TOPIC: INTRODUCTION

Specific Objectives
By the end of this sub-module unit, the trainee should be able to:
a) explain the nature and scope of management
b) identify various levels of management
c) explain various levels of management
d) explain the managerial roles
e) highlight qualities of an effective manager

Management is an integrating force or agency consisting of some basic functions for accomplishing the
objectives of an organization. Thus management is the dynamic life giving element in every organization. So
by bringing together factors of production, management enables societies to get better and increase the
supply of goods and services.
DEFINITIONS OF MANAGEMENT
1. According to McFarland

Management is a process by which managers create, direct, maintain and operate purposive organizations
through systematic coordinated and cooperative human efforts.
2. J.L. Londy

Management is principally the task of planning, coordinating, motivating, and controlling the effort of others
towards specific objectives
3. George R Terry

Management is a distinct process consisting of activities of planning, organizing, actuating, performed on the
efforts of group members in order to utilize available resources of the group human efforts, materials,
machines and methods in order to attain organization goals.
4. According to Mary Parker Follet, management is defined as the art of getting things done through people
in formally organized group.

NB. These definitions clearly identify four functions of management. However modern management
classifies managerial function into five.
CHARACTERISTICS/ FEATURES OF MANAGEMENT
Management has the following salient features.
• Management is a process. This refers to the process of getting thing done by working with people to
accomplish objectives.
• Management is goal oriented thus aims at achieving organizational goals/objectives
• Management is a group activity. It’s concerned with group efforts and not individual/efforts
• Management is a economic resource as it aims at reaping rich results in economic terms
• Principles of management have universal application. Apply more or less in every situation.
• Management is a system of authority. Managers at different levels have varying degree of authority.
• Principles of management are dynamic and not static
• Management is integrative; the essence of management is to integrate human and other resources to
achieve desired goals.
• Management is both science and an art. Management has an organized body of knowledge consisting
of well-defined concepts, principles and techniques that have a wide application and thus a science. The
application of this concepts principles and technique requires skills thus management is also considered as an
art.
PRINCIPLES OF MANAGEMENT
A principle is a fundamental statement of truth that provides a guide to thought and action. It establishes a
cause and effect relationship between two more variables.
The principles of management lay down guidelines for improving management practice. Variable this is
something that can change affect the results of something.
Principles of management are “diagnostic guides” each business situation is unique and must be analyzed on
its own merit. The exact application of these principles will depend upon its social economic, political and
cultural factors in a particular organization.

NEED/REASONS FOR PRINCIPLES OF MANAGEMENT

• a) To increase efficiency – it enable a manager to take more realistic view of organizational
problems and their solutions. It avoids the need for trial and error methods and improves the quality of
managerial practice.
• b) To crystallize the nature of management job – it helps in analyzing the management job and in
defining the exact scope of management process. It provides a framework for training and education in
management.
• c) To improve research in management – it serves as a focal point for useful research in group
dynamics, both to ascertain their validity and to improve their applicability.
• d) To attain social goals- it enables more efficient utilization of human and material resources. In
this way, management provides social satisfaction and improves the quality of life of people.

Criticism of the principles of management

• a) They are based on unrealistic premises
• b) They represent common sense and are too obvious
• c) Many of them are contradicting e.g. the principle of unity of command suggest a single boss for
every employee while the principle of specialization advocates that specialists should guide subordinates in
their respective areas.

Nature/ characteristic of management principles

1. Universality of principles- they can be applied in different types of organization

e.g. business, government, educational, military etc

2. Dynamism – management principles are flexible guides rather than hard and fast rules. They are dynamic
rather than static, diagnostic rather than determinative. Two management situations are seldom a like in all
respects an therefore, management principles have to be modified with changes in the environment of the
organization
3. Human limitation- management is an inexact social science because it deals with human behavior which
is a very complex and unpredictable and in order to understand and influence it, various principles developed
in other fields and applied today in management.
4. Relativity- management principles are relative rather than absolute. Therefore these should be applied
according to the need of the organization and demands of the situation.

MANAGEMENT AS A SCIENCE OR AN ART OR A PROFESSION

There are different viewpoints as to whether management should be regarded as a science or an art or both.
As a matter of fact, the management is an art as well as a science. This is explained as follows:
A science may be defined as “representing knowledge gathered by observation and experiment critically
tested, systematized and brought under general principles
It means that science is an organized or systematized body of theoretical knowledge pertaining to a particular
field of enquiry. Such systematized body of knowledge contains concepts, principles and theories, which help
to explain events and to predict the outcome of specific actions. These principles are capable of universal
application.
Management as a science refers to the application of scientific methods in making decisions and evaluating
different courses of actions. It involves obtaining of complete, valid and reliable information in respect of the
problem under consideration before making a decision.
Management is a science because of the following reasons:-
• a) The principles of management have been developed through continuous observation and empirical
verification
• b) There is a systematized body of knowledge in management principles are now available in every
function of management and these principles help to improve managerial effectiveness.
• c) The principles of management are capable of universal application
• d) Management theory helps to examine and evaluate alternative courses of action to resolve a given
problem.

MANAGEMENT AS AN ART
An art may be defined as skills or knowledge in a particular field of activity or a method of doing a thing. It
means that art involves the practical application of theoretical knowledge and skills to achieve desired results.
It is concerned with creating of objects or events.
Management is essentially an art because of the following reasons:-
• a) The process of management involves the use of know how i.e., skills and knowledge
• b) Management seeks to achieve concrete practical results i.e., profit, growth etc
• c) Like an art, management is creative it brings out new solutions and makes resources productive.
Management is creative since it involves molding and welding the attitudes and behavior of people at work
for the accomplishment of specific goals in a changing environmental condition.
• d) Good management is efficient and the success of a manager is measured by the effective
realization of organized goals.

CONCLUSIONS
Management is both an art as well as a science. Essentially managing is the art of doing and management is
the body of knowledge which underlies the art. It must however be noted that science and art are
complementary to each other. Science without art is sterile and art without science is blind.
The art and science of management go hand in hand. The art of management is guided by the science of
management which in turn gets nourishment from the practice (art) of management.
MANAGEMENT AS A PROFESSION
A profession can be defined as:
It is a field where training is intellectual in nature a field in which one enters for the sake of others and in
which financial reward is not considered as a measure of success
A profession is afield which is supposed to possess a well defined body of knowledge one which is leaned
intellectual and organized one with entry restricted by examination or education and one which is concerned
primarily with service to others above selfreward
Management is a profession since it meets the first criteria the body of knowledge requirement this is true
from the vocational understanding of the function of business the general can discipline found in typical
schools of business, the graduate programs where functions, organizations, social institutions social
responsibilities and policy are emphasized
However mgt falls the test of professionalism on another criteria. Anybody can label himself a manager and
apply it to the operation of business. Managers are never selfmade instead they are the product of the
classroom and research. Education and training are regarded by socially as vital to managerial progression
and success and typically the educated managers are the ones to whom positions of power and real
responsibility are given
The question of whether mgt is a profession is complex because mgt is a broad subject parts of the subject do
have professional characteristics and others do not
The following criteria of a profession will help to identify those parts which may be considered to be
professional:
1 A profession is based on a proven systematic body of knowledge and thus requires intellectual training
2 A profession maintains an experimental attitude towards information and thus requires a search for new
ideas
3 A profession emphasizes service to other and usually develops a code of ethics that requires that financial
return should not be the only motive.
4 Entrance into a profession is usually restricted by standards established by an association that requires its
members be accepted by a group composed with people common training

CONCLUSION
Management is not an a straight profession but it is making stride in that direction every enterprise presents
possibilities for the application of the art and science of mgt and virtually every business is a potential source
of employment of professional managers
FUNCTIONAL AND ROLE OF MANAGEMENT
The process of management consists of several interrelated activities. These activities are known as the
functions of management. There is no universally acceptable classification of managerial functions.
However, the following are main functions of management.
1 PLANNING
It is the primary function of mgt. it involves determining the objectives and selecting a course of action to
achieve them it implies looking ahead and deciding in advance what is to be done when and where it is to be
done, how and by whom it is done.
It is a mental process requiring the use of intellectual faculties, Foresight imagination and sound judgment it
consist of forecaster decision making and problem solving A plan is a predetermined future course of action
it is today design for tomorrow and an outline of steps to be taken in future
The process of planning consists of;
• Determination of objectives .
• Forecasting and choice of a course of action.
• Formulation of policies programmers budgets schedules etc to achieve the objectives.
• Laying down of procedures and standards of performance.

Planning may be long-term or short term. It is a pervasive function and managers at all levels have to prepare
plans. It is a continuous or an ongoing process. It enables us to do things in an orderly and efficient manner.
It is helpful in achieving the goals and facing uncertainly and change.
2. ORGANIZING
It is the process of establishing harmonious authority – responsibility, relationships among the members and
the enterprise. It is the function f creating a structure of duties and responsibilities. The organization structure
serves as the framework within which people can work together effectively for accomplishment of common
objectives. It is an important element of management because it is through organizing that a manager brings
together the material and human resources required for the achievement of goals.
The process of organizing consists of the following steps:
• Determining and defining the activities required for the achievement of planned goals
• Grouping the activities into logical and convenient units
• Delegating authority to these positions and people
• Defining and fixing responsibility for performance
• Assigning the duties and activities to specific positions and people
• Establishing horizontal and vertical authority relationships throughout the organization.

3. STAFFING
It is the process of filling all positions in the organization with adequate and qualified personnel
According to Koonts and O. Donnel the management function of staffing involves managing organizational
structure through proper and effective selection, appraisal and development of personnel to fit the roles
designated in the structure.
Staffing consists of
• Manpower
• Recruitment
• Selection
• Training
• Compensation
• Integration and maintenance of employees

5. DIRECTING
It is the managerial function of guiding, supervising, motivating and leading people towards the attainment of
planned targets of performance. It is concerned with execution of plans and policies. It initiates organized
actions and sets the whole organizational machinery into action. It is therefore, the life spark of an
organization.
Directing embraces the following activities:
• Issuing orders and instructions
• Supervising people at work
• Motivating i.e. creating willingness to work for certain objective.
• Communication i.e. establishing understanding with employees regarding plans and their
implementation.
• Leadership or influencing the behavior of employees.

6. CONTROLLING
It is the process of ensuring that the organization is moving in the desired direction and that progress is being
made towards the achievement of goals.
The process of controlling involve the following steps:
• Establishing standards for measuring work performance

• Measurement of actual performance and comparing it with the standards

• Finding variances between the two and the reasons thereof

• Taking corrective action for deviations so as to ensure attainment of objectives

LEVELS OF MANAGEMENT
The different levels of management are explained as below:
• Top management (strategic level management)
• Middle level management (tactical level management)
• Lower-level management (supervisory or operating management)

1. TOP MANAGEMENT
In case of a company, it consists of the BOD and Chief Executives such as general managers, MDs,
president, chairman cum M.D
It is the ultimate source of management and it’s the accountable for overall management to the shareholders
of the company.
Main functions of top management
• To analyze, evaluate and deal with the environmental forces

• To establish overall long-term goals and policies of the company including the master budget
• To represent the company to the outside world, e.g., trade associations, government, trade unions.

• To exercise overall review and control on the company’s operation

• To coordinate the activities and efforts of different departments

• To appoint departmental and other key executives.

2. MIDDLE MANAGEMENT
This level of management consists of deputy heads of departments and sectional officers such as plant
manager, are sales manager, or branch manager, chief accountants, purchase officers etc
These officers serve as a link between top management and operating management.
Functions of middle management
• To interpret and explain the policies framed by top and intermediate managements
• To compile and issue detailed instructions regarding operations
• To co-operate among themselves so as to integrate various parts of a division or a department.
• To motivate supervisory personnel to work for organizational goals
• To develop and train supervisory and operative personnel.

3. LOWER /SUPERVISORY/ OPERATING MANAGEMENT

It is the lowest level of management. It consist of plant superintendent foremen and front line supervisors,
sales officers, accounts officers etc. It serves as the link between management and workers
Functions of supervisory management
• To plan day to day production with the goals laid down by higher authorities
• To assign jobs to workers and to make arrangements for their training and development
• To supervise and control workers and to maintain personal contact with them
• To arrange material and tools and to maintain machinery
• To advice and assist workers by explaining work procedures, solving their problems etc
• To maintain discipline and good human relations among workers
• To report feedback information and workers problems this cannot be solved at the supervisory level.

This can be dramatically shown as below:

MANAGEGERIAL SKILLS
A skill is the ability to do something. Hence managerial skills are the mixture of talents that managers should
possess in order to perform their roles efficiently. These skills make managers unique and different from their
subordinates. Basically, there are four managerial skills namely: -
CONCEPTUAL SKILLS
These are mental abilities that enable managers to build their businesses in a wholistic manner. They enable
managers to think in an abstract manner. It enables them to see relationships with both the internal and
external environment.
These skills increase in importance as we move up the managerial levels.
TECHNICAL SKILLS
These are abilities to use knowledge and expertise of a particular discipline to achieve the ends of goals. They
are as a result of training and practice.
Since first level managers/supervisors spend most of their time with operating employees, they must have a
good understanding of the work the subordinates perform if they are to supervise them.
DIAGONISTIC SKILLS
These are skills that enable managers to define and understand situations and circumstances. They assist
managers to interpret situations at hand and take corrective action. They increase in importance as we move
up the managerial hierarchy.
INTERPERSONAL SKILLS/HUMAN SKILLS
These are the abilities to work effectively with others and build cooperative group relationships to achieve
organizational goals. They entail communication and motivation.
They enable managers to understand someone else position, to present ones own position in reasonable way
and assist managers in dealing with conflicts and resistance. These skills have equal importance at all levels.
MANAGERIAL ROLES BY HENRY MINTZBERG
Henry Mintzberg identified ten managerial roles which he grouped into three categories namely: -
• Inter personal roles
• Informational roles
• Decisional roles

Interpersonal roles
i i) Figure head

In this role the manager plays a symbolic role. He carries out a variety of social, legal and ceremonial duties
e.g. signing of certain documents, receiving visitors’ etc.
i ii) Leader

The manager relates with subordinate motivates and develops them. He is accountable of the activities of
subordinates. He/she hires, trains and develops the subordinates.
i iii) Liaison roles

The manager serves as a liaison between the organization and the external environment. Thus he establishes a
network of contacts with other organization, customers, suppliers etc.
Informative roles
i i) Monitor role/Nerve centre

The managers seek information inside and outside the organization. He attends meetings with subordinates.
i ii) Disseminator Role

In this role the manager passes information to subordinates. He may conduct staff meetings, send
memorandums to subordinates and meets them informally. He ensures that they have necessary information
to carry out their tasks efficiently.
i iii) Spokesperson Role

He acts as the representative of the organization. He gives information to people outside the organization
about its performance and policies. E.g. speaks to the community and in professional meetings, prepare
advertisements etc.
Decisional Roles
i i) Entrepreneur Role

The manager takes initiative for bringing change in his organization. He performs the initiative and
informative role in the organization.
i ii) Disturbance Role

The manager deals with problems that arise when organization operations breaks down. He/she is responsible
for the corrective action.
i iii) Resource allocator role

The manager decides who will get what in the organization. He schedules every activity of the organization
and ensures a balance in operations allocations of people, money etc.
i iv) Negotiator Role

The manager is responsible for representing the organization is various important negotiations with other
parties.
N/B Mintzberg emphasizes that these ten roles are inseparable and should be viewed as an integrated whole.
E.g. status as manifested in interpersonal roles, brings information to the mangers, and it’s this information
that will enable manager perform the decisional role effectively.
QUALITIES OF A MANAGER
The basic job of a manager is the effective utilization of human and other resources to achieve organizational
objectives. He lays down the goals and directs the activities of the group toward effective utilization of
resources so as to achieve organizational goals. The manager manages work, subordinates and other
managers and materials.
In order for a manager to succeed he must posses the following qualities.
• Education –He should be well educated. He should posses both general education and specific
education in business management/administration.
• Training -managerial skills are acquired through training.
• Intelligence –manager should have an ability to think scientifically ad analyze problems accurately.
• Leadership –Manager should be able to inspire and channel the efforts of people toward attainment of
organizational goals. (Motivate)
• Foresight –The manager should be able to foresee problems which might face the business and take
necessary measures
• Maturity – a good manager should be emotionally mature and have a balanced temperament. He
should have high frustration tolerance.
• Technical knowledge- a manager should possess peculiar knowledge to the technique of production
being used in the enterprise
• Human relations attitude. A manager should be able to maintain good working relationship with
others. He should treat workers well.
• Self-confidence. A manger should have confidence and take initiative on decision made. He should
not fear carrying out his duties.

EVALUATION QUIZ
1 define the term management.
2 Describe the skills that managers should posses in order to be effective managers.
3 Explain the ten managerial roles as propounded by Henry Mintzberge.
4 Describe the essential qualities of managers.

TOPIC: EVOLUTION OF MANAGEMENT THOUGHT

Specific Objectives
By the end of this sub-module unit, the trainee should be able to:
• a) discuss the evolution of schools of management thought
• b) explain the systems approach to management
• c) explain the modern management approaches

EARLY CONTRIBUTORS TO MANAGEMENT

Management is as old as civilization. Evidences of management exist in:-
• Management of antiquity (ancient history)

a) Babylon
It has been shown that ancient Babylon practices management in various ways: -
➢They had concepts of managerial responsibilities as evidenced in the code of Hammurabi. The code
stipulated what was expected from the cities of Babylon ➢They practiced some management in their skill of
construction of pyramids. The building required a lot of planning and organization of both material and
people.
➢They had well-organized systems of leadership i.e. the pharaoh, priests and common people.
➢They demonstrated some planning in their farming of the Nile valley and irrigating it through the ages.

b) Egypt
Ancient Egyptians practiced management in the following ways:-
• The roman empire ➢Keeping records; the empire was very large and thus required complex
administration
• ➢Existence of the judiciary; the existence of magistrates created a system to control human
behaviour.
•

The Roman Empire practiced management in:

• ➢The existence of the pope’s seat at the Vatican as its headquarters who’s some form of
centralization of authority
• ➢The spreading of the gospel through missionary required some organization of human and
physical resources
• ➢
• ➢Hierarchy of authority – the pope at the top the bishops and priests and the congregation at the
bottom
•
•

Roman Catholic Church

The existence of the Roman Catholic Church in Rome shows some degree of management;
• Military Organization

The success of the war generals in their conquest efforts was based in their ability to organize their men.
E.g. Napoleon, Alexander the great, Hitler
• The Bible

Examples of the bible of existence of management include: -

(i) In the book of exodus
➢ Moses led his people form captive in Egypt (leadership)
➢He chose able men to be rulers over others (delegation of duty)

➢Rulers judged all seasons, but difficult/complex cases were taken to Moses (hierarchy of authority)

Cameralites
These were a group of German and Austrian public administrators in the (16th to the 18th who held the believe
that:-
➢To enhance the position of the state it was necessary to maximize material wealth.
➢The same qualities needed to acquired individual wealth have to be applied to the state and other
departments
➢They emphasized specialization of functions that is a person to what he is best in
➢They advocated for simplification of administrative procedure (policies and procedures)
➢They called for control techniques – how well we have achieved what we planned to do.

PERIOD OF MANAGERIAL AWAKENING

The period around 18th century industrial revolution of management took a more defined direction as the
study was geared towards maximizing production. Pioneers of this period include: -
1 CHARLES BABBAGE

He was a professor of mathematics at the Cambridge University. Through visiting industrial in UK and
France. He found that manufacturers were unscientific and used guesswork in production.
He felt that science and mathematical methods should be used in operations of factories.
He advocated for
• Factories should have data/information which is obtained through research
• Determine the precise cost of every process
• Paying workers fairly and bonus when the produce is high to motivate them.

2 JAMES WATT & MATHEW BOLTON • Planned machine layout to facilitate better flow of work •
Production planning and standardization of product components
• Elaborate statistical records and advanced control systems.
• Maintenance of advanced reports and cost accounting data

They were sons of the distinguished inventor of the steam engine. They used the following management
techniques:- • Market research and forecasting
3 ROBERT OWEN ➢Better housing facilities
➢ Training and workers hygiene
➢ Education and scholarship for workers children
➢ Provision of canteen and rest places in work place

He was a manager of textile firm in Scotland. He believed that workers performance is influenced by total
environment/working conditions. He came up with the idea of human relation in management. He
emphasized on:- Short working hours
N/B the extend to which these principles are practiced will depend on management perception, nature of
competition, attitudes and employees perceptions, size of the business organization, rate of employee
turnover, government policies and societal influenced.
THEORIES OF MANAGEMENT
Groups of assumptions have been formulated to explain productivity in business organizations. Due to forces
such as technological forces, social forces, economical, political etc.
The study of theories enables managers to do the following: - Avoid making mistakes of the past
➢ Compare the past and present in order to make rational decisions
➢ Approach problems systematically
➢ Compare their business organization with other businesses
➢ Come up with quality goods and survive the market competitions and retain their customers
➢ It enables manager to maximize profit, which is the major aim of business organizations
➢ Make predictions for better achievement of organizational goals
DEVELOPMENT OF MANAGEMENT PRINCIPLES
Over the last century management has evolved in several faces. They can be summarized as: -
• The classical theory (1900s)
• Human relations theory (developed 1930s)
• Behavioural Science theory
• Modern Management theories

THE CLASSICAL THEORY

The classical theory was based on the assumption that people are rational and economic oriented. According
to this theory people consider the opportunities available and do anything necessary to achieve highest gains.
It argues that an incentive given to the employee leads to better work. This theory has three schools of
thought
• Scientific management theory
• Administrative management theory
• Bureaucratic management

SCIENTIFIC MANAGEMENT THEORY

The major advocate of scientific management is one Fredrick Taylor. He alleged that individuals could be
programmed to be efficient as machines. The key to scientific management is the concept “man as a
machine” Taylor believed that workers who were motivated by money and limited by physiology needed
constant directions. He studied scientific management in four main areas.
1) Standardization
2) Time and task study
3) Systematic selection and training
4) Pay incentives

TAYLOR’S PRINCIPLES OF SCIENTIFIC MANAGEMENT

1 Financial incentives

High pay should be tied to successful completion of work. Loss incase of failure should be personally costly.
No work no pay
2 Standard conditions

A worker should be given standard conditions and appliances in order to accomplish the task with certainty
3 Workers must be scientifically selected and trained so as to be more productive
4 Separation between planning and doing.

There should be specialization of task whereby the management does all the planning and workers are only
instructed what to do.
5 Each task must be scientifically designed so as to replace the old rule of thumb method each person should
have a clearly designed daily task which should require a full day’s effort to complete.
3. Bringing scientifically designed jobs and workers together so that there will be a match between them.
4. Bilateral mental revolution. There should be a complete mental revolution on both management and
workers to effect that they must take their eyes off the profits and together concentrate on increasing
productions so that profits were so large that didn’t have quarrels about sharing them.

CONTRIBUTIONS OF SCIENTIFIC MANAGEMENT

• Promotes Expertise in the organization.

• Enabled workers to be paid by result and take the advantage of incentive payments.
• Contributed towards standardization of tools equipments, materials and work method. Thus work
could be accomplished with a higher degree of certainty

• Minimized wastage of time, material and energy thus advocated for better se of resources
• Its emphasis of scientific selection and training enabled the right people to occupy the right jobs

• It has established harmonious relationships between worker and managers through the advocating of
elimination of rule of thumb.
• It has led to proper achievement of equal division of responsibilities between workers and
management.

• It gives detailed instruction and constraint guidelines for worker which management use.

LIMITATION OF SCIENTIC MANAGEMENT

• It reduces workers to mere role of rigid adherence to methods (mindless machines)
• It puts planning and control in the hand of management and ignores worker thus lowering their
morale

• It assumes that everything can be scientifically be quantified.

• It rules out any realistic bargain on wages rates, since every job was measured, timed and rated.

• There is no room for initiative

• Scientific methods overlooks human desire for job satisfaction (job conditions are often the cause of
strikes)

• It overlooked the social needs of workers since it assumed that people are rational and therefore
motivated by material gains.

ADMINISTRATIVE MANAGEMENT THEORY

Around the same time when scientific management theory was in action, a similar view of classical
organization theory evolved. This new theory was referred to as administrative organizational theory.
It concentrated on the broad problem of departmentation, division of labour and coordination
For Taylor and the scientific managers concentrated on individual worker upwards, the administrative
manager worked from the managing director downwards.
Henry Fayol was the main advocate of this view.
He first divided industrial undertaking into six separate activities:
1 Technical (production and manufacturing)
2 Commercial (buying and selling)
3 Financial (search for capital)
4 Security (protection of properties and persons)
5 Accounting (stocktaking, balance sheets etc)
6 Managerial (planning, organizing etc)

According to Fayol managerial activities were the most important and deserved the most attention. He
divided his approach of studying management into three parts.
• Managerial qualities and training

• Principles of management
• Element of management

Managerial qualities and training

The following are managerial qualities according to Fayol.
1. Good physical health

2. Good mental health – ability to understand and learn, make sound judgment (intelligence and wisdom)
3. Upright morals – willing to accept responsibilities with initiative, loyalty, tact and dignity.

Moral qualities help the manger to respect him/herself, his decision and also others
4. General education - a manager should have general acquaintance with matter not belong to the function
performed.
5. Special knowledge – that is knowledge peculiar to the function performed.
6. Experience. That is knowledge arising from work itself. Fayol held that managerial abilities should be
acquired in the same way one acquires technical ability. That is first in school and later in the workshop.

GENERAL PRINCIPLES OF MANAGEMENT

Fayol’s principles of administrative management may be summarized as:-
1 Division of work

According to this principle, work should be divided at every stage and employees assigned particular task to
perform and in the essence become specialized. This will lead in turn to efficient labour utilization.
2 Authority and responsibility

Fayol suggested that there should be parity between authority and responsibility. The right to give orders
should be accompanied by authority.
3 Discipline

Workers should have respect to both fellow workers and to the management. There should also be respect for
agreements between employees and employers
4 Unity of command

An employee should receive commands form one superior only

5 Unity of direction

Activities of the same nature aimed at achieving same goals should be put under one command. That is on
leader.
6 Remuneration of personnel

Remunerations should be fair and satisfactory to both the employees and the employer. Workers should be
paid for wages to motivate them in their work.
7 Centralization

The decision for centralization or decentralization depends on interest of organizational purpose, quality of
workers, size of the organization and nature of work to be accomplished.
8 Scalar chain

Taylor suggests that there should be clear lines of authority from the top to bottom of the organization, and
employees should be encouraged to follow the proper hierarchy of command. However, this can be short
circuited when strictly following it would be detrimental.
9 Order

There should be a place for everything and everything in its place. The right man in the right place is also
part of this principle. Order should be maintained all through the organization
10 Subordination of individual interests to the general interest

According to this principle, the interest of the organization should super side that of the individual. The
interests of an individual or one group in the organization should not prevail over the general interests of the
organization.
11 Equity.

This principle states that management should exercise a combination of justice and fairness towards
employees (kindness)
12 Stability of tenure of personnel

A worker should not feel threatened in his/her position. They should be given time to settle in their jobs.
13 Initiative

This principles state that mangers should allow workers to exercise initiative by scarifying personal vanity
(within the limits of authority and discipline)
14 Esprit de corps Planning – looking ahead and making provisions
Organizing – arrangement of resources
Coordination – harmonizing efforts
Commanding – giving orders and instruction
Control – verifying whether the result conform to the plan adopted.

This is the principles that in “union there is strength” in other words harmony is a great strength to an organization
and team work should be encouraged. This principle emphasizes the need for team work in the organization
Elements of management
Fayol regards elements of management as the managerial functions i.e.
BUREAUCRATIC THEORY
Max Weber formulated this theory. He was a German Sociologist who was very sensitive to the abuse of
power by people in managerial positions.
In order to reduce these abuses Weber proposed an organizational system that had a hierarchal structure
based on formal authority.
From the above analysis, bureaucracy can be defined as a photo type form of organization that emphasizes
order, systems rationality, uniformity and consistence.
According to Weber consistent performance can be achieved because organizational members are guided by
a set of rational rules and regulations rather than the actions of position holders.
SALIENT FEATURES OF BUREACRACY
1. Clear Division of Labour. (By Functional Specialization)

Job responsibilities and levels of authority are clearly defined for each employee thus there are no overlaps of
responsibilities between jobs.
2. A Well Defined Hierarchy Of Authority

Each position in the organization is controlled by and reports to a single position one level up in the
hierarchy.
3. Maintenance of Written Records

There should be a written record of organization activities that keeps rules and regulations visible to all
participants. It also allows for evaluation of past decision and activities and adds to the organizational
memory
4. A System of Rules And Regulations

There should be laid down rules and regulations to ensure rational and consistent organization behaviors.
Rules and regulations allow organizations activities to be performed in a predictable and routine manner.
5. Impersonal Approach to all Interpersonal Activities.

This principle emphasizes equality in dealing with employees, customers or clients so as to eliminate
favourism.
6. Merit Based Employment

Selection and promotion within the organization should be based on qualification, ability and performance
(technical competence and not family relationships, friendship or political reasons.
7. Autonomous Decisions by Office Bearers.

Employees must not use their rights and privileges of their jobs to enrich themselves. Power dos not belong
to an individual but its part of the office.
8. Centralization of Authority

For bureaucracy to operate, efficiently authority should be centralized so as to coordinate the different
specialized functions.
ADVANTAGES OF BUREACRACY
1. Leads to consistent employees’ behaviour. This makes management easier.

2. Assists managers to achieve and maintain quality because of strict adherence to procedures.
3. It eliminates conflicting job duties because duties and responsibilities are clearly defined.

4. Lead to maximum utilization of human resource (clear division of labour) 5. It minimizes dissatisfaction
because promotion is based on merit and expertise.

6. Division of labour leads to specialization which in turn may increase production 7. Helps to minimize
wastage of the organization scarce resources
8. Maintenance of written records makes planning easier.
9. Organizational goals may be achieved with ease.

DISADVANTAGES OF BUREAUCRACY
1. Rules and procedures when many affects efficiency
2. Bureaucracy makes organization rigid especially as concerns decision making
3. Its very expensive as it involves a lot of paperwork
4. Its time consuming especially when decisions are needed urgently. (Tall organizational structure)
5. Does not give room to participative management thus kill initiative?
6. It’s likely to cause resistance and dissatisfaction on the part of the employees because of its lack of
flexibility.

LIMITATION OF THE CLASSICAL THOUGHT

• It ignores the psychological aspects as man is seen to be motivated purely by economical incentives and
nothing else
• Much emphasis has been drawn to structures and attainment of organizational goals. While peoples needs
are ignored.
• There is no room for participative management, which may cause poor morale among the employees.
• The theory has been criticized as a case of the past when organizations were relatively stable and
environment being predictable
• Social aspects and group dynamics receive very little attention
• The classical theory principles are too general for today’s complex organizations.

THE HUMAN RELATIONS THEORY

This movement developed as a reaction to the classical models. It’s associated with people like Mary Follet
and Elton Mayo.
Mary believed that the fundamental problem in all organizations was in developing and maintaining dynamic
and harmonious relationships she believed that conflicts in organizations were not necessarily wasteful
outbreak of incompatibility but a normal process through which socially valuable differences register for the
enrichment of all concerned.
Elton Mayo and the Hawthorne Studies
These studies were carried out in several stages over several years.
The emphasis was on the worker rather than work itself. The studies were concerned with studying people in
terms of their social relations at work. The conclusions gave rise to the ideal of social man and to the
importance of human relationships.
1. The first stage of the experiment was to study the effect of lighting on output. Two groups of workers were
selected for study. One group has a consistent level of light while the experimental group had its light varied
form better to worse.

The significant result was that the output increased in both groups. Obviously some factors other than pure
physical conditions were at work in the situation. Thus Elton Mayo was invited at this stage to carry on the
studies.
2. The next stage was the Relay assembly test room.  Rest pauses were introduced and varied
 Lunch breaks were varied in length and timing
 Alteration of the working week

The objective of this study was to determine the effect of the physical conditions on productivity.
Six women form the relay assembly section were segregated and segmented to numerous changes in the
working conditions e.g
Once again regardless of whether the conditions were improved or worsened, productivity always increased.
At the end of the experiment the researchers realized that they were not only studying the relationship
between physical working conditions fatigue, monotony and productivity but had entered into the study of
employee attitudes and values.
The women were responding to the attention of the researchers and saw themselves as a special group. These
behaviors has been called the Hawthorne’s effect
3. Third stage consisted of interview programs to establish employees’ attitudes towards working conditions,
job and supervision.

The interviews were first structured and lasted 30 min eventually the pattern became relatively unstructured
and lasted longer.
The conclusion made was that relationships with people were in important factors in attitudes of employees.
4. The forth stage was referred to as the Bank Wiring observation room.

Fourteen men from the Bank working plant were moved to a separate room with more less the same working
conditions as those in the main wiring room.
It was discovered that the group was developing its own rules, standards and behaviors. They restricted
production according to their norms and protect its own interests against those of the company. The group
had developed its own un official organization/informal organization.
5. Final stage took the form of personnel counseling in which employees were able to discuss their work
problems. The result was improved relationships between workers, supervisors and the management and
general personal adjustment.

Main conclusion of Hawthorne studies

Organization is a social system. This social system defines individual roles and establishes norms that may
differ from those of the formal organization.
Social and psychological factors exercise a greater influence on the behaviour of workers. Therefore
managers should adopt a sound human approach to all organizational problems.
 Informal groups at work exercises strong influence over behaviors of workers

There is emergence of informal leadership in the organization. This informal leadership enforces group
norms.
Group dynamics – in organization members do not react as individuals but as members of a group.
Money is not the only motivator of human behaviour, social and psychological need of workers is very
strong. E.g. praise, status etc.
Conflicts can arise between group goals and organizational goals. Conflicts should be handled properly so
as not to harm the interests of workers.

BEHAVIOURAL SCIENCE APPROACH

This approach emphasizes on behaviors of individuals and people in groups. It draws its concepts from
psychology and sociology
According to this approach, management is getting things done through people hence managers should
understand human behaviors and relationships. It is concerned with human relationships and how managers
can utilize the relationships for the good of the organization, the manager as a leader and the leadership style,
group dynamics and motivation in management and how to improve employee’s morale. The approach
focuses on how the understanding of individual behaviors and relationship influences the leadership style and
general motivation at work.
Proponents of this approach include people like Abram Maslow, Mc Gregor, Fiedler, Herzburg, and Chaster
Barnard.
Theories that explain human behaviors and motivation will be discussed in later chapters.
SYSTEMS APPROACH
The approach is based on the generalization that an organization is a system and its components are
interrelated and interdependent.
A system is a set of interrelated items, which work together for a common goal. The basis of systems theory
in management is the limitations of the classical theory. Each system may comprise of subsystems and each
sub system may be further composed of smaller units.
The systems approach recognizes variety and offers a way of interacting differences by reconciling them within
the organization; this is an approach which emphasizes theory and conformity.
An organization is a system because it has the following characteristics;
• (a) It is goal oriented meaning that every organization exists to achieve certain objectives and goals
• (b) An organization consists of sub systems inform of departments and sections, which are
interdependent and inter related.
• (c) An organization transforms inputs (raw materials) to outputs (finished products).

Contingency approach
Appropriate management depends on situations prevailing at that time. According to this approach, there are
no ready made universal answers to management rather the decision that a manager will make will depend on
the situation.
Contingency refers to immediate circumstances that are normally uncertain. The managers as to try
systematically to identify which technique or approaches in a particular situation/context best contributes to
the attainment of the goals.
An example of this is the recurrent problem of how to increase productivity. The expert would prescribe as
following.
• a. Contingency approach- Examines both ideas and how any fits the goals, structure resources of the
organization.
• b. Behavioral scientists- Create an environment which is psychologically motivation.
• c. Classical approach- Create incentive scheme.
The contingency approach seeks to apply real life situation. The ideas are drown from various school of
management. Different problems and situations require different approaches and no particular approach is
universally applicable.
EVALUATION
i. Explain the meaning of system approach to management. ii. Highlight the characteristics of management as
a system. iii. Outline the benefits of system approach in management.
vi. Describe the conclusions drawn from the hawthorns studies at the western electrical plant
i v. Explain Fayols principles of administrative management.
ii vi. Describe the principles of scientific management.
iii vii. Explain the short comings of bureaucratic management.

TOPIC: THE CONTEXT OF ORGANIZATIONS AND SOCIAL RESPONSIBILITY

Specific Objectives
By the end of this sub-module unit, the trainee should be able to:
a) describe the organization and its environment

b) explain the social responsibility of an organization

 c) highlight management ethics

ENVIRONMENT OF MANAGEMENT
An environment is the sum total of the factors or variables that may influence the existence of a business
organisation. It’s sometimes seen as all factors both outside and inside an organisation that can affect the
organisation in attaining its goals.
- It’s the aggregate social, cultural, economic and physical conditions that influence the life of an individual
organisation
- They are those forces from within and without the organisation that impart the organisational ability to
accomplish its objectives
- Environmental factors affect the practises and type of decisions made pertaining managerial issues
- All environment can be macro or micro i.e. external & internal factors respectively.

External Factors/Environment
This is the macro environment. An environment that is beyond management reach. It exists outside the
organisation thus managers cannot manipulate it. External factors can be summarised as:-
1. Economic Factors b) Economic growth – influence demand for products
c) Interest rates (determines how much it will cost an organisation to borrow money)
d) Unemployment – influence the supply of labour
e) Fiscal and tax policy – affects the control & availability of credits which affect business operations
f) Constraints imposed by customers – (attitudes & desires) i.e. when a substitute appears in the
market it causes confusion
g) Constraints imposed by competitors

Important aspects of the economy that affects decision making include:- a) Inflation – price levels (firms pay
more for raw materials)
2. Sociology Factors

Sociological factors are concerned with humans and their interaction with one another. These include
customs & values of the society within which the firm operates
- Such forces influence consumer tastes & preferences employees expectations and attitudes and the accepted
role of business in that society (Muslim religion)
3. Government Factors
These forces associated with the government and legal systems within which a firm operates. These includes
- Change in character of government e.g. change in parliament or president
- Shift in government politics
- Export & import restriction
- Change in government personnel e.g. government reshuffle, parastatal appointment etc

4. Locational Factors a) Availability of both skilled & unskilled labour

b) Means of transport & communication
c) Housing facilities
d) Water supply
e) Raw material supply
f) Government polity on industries
g) Local laws and regulations

Where an organisation is located has a bearing on the kind of practices an organisation has. These may
include:-
5. Technological Factors

The rate of technological changes greatly affects the mode and style of doing business or running
organisations e.g.
- Organisations that have not embraced technological changes have been thrown out of business or are
incurring higher costs
- Technological advancements calls for training and development of personnel (more allocation of resources)
- Automation of work and the resultant effect on labour reduction affects workers satisfaction

Internal Factors & Environment

This is that part of organisations environment that exists inside the organisation and has immediate
implications for managing the organisation. It’s the environment which
managers can manipulate and control in order to achieve their organisational goals. They include: -
1. Managerial Factors a) Changes in managerial patterns
b) Changes in personnel policies
c) Changes in organisational chart

Changes in management of an organisation may affect policy and implementation.

Managerial factors include: -
2. Operational Factors b) Licensing policy
c) Tax rates

Operational factors that affect management include: - a) Factory layout and modification of factory
3. Growth and Development Factors

Changes in this area which may affect management can be analysed as:-
— Finance available
— Investment decisions
— Market stability — Mergers
4. Method/Process Factors a) New discoveries in production process
b) New technologies
c) Use of alternative raw materials

5. Design Factors

Those are factors concerned with the designing and packaging of new products
- Designing of new products
- Appeal to the market
- Competitors

Social responsibility of an organization

Social responsibility refers to the business obligation to refrain from harmful practices and deliberately
engage in activities that benefits the society.
Arguments for social responsibilities
• it discourages additional government intervention

• social involvement creates a favourable image

• It’s better to prevent social problem than to cure them.

• Give the business an opportunity to solve problems that the government has failed to solve
• Give the business an opportunity to solve problems that it has created.

• The society has powers to deny the operation of a business.

Arguments against social responsibilities

• It cuts on the profits of the business.
• The society pays for the social responsibility through increased prices.
• There is lack of accountability by the business to the society.
• Business people lack the social skills to deal with the problems of society.
• Business has enough power and additional social involvement would further increase its power and
influence.
• There is no complete support for involvement in social actions.
Management ethics
Ethics is defined as the discipline dealing with what is good and bad and with moral duty and obligation.
Business ethics is concerned with truth and justice and has a variety of aspects such as expectations of the
society, fair competition, advertising, public relations, social responsibilities, consumer autonomy and
corporate behaviour in the home county as well as abroad
Ways of enhancing business ethics
• Establishing a code of conduct
• Discussing ethical issues in management meetings
• Rewarding those who behave ethically and punishing those who do not.
• Managers should behave themselves ethically and be role models to other organizational members.

Question: Explain the reasons why managers behave unethically.

EVALUATION
i. describe the external factors that affect the management. ii. Outline the main social responsibilities of an
organization.
i iii. Explain the social responsibilities of an organization towards the following public. • Employees
ii • Local community
iii • Government
iv • publics
v
vi iv. Outline ways in which managers may enhance ethic in their business organizations.