COURSE CODE: AMS 101

COURE TITLE: PRINCIPLE OF MANAGEMENT

COURSE CONTENT:
Basic concept in management, management principles, functions of management (such as

planning, directing, coordinating, etc.), nature and purpose of the organizing function,

department, line and staff, staffing

Expected learning outcome from the topic

The topic introduces students to the concept of management, the different approaches to

management as well as the functions of management. At the end of this exercise, students should

be able to understand the concept of management, discuss the various approaches to

management and explain the functions of management.

1.0 DEFINITION OF MANAGEMENT

The concept of management can be traced as far back as early human co-existence and

civilization and because man is a “social being”, there is need to manage human behaviors and

activities. Management is the administration and organization of tasks or responsibilities to

achieve set goals/objectives.

According to Henry Fayol, "To manage is to forecast and to plan, to organize, to command, to

coordinate and to control".

According to Peter Drucker, "Management is a multi-purpose organ that manages business and

manages managers and manages workers and work".

Harold Koontz in his book titled “The management theory jungle”, defined management as "the

art of getting things done through and with people in formally organized groups".

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According to Mary Parker Follett, "Management is the art of getting things done through
people".

Management can also be an art, a science or a profession

Management as an art. Management is considered an art because it requires certain skills which

are personal possessions of managers. For instance, musicians, dancers and actors are all artist with

personal, experience and skills unique to their respective fields. A manager is also an artist because he

applies his personal knowledge, skills and experience to get the works done.

Management as a science. Science is an organized collection of knowledge that emphasizes

certain universal truths. Management is a science because it is an organized body of knowledge

and it has universally accepted principles. Management as a science enables managers to know

the principles and the application of these principles in solving various managerial problems

represents the art. Thus, science provides the knowledge while art involves the application of the

knowledge

Management as a profession. A profession is a paid occupation that requires training and a

formal qualification which qualifies them as a profession. Examples of profession include doctor,

teacher, lawyer and so on. Managers also need specialized knowledge, training and education to

qualify as a profession.

Simply put, management is the efficient and effective utilization of available resources to

achieve set goals/objectives. According to Peter Drucker, efficiency means “doing things right”

or “using available resources judiciously to achieve se goals’ while effectiveness denotes “doing

the right thing” or “coordinating activities with the organization’s goals”. As an efficient

manager, you are concerned with policy implementation, measure of productivity/output and

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how tasks are accomplished. Effective management on the other hand, focuses on policy

formulation and quality of productivity.

1.1 CHARACTERISTICS OF MANAGEMENT

i. Management is a managerial process which involve planning, coordinating, directing,

organizing and controlling human efforts in order to achieve the tasks assigned to

them.

ii. Management is a social process. It entails getting things done through the effort,

support and cooperation of others (that is, subordinates).

iii. Management is action-based. Management is an action-based activity which is

concerned with achieving results.

iv. Management involve achieving results through others. The expected

result/performance of subordinates are key to the managers. He supervises, monitors

and motivates them in order to get the anticipated result.

v. Management is intangible. Management cannot be seen physically but it is visible in

form of tangible results.

vi. Management is a group activity. Management is a group/collective effort and not an

individual effort

vii. Management is all pervasive. Management covers all aspect of n organization

(departments, units and activities)

viii. Management is aided, not replaced by computers. The computer only assist the

manager in carrying out its activities. It does not replace the manager.

ix. Management is an art, science and profession. As an art, management requires certain

managerial skills. As s science, it is an organized body of knowledge with universally

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 accepted principles. It is a profession because it requires formal training and

education.

x. Management is innovative. Managers need to use different approaches and methods

that are peculiar to their current situation.

1.2 NEED FOR MANAGEMENT

i. It is fundamental for the success and smooth operation of any business/organization

ii. The functions of management are done through the management process

iii. Management bring about orderliness and ensures that set goals/objectives are

achieved.

iv. It is needed for effective communication within and outside the organization

v. It ensures that available resources are well utilized

vi. It enhances cordial relationship in the workplace

vii. Management ensures that there is proper guidance and direction

viii. It brings about motivation among the employees

ix. It helps develop team spirit

x. Management help facilitate the introduction of new machines and methods

REFERENCES

Morden, T. (2017). Principles of management. Routledge.

Prasad, L. M. (2020). Principles and practice of management. Sultan Chand & Sons.
Soundaian, S. (2019). Principles of Management. MJP Publisher

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2.0 MANAGEMENT PRINCIPLES

Learning objectives from the topic

The aim of this topic is to introduce students to the various management principles as well as

discuss the evolutionary process of management. The topic is also meant to discuss the various

schools of management and the contributions of several authors in management

Management principles are the basic or fundamental guideline that enable managers to organize,

plan, control and coordinate organizational activities and operations in order to efficiently and

effectively achieve set goals/objectives. By efficiently, we mean that work is done in a quick and

organized manner without waste of resources while effectively mean that set goals are achieved.

2.1 Evolution of Management Theory

Management process has evolved from the pre-industrial era, industrial revolution era and the

modern day approaches

2.1.1 Pre-Industrial era

During this era, management practice was carried out in several parts of the world. In Africa for

instance, Mali, Ghana and Songhai had a well-organized management system. Ghana’s legal

system had both a lower court and a court of appeal that were well managed. The army was very

disciplined and efficient that within a short notice, the king of Ghana mobilized 200,000 armies

in the field. Trade and commerce between Ghana and other countries was lucrative and local

craftsmen, shoemaker, potters and clothes weavers were in abundance. In Mali, the king planned,

coordinated and organized international trade between its kingdom and other countries. Taxes

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were efficiently collected from craftsmen, businessmen, woodcarver and other artisans. The

affairs of the kingdom were very organized and free of bureaucracy. The Egyptians also had a

well-organized management system where they carried out several activities such as irrigation

projects, construction of pyramids and building of canals. The Pharaohs managed, planned,

controlled and organized the work. The Romans, Greeks and Babylonians also practiced the

management of enterprises due to their engagement in commercial activities.

2.1.2 Industrial revolution

The technological discoveries of prominent geniuses such as Gilbert, Galileo, Harvey and Watt

brought about the industrial revolution. The industrial revolution was a process of change from

an agricultural/handicraft economy to an industrial/machine economy. There was growth in

resources and large scale enterprises and large number of employees worked together under one

roof. However, the latter created its own management problems and the entrepreneurs/owner-

manager who could no longer supervise all his operations unaided. Thus, delegation of responsi

bility/authority, specialization and division of labor became necessary for the entrepreneur.

Employees who were still regarded as “tools” by the owner-manager feel aggrieved and disliked

the meager wages and work conditions. Employers on the other hand, resorted to dismissal,

blacklist and threats. With these reactions and counter-reactions from employers and employees,

emerged several management school of thought on how best to effectively and efficiently

manage a business. Several principles of management have emerged to address these

management problems. These group of management thinkers/theory are classified as follows:

1. The Classical theory of management

(a) Scientific approach, (b) Bureaucratic approach and (c) Administrative approach

2. The Neo-Classical theory of management

(a) The human relation and (b) Behavioral science approach

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 3. The Modern Approach/School
(a) Quantitative approach, (b) System approach and (c) Contingency/Situational approach

THE CLASSICAL THEORY OF MANAGEMENT

Classical Approach

Scientific Management Bureaucratic Management Administrative Management

Frederick Taylor Henri Fayol

Max Weber
Charles Baggage
Gilbreths
Henry Gantt

(a) Scientific Management

The emphasis here is on the best way to increase workers’ productivity and to get them to

complete their tasks with minimum motion and movement. Among those whose work

contributed to the scientific management movement are Frederick W. Taylor, Charles Baggage,

The Gilbreths and Henry Gantt. Taylor is often referred to as the father of Scientific

Management and he opined that scientific management has to do with how to (a) increase the

output of the average employee, and (b) improve the efficiency of management. He believed that

workers are motivated by financial need and the fear of being replaced tends to lower their

productivity. He then summarized is principles of management as follows;

(a) The gathering, analysis and codification of all “rule of thumb” and data existing in business;

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(b) Careful selection of employees and development of employees to enable them attain their

optimum potential;

(c) Educating men to scientific method that has been tested and proved to be effective; and

(d) Management should reorganize these in order to carry out their duties properly.

Charles Babbage’s major contribution to the field of management include:

(a) Division of labor and specialization. He emphasized that labour should be divided and
assigned based on skills and (b) Automatic operation. He also stressed on the need for automatic
machines to replace manual operations.

Frank and Lilian Gilbreth were best known for their work on these motion studies. They believed
that the one best way was the way that required the least motion. Frank identified seventeen (17)
basic elements in on-the-job motions which he referred to as “Therbligs”. These are:

(1) Search (11) Pre-position

(2) Find (12) Release load

(3) Select (13) Transport empty

(4) Grasp (14) Wait-unavoidable

(5) Position (15) Wait-avoidable

(6) Assemble (16) Rest-necessary for overcoming fatigue,

(7) Use (17) Plan

(8) Disassemble

(9) Inspect

(10) Transport loaded, moving hand or body with a load

Another contribution by Frank was the “flow chart” which stressed on the need to break down
operations into units and steps for different employees to carry out.

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Henry Gantt’s contributions to scientific management included:

i. The task-and-bonus system. Workers received bonus when they completed the work
in less than standard time.
ii. The Gantt chart which compared actual and planned performance.
iii. Indicates the production in terms of time rather than quantity.
iv. Horizontal axis – time, work scheduled and work completed.
v. Vertical axis – individuals and machines assigned.

Advantages of the scientific management theory

i. It replaced the traditional “rule of thumb” by sing scientific techniques/methods

ii. Efficient and effective utilization of resources
iii. Standardization of equipment, tool and materials
iv. Increased production attracted incentives
v. Ensured equal division of responsibilities/roles between management and employees
vi. Ensured proper selection, placement and staff training
vii. Customers enjoyed value for their money through the production of high quality
products at lower and affordable prices

The theory has also been criticized for the following reasons;

i. It was majorly centered on production and as such failed to consider other aspects of
management (such as accounting, personnel, marketing, human relation, etc)
ii. There is no increase in workers’ wages as their productivity increases, thus, workers
are at risk of exploitation
iii. Monotony of work
iv. Risk of unemployment
v. Lack of financial motivation /incentives
vi. It failed to take into consideration individual (employee) differences
vii. Lack of fairness
viii. It encourages autocratic control
ix. It does not consider employees’ well being
x. It discourages initiatives

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(b) Bureaucratic approach
Max Weber believed that bureaucracy was the most efficient and practical way to manage
an organization. He emphasized that bureaucracy was necessary to achieve maximum
productivity especially where several employees and responsibilities are involved. The
major features of Weber’ bureaucracy are: (i) division of labor and specialization of works,
(ii) hierarchy of organization structure’ (iii) impersonality of managers, and (iv) abstract
rules and regulations.

Advantages of Bureaucratic approach

i. Division of labour
ii. Operation efficiency
iii. Clear hierarchy
iv. Encourages specialization and creativity
v. Centralizes organization
vi. Formal rules and regulations

Disadvantages of Bureaucratic approach

i. Power exploitation
ii. Time wasting
iii. It is rigid and inflexible
iv. One-sided communication
v. Discourages creativity

(c) Administrative approach

Fayol was also known as “the father of modern management”. He focused on how managers
can coordinate the activities within (internal) an organization in order to achieve managerial
efficiency. His emphasis was on administration where he advocated fourteen (14) principles
of management as follows;

1) Division of labour. This is the division of a whole/complete task into smaller/different

components

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(2) Authority and responsibility. Managers must have and be given the necessary authority
in order to give instructions/orders

(3) Discipline. Set rules and regulations must be obeyed for the smooth running of the
organization

(4) Unity of command. An employee should have one boss in order to avoid confusion and
conflict of interest

(5) Unity of direction. Where workers are engaged in the same activity, there should be one
goal and motive, this will ease the work and the goal can be properly accomplished

(6) Subordination of the individual interest to the general interest. The interest of the
organization should supersede any other individual interest.

(7) Remuneration. Employees should be paid fair wages for the work/task that they carry
out

(8) Centralization. This means that decision making is solely a top management
responsibility

(9) Scalar chain (line authority). This refers to the clear chin of communication between
employees and their superiors.

(10) Order. Resources should be properly placed at the right time

(11) Equity. This principle refer to fair, just and equal treatment of all employees

(12) Stability of tenure of personnel. This refers to the job security of employees. That is,
there should as much as possible be maximum efficiency and less staff turnover

(13) Initiative. Employees should be allowed to exercise their initiative where and when
necessary

(14) Espirt-de-corps. Management should endeavor to create cooperation and team-spirit

among employees.

Advantages of administrative approach

i. Clear hierarchy

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 ii. Efficiency and productivity
iii. Division of labor
iv. Specialization
v. Better decision-making

Disadvantages of administrative approach

i. Inflexible structure
ii. It does not address employees’ problems
iii. Communication barriers
iv. Ignores the significance of behavior in an organization
v. Limited application in dynamic and complex situations

THE NEO-CLASSICAL THEORY OF MANAGEMENT

Neo-Classical Approach

Human Relation Behavioral Science

Mary .P. Follett

Elton Mayo
Douglas McGregor
Abraham Maslow
Chester Barnard

(a) The Human Relation School

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The human relation school of management believed that the interpersonal relationship between

employees (management and workers) is key in achieving organizational goals and objectives.

They highlighted on the need for management to understand, motivate and satisfy workers’

needs, which will in turn enhance their productivity. The major contributor to the human relation

theory was Elton Mayo. Mayo was known as the “father of human relation movement” and the

first inspiration came from the Hawthorne experiments.

i. Illumination experiments.
ii. Human Attitudes and Sentiments - Interviewing Studies
iii. Social Organizations - Observational Studies
iv. Absenteeism in Industries

Elton argued that workers are not only motivated financially rather, they are best motivated by

working as a group or team, greater management involvement and better communication. In

other words, workers increase their productivity and perform better when they know people are

concerned about them.

Advantages of the human relation approach

i. Better recognition of the human aspect of an organization

ii. Improved employee welfare

iii. Importance of managerial style

iv. More economic and political power

v. Workers’ participation

vi. Promotes effective communication

Disadvantages of the human relation approach

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 i. Unscientific enquiry

ii. Anti-union biased

iii. Overemphasis on interpersonal relation

iv. There is no correlation between productivity an employee satisfaction

v. Limited application in larger organizations

(b) Behavioral Science Approach

These management thinkers recognized the behavior and attitudes of people within an
organization. They also emphasized that leadership quality was crucial to the performance of
employees and advocated for participative management, motivation , communication as key
factor necessary for enhanced employee performance.,

According to Follett’s management theory, management is “an art of getting things done through
people”. She argued that in order to enhance employee performance, there is need for
managers/leaders to coordinate people and promote employee engagement. She based her theory
on four (4) principles:

i. The inspiration of the concept of teamwork

ii. The belief that all members are equally significant in the organization
iii. Direct communication between leaders and workers
iv. Better decision-making activities

McGregor’s contribution to management is attributed to his motivational theory (theory X and

theory Y). The theory assumed two divergent opinion managers make about their subordinates.

Theory X: People dislike work and have little need for responsibility. They would also avoid
work and prefer to be supervised and directed.

Theory Y: People like work and need no supervision because they are self-motivated

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Abraham Maslow’s hierarchy of needs theory proposed that the human behavior is motivated by
needs and once a particular need is satisfied, it no longer motivates. He categorized these basic
needs as follows:

i. Physiological needs: food, warmth, water, rest

ii. Safety needs: safety, security

iii. Social needs: friends, intimate relationship

iv. Esteem needs: feeling of accomplishment

v. Self-actualization needs: achieving one’s full potentials

Chester Barnard’s system theory assumes that an organization is a system made of people who

work as a team and as such, it is important to understand their behavior in order to achieve set

goals. His book titled ‘The Functions of the Executive’, is considered as the most significant

book on management during the pre-colonial era. Barnard is best known for his work called “the

zone of indifference”, which examined what could make a worker defy instructions. Just like the

human relation thinkers, Barnard also focused on human relation and his major contributions of

were as follows:

i. Concept of organization. Bernard defined a formal organization as a system of

consciously organized activities of two or more individuals. He opined that three

must be satisfied for an organization to exist: (a) people must be willing to

communicate with one another. (b) they must be willing to contribute to the action,

and (c) they must endeavor to achieve a collective purpose

ii. In any organization, there are formal and informal groups. The formal group has a

well-known and organized purpose while the informal group denotes the social

interaction without any common purpose. He advocated for the presence of informal

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 groups because they bring about unity, protect against unnecessary control and serve

as a medium of communication.

iii. Authority. Barnard proposed the “bottom-up authority” or “acceptance theory of

authority” where he argued that authority does not always come from the top to
down. He believe that a person will obey his superior when: (a) he can comprehends
the communication, (b) believes it is in consistency with the organization’s purpose,
(c) believes it is in harmony with his individual interest in general, and (d) he is both
mentally and physically able to obey it.

iv. Features of formal organization. Bernard opined that there are four features. These
are:
(a) A system of functionalization (i.e. departments), (b) a system of efficient and
effective motivations to encourage people to contribute to collective achievements,
(c) a system of power where management’s decision are accepted, and (d) a system
of sound decision-making.

v. Motivation. Barnard believe that aside financial motivations, there are non-financial
motivational methods such as participation, sense of belongings, favorable
organization, etc.

Advantages of behavioral science approach

i. Recognition of the human factor

ii. Enhanced employees’ output/productivity
iii. Encourages good human relation
iv. Eliminates employees’ grievances
v. Recognition of leadership

Disadvantages of behavioral science approach

i. It does not consider employee’ productivity

ii. Overemphasis on human relation

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 iii. It is less practical and more theoretical

THE MODERN APPROACH TO MANAGEMENT

Modern Approach

Quantitative/Mathem- System Approach Contingency/Situational

atical Approach Approach

(a) Quantitative Approach. This approach also known as the mathematical approach
focuses on mathematical model and believes that management is a logical unit. This
approach opined that managerial problems can be stated using mathematical symbols
and relationship. The main features of this approach are:
i. Every managerial problem is quantifiable.
ii. The basic methods to address managerial problems are the use of mathematical
tools, model, etc.
iii. Mathematical tools and techniques assist management to solve problems
iv. It encompasses certain features of human actions, decision-making and
organizational study

Several mathematical tools such as game theory, time series analysis, linear programming, etc,
have proven to be accurate in solving management problems. Nevertheless, human behavior and
activities are not easily quantifiable

(b) System Approach. A system is a set of unified and inter-connected elements which work
together to achieve a particular goal. It emphasizes on the interdependence and

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 interrelatedness of all organizational activities. This approach believes that (a) every
system is focused on a particular goal which must be achieved, (b) there is a well-
organized arrangement of components/works, and (c) proper distribution of inputs in
order to achieve the desired outputs
Advantages of the system approach
i. Effective allocation of resources
ii. Organized problem-solving process
iii. It is flexible
iv. All-inclusive perspective
v. It enhances employee participation and motivation

The system approach has been criticized for the following reasons; time-wasting, high
cost, complex and time-consuming.

(c) Contingency/Situational Approach. This approach advocates the interrelationship

among variables in a situation and planned managerial actions. The basic idea of

contingency approach is that there cannot be a particular management action which will

be suitable for all situations and that the external environment and internal needs are both

necessary in determining the best management action.

Advantages of the contingency approach

i. It is practicable and applicable

ii. It is open-minded

iii. It focuses on situational factors that influences management plan/policy

iv. It allows for the use of the most suitable management systems

The limitations of this approach include: it lack a theoretical base and managers requires

more skills to explore all likely alternatives.

REFERENCES

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Barnard, C. I. (1968). The functions of the executive (Vol. 11). Harvard university press.

Drucker, P. (2012). The frontiers of management. Routledge.

Fayol, H. (1919). General principles of management

Taylor, F. W. (2004). Scientific management. Routledge.

Koontz, H. (1961). The Management Theory Jungle. Academy of Management

Koontz, H., O'Donnell, C., & Weihrich, H. (1986). Essentials of management (Vol. 18). New
York: McGraw-Hill.

3.0 FUNCTIONS OF MANAGEMENT

Learning objectives from the topic

The aim of this topic is to introduce students to the management functions (such as planning,
directing, coordinating, controlling staffing, e.t.c).

Functions of Management

Planning Organizing Staffing Controlling Directing

Fayol identified five (5) basic functions of management as follows:

1. Planning
2. Organizing
3. Staffing
4. Controlling, and
5. Directing

Similarly, Peter Drucker also identify five functions of management similar to that of Fayol.
However, he added coordinating to the functions of planning, organizing, directing, and
controlling. Luther Gullick has given the acronym ’POSDCoRB’ to stand for the functions of
management where;

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P stands for Planning,

O for Organizing,

S for Staffing,

D for Directing,

Co for Co-ordination,

R for Reporting, and

B for Budgeting

Planning
Fayol defined planning as “an attempt to predict the future of the organization and to determine

the measures needed to transition to this new state”. He believed that planning is one of the most

important function of management. The main purpose of planning is to harmonize all effort

within the organization in order to achieve the set goals/objectives. Planning also help minimize

the risk of uncertainties and reduces wastage

Organizing
Organizing is the process of ascertaining and grouping the task/work to be done as well and

delegating authority and responsibility in order to accomplish set goals effectively and

efficiently. Organizing help build relationship amongst employees, it ensures the effective use of

available resources and serves as the structure needed to attain set goals and objectives.

Staffing
This is the process of hiring the right manpower/employee with the necessary skills. It entails all

activities such as selecting, recruiting, placement, training and getting the “best” human

resources. The success of any organization is as important as its manpower and the staffing

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function involves several steps such as requisition, selection, orientation and placement, training,

remuneration, performance evaluation and promotion or transfer

Controlling
This is the measurement or evaluation of performance/progress made towards achieving set

goals/objectives. This management function help ensures that performance does not deviate from

standards. It also ensures that corrections are made where and when found necessary. The aim o

controlling is to compare actual performance with the expected results.

Directing
This management function is concerned with guiding employees’ effort towards achieving the

organizational goals/objectives. The process entails leading, communicating, giving out

instruction as well as motivating workers for the purpose of accomplishing established

goals/objectives.

Coordinating
This is the process of harmonizing or complementing different components such as finance,

marketing, personnel, production etc in order to achieve the overall goal of an organization. It

ensures that everyone is carried along and that there is smooth running of the

operations/activities in the organization

Reporting

This is the process of providing information within an organization for decision-making. It also

entails monitoring an organization’s performance and enables a manager to make better

decisions about the organization thus, helping to enhance organizational performance.

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Budgeting

A budget is a detail plan of how financial resources will be acquired and utilized. Budgeting is a

vital function of management which enables a manager prepare the organization’s future plan as

well as distribute resources judiciously. Proper budgeting ensure that there is “check and

balance” and corrective measures are taken when the need arises.

Commanding

This involves directing, guiding as well as providing employee with the needed resources to

enable them carry out the task/work assigned to them. It also serve as a feedback mechanism on

the progress made in achieving organization’s goals/objectives.

Leading

This involves motivating and guiding employees (individually/group) to work towards achieving

the organization’s goals. A manager is also said to be a leader because he exhibit leadership

styles in order to motivate others, guide and foster a conducive work environment needed to

enhance employee performance.

REFERENCES

Peaucelle, J. L., & Guthrie, C. (2015). Henri Fayol, the manager. Routledge.

Shinde, S. V. (2018). Functions of management. Lulu. com.

4.0 NATURE AND PURPOSE OF THE ORGANIZING FUNCTION

Learning objectives from the topic

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The aim of this topic is to introduce students to the organizing function of management, its
nature and purpose..

Organizing is the grouping of all necessary activities aimed at accomplishing the goals of an
organization. Basically, it entails the division of labour among workers and coordination of their
efforts in accomplishing the goals/objectives. The nature of organizing involves

i. Division of labour. The whole task or work is divided into different units and sub-

units where necessary for easy an d timely completion

ii. Coordination. The efforts of all workers are harmonized for the purpose of

achieving the overall goal

iii. Plurality of persons. In an organization , no man is an island and as such all

employees must work towards a mutual purpose

iv. Well-defined authority and responsibility. There is a clear and well established flow

of authority and responsibility from top management team to bottom or low. This will

ensure efficient an effective work routine at all levels

v. Organization is a structure of relationship. There is the decision of who is answerable

to who (who is the superior and subordinate).

vi. Organization is a machine of management. A machine holds all its parts together and

so does the organizing function. Any loose part may disrupt the whole machine from

functioning properly.

vii. Organization is a universal process. As long s there is a common goal an d more than

one person is involved, organization hold the key to coordinate and harmonize all

efforts needed

viii. Organization is a dynamic process. Change remain constant in life and the

knowledge and experience of people changes overtime

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REFERENCES

Fineman, S. (2009). Organizing & organizations.

Shinde, S. V. (2018). Functions of management. Lulu. com

5.0 DEPARTMENTAL ORGANIZATION

A department is a unit of an organization that is usually headed, controlled or supervised by a

manager. There are different types of departments in an organization depending on the type of

organization. However, the following departments are found in most organization. They include

finance, marketing, human resources, administrative, accounting, Information Technology (I.T),

etc.

Finance department. This department handles and manages an organization’s financial

resources and all financial activities such as budget management, preparing financial statements,

forecasting cash flows, etc.

Marketing department. The marketing department ensures that the necessary customers and

clients are generated for the organization. This department usually work with the sales

department an in most cases, they are merged together

Human resources (HR) department. The recruitment, selection, placement, hiring or

personnel is the sole responsibility of the HR department. They also ensure that a conducive

work environment and address all issues concerning staff welfare and well-being

Administrative department. This department is responsible for the day to day running of the

organization including managing files, proper record keeping, etc

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Accounting department. The accounting department ensures that the organization’s financial

records are accurate and up to date. They prepare the organization’s financial statement and

provide all necessary information for management decision

I.T department. This department ensures the proper maintenance of the organization’s

computer system and all I.T related issues

6.0 LINE AND STAFF ORGANIZATION

This is a combination of the line organization with staff departments. The staff department

advises and supports the line department. The line heads are usually assisted by specialist staff

REFERENCES:.

Aturu-Aghedo C. (2009). Principles and Practice of Management.

Nwachukwu, C.C. (1992). Management Theory and Practice. Pg. 32.

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