Professional Documents
Culture Documents
Mba CH1
Mba CH1
to
Birhan
College
School of
Graduate Studies
2022 (2015E.C)
1
Birhan College
School of Graduate Studies
Master of Business Administration
(MBA) &MPM
Management Concepts and practices
Melese Abebe
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;
Work experience;
Expectation
Berhan College
Post Graduate Program
Efficiency Effectiveness
Resource Goal
usage attainment
High
Low waste
attainment
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 levels
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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?
Arguments against universality
All Cultural Characteristics
organiza Management Philosophy
tional All size
areas
of the Organizational Objectives
Manufac
organiz
turing,
marketin ation
g, HR, Manageme Small -
accounti nt is needed large
ng, IS,
etc.
all
organiz
ation All type of
organization
levels Profit ----
Bottom non profit
---------
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!!