Chapter 2 :Management Functions and Principles

BY : Kidist
Adamu(MPH,HSM)
Objective

At the end of this chapter you will be able

To define management

To explain the importance of management

To discuss basic concepts and principles in management

To identify the difference between management and

administration
Understand the functions of management

Discuss the roles and levels of managers in health care

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 Definition:

Management is the process of reaching organizational

goals by working with and through people and other
resources.
Management is the process of planning, organizing,
staffing, leading, and controlling the work of
organization members and of using all available
organizational resources to reach stated organizational
goals.
Management is defined as getting things done through
3 people.
 Definition ....

The definition of management is based on two

principles:
Commitment to achievement, and

The importance of people and other resources.

This means that people are the most important

resource for getting things done.

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 Importance of Management

Management is universal and necessary function . It is

essential for all kinds of organizations. This is because
every organization requires:-
Decision-making

Coordination of activities

Handling of people and

 Evaluating the performance directed toward its

objectives.
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 Importance of Management

Leading: A manager needs to do more than

just plan, organize, and staff her/his team to
achieve a goal. She/he must also lead. Leading
involves motivating, communicating, guiding,
and encouraging. It requires the manager to
coach, assist, and problem solve with
employees.

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 Administration and Management

Administration : is the over all determination of policies and

major objectives.
Functionally:
 It is the laying down of the general purpose of the

organization.
 The framing of its major polices.

 The formulation of general plan of procedure.

 The inauguration of broad Programme.

 Approval of specific major projects that fall within the general

7 programme.
 Administration and Management....

Management: is the active direction of human

effort & it is the work that a manager seeks to get
results through other people.
As a function, administration is determinative and

management is essentially executive. Yet the same

person may perform both.

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Administration and Management....
As we go down the hierarchical ladder, the administration
function became less and less and the management function
more and more. The following figure clearly demonstrates this
point.
Administration
 President
 Vice President
 Schools
 Department
 Division
Management
9  Units
 Concepts and Principles of Management
Concepts:
Effectiveness: is the degree to which a stated

objective is being achieved. It is something that

management tries to improve.
 Efficiency: the appropriate use of resources to
produce effective services (money, material, human
resource, time, space and information).
 Economy of scarce resources: some, and often many,

10 resources are scarce and costly thus we have to economize.

 Concepts:

Management strives for low resource waste

and high goal attainment.
Management must keep organizational goals
clearly in mind at all times.
Comparison is made between alternative
procedures in terms of their marginal cost per
unit of outcome.
Allocative Efficiency: the allocation of
resources to most socially valuable uses.
Technical efficiency: the best use of resources
11
to achieve a given end.
 Concepts of Management....
Work relations : work activities should be designed and

structured so as to support each other towards the

achievement of objectives.
Information : management needs information to make the

right decision for action. At the same time, information can

easily handicap management, if it is not
the right kind

at the right time and

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in the right hands.
 Principles of Management
Division of Work
The full work of the organization should be
divided among individuals and departments
This is because a division of work leads to
specialization, and specialization increases
efficiency, and efficiency improves the
productivity and profitability of the
organization
Management attempts to bring about balance

13
of work among the different people concerned
 Principles of Management....

Discipline
Discipline means a respect for the rules and
regulation of the organization
Discipline may be:

Self-discipline
Enforced discipline
Self-discipline is the best discipline; however, if
there is no self-discipline, then it should be
enforced through penalties, fines, etc.
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No organization can survive without discipline
 Principles of Management....

Authority and Responsibility

There should be a balance between authority
(Power) and responsibility (duties)
Authority must be equal to Responsibility

If the authority is more than responsibility then

chances are that a manager may misuse it
If responsibility is more than authority then the
manager may feel frustrated
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 Principles of Management ....
Emphasis on subordination of personal interest to general
interest
In an organization, there are two types of interests:
Personal interest of the employees
General/common interest of the organization
As much as possible the manager is responsible to
address these interests
In any undertaking, the interests of employees
should not take precedence over the interests of the
organization as a whole
If not, the organization will collapse
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 Principles of Management ....
Remuneration
Consideration of variables such as cost
of living, success of the organization
etc. to determine rate of payment to both
employees and employers
If an organization wants efficient
employees and best performance, then it
should have a good remuneration policy
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 Principles of Management ....
Centralization and Decentralization
In centralization, the authority is concentrated only
in few hands (top of the organization)
However, in decentralization, the authority is
distributed to all the levels of management
No organization can be completely centralized or
decentralized
Therefore, there should be a balance between
centralization and decentralization
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 Principles of Management ....
Order
There is a suitable place for everything (material &
people)
Order for things is_ material order
Order for people is_ social order
To increase efficiency and coordination in an
organization, materials & people should be in the
right place at the right time
People, in particular, should be in the jobs or
positions they are most suited to
Misplacement will lead to misuse and disorder
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 Principles of Management ....
Equity
Equity is a combination of kindness and justice
An organization consists of a group of people
involved in joint effort
The managers should use equity while dealing with
the employees
Without equity, we cannot have sustained and
adequate joint collaboration
Equity creates loyalty and devotion in the employees

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 Principles of Management ....
Initiative
Subordinates should be given the freedom to
conceive and carry out their plans, even
though some mistakes may result
Managers should encourage employees to do
through self direction
This is because creative thinking and capacity
to take initiative can give us sound managerial
planning and execution of predetermined plans
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 Principles of Management ....
Esprit De Corps
Promoting harmony and team spirit among
members to give the organization a sense of unity
For good performance, the management should
create unity, co-operation and team-spirit among the
employees
Simple factors can help managers to develop team
spirit. E.g. the use of verbal communications instead
of formal, written communication whenever
possible
But they should avoid the divide and rule policy
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 Principles of Management ....
Stability of Tenure
Retaining productive employees should always be a
high priority of management
A high employee turnover rate undermines the
efficient functioning of an organization
Employees need time to learn their job and to become
efficient, therefore, they should be given adequate
time
When employees become efficient, they should be
made permanent
In other words, the employees should have job
23 security
 Principles of Management ....
Unity of Direction
The entire organization should be moving
toward a common objective, in a common
direction
All activities which have the same objective
must be directed by one manager, and the
manager must use one plan
All members of an organization must work
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together to accomplish common objectives
 Principles of Management ....
Unity of Command
In order to avoid any possible confusion and
conflict, each member of an organization must
received orders and instructions only from one
superior (boss)
In other words, a subordinate must report to
only one superior
This principle is based on the rule “too many
cooks spoil the soup"
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 Principles of Management ....
Scalar Chain/Hierarchy
Scalar chain is a line of authority that joins all the
members (managers and employees) from top to
bottom
Every member must know who is his superior and
subordinate
Scalar denotes steps, lower line managers should
always inform upper level managers
Scalar chain is necessary for good communication

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 Principles of Management ....
Management by Objectives
Management sees that objectives are specified and then
that they are achieved
The objective should state:
What is to be accomplished
How much of it
Where it is to be done
When it is to be completed
Therefore, a clear statement of objectives makes it possible
to evaluate how effective one is in approaching and
reaching the objectives
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 Principles of Management ....
Learning from experience
Analysis of the results between the objectives and
achievement made
For better performance there should be feedback to
learn from the experience gained
Substitution of resources
when resources became scarce or too expensive,
different resources may be used to provide the
intended results
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 Principles of Management ....
Convergence of work
Working relations should contribute to the success of
each activity and so to general effectiveness
These working relations of activities are:

the logical relations with each other

time relations or sequence

spatial relations between activities

functional and structural-working relations between

people
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 Principles of Management ....
Functions determine structure
When the work is defined i.e. the function
and duties of the individual members of the
team are clearly defined and known to all, the
working relations (the structure) follow
The exact nature of authority will be clearly
delineated on the structure
Delegation
It takes place when some body's authority is
lent, so as to enable that person to take
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responsibility when the occasion arises
 Principles of Management ....
Management by exception: shows two things
Don't be overloaded with the routine, unnecessary
information, be selective
Make big decision first (priority in decision)
Shortest decision path
This principle deals with issue
Who should make which decision?
When and where?
Decision must be made as closely as possible in time
and place to the object of decision and to those affected
by it
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 Leadership
Leadership can be defined as the process in
which one engages others to set and achieve a
common goal
It is concerned with setting a direction for
change, developing a vision for the future, while
management consists of implementing those
goals through planning, budgeting, staffing
Leadership is a process that use non coercive
influence as a means of directing and
coordinating the activities of the members of a
group toward attaining the groups objectives
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 Leadership ...
When you lead well, you enable others to face
challenges to creating the future that you all
envision
You help them to overcome obstacles that
stand in the way of desired results and
encourage them to adapt to changing conditions
Leading means mobilizing others to envision
and realize a better future
Leading is about the future
It is involved in the creation of work that
generates new energy or reactivates untapped
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skills that have lain dormant
 Characteristics of Managers Vs. Leaders
Manager Leaders

Administers Innovates
Maintains Develops
Focuses on systems Focuses on people
& structure
Inspires trust
Relies on control
Long-range
Short- range view
perspective
Accepts the status Challenges the
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quo status quo
 Managing vs. Leading...
Leading and managing are complementary to reach
for and achieve results
We did not separate leaders from managers

This approach is based on the belief that

improvements in health care are made by managers
who lead and manage well
Leadership practices improved through a process
of facing challenges and receiving feedback and
support
By using this process, managers develop the
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leadership abilities of their staff
 Levels of Managers...
Managers are people formally appointed to positions of
authority in organizations or systems who are
responsible for the work performance of group members
Managers are categorized into three levels.
1. Top level (senior managers)
 mangers responsible for the overall management of
the organization.
 establish operating policies and guide the
organization’s interaction with its environment
 Establishes long term goals and oversees the work
of middle level management
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 Levels of Managers...

2. Middle level managers

Managers located between top-level and
frontline managers in the organizational
hierarchy.
They are responsible for other managers and
sometimes for some operating employees.
report to more senior managers.
responsible for translating strategic goals
and plans into more specific objectives and
37 activities
 Levels of Managers...
3. First-line (front line) mangers
Supervise the operational activities of the
organization
have authority and responsibility for
overseeing a specific type of work and a
particular group of workers (non-management
people often called operating employees)
plan for a short term, involving scheduling
employees and establishing detailed procedures
38 to perform worker tasks.
 Levels of Managers...
Regardless of title or level, managers have several
common attributes:
They are formally appointed to positions of
authority
They are charged with directing and enabling
others to do their work effectively.
They are responsible for utilizing resources.
They are accountable to superior for results.
The primary differences between levels of
managers are the degree of authority, the scope of
39 responsibility and accountability at each level.
 Management Functions
To accomplish goals, the manager performs
five managerial functions in the context of the
management process
1. Planning
If you have no particular destination in mind,
then you can take any road
involves the process of defining goals,
establishing strategies for achieving those
goals, and developing plans to integrate and
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coordinate activities
 Management Functions
2. Organizing
the process of making sure the necessary
human and physical resources are available to
carry out a plan and achieve organizational
goals
involves assigning activities, dividing work
into specific jobs and tasks, and specifying who
has the authority to accomplish certain tasks
involve grouping of activities into departments
41 or some other logical subdivision
 Management Functions
3. Leading
influencing others to achieve organizational
objectives
it involves energizing, directing, persuading others,
and creating a vision
Involves interpersonal processes: motivating,
communicating, coaching, and showing group
members how they can reach their goals.
The leadership aspect of management focuses on
inspiring people and bringing about change, whereas
42 the other three functions focus more on maintaining
 Management Functions
4. Controlling
Controlling generally involves comparing actual
performance to a predetermined standard
any significant difference between actual and
desired performance would prompt a manager to
take corrective action
determining whether the original plan needs
revision, given the realities of the day
it causes a manager to return to the planning
function temporarily to fine-tune the original plan
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 Management Functions
5.Staffing
It is the process of filling and keeping filled the
positions required by the organizational structure
with right people, at right places, and at the right
time
Acquiring and placing of qualified people
It includes several sub-function like
Recruitment
Selection
Hiring
Transfer and promotions
Training
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 Management roles
Henry Mintzberg says that what managers do can best
be described by looking at the roles they play at work
From his study of actual managers at work, he
concluded that managers perform 10 different but
highly interrelated roles.
The term management role refers to specific
categories of managerial behavior
Mintzberg grouped the 10 managerial roles in to 3
categories.

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 Management role…
1. Interpersonal roles:
Are based on the use of formal authority and involve
interpersonal relationships
a. Figurehead: Symbolic head; obliged to perform a
number of routine duties of a legal or social nature like
greeting visitors; signing legal documents, addressing
the media
b. Leader: managers motivate and encourage workers to
accomplish organizational objectives
c. Liaison: Maintains self-developed network of
contacts with people outside the organization, such as
key partners with whom good working relationships
46 are required
 Management roles
2. Informational roles
Informational roles flow from the interpersonal roles and are
associated with fulfilling these roles
many contacts made while performing figurehead and liaison
roles give managers access to a great deal of important
information
a. Monitor: involving seeking, receiving, and screening
information. Managers need to scan their environments
for information that may affect their organization and
evaluate the information
b. Disseminator: Transmits information received from
outsiders or from subordinates to members of the
organization
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c. Spokesperson: transmits information to outsiders on
organization's plans, policies, actions, results etc
 Management roles

3. Decisional roles
The informational roles lead naturally to a range of decisional
roles: Managers use information to make decisions
a. Entrepreneur - Change agent: involve designing and
initiating changes within the organization; sharing and
initiating new ideas or methods
b. Disturbance handler: Responsible for corrective action
when organization faces important, unexpected
disturbances
c. Resource allocator: Responsible for the allocation of
organizational resources of all kinds—making or
approving all significant organizational decisions
d. Negotiator: Responsible for representing the organization
at major negotiations (with suppliers, clients, governments)
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 Management roles

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 Managerial Skills
To be effective, managers must possess three key
managerial skills
1. Technical skills
 involves an understanding of and proficiency in a
specific activity that involves methods, processes,
procedures, or techniques
 It is the managers understanding of the nature of job
that people under him/her have to perform.
 Such skills can be acquired through training,
education and work experience.
 Technical skills are frequently referred to as hard
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skills
 2. Interpersonal skill (human relations)
a manager’s ability to work effectively as a team
member and to build cooperative effort in the unit.
communication skills are an important component of
interpersonal skills
interpersonal skills are often referred to as soft skills
many managers at all levels ultimately fail because their
interpersonal skills do not match the demands of the job.
an important subset of interpersonal skills for managers
is multiculturalism, the ability to work effectively with
people from different cultures
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 3. Conceptual skill
is the ability to see the organization as a total entity
it includes recognizing how the various units of the
organization depend on one another and how changes
in any one part affect all the others
a manager deals with the relationship of the
organization to its environment: the community;
political, social, and economic forces of the nation as
a whole
for top-level management, conceptual skill is a
priority because executive managers have the most
contact with the outside world
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 Managerial skills
All levels of managers use the three types of skills in
performing management work but in different degree
the senior manager is vitally concerned with
visualizing the complex relationships in the
organization - conceptual skills
the low level manager, may be constantly required to
make decisions on the basis of technical knowledge
of procedures
the human skill is critical and equally important for
all levels of managers
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 Managerial skills

Top
Conceptual

Middle Human relation

Front Technical
line

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 Leading and managing practices
Leading practices

Scanning

Focusing

Aligning and Mobilizing

Inspiring
Managing practices


Planning

Organizing

Implementing

Monitoring and Evaluation
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 Scanning
 Scanning involves getting information so you can act
on it
 looking for feedback from clients, colleagues,
supervisors, communities - adjustments to strategies
& plans
 Identify client and stakeholder needs and priorities
 Recognize trends, opportunities, and risks that affect
the organization
 Look for best practices
 Identify staff capacities and constraints
 Know yourself, your staff, and your organization –

56 values, strengths, and weaknesses

 Focusing

 Managers who lead focus their limited time,

energy, and resources on priority actions
 Use what you have learned from scanning for
focusing
 Managing your time is focusing, because time
is a scarce resource
 Develop the crucial ability to
 identify critical challenges
 determine key priorities for action

57  create a common picture of desired results

 Aligning and mobilizing
 Ensure congruence of values, mission,
strategy, structure, systems, and daily actions
 Facilitate teamwork
 Unite key stakeholders around an inspiring
vision
 Link goals with rewards and recognition
 Enlist stakeholders to commit resources
 The essential skill needed for this practice is
being able to connect and work with others
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toward a common vision
 Inspiring
 Match deeds to words
 Demonstrate honesty in interactions
 Show trust and confidence in staff,
acknowledge the contributions of others
 Provide staff with challenges, feedback, and
support
 Be a model of creativity, innovation, and
learning
 Encourage people to be the best they can be
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 Planning
 Involves the logical sequencing of activities
and resources needed to achieve stated
objectives
 Without plans, your work environment will be
chaotic and performance will be haphazard
 Set short and long-term organizational goals
and performance objectives
 Allocate adequate resources (money, people,
materials)
 Anticipate and reduce risks
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 Organizing
 Ensures that resources are available at the right
time, in the right place, and in the right
quantities to get the work done
 Making sure that you have in place the systems,
procedures and processes that make it possible
to execute assigned tasks for staff
 Ensure a structure that provides accountability
and delineates authority
 Strengthen work processes to implement the
plan
 Align staff capacities with planned activities
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 Implementing

 Integrate systems and coordinate work flow

 Balance competing demands
 Routinely use data for decision-making
 Coordinate activities with other programs and
sectors
 Adjust plans and resources as circumstances change

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 Monitoring and Evaluating

 Monitor and reflect on progress against plans

 Provide feedback
 Identify needed changes
 Improve work processes, procedures, and tools

Thank you

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