles Do Managers Play?
• Roles are specific actions or
behaviors expected of a
manager.
• They are an organized set of
activities belonging to an
identifiable job that give
realism and systematize
managerial functions.
• Henry Mintzberg observed
that a manager’s job can be
described by ten roles
performed by managers in
three general categories

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 Managerial Roles: Interpersonal
Figurehead: ceremonial activities—showing the
flag
greeting visitors, signing legal documents, taking important
customers to lunch, attending social functional involving
their subordinates like wedding, funerals, ----
Leader: influencing or directing others—translating
authority into actual influence
hiring, training, motivating and guiding
Liaison: contacting others outside the formal chain
of command—internal and external
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 Managerial Roles: Informational

•Monitor—seeking information to be aware of crucial

developments
•Disseminator—receiving and sending information
•Spokesperson—representing the views of the
unit for which the manager is responsible

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 Managerial Roles: Decisional
•Entrepreneur—exploring new opportunities
•Disturbance handler— seek solutions of
various unanticipated problems such as strikes,
complaints, grievances, shortage of materials etc.
• Resource allocator—deciding how
resources will be distributed. allocate people,
time, equipment, budget and other resources
• Negotiator—making accommodations with
other units

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What Skills Do Managers Need?
• A skill is an acquired and learned ability to
translate knowledge into performance.
• It is an ability or proficiency in performing a
particular task.
• Managerial skills are skills of a manageability of
a manager to perform his duties and
responsibilities expertly.
• Robert Katz and others describe four critical
skills in managing
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What Skills Do Managers Need?
• Conceptual Skills
– Used to analyze complex situations. ability of a
manager “to see” the big picture of the organization
• Interpersonal Skills
– Used to communicate, motivate, mentor and
delegate. the ability to work with other
• Technical Skills
– Based on specialized knowledge required for work.
the use of knowledge, methods and techniques
– e.g. engineers, accountants, computer programmers

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Skills Needed at Different Managerial
Levels

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Is The Manager’s Job Universal?
The previous discussions describe management as a generic
activity. In reality, a manager’s job varies with along several
dimensions
• Level in the Organization
– Top level managers do more planning than supervisors
• Profit vs. Nonprofit
– Management performance is measured on different
objectives
• Size of the Organization
– Small businesses require an emphasis in the
management role of spokesperson
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Universal Need for Management

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 Factors that have contributed to the
universal organization
• Managers perform the same functions irrespective of
their level in the organization, industry or country.
• There are certain universally applicable principles: unity
of command, division of work, limiting the number of
persons to be supervised, the principle of motivation
etc.
• The fundamentals governing the management of a
business, a church or a university are the same.
• Management concepts are universal across
organizational types.

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What Do Managers Do?

In the functions approach

proposed by French
industrialist Henri Fayol,
all managers perform
certain activities or
functions

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 Four Management Functions
• Planning
– Defining the organizational purpose and ways to achieve
it
– Maps out courses of action
– Top-level management planning - Long –range planning
– Lower level management planning – todays or
tomorrow’s actions
• Organizing
– Arranging and structuring work to accomplish
organizational goals
• Staffing:
– locating prospective employees to fill the jobs created
by the organizing process.
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Four Management Functions
• Leading
– Directing the work activities of others
– Motivating and encouraging employees
• Controlling
– Monitoring, comparing, and correcting work
performance
Attempts to:
– Prevent problems
– Solve the problems that occur

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Four Functions of Management

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End of the chapter

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