St.

Mary’s University

Faculty of Business

Department of Management

Introduction to Management Summary notes for HEEE

Learning Outcomes:

- Define the term, nature and practice of management, basic characteristics of management, its
importance, roles, skills, its universality.
- Describe the principles of management.
- Develop comprehensive understanding of basic concepts of management functions
DEFINTION OF MANAGEMENT:

Management is defined by different authorities in different ways. The following are

some of the common definitions given by different authorities in the field.

i. Management is the art of getting things done through and with people in a formally
organized group.
ii. Management is the art of knowing what you want to do in the best and cheapest way.
iii. Management is the art of securing maximum results with a minimum of efforts so as to
secure maximum prosperity and happiness for both the employer and employee, and
give the public the best possible service.

Precise Definition of Management

Though management is defined in various ways as mentioned earlier, the following is the
commonly used precise definition of management which encompasses all the chapters of the
course.

“Management is the process of planning, organizing, staffing, directing and controlling

to accomplish organizational objectives through the coordinated use of human and
material resources.” It is the process of efficiently and effectively getting activities
completed with and through other people. It is the process by which human and non-human
resources are coordinated to accomplish a set of objectives.

IS MANAGEMENT A SCIENCE OR AN ART? Is it a profession? If so, why?

The question whether management is an art or a science has been an issue of debate for
a long period of time.
  The primary purpose of management is achieving the goal of the organization
by using resources efficiently.
When managers solve problems by using their knowledge, skill, experience, rules and
regulations, etc., it can be considered as an art. In contrary, when they solve problems
through a systematic way of data analysis, it is considered as a science.
 Hence, based on the above description, management is both an art and a science.

Management as a profession

Management is considered as a profession, because it consists of special knowledge, follows formal

training and certification, has a code of conduct, possesses a representative organization and requires
fees.

The term profession refers to an occupation that demands specialized knowledge of a

subject matter with intense academic background.
Levels of Management
Levels of management are hierarchical arrangement of managerial positions in an
organization. The number of levels of management may depend on the size of the
organization. In general, however, there are three managerial levels, which includes:

i. Top level management,

ii. Middle level management, and
iii. Fist level (operating level management)

These levels of management can be presented graphically as indicated below

Top –
level
Management
Middle – level
Management

Operating – level
Management
a) Top – level Management

Top – level management includes that of board of directors, executive committee and
chief executive, or president, or general manger, etc. of an organization.

Functions of top management include;

 Establishing broad objectives;

 Designing major strategies;
 Outlining Principal policies;
 Providing effective organizational structure that insures integration;
 Providing overall leadership and direction;
 Making overall 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.

b) Middle – level Management

Middle-level management includes heads of the different functional areas and their assistant:
divisional heads, department heads, section heads, plant managers, branch management, etc.
The major functions of middle-level management are:

 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.
c) Operating level management (First level management)

First – line management is found at the lowest level in the hierarchy.

The first – line managers comprise the largest managerial group in most organizations
and they are responsible for directing and managing operating employees and
resources.
They direct small team of workers and keep a check on their performance so that short-term
plans and work target are achieved.

Specific functions of first line managers include the following:

 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.

Managerial Roles

1) Interpersonal roles
These are the roles that the managers play in interacting with other people both within the
organization and outside the organization. Managers spend a lot of time with peers,
subordinates, suppliers, customers, government officials and community leaders because of
their formal authority, superiority and strategic position. Therefore, they are required to
have an understanding of interpersonal relations. These roles again are classified in to three
categories.

a) Figurehead role:- when managers perform duties of social or legal obligations that
represent an organization at different occasions such as ceremonial and symbolic in
nature it is said to be Figurehead role. These duties include: -greeting visitors, signing
legal documents, taking important customers to lunch, attending social functional
involving their subordinates like wedding, funerals, Handing out merit certificates to
works etc or speaking at functions in schools and churches etc.
b) The leadership role:- the influence of a manager is clearly seen in his role as a leader of
the unit or organization. This involves directing and coordinating subordinates activities
such as hiring, training, motivating and guiding. He must be an example/role model
leader so that his subordinates follow his directions and guideline with respect and
dedication.
c) Liaison role:- Managers must maintain a net-work of outside contacts in order to assess
the external environment such as competition, social changes or changes in government
 rules, regulation and laws that affect the organization interest. In this role the managers
build up their won external information system.
The Liaison with external sources of information can be developed by attending
meetings and professional conferences by personal phone calls, trade journals and by
informal personal contacts within outside agencies.

2) Informational Role
Managers emerged as a source of information about certain issues concerning the
organization. They play the role of central point for receiving and sending important
information. Informational roles describe the manager’s activities used to maintain and
develop an information network. In informational role managers perform the following
three roles.

a) The monitor role:- in this role managers constantly monitoring and examining their
internal and external environment by collecting and studying information concerning
their organization. They seek information from various sources in order to make
decision and solve problems that would be achieved by reading reports and
periodicals, by asking their liaison offices etc.
b) The disseminator role:- Manager’s must transmit their information regarding
changes in policies or other matters to their subordinates, their peers and to other
members of the organization. He/she should provide important information to
subordinates that they might not ordinarily know about. This can be done through
memorandums, phone calls, individual meetings and group meetings. Managers do
not put aside information rather they pass it to peers. The type of information to be
forwarded to organizational members may include facts, opinions, interpretations and
influences.
c)Spokesperson role:- the manager represents his/her organization or unit to other
people internally or externally. A manager represents his organization in either
sending relevant information to people out side the firm or making some demand on
behalf of the firm. He transmits information to outsiders as official position of the
organization. Managers are also responsible to provide official statements to people
outside the organization about company policies, plans, actions or development. The
information can be transmitted to outsiders through a speech at the trade show,
reports, holding a press conference, giving public interview or through advertising
media’s.

3) Decision making/Decisional role

On the basis of the managers interpersonal and information received, a manager must make
decisions and solve organization problem in that respect. These are manager’s activities to
make choices from alternatives. Managers are responsible to identify problems and
opportunities and then balance conflicting interests. In the decisional role the manager
becomes an entrepreneur, disturbance handler, resource allocator and negotiator.

a) Entrepreneurial role: - here managers are continuously involved in improving the

organization and facing dynamic technological changes and initiating and
designing of change in the organization by assuming the risk of change. They
 always look out for new ideas for product improvement. They initiate feasibility
studies, they arrange capital for new products, they ask for suggestions from
employees, how to improve the organization. In general they take risks for
investment.
b) Disturbance handler role: - managers have to work like a fire fighter. They must
seek solutions of various unanticipated problems such as strikes, complaints,
grievances, shortage of materials etc. the manager makes decisions or takes
corrective action to response to pressure beyond his/her control. They have to take
corrective actions during crises, disputes and sudden departure of subordinates,
importance customers or suppliers.
c) The resource allocator role:- the manager must divide work and delegate
authority among his subordinates. He/she must make decisions how to optimally
allocate scarce resources among the unlimited needs. This role of managers
pertains to decisions about how to allocate people, time, equipment, budget and
other resources to attain desired results. Managers decide exactly where the
organization will expend its resources according to the priorities of organizational
objectives.
d) Negotiator role:- the manager deals or negotiates with individuals or groups about
certain issues in view of reaching agreement on certain problems. The manager
also bargains with units and individuals to obtain advantages for his/her unit or
organization.

Managerial Skills

Technical skills

Technical skill involves the use of knowledge, methods and techniques in performing a job
effectively. It is a specialized knowledge and expertise, which is utilized in dealing with day-to-
day problems and activities. This skill is acquired through education and training or formal
studies in colleges and institutions. Technical skill is more important at lowver level
management and as one move to higher level management; the relative importance of technical
skill will diminish. E.g. engineers accountants, computer programmers, program analysis etc.

Human skills

It is the ability to work with other people in a co-operative manner i.e. the ability to influence
others, to motivate, to lead and understand others. It involves understanding, patience, trust
and genuine practice in interpersonal relationships. Though there are some controversies, these
skills are equally important at all levels of management because all tasks in an organization are
done with people. This skill includes effective communication, creation of positive attitude
towards others, development of co-operation among group members and motivation of
subordinates.

Conceptual skill

It is ability of a manager “to see” the big picture of the organization, to view the organization
from a broad perspective. It is the ability to view the organization as a whole entity and as well
as a system comprised of various parts and subsystems integrated into a single unit. It is
especially important for top level managers ho keep the whole system under focus. They must
understand the complexities of the overall organization, to see the big picture and how each
unit of the organization contributes towards the success or achievement of organizational
skills. Conceptual skills are more important in strategic (long range) planning; therefore it is the
top level managers/executives who require more of these skills than middle level manages and
supervisors.

UIVERSALITY OF MANAGEMENT

Is a manager’s job universal? Are the principles of management universally applicable? It is

already stated that managing is found in all types, functions, levels and sizes of organizations.
Management can be applied to all organized human efforts whether they are in business,
government, and educational, social, religious or other fields. Universality of management
suggests that the manager uses the same managerial skills and principles in each managerial
position held in various organizations. It means that management is generic in content and is
applicable to all types of organizations. Many professionals in the field of management agree
that “management is universal”. This is to mean that regardless of title, position or
management level, all managers do the same job. They all execute the five management
functions and work through and with others to set and achieve organizational goals.

Basic Management Functions

The Basic Management functions include

 Planning
 Organizing
 Staffing
 Directing, and
 Controlling
Planning: -

- It is the first function that all managers engage in.

- It lays the groundwork for all other functions.
- Planning usually:

- Identifies the goals of an organization

- It maps out courses of action

Length of time and scope of planning:

- Will vary according to the level in the company

Top-level management planning may cover a period of five or ten years. (Long –range
planning)

The plans at the top management level may cover expansion of the business and how it
will be financed.
Lower level management planning is however concerned with planning today’s or tomorrow’s
actions.

A manager’s plans affect and are affected by, the plans of others and the requirements of
governments ruling

Organizing
Organizing is concerned with:

1. Assembling the resources necessary to achieve the organization’s objectives.

2. Establishing the activity-authority relationships of the organization

Planning has established the goals of the company and how they are to be achieved

Organizing is therefore concerned with developing the structure to reach these goals.

Staffing:

Staffing is concerned with locating prospective employees to fill the jobs created by the
organizing process.

Involves:
- Recruiting and selecting potential candidates for a job.
- Matching the job demands with the candidates’ abilities.
- Orienting new employees to the job environment
- Keeping employees qualified
- Appraising performance and providing feed-back
- Determining the proper pay and benefit for each job

Directing /leading:
Directing is aimed at getting members of the organization to move in the direction that will
achieve its objectives.

It involves motivating and encouraging employees, to participate in the decision-making

process.

Controlling:

Controlling deals with:

 Establishing standards of performance
  Reassuring performances against established standards, and
 Dealing with deviations from established standards.
It attempts to:
 Prevent problems
 Solve the problems that occur
In general, controls ensure that work is performed to standards as planned.

CHAPTER TWO: MANAGEMENT THOUGHTS (MANAGEMENT THEORIES)

Management principles

Principles of Scientific Management

i. Rules of Thumb should be substituted by scientific methods. Taylor advocated that the
old method of doing work should be replaced by scientific method. The nature of work
performed by each worker should be determined. This includes the allotment of fair works
to each employee, standardization of work, adoption of piece rate of payment system, and
the like.
ii. Specialization should be Practiced. Taylor advocated the division of entire work into
managerial and non-managerial categories. He separated the planning function from
executive function. Before Taylor's period, both planning and executive function were
performed by the same person. Taylor emphasized that supervisors should do the
planning function, while the executive function be assigned to the workers alone. He
believed that vertical specialization would improve job performance.
iii. Proper selection and training should be done. Taylor emphasized the proper selection
and training of workers. He suggested that workers should be selected and provided with
job training. The management should find out the physical, educational and psychological
requirements of each job, and suitable person to each job.
iv. Harmony in group action- F.w Taylor advocated for peace and friendship in group action.
He stressed that, dissatisfaction of any worker should be avoided in the group action.
Dissatisfaction of workers can be avoided through the introduction of scientific selection,
training and strategic placement of workers.
v. Wage incentive should be utilized. According to Taylor, man is mechanical and as a
result motivated by economic benefits. Consequently, he proposed different piece rate
systems, in which a worker was paid in proportion to the amount he/she produced.
Fayol's 14 principles of management
1. Principle of Division of work: Division of work makes a man specialist. Spec ialization
leads to better efficiency and maximum output. It also avoids wastage of time. According
to Fayol, division of work is applied to both technical and managerial kinds of work.
2. Principle of Authority and Responsibility: Authority is the right to command to get the
work done. On the other hand, responsibility is the accountability of authority so that the
official authority is not misused. Thus, responsibility is the natural outcome of authority.
3. The principle of Discipline: It suggests that, all people in an organization should respect
the rules that govern the organization, and those stated in the employment agreement.
Fayol further states that, these rules and agreements should be clearly defined and
understood, and enforced fairly and judiciously.

4. Principle of Unity of Command: This principle suggests that every one should have only
one superior, and each subordinate is responsible to only one superior. Otherwise, conflict
and confusion in authority and instruction would arise.
5. The Principle of Unity of Direction: This principle of Fayol states that "there should be
one head and one plan" for a group of activities having the same objective. For example,
the personnel department should have only one personnel manager, with a specified plan
for a group of activities having the same objective. For Fayol, this principle is necessary for
unity of action, coordination of strength, and focusing on effort.
6. Principle of Subordination of Individuals Interest to Organizational (General) Interest:
H. Fayol expected the reconciliation of the individual interest with the organizational
interest. While the individual interests should be integral with organizational interest as
much as possible, the organization must take priority over the interest of an individual or a
particular group, where there is a conflict between the two.
7. Principle of Remuneration of Employees. Remuneration and method of payment should
be fair and afford the maximum possible satisfaction to employees and employer.
8. Principle of Centralization: Centralization means, the authority is concentrated at the
upper level. Decentralization refers to the delegation of authority downward. Fayol
believed that while some authority should be given to the subordinates to make decisions,
all major decisions should be made at the top management.
9. Principle of Scalar Chain: Scalar chain is the chain of superiors ranging from the top
management to the lowest level in the organization. However, this is proved to be very
time consuming, in case when people in different departments but at the same level of
hierarchy, needed to communicate with each other. Fayol solved this problem by
introducing the Gangplank-policy, which states such people could communicate with
each other directly, but with the permission of superior.
10. Principle of Order: Both materials and people must be well chosen, well placed, and well
organized for a smooth-running of an organization; For material things "A place for every
thing and everything in its place". For people, "A place for everybody, and everybody in
his/her place".
11. Principle of Equity: Equity refers to combination of fairness, kindness and justice. These
will encourage employees to work well and be loyal. Therefore, all the employees of the
organization should be treated equally by the managers.
12. Principle of Stability of Tenure of Employees: Employees turnover should be
discouraged or minimized. Tenure and long-term commitment should be encouraged. A
person needs time to adjust himself with the new work. Hence, employees and managers
must have job security. The managerial personnel in particular should be stable.
13. Principle of Initiative. Thinking out a plan and carrying it out successfully can be satisfying.
Therefore, subordinates must be encouraged to initiate new ideas and carry out their plans.
14. Principle of Esprit de Corps (Spirit of coordination). This is the principle “Union
is strength”. All the employees of the organization are put together as team, in
order to achieve the objective of the organization. It implies that teamwork, team
spirit and togetherness must be developed and maintained.

CHAPTER THREE: THE PLANNING FUNCTION

3.1. Meaning and importance of managerial planning

Different authorities defined planning in different ways. The following is, however, the commonly used
definition of planning:

Planning is the process of deciding in advance about the short and long-run objectives of the
organization and selecting courses of action for accomplishing them.

The primary purpose of planning is to minimize the risk or obstacles surrounding future operations.
From this point of view, planning can be defined as the process of preparing for change and coping with
uncertainty. Mention the major characteristics of planning.

3.2 Types of plans

Plans are classified into various categories based on different dimensions. These dimensions include:

 Repetitiveness dimension
a) Single-use plan; ex. budget, program, project,
b) Standing plan; ex. policy, procedure, standards, rules,
 Time dimension;
i) Long-range (≥ 5 years), (ii) Intermediate-range (1-5ys),and (iii) Short-range (1≤ less yr)

 Scope/Breadth Dimension
a) Strategic plans; long-term plans that focus on the overall direction of the firm.
b) Tactical plans; focus on the strategic plan implementation,
c) Operational plans; focus on day-to-day activities performance,
 Flexibility dimension
a) Variable plans; For instance, the time estimated for a phase of a project might be stated as
“three months plus or minus one week.” .
b) Alternative plans, are similar to variable plans in recognizing environmental uncertainties,
except that, the planner sets up two or more entirely separate plans.
 c) Supplementary plans; are used to reduce that constraining effects of the original plan by
providing a prearranged appeal channel.

3.3 Organizational Objectives

The management process begins with setting organizational objectives. Objectives give meaning and
purpose to the organization. Objectives determine the scope of future events. Therefore, objectives
determine what action to take today to obtain results tomorrow.

3.3.1. The Nature/Characteristics of Objectives

Objectives state end results, and overall objectives need to be supported by sub-objectives.

Q. What are the major characteristics of organizational objectives?

CHAPTER FOUR DECISION MAKING

4.1. Decision-Making

A decision is the selection of a course of action from a certain set of alternatives. It takes palace through
Explorative phase (search), Speculative phase (analysis), Evaluative (cost-benefit) and Selective phase:

4.2 Types of Decisions

Managers are usually involved in making two types of decisions as indicated below.

a) Programmed Decisions

b) Non-programmed Decisions:

Q. What is the difference between them?

4.3 Decision-making environments

i. Decision-making under certainty=the manager ha full information

ii. Decision-making under risk =knows the existence of the problem, but not aware of the

outcome. Hence, the manager is faced with the dilemma of choosing the best alternative.

iii) Decision-making under uncertainty. Hence, a manager cannot develop probability

estimates for various alternatives.

iv) Decision-making under conflict or competition

Q. Which type of environment is more challenging for managers ? Why?

CHAPTER FIVE: ORGANIZING MANAGERIAL FUNCTION

5.1) Organizing is defined as a function of management, which is concerned with the

arrangement of resources into manageable components.

5.2 Differences between Formal and Informal Organization

Formal Organization is a type of organization, which is established deliberately, or

consciously to achieve predetermined objectives.
 Informal Organization is an organization, which consists of small social groups and
friendly association of people created outside of organizational structure.


Q. The following steps of organizing process are misplaced. Therefore, rearrange according to
their sequential order.

Establish formal reporting relationships→Identify the work→ measure, evaluate and

control→ Group the work

5.4 ORGANIZATIONAL STRUCTURE

Organizational structure is a formal pattern of interaction and coordination designed by

management to link the task of individuals and groups to achieve organizational goal.

5.5. DEPARTMENTATION

Departmentation is a part of organizing process, which divides and groups different activities
and employees of an enterprise into various departments.

Q. Describe the disadvantage of geographic departmentalization to the organization in terms of

cost.

5.6 Power and Authority

Some individuals use the concepts ‘power’ and ‘authority’ interchangeably, which is wrong.

Then, what do you think?

Q. What is the difference between them?

5.7 Sources of power

Q . Complete the sources of power.

1. Legitimate Power:- derived from______________.
2. Coercive power: - derived from a person's ability___________.
3. Reward power: - derived from the person’s ability__________.
4. Expert power: - is derived from the person’s_______________.
5)_____________ power: - is based on the perception of an
individual about a leader with high esteem being matured and
perceived as wise, honest and consistent.

5.8) Line authority, Staff authority, Advisory staff authority and

Service authority

Q. Briefly describe the similarity and difference between the

four types of authority.

5.9 Authority and responsibility

5.10) Authority and responsibility should be given in a

balanced manner.
Q. What do you think the consequence, if the manager uses
more authority than responsibility, and vice versa?

CHAPTER SIX: STAFFING MANAGERIAL FUNCITON

6.1) Staffing can be defined as: the processing of obtaining and

maintaining capable and competent people to fill all positions
from top managements to operative level.

- Therefore, the staffing process involves the following

steps:
i. Human resource/ Manpower planning
ii. Recruitment
iii. Selection
iv. Orientation and induction
v. Training and development
vi. Performance appraisal
Please, i) what do you understand about each of the 7
steps used in the staffing process?
ii) Mention the difference between ‘training’ and
‘development’
iii) What is the relationship between ‘recruitment’ and
selection?
 ii) Mention the merits and demerits of internal and
external recruitment.

Methods of Decruitment

 Attrition – leaving the vacancies without filling.

 Early retirement – retiring older employees before their
normal retirement date by providing the incentives.
 Firing – permanent involuntary termination of
employment.
 Lay off – temporary involuntary termination of
employment
 Reduced workweeks – having employees work fewer
hours per week or perform their jobs on part time basis.
Q. 1) Describe the primary advantage of ‘decruitment’
for the organization.

2) What is the unique feature of ‘vestibule’ training?

CHAPTER EIGHT; CONTROLLING MANAGERIAL

FUNCTION
8.1. An overview of Controlling

- Controlling is the process of regulating work activity in

accordance with predetermined standards to ensure the
accomplishment of organizational objectives, and if necessary
take corrective actions.
8.2 The Controlling process

Q. Rewrite following stages of controlling process in their logical

sequence.

Take corrective action, Establish standards, Compare

performance against the standards, Measurement of performance

8.3. Types of Controls

- Types of controls include: historical (feedback), concurrent and
predictive
Historical Control / Feedback Control
- Historical / feedback controls are post action controls focusing
on the end results of the process.
- The purpose is to pass lessons from generation to generation.
Concurrent Control
- Concurrent (real time) Control to take necessary
corrective measures before any major damage is done.
- It is carried out while on activity is taking place.
Predictive Control / Feed forward Control
- Predictive control / feed forward control is a controlling
system that anticipates problems that may occur in the future.
Q. Mention some of the factors that make controlling more
effective.
Q. Which of type of controlling is more related with the public saying
(proverb); “prevention is better than cure!”

NB: Dear my students, please, be informed that the points raised in this
slide are simply to remind you what you have learned earlier. Don’t
consider it as a complete learning document. It does not replace your
initial handout of the course.