Well come to the world of management!

UNIT ONE
Fundamentals of management

BY
SOFI B.
 Chapter outlines!
Definition, objectives and Rationale of studying management
Significance
Cxs
Overview of Managerial Functions
Levels And Types of Managers
Managerial Roles and Skills
Universality of Management
Management As a Science Art or Profession?
 Main points
What is management for you?
Why would you studying management? The rationale behind
studying management ?
Who are managers?
What do managers do?
What do you think about the relationship among the
functional areas of organizations?
 Rationales of studying management

 Firstly, Management is a crucial element in economic

growth of a country.
 It brings together the factors of production: money, machinery,
men, methods, markets and material to enable the country to
experience economic development.

In the words of Drucker;

 “without management country’s resources of production remain
resources and never become products’.
 Rationales …Cont’d

Secondly, The universality of management-

 we can say with absolute certainty that management is needed in
all types and size of organizations, at all organizational levels, in
all organizational work areas, and in all organizations, no matter
where they are located.

In all these organizations, managers must plan, organize,

lead, and control.
 Rationales …Cont’d
Thirdly, The reality of work-
 most of you, once graduate from collage and beginning your
carrier, you will either manage or be managed.

Fourthly, The rewards and challenges of being a manager.

 Challenges
 blend knowledge, skills, ambitions, and experiences of a diverse work
group.
 Success depends on others’ work performance, Have to deal with a
variety of personalities.
 Do hard work.
 Rationales …Cont’d
Rewards
 Receive appropriate compensation in form of salaries, bonuses,
and other options.
 Good managers are needed by organizations.
 Receive recognition and status in organizations and community.
 finally, Managers create jobs on one hand and products and
services on the other hand.
 Objectives of studying management
To develop the skills and capabilities of trainees with planning,
organizing, directing and controlling activities in their carrier path in
private, and government organizations through their life time.
To make students professionals who can competently manage
marketing, finance operations, human resource, materials,
information resources etc.
To develop professionals who are responsive and effective in working
with and through others as well as capable of making and
implementing decisions.
To develop professionals who are capable of searching and developing
The Various Definition of management

mutually supporting definitions by different authors and

scholars.
According to F.W. Taylor,
 "Management is the art of knowing what you want to do and doing it
in the best and cheapest way."

According to Terry and Franklin,

 "Management is a distinct process consisting of activities of
planning, organizing, actuating, and controlling to accomplish the
stated objectives with the use of human beings and other
resources.
 Cont’d

According to Hennery Fayol;

 “To manage is to forecast and plan, to organize, to command, to
coordinate, and to control.

According to Merry Parker Fellott;

 “The art getting things done through the efforts of other people."

For the sake of convenience we can define management as the

process of planning, organizing, leading and controlling the
efforts of organization members and of using all other
organizational resources to achieve stated organizational goals.
 Cont’d

We can also define as “Management involves coordinating and

overseeing the work activity of others so that their activities are
completed efficiently and effectively”.
 Efficiency refers getting the most output from the list amount of input.
 It can also mean that, doing things right- not wasting resources.
 Managers are concerned with the efficient use of resources (human,
capital, and equipment). It is the means of getting things done.

Effectiveness refers doing the right thing, completing activities so

that organizational goals are attained.
 It is concerned with the end or attainment of organizational goals.
From the various definitions of management, we can derive
the following important points.

Management refers to the managerial functions of planning,

organizing, staffing, leading and controlling.

Management co-ordinates both human and non human resources

(land, labor, capital) for the accomplishment of objectives.

Management is applied to all types of organization, Profit or not

for profit; Large, medium or small organization; Manufacturing or
service giving, etc.

Management deals with creating a comfortable internal

environment, with a great consideration of the external
environment.
Cont’d…cxs

Management is a continuous process-whenever there is a group

endeavor/effort, the need for management arises.

Management is viewed in terms of the managerial function a manager does.

Management deals with the coordination of both human and non-human

resources/physical resources.

Management is applied wherever there is an organization with an objective to

be achieved.

Since an organization exists in an open system, management creates a

favorable environment in order to achieve organizational goals.

The target of managerial process is to achieve organizational objective-

reason for their existence.
Significance of management

Management is needed were ever in this world. Especially in

organizations
 To establish organization goals, objectives and we can easily know
what we want to do and to prioritize tasks by their order of
importance.
 To create systems to accomplish these objectives and goals, to
formulate organization structure.
 To coordinate factors of productions, both human and non human
resources.
 To monitor and follow up the work activity of others for maximum
performance.
 Cont’d

For the employees:

Develop their competency by introducing with different
tasks of management.

As a means of employment and job security having higher

salary, recognition, and respect.

Better working conditions and work environment.

 Cont’d

For the society

Quality product and services because organizations are
working for the sake of the society.
As means of unemployment problems by providing jobs
for those who are competent and seeking for a job.
The Nature (characteristics) of Management

Universal Application: it is applied in any organization (large,

small in size, or service or manufacturing or for-profit or not-for-
profit) and its functions are practiced in any level of management.

Goal Oriented: Any organization is established to achieve

objectives, and management is important for any organization to
achieve its pre-stated objectives efficiently and effectively.

Guidance- in the optimum utilization of material and human

resources in the best possible manner.

Without the involvement of management, resources might be

missing utilized and wasted.
 Cont’d

Divorced/Separated from proprietorship: - Management does not signify

proprietorship/ownership. Managers work for the attainment of
organizational goals and objectives.

Management is a human activity: - Management functions are

discharged by individuals not by machines such as a computer. However, it
can be aided by such instruments as computers.

Management signifies Authority: - Since the significance of management

is to direct, to guide and to control, it has to have authority.

Authority is the power to compel others to work and behave in particular

manner.
 Cont’d

Leadership: - The manager has to lead a team of

workers. He/she must be capable of inspiring,
motivating and winning their confidence.
Management is Multidisciplinary: - It has grown as a
body of discipline taking the help of so many social
sciences like sociology, psychology, economics, etc.
 Who are managers?

Managers are someone who coordinate and oversee the work activity
of others/other people in order to accomplish organizational goals.
In other words they are the organizational members who tell others
what to do and how to do it.
They set goals and plan what needs to be done to achieve those
goals. They arrange and organize things so as to meet goals.
They can motivate, communicate and lead other peoples to work
better for the achievement of goals.
They evaluate whether the goals were accomplished effectively or
efficiently and they take corrective action for the deviations.
 What do managers do?
Functions of management

There are five functions of management, that performed

by a manager. These are:
1. Planning- It is a decision making process which involves
selection of missions and objectives and choose the best
course of action to achieve them from among alternatives.
It is a decision making process that determines what to be
done, how it is to be done, why it is done, when it is to be
done, and by whom it is to be done.
 Cont’d

2. Organizing: identification of activities, grouping

those activities in to working units, assignment of
responsibilities to each work units with corresponding
authority, and the creation of intentional
organizational relationship so as to enhance
coordination.
Cont’d

3. Staffing- this is the process by which managers

select train, promote and retire their subordinates.
This involves deciding what type of people should be
hired, recruiting prospective employees, selecting
employees, setting performance standard,
compensating employees, evaluating, training and
developing employees.
 Cont’d

It is the process of filling and keeping filled the

positions in the organization structure.
This is done by identifying work force requirements,
inventorying the people available, recruiting, selecting,
placing, promoting, compensating, training and
developing both candidates and current job holders to
accomplish their tasks effectively and efficiently.
4. Leading- It is influencing, motivating and directing
people so that they will contribute to organization and
group goals.
To be effective leader’s managers need to understand
individual and group behavior, techniques of
motivation, and effective styles of leadership.
Mangers must develop relationships that ensure
adequate communication with their subordinates.
 Cont’d
Leading also includes managing personal conflict, helping
employees, deal with changing conditions, and in some cases
disciplining employees. Leadership requires good interpersonal
skills.
Cont’d

5.Controlling- It involves measuring and correcting of activities of

subordinates, to ensure that events conform to plans. It also involves taking
corrective measures (actions) if negative deviations exist.

The controlling function involves the following steps:

- Establishing standards of performance (this is actually done during

planning).

- Measuring actual performance and comparing it against the plan the goal
/the established standard;

- Taking corrective measures if there are devotions. (Taking corrective

actions when standards are not met or in anticipation that they may not be
met).
Managerial roles

Managerial functions are general administrative duties that need to

be carried out in all productive organizations.
Managerial roles are specific categories of behavior/managerial
behavior.
Managerial functions involve "desired out comes". These
outcomes are achieved through the performance of managerial
roles (actual behavior).
In other words, Roles are the means and functions are the ends of
the manager's job.
 Managerial Roles
Interpersonal
 Figurehead – Representing the orgn
 Leader & Hire, train
 Liaison – contacting people inside and outside

Informational
 Monitor/ Nerve Center – Having the required information
 Spokesperson - outside
 Disseminator – inside

Decisional – core and includes the above two.

 Negotiator - vendors and unions
 Resource Allocator – Allocating all resources for proper use
 Entrepreneur -
 Disturbance Handler – solving conflicts
1. Interpersonal roles: three managerial roles are enacted
when the manager engages in interpersonal relationship. They
are:

a. Figure head role: - this role is played by managers

who are required to perform duties of ceremonial and symbolic

in nature such as signing documents, receiving visitors, etc.

E.g. when the president of a college hands out diplomas at

commencement.
 Cont’d

b. Leader role: - managers play this role through hiring,

training, motivating and disciplining employees to get the job
done properly.
c. Liaison role: - managers play this role by contacting people
inside and outside the group, by serving as a link in a horizontal
(as well as vertical) chain of communication. . E.g. the sales
manager who gains information from the personnel manager
with in the same company. Internal liaison. The sales manager
who has contact with other sales executive through a making
trade association. – External liaison.
2. Informational roles: - All managers, to some degree,
will receive and collect information from organizations and
institutions outside his or her own. Managers play:
a. Monitor/Nerve Center Role: - as a monitor /nerve

center, the manager tries to keep informed about what

is happening in the organization or group.
Managers serve as a focal point for non-routine
information; they receive all types of information from
news reports, trade publications, magazines, clients, etc.
 Cont’d

Disseminator role: - the information a manager gathers as a monitor

must be gleaned and transmitted to appropriate members of the

organization. As a disseminator, a manager sends out side information

into the organization and internal information from one subordinate to

another. /Transmitting selected information to subordinates.

Spokes person role: - it is the role of a manager in transmitting

selected information to outsiders. It is played by a manager whenever

he/she represents the organization or its position to other groups,

including, government agencies, customer, and trade organizations.

 cont’d

3. Decisional Roles: - this is the core of managerial roles because

managing involves decision making. Both interpersonal and informational
roles are really includes to the decisional role. It involves decision-
making. The manager plays this role as:

1. Entrepreneur: managers as an entrepreneur initiate and oversee new

projects that will improve their organization's performance. (Designing
and initiating changes within the organization.

2. Disturbance handler: - taking corrective actions in non-routine

situations. These may involve conflict between people or groups or
unexpected events outside the company may affect the firm's
operations.
3. Resource allocator: - managers play this role when they are in a

position to decide exactly who should get what resources. (These

resources include time, money, people, and physical resources).

4. Negotiator: - participating in negotiating sessions with other

parties (e.g. vendors and unions) to make sure the organizations

interests are adequately represented. Managers perform this role,

in which they discuss and bargain with other units to gain

advantages for their own unit.

 Managerial levels

Managerial levels means that the number of hierarchical arrangement of

managerial positions in an organization.

There are three levels of management:

1. First line Managers- Managers who are responsible for the work of
operating employees only and do not supervise other managers; they are
the first or lowest levels of managers in the organizational hierarchy.

It includes office managers, foreman, section chief, supervisors, etc.

First level management is often called " supervisors". They are mainly
concerned with:
 Cont’d

Planning of day to day and weekly activities, based on the monthly,

quarterly, and yearly plans.
Assignment of operating employees to specific tasks.
Keeping a watch on workers performance.
Sending reports and statements to superiors, maintaining close and
personal contacts with workers and evaluation of their work.
2. Middle level Managers

includes heads of the different functional areas and their

assistants. These are managers who direct the activities of lower
level managers and sometimes extend to supervision of operating
employees.
The titles include Department heads, deputy department heads,
branch managers, project managers, etc.
 Cont’d
 Their activities include:

Acting an intermediary between top and operating level

managers.

Translating long-term plans of top management into medium

range plans.

Developing specific schedules of their department to guide

actions and facilitate control.

Coordinating inputs, productivity and outputs of operating level

management.
3. Top level management

composed of a comparatively small group of executives and they

are responsible for the overall management an organization.
Typical titles include CEO, president, senior vice president, etc.
Their activities include:
Establishing broad/organization wide objectives and strategies.
Outlining principal policies that guide the whole organization.
 Cont’d

Providing effective organizational structure that insures

integration.
Providing overall leadership and direction.
Making overall control of the organization.
Dealing with external parties such as government, community,
business etc. by representing the organization, and analyzing the
changes in the external environment and responding to it.
Figure 1.1. Levels of management

top level management

middle level management

lower level management

Managerial skills

A skill is a person's or an individual's ability to do or perform a

certain thing expertly or intellectually.
These are:
 1. Technical skills

These skills are the abilities of a manager that are necessary to carry out a
specific task. It involves the ability to use specialized knowledge and expertise
with work related tools, procedures, and techniques. Technical knowledge is of
great importance at lower levels where the organization's goods and services
are produced. Examples include:

Writing computer programs.

Completing accounting statements.

Analyzing marketing statistics.

Drafting a design for a certain building etc…

Technical skills are usually obtained through training programs that an

organization may offer its managers, or employees, or may be obtained by way
 2. Human Skill:

The ability to work with, motivate, direct individuals or groups in

the organization whether they are subordinates, pears, or
superiors and the ability to resolve conflict. Because, all tasks in
an organization are done with people, these skills are equally
important to all levels of management. This skill includes:-
Effective communication (writing and speaking);
Creation of positive attitude toward others and the work
setting;
Development of co-operation among group members; and
Motivation of subordinates.
 3. Conceptual skill

 the ability of a manager "to see" the big picture of the organization /to

view the organization from a broad perspective.

 It is the ability of a manager to see the organizational system in its

totality, how its different parts are interrelated and how they affect
each other.
 A manager needs conceptual skills to recognize the interrelationships

of various situational factors, and; therefore, make decisions that will

be in the best interests of the organization.
 They are most important in strategic (long range) planning; therefore,

it is top level managers/executives who require more conceptual skill

than middle level managers and supervisors.
 Functional and general managers

Based on the scope of activities they manage, managers can be:

1. Functional Managers: - these are managers who are responsible for only
one organizational activity, such as production, marketing, sales, or
finance. The people and activities headed by a functional manager are
engaged in a common set of activities.

2. General Managers: - these managers, on the other hand, oversee a

complex unit, such as a company, a subsidiary, or an independent
operating division. He or she is responsible for all the activities of that
unit, such as its production, marketing, sales, and finance.

Managers who are responsible for managing the entire operations of a more
complex unit or division which may have two or more functional units.
 Management as a science and an art

 Management is a science, because:

Its principles are systematized body of knowledge.
Its principles are universally applicable.
They are based on scientific inquiry, observation, test
and experiment
They explain the cause and effect relationships
among/between various variables.
Their validity can be verifiable and can serve as a
reliable basis for predicting future events.
 but, it is not an exact science, because it deals

human beings.
Management as an art

Art is the application of creative activity/know how depending on

what we already know in principles of management.
Note that, the science and art of management practice are not
mutually exclusive but are complementary. If science teaches
one to know, art teaches one to do.
So managers have to know and do things to perform their
activities efficiently and effectively to be successful.
end of chapter one!!