PRINCIPLES OF

MANAGEMENT
Introduction
Intended learning outcomes
Explain what an organization is
Classify organizations using various
parameters
Categorize the activities in organizations
Classify managers
Explain the functions, roles and skills of
management
What is an Organization
A deliberate arrangement of people brought
together to accomplish some specific purpose
(Robbins and Coutler, 2012)
It is a kind of cooperation among individuals
that is meaningful and purposeful(Chester
Banard) who believed organizations should
be both effective (meeting org goals timely)
and efficient (the degree to which the org
satisfy the motives of its employees).
Key descriptors of Organizations
Purposeful cooperation i.e deliberately
created to achieve certain goals
Social structure i.e organizations are
composed of people
Constructed and reconstructed i.e
organizations are artificial beings that are
dynamic
Importance of organizations
 Research or discovery function
◦ Discovery of new ideas, technologies, inventions, e.t.c
 Socialization function
◦ Intellectual, societal, physical, moral development
 Rehabilitation or re-socialization function
◦ Keep offenders of justices or the mentally confused
 Production and distribution function
 Service provision function
 Protection of personal and financial security function
 Preservation of culture
 Communication function
 Recreation function
Classification of organizations
1. In terms of ownership
◦ Private, public, state controlled and NGO
2. In terms of size
◦ Micro, small, medium and large
◦ Micro (1-4), Small (5-20), Medium (21-99)
◦ Large (100+) people.
3. In terms of scope or geographical coverage
◦ Local, national, regional, multinational
4. Functional areas of activity
◦ Commercial, manufacturing, engineering, agriculture
5. Motive
◦ Profit oriented or non profit oriented
Broad categorization of Activities
Technical activities
◦ Deal with the core business of the organization
◦ Represent the main existence of the firm
Support activities
◦ There to facilitate or enhance the delivery of
the core activities
Activities in Organizations
 Technical or production activities
◦ Core activities for which the business exists
 Financial activities
◦ Deal with search and optimum use of capital
 Accounting activities
◦ Deal with calculations of items, budgets, and reporting on usage of
resources
 Commercial activities
◦ Associated with buying and selling
 Security activities
◦ Deal with protection of property and people in the organization
 Managerial activities
◦ Involve planning, organizing, staffing, directing , controlling and
coordinating activities
Resources in Organizations
Human resources
Financial resources
Machinery and equipment
Information
Time
Managerial Vs Non Managerial
Employees
Managerial Non-Managerial
Direct and oversee the work of others Work directly on the task and have no
responsibility of overseeing work of
others
Classification of managers
Top managers
◦ At or near the top of the organization
◦ Responsible for making decisions about the
direction of the organization and establishing
policies and philosophies that affect other
members
◦ Typically have positions such as president,
vice president, chancellor, managing director,
chief executive officer, chief operations officer
Classification of managers
Middle Managers
◦ Found between the lowest level and the top
level
◦ They manage other managers and at times
some non managerial employees
◦ Typically responsible for translating the goals
set by the top managers into specific details
that lower level managers will see get done
◦ Have titles such as department head, project
leader, unit chief, district or division manager
Classification of managers
First-line managers
◦ Responsible for directing the day-to-day
activities of non-managerial employees.
◦ Often called supervisors, team leaders, shift
managers or unit coordinators
Classification of Managers
What is management
The process of getting things done
effectively and efficiently with and
through people
◦ Process refers to a set of ongoing and
interrelated activities
◦ Efficiency refers to performing tasks correctly
and maximizing output from limited inputs
◦ Effectiveness refers to doing the right things
and completing tasks to achieve organizational
goals
Four Management Functions

planning
Controlling

Organizing
Achieving the
firm’s intended
purpose

Leading
Four Management Functions
Planning
◦ Setting goals, establishing strategy and developing sub-
plans to coordinate activities
Organizing
◦ Determining what needs to be done, how it will be done
and who is to do it
Leading
◦ Directing and coordinating the work activities of the
workforce
Controlling
◦ Monitoring activities to ensure achievement of planned
goals
Management Roles
Interpersonal roles
◦ Involving employees as well as outsiders
◦ Include Figure head, leader and liaison
Informative roles
◦ Involve collecting, receiving and disseminating
information
◦ Include monitor, disseminator and spokesperson
Decisional roles
◦ Involves choosing among alternatives
◦ Include entrepreneur, disturbance handler, resource
allocator and negotiator
Skills Needed By Managers
Conceptual skills
◦ Used in analysis and diagnosis of complex situations
Interpersonal skills
◦ Used in relating well with others, whether individuals or
groups
◦ Needed to communicate, motivate, mentor and delegate
Technical skills
◦ job specific knowledge and techniques needed to perform
tasks
Political skills
◦ To build a power base and establishing the right
connections
Summary
Discussed the definition of an organization
Importance of organizations
Classification of organizations
Activities in organizations
Resources in organizations
Classification of managers
Defined managerment
Functions of management
Management roles
Management skills