Maryland International College

Course Title:
Management Theory and Practice

1
 Course Overview

• Chapter One: Overview of Management

• Chapter Two: Evolution of Management
• Chapter Three: Planning
• Chapter Four: Organizing
• Chapter Five: Staffing
• Chapter Six: Directing
• Chapter Seven: Controlling

Management Theories 2
Chapter 1: General Overview of
Management

• Definition of Management
• Nature and Characteristics of Management
• Significance of Management
• Levels of Management
• Managerial Roles
• Managerial Skills
• Universality of Management

Management Theories 3
Definitions

1.Management is the process of coordinating all

resources through the five major functions of
planning, organizing, staffing, directing /leading
and controlling to achieve organizational
goals/desired objectives. - Henry L. Sisk
2. Management is the art of getting things done
through and with the people in formally organized
groups - Koontz H.
Definitions Cont’d

3. Management is the process of getting

things done, effectively and efficiently,
through and with other people – Mary Parker
Follett
 Efficiency
 Means doing thing right; refers to the
relationship between inputs and outputs;
seeks to minimize resource costs
 Effectiveness
 Means doing the right things; goal
attainment
Manager
Manager – The person responsible for
supervising the use of an organization’s
resources to meet its goals

Note! Everybody is the manager of his/her

time, energy and talents.
Organization
Organization is a systematic arrangement of
people brought together to accomplish
some specific purpose

Common Characteristics of Organizations

 Have a distinct purpose (goal)
 Composed of people
 Have a deliberate structure
Characteristics of management

1. Management is goal-oriented:
 Management is not an end in itself, it is a means
to achieve certain goals.
The basic goal of management is to ensure
efficiency and economy in the utilization of human,
physical and financial resources.
2. Management is universal:
 Management is an essential element of every
organized activity irrespective of the size or type of
activity
Characteristics Cont’d

3. Management is an integrative Force – unifies

human & other resources
 As a unifying force, management creates a whole
that is more than the sum of individual parts
 It integrates human and other resources
4. Social Process
Management is done by people, through people
and for people.
It is a social process because it is concerned with
interpersonal relations.
Characteristics Cont’d

5. Multidisciplinary
Management has to deal with human behavior
under dynamic conditions.
Therefore, it depends upon wide knowledge
derived from several disciplines like engineering,
sociology, psychology, economics etc.
6. Management is intangible
 Management is an unseen or invisible force
It cannot be seen but its presence can be felt
everywhere in the form of results.
Characteristics Cont’d

7. Management is a continuous process

Management is a dynamic and an on-going
process.
The cycle of management continues to operate so
long as there is organized action for the
achievement of group goals.
Management process/Functions
There are five functions of
management/Managerial Functions
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
The functions of management provide a useful
framework for organizing management knowledge.
Planning

1. Planning – Process of identifying and selecting

appropriate organizational goals and courses of action

 Planning is an exercise of forethought

 It is concerned with what? Who? How? When? Where?
How much?
 It is deciding in the present about the future objectives
and the course of actions for their achievement.

Management Theories 13
Planning Cont’d

Planning involves:
Determination of short range and long range
objectives
Development of strategies and courses of action
to be hold for achievement of the objective
Formulation of policies, procedures and rules for
the implementation of strategies and plan
Organizing
 It involves:
 determining what tasks to be done
 who is to do them
 how the tasks are to be grouped
 who reports to whom, and
 where decisions are to be made
Staffing

 refers to filling and keeping filled the positions in

the organization structure
 concerned with locating prospective employees
to fill the jobs created by the organizing process
Staffing Cont’d
Staffing involves:
 Determination of number and kind of
employees needed
 Recruitment of employees (creating potential
employees from whom selection is to be
made)
 Selection of the most efficient employee
suitable for job
 Placement and induction
 Training and development, etc.
Directing/Leading
It is aimed at getting the members of an
organization move in the direction that will achieve
its objectives.
 Leading/leadership is the heart and soul of
management.
 It involves influencing others to engage in the
work behavior necessary to reach organizational
goals
Controlling

The process of:

monitoring performance,
comparing it with goals, and
correcting any significant deviations
 Managers…..

• The people responsible for supervising the use of an organization’s

resources to meet its goals

1-20
 WHAT DO MANAGERS
DO?
Three categorization schemes:

Management Functions
Management Roles
Management Skills

Management Theories 21
MANAGEMENT FUNCTIONS….

Management Theories 22
Management functions …?
IS MANAGEMENT UNIVERSAL ?
Why or why not?

Management Theories 24
UNIVERSALITY OF
MANAGEMENT

Management Theories 25
Management science or art?
Management knowledge exhibits characteristics
of both art and science, the two not mutually
exclusive but supplementary.
 mgt as a science contains a systematic body of
knowledge in the form of general principles which
enjoy universal applicability.
Management science or art Cont’d
 The art of management is personal creative
power and skill in performance.
 If science teaches one to know, art teaches one
to do
 Managers have to know and do things efficiently
and effectively to be successful, so there is
unique scientific and artistic combination in
practice.
Universality of Management
 Management functions and principles have universal application in :

 All levels of management with different emphasis

 All type of organization be it business, non-business,
governmental, private. It is useful from individual to
institutional efforts
 All organization areas - production, marketing, HR,
etc rely on management.
 All organizations varying in size - from small to large
utilize management
Managerial Levels

Management Theories 29
Levels of management

 Refers to a line of demarcation between

various managerial positions in an
organization
 Determines:
 a chain of command
 the amount of authority and
 status enjoyed by any managerial position(s)
Levels of management Cont’d

 The levels of management can be

classified in three broad categories:
1. Top level/administrative level/ strategic level
2. Middle Level/Tactical/Execution level
3. Lower level/supervisory/operative/first line
manager
 Mangers at all these levels perform
different functions
Top level management

 Top management is the ultimate source of

authority and it manages goals and policies for
an organization
 It devotes more time on planning and
coordinating functions
 consider how the organization interacts with its
environment
 Ultimately responsible for the success or failure
of an organization
Middle level management

 They execute the plans of the organization in

accordance with the policies and directives of
top level management
 They make plans for sub-units of the
organization
 They interpret and explain policies from top
level management to lower levels
 They are also responsible for inspiring lower
level managers towards better performance
Lower Level Management
 Refers to those executives whose work has to
be largely with personal oversight and direction
of operative employees
 They are concerned with direction and
controlling functions of management
 They are directly responsible for the production
of goods and services
Types of Managers based on scope of
responsibility
Two types:
1.Functional Managers
managers who are responsible for a department
that performs a single functional task and has
employees with similar training and skills
2. General Managers
 managers who are responsible for several
departments that perform different functions.
 They are responsible for the entire operations of
the organization without being specific
 Management Roles

• Roles are specific actions or behaviors

expected of a manager.

• Mintzberg identified 10 roles grouped

around three major categories:
1) interpersonal relationships,
2) the transfer of information,
3) decision making
 MANAGERIAL ROLES

•Interpersonal Roles are roles

that involve interacting with
people (subordinates and
persons outside the
organisation) and other duties
that are ceremonial and
symbolic- figurehead, leader,
liaison
Management Theories 37
•Informational: Roles that
involve receiving, collecting
and disseminating
information- monitor,
disseminator, spokesperson

Management Theories 38
•Decisional: Roles that involve
making choices- entrepreneur,
disturbance handler, resource
allocator, negotiator

Management Theories 39
 INTERPERSONAL
Role Description Identifiable
Activity
Figurehe Manager serves as an Greeting visitors;
ad official representative of the signing legal
organization or unit documents
Leader Manager guides and Staffing, training
motivates staff and acts as
a positive influence in the
workplace
Liaison Manager interacts with Acknowledging
peers and with people mail/email; serving
outside the organization to on boards;
gain information performing
activities that
involve outsiders
 INFORMATIONAL
Role Description Identifiable
Activity
Monitor Manager receives and Reading
collects information magazines and
reports;
maintaining
personal contacts
Dissemin Manager distributes Holding
ator information within the meetings; making
organization phone calls to
relay information;
email/memos
Spokespe Manager distributes Holding board
rson information outside the meetings; giving
organization information to
the media
 DECISIONAL
Role Description Identifiable Activity
Entrepre Manager initiates Organizing sessions
neur change to develop new
programs;
supervises design of
projects
Disturba Manager decides how Steps in when an
nce conflicts between employee suddenly
Handler subordinates should be leaves or an
resolved important customer
is lost
Resource Manager decides how Scheduling;
Allocator the organization will requesting
use its resources authorization;
budgeting
Negotiat Manager decides to Participating in
or negotiate major union contract
contracts with other negotiations or in
Managerial Skills

• There are three main forms of Managerial Skills (Skills of

Management)
1.Conceptual Skills
2.Human Skills
3.Technical skills

Management Theories 43
 Conceptual skills

• It is a mental ability to think, ponder,

and solve problems (complex
organizational problems)
• The ability to analyze and diagnose a
situation and distinguish between cause
and effect.
• The ability to think and conceptualize
about abstract and complex situations
concerning the organization
1-44
Human skills

• This is the ability to interact

with people and prevail upon
them
• The ability to understand, alter,
lead, and control the behavior
of other individuals and groups.
Management Theories 45
Technical skills

• Job-specific skills required to

perform a particular type of
work or occupation at a high
level.
• E.g A manager of a research company
needs to have technical knowledge in the
field of research such as statistical tools –
SPSS, STATA etc….

Management Theories 46
Managerial Skills vs levels of
management
 Environment of Management
Environment of Management: it explains the forces
(both inside and outside of the company that affects
(positively or negatively) the overall function of the
company.
There are two types of environment which are divided
as internal and external environment. The internal
environment is controllable but the external one is
uncontrollable.
External Environment: InternalEnvironment:
Economy of the country: Management of the
inflation, cost of living etc… company
Politics: the countries Employees skill
overall politics Machineries
Social and Cultural forces: Financial capital
the countries social and
cultural issues
Technology: the overall
technological forces related
to the company’s products

Management Theories 48
END

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