Lesson 1 INTRODUCTION TO MANAGEMENT
Lesson 1 INTRODUCTION TO MANAGEMENT
1. ECONOMIC RESOURCE
• Management is considered one of the key factors of production alongside land,
labour, and capital.
• It ensures the efficient utilization of resources such as money, materials,
machinery, and manpower to maximize productivity.
• Effective management leads to higher growth rates in enterprises and economies.
SCOPE OF MANAGEMENT
2. System of Authority
• Management operates within a structured hierarchy of authority, where roles and
responsibilities are clearly defined to ensure coordination, accountability, and effective
decision-making. Over time, the concept of authority in management has evolved
through various approaches:
1. Authoritarian Management – Power is centralized; top leaders make decisions with
little or no input from subordinates.
2. Paternalistic Management – Leaders maintain control but also show concern for
employees’ well-being, acting like “father figures.”
3. Constitutional Management – Decisions are guided by formal rules, policies, and
procedures that limit subjective authority.
4. Democratic Management – Emphasizes shared decision-making, encouraging
employee involvement and open communication.
✓Today, modern management often blends these models, combining clear authority
with employee engagement and ethical leadership to create a more adaptive and
inclusive organizational environment.
Scope of Management
3. Management as a Social Class or Elite
• Management is often seen as a distinct social class that holds significant
influence and authority within organizations and across society.
In the modern era, access to managerial roles is largely determined by an
individual’s education, professional skills, and experience rather than by
family background, wealth, or political connections.
• This shift has led some scholars to speak of a "managerial revolution,"
where professional managers, rather than traditional owners, now shape
the direction of industries, drive innovation, and influence national
economies.
MANAGEMENT – AN EMERGING PROFESSION
• Professionals enjoy high status in every society. Many individuals aspire to join
respected fields such as medicine, law, engineering, chartered accountancy, and
increasingly, purchasing and supply chain management.
• There has been a growing trend towards the professionalization of management,
mainly, because of the desire of business leaders for social status and
recognition.
❖A profession may be defined as an occupation backed by specialized knowledge
and training, whose code of conduct is regulated by a professional body, and
which is duly recognized by society.
• Chartered Institute of Administrators & Management Consultants – Ghana
(CIAMC). And Ghana Institute of Procurement & Supply (GIPS) – A local
institution dedicated to procurement and supply chain management.
THE BASIC REQUIREMENTS OF A PROFESSION
1.Knowledge: A substantial and expanding body of knowledge and information in
the concerned field.
2.Competent Application: Skilled and judicious utilization of knowledge in the
solution of complex and important problems. This requires education and training
in the specified field.
3.Professional Body: Regulation of entry into the profession and conduct of
members by the representative body.
4.Self Control: An established code of conduct enforced by the profession’s
membership.
5.Social Responsibility: Primarily motivated by the desire to serve others and the
community.
6.Community Approval: Recognition of professional status by the society
DOES MANAGEMENT SATISFY THE TESTS OF A
PROFESSION?
The application of the above tests or criteria to management is examined below:
1. Specialized Knowledge: There exists a rapidly expanding body of knowledge
underlying the field of management. Since the beginning of this century, many
thinkers on management have contributed to the field of management. Now we
have a systematic body of knowledge that can be used for the development of
managers. Management is widely taught in universities and other educational
institutions as a discipline.
2. Competent Application-Education and Training: MBAs are generally preferred
for managerial jobs, though an MBA degree is not compulsory to enter this
profession. Persons with degrees in psychology, engineering, etc., can also take up
managerial jobs.
➢Thus, there are no standard qualifications for managers.
Does Management Satisfy The Tests Of A
Profession?..
3. Managerial Skills cannot be Learnt by Trial and Error Method: To be a
successful manager, it is essential to acquire management skills through
formal education and training. Many institutes of management have been
functioning in Ghana and other countries which offer MBA and other courses
in management.
4. Professional Body: For the regulation of any profession, the existence of a
representative body is a must.
❖Chartered Institute of Administrators & Management Consultants – Ghana
(CIAMC)
Does Management Satisfy The Tests Of A
Profession?..
5. Social Responsibility: Managers of today recognize their social
responsibilities towards customers, workers, and other groups. Their actions
are influenced by social norms and values. That is why, managers enjoy a
respectable position in society as is the case with doctors, chartered
accountants, etc.
6. Society’s Approval: The managers of modern organizations enjoy respect
in society. There is typically a positive correlation between a manager’s rank
and his status in the organization where he is working.
• This status tends to affect the manager’s status outside the organization.
• Thus, the community approves management as a profession.
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