MGT-100: PRINCIPLES OF

MANAGEMENT

There are 3 lecturers taking you through

this course
during this semester. There will be 12 to
13 weeks of teaching/Tutorials for this
course before you write the final
examination.
2 CA Tests---40%
Final exam---60%

We will be dealing mainly with :

Management
Manager
Historical Back ground of
Management
Evolution of Management
Functions of Management

Organisation defined

Organisation
is group of people with formally
assigned roles who work together
to achieve the goals of the group.
Characteristics:
common purpose/goals
organizational structure

Determinants of
Organisation
1. Organisation size
2.Diversity of operations
3.Characteristics of personnel
External factors
Environment, Resources
Technology
Government regulations

Clients and customers

Legal environment
Competitors
Social systems

Contd
Manager
is a person who plans, organizes,
leads, and controls the work of others
so that the organisation achieves its
goals. Therefore a manager:
gets things done through the efforts
of other people.
is skilled at the management
process.

17

An Introduction to
Management

Organization
A group of
people working
together in
structured and
coordinated
fashion to
achieve a set
of goals

Types of
Organizational
Goals
Profit-seeking
National defense
Discovery of
knowledge
Coordination
Social needs
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Contd
Management Process
Refers to the managers four
basic functions of planning,
organizing, leading, and
controlling.

Another process: POSDCORB

PLANNING,
ORGANISING, STAFFING,
DIRECTING,
COORDINATING/CONTROLLING,
REPORTING,
BUDGETING

Management Defined
Dessler (2004) defined
management as a process of
getting work done through other
people. Therefore:
a manager set goals to be
achieved.
arrange for resources.
motivate employees and monitor
their activities.
1.

Contd
Other resources like:
Financial resource
Material resource
information resource
Machinery
Manpower

Other definitions of
Management
The art of getting things done
through people (M.P. Follet)
The
process
of
planning,
organizing,
leading,
and
controlling
the
efforts
of
organizational
resources
to
achieve
stated
organizational
goals (Stoner)

Another definition
Management is the process of
setting objectives and coordinating
the efforts of personnel in order to
attain them. It involves getting
things done through other
people--- Richard Hodgetts
Doing things efficiently and
effectively is good management

Efficiency-Getting the work

done with minimum effort,
expense, or waste
Effectively-Accomplishing
tasks to the best
satisfaction of end users.

Basic Responsibility of
Management

EFFICIENTLY
Using resources wisely and
in a cost-effective way
and

EFFECTIVELY

Making the right decisions and

successfully implementing them
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What is Management?

Engaging in a set of
activities
Planning and
decision making,
organizing, leading,
and controlling
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Using an organizations
resources
Human, financial, physical,
and information
Achieving organizational goals
in an efficient and effective
manner.

Management: Science or
Art or both?

The Science of Management

Assumes that problems can be
approached using rational,
logical, objective, and
systematic ways.
Requires technical, diagnostic,
and decision-making skills and
techniques.
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The Art of Management

Requires a blend of intuition,
experience, instinct, and personal
insights.
Requires conceptual,
communication, interpersonal, and
time-management skills to
accomplish managerial tasks
activities.

Management as Science
and Art

As science- requires to use of

logic and analysis. Manager
arrives at a decision by
observing, classifying and
studying facts in relation to
the problem at hand.

As an Art- It requires the use of

behavioural and judgmental skills
that can not be quantified or
categorised like in the case of
chemistry, biology and physics it
is an art of acting by motivating,
leading by using Judgment,
intuition,etc.

Contd--Art- Managers approach

management as an art when
dealing with people
Science- Mangers approach
management as science
dealing with material things.

The approach varies at

different levels of
Management
Lower levels- Use Scientific
techniques
Upper levels- use judgment,
thought and intuition

Management as a
profession

In addition to being an art

and a science, management
is also considered as
profession. Management
changes its role depending
on the situation.

Profession is a vocation whose

practice is founded upon an
understanding of the theoretical
structure of some department
of learning or science, and upon
the abilities accompanying such
understanding

Characteristics of a
Profession
To qualify as profession, an
occupation must meet five
major criteria
1.Knowledge-Accumulation of
knowledge
2.Competent applicationApplication of knowledge

3.Social responsibilityAssuming
Social Obligations
4.Self Control/Ethics- for
effective management
5.Community Sanctioncontribution to social
programs

Management-The
Importance of Theory and
Why Theory?
History

Provides a conceptual
framework for organizing
knowledge and providing a
blueprint for action.
Management

theories are
grounded in reality.
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Managers

develop their
own theories.

Avoids

mistakes of others
in the past and develop
further

Why History?

An awareness and
understanding of historical
developments in management
are important.
Furthers

development of
management practices.

Early Management Pioneers

Robert Owen (17711858)

Recognized the importance
of human resources and the
welfare of workers.

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ADMINISTRATION

According to Theo Haimann, It

means overall determination of
policies, setting of major objectives,
the identification of general purposes
and laying down of broad
programmes and projects. It refers
to the activities of higher level. It
lays down basic principles of the
enterprise.

According to Newman,
Administration means
guidance, leadership &
control of the efforts of the
groups towards some
common goals.

MANAGEMENT

Where as management involves

conceiving, initiating and bringing
together the various elements;
coordinating, actuating, integrating
the diverse organizational
components while sustaining the
viability of the organization towards
some pre-determined goals.

In other words, it is an art of

getting things done through &
with the people in formally
organized groups.
Administration and
Management should go
together

Charles Babbage (17921871)

Focused on creating
production efficiencies
through division of labor, and
application of mathematics to
management problems.

Basic functions of
Management
Planning.
Organising.
Leading .
Controlling

Planning

Planning is a process of
establishing goals and
deciding how to accomplish
them. It is one of the best
ways to improve performance

Organising
Organising is the process of
grouping resources and activities
to accomplish the end result in an
efficient and effective manner.
It
also means deciding where
decisions will be made , who will
do what jobs and tasks and for
whom.

Leading

Leading is the process of

influencing people to work
toward a common goal .It
includes inspiring and
motivating people to work
hard to achieve
organisational objectives

Controlling
Controlling
is
the
process
of
evaluating and regulating ongoing
activities to ensure that goals are
achieved.
Or
is a process of setting standards(such
as sales quota or quality standards),
comparing actual performance with
standards set and taking corrective
action at the right time.

1.2

The Management Process

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What is a Manager?

Someone whose primary responsibility

is to carry out the management process.

Plans and makes decisions, organizes,

leads, and controls human, financial,
physical, and information resources.

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Manager roles
A role is an organized set of
behaviours.
Managers perform various
roles in organisation to
achieve organisational goals.

Contd
Henry Mintzberg identified ten
roles common to all Managers.
These ten roles are divided into
three main groups depending on
their nature:

Managerial Roles

Contd
1.Interpersonal roles.
2.Informational roles.
3.Decisional roles.

Interpersonal roles

1.Leader- managers are leaders

in their organisation. Is
responsible for hiring, training,
counseling and directing
subordinates. The leader has to
motivate and encourage workers
to accomplish the goals of the
organisation

2.Figurehead-( Representative
figure) Manager represent the
organisation in all formal
functions and meet important
people. This is a ceremonial
role so to say speaking on
behalf of the organisation

Contd

3.Liaison/relationship- managers
maintains good relationship
within the organisation and
outside. (public).Interacts with
people at the same level of
hierarchy. The manager spends
more or less equal time both with
outsiders and insiders.

Contd
Internal relations involve Top
Management, other managers
and employees.
External relations withsuppliers, bankers, the
government and customers.

Information role
Focal point of receiving and sending
information.
1.Monitor- performance, opportunities and
threats outside e.g. customer behaviour.
Basically talks to subordinates and gathers
information required in running the
organisation
Eg:Journals, News Papers and other electronic
means, websites

Contd
2.Analyses/disseminatoranalyses information and
passes relevant data on to
colleagues, superiors and
subordinates.
Eg: e-mail, voice mail and now
Face book and Twitter

Contd

3.Spokesperson

managers
acts as spokesperson in their
department and outside the
organization. Provides information
either to inform the public about the
organisation or to satisfy influential
people who control the organisation.
Eg: at the Company Annual Meetings
with Share holders/Board of Directors

Decisional roles
Use of information.

1.Allocation of resources -The

Manager allocates resources and
decides who gets what. Eg:
salaries, assistance, his\her own
time. Also designs the
organisation structure and
decides who will do what.

2.Entrepreneur role -Mangers

are entrepreneurs- use
information to achieve a
positive change e.g. new
product development or idea
or restructuring the business
and other innovations

Contd

3.Negotiators role- interact with

employees, other department or
business to negotiate goals. This
is the major part of managers
job as he is the only one who
has authority to decide and
commit resources for any
activity.

Examples of this role

Schedules
Outcomes
Performance standards.
resources
trade union agreements.
New contracts

4. Trouble shooter or
disturbance handler role- try to
resolve problems before they
become serious/out of handsResponds to problems with
immediate action.
Deals with strikes, shortages and
equipment breakdowns

Managerial skills
A Skill is an ability to translate
knowledge into action that results
in desired performance.
Robert Katz identified 3 different
kinds of Managerial Skills, they are:
1.Technical skills 2. Human skills
and 3.Conceptual skills.

1.Technicasl Skills
Ability to use the techniques.
Ability to use procedures.
Ability to use tools of a
specific field.
Important at lower levels(First
line Managers and Team
Leaders).

To know how the work is done.

Able to demonstrate the work.
Main concern is to get the work
out.
Once equipped with these skills
,easy to direct subordinates
effectively and also to assist them
when they have problems.

Eg; of technical Skills:

For Sales Managers;
technical skills involve ability
to find new sales prospects
depending on the needs of
the consumers.

2. Human
skills(Interpersonal Skills)

An understanding of human
behavior and group processes, and
the feelings, attitudes, and motives
of others, and ability to
communicate clearly and
persuasively.
Ability to deal with people
effectively both inside and outside
the organization.

Contd
Ability to communicate, motivate
and lead individuals and groups
are key to their success
Its a skill of persuading,
negotiating and coordinating
activities of others e.g.
distributing work and solving
conflicts.

The Jobs are more Human

than Technical in nature
These skills are necessary to
all managers but more so
with Middle level Managers

Middle level Managers are

concerned with directing
lower level supervisors and
other middle level Managers.
The manager here is situated
in between Top level and
Lower Level Management

The manager here takes top

management directives and turn
them into Operational Plans and
passes them on to the Lower
management for action.
Here the Manager is like a politician
who is trying to balance various
needs or concerns of groups with
different interests.

Further the manager here

should know:
1.How to relater people in
higher level positions
2. how to acquire
communication skills on a
one-to-one basis

3. How to improve their skills in

sizing
up the employees
4. How to use time more
effectively
5. how to become results oriented
than activity oriented
6. How to deal with Organisational
politics.

Managers here are more

sensitive to others needs and
view points, and are good
listeners and communicators.
Top/ Upper level Managers
spend most of their time in
dealing with people.

3. Conceptual Skills

Is the ability to plan,

coordinate and integrate all
of the organisations interests
and activities.

Contd--Good judgment, creativity, and

the ability to see the big
picture when confronted with
information.
Involves planning and thinking
process.
One must be intelligent and
practical.

Contd

More crucial to top

managers than for middle
management or first line
managers, because long
range forecasting and
planning are the principal
activities at this level.

Contd--

The top management must be

able to balance the demands of
the organisations various
departments and units with the
demands of the external
environment,i,e;Local community,
social and economic forces,
customers and competition.

Characteristics of top
Managers
Among others they include:
1. The capacity to abstractconceptualise, organise, and
integrate different ideas into a
coherent frame work
2.Tolerance for ambiguity- ability
to with stand
confusion until it
is clear.

3.Intelligence-Capcity not
only to abstract but also to
be practical
4.Judgment-The ability to
know when to act.

Four possible mistakes of

Managers
1. Insensitive to others by the
intimidating management style
2. Becoming Often cold, aloof,
or
arrogant in their
behaviours thinking he knows
everything and he is superior
to others

3. Betrayal of trust- making

others look
bad by not doing
what you said you
would do
when you said you would do it.
It is failure to admit mistakes.
4. becoming overly political and
ambitious- unable to delegate,
and build a team.

First line
Managers

Middle Level Top Level

Managers
Managers

Conceptual=1 Conceptual=1 Conceptual=3

0%
5%
5%
Human=40% Human=55% Human =50%
Technical=50 Technical=30 Technical=15
%
%
%

What Skills Do Managers

Need?
Technical

Conceptual

Interpersonal

Fundamental
Management
Skills

Diagnostic

Decision
Making

Communication

Time
Management

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