MANAGEMENT THEORY AND

PRACTICE

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 Chapter 1

Management:overview

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 Learning Objectives
After this discussion, you should be able to:
1.Recognize what management is all about
2.Demonstrate the significance of management
3.Descrbe the objectives of management
4.Recognize who managers are and what they do.
5. Distinguish among skills, levels and roles of
management
6.Discuss the basic functions of Management
6.Identify the qualities of a good Manager
7.Realize the universality of Management
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 Definitions of Management
Management has been viewed by
scholars as:
a process,
a discipline,
a human activity, and
a career
Management has also been viewed as a
system of
inputs (resources and factors of production),
Throughputs/processes (managerial tasks
and activities), and
outputs (products and/or services)

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 Definitions.Contd
Management as a Process
Management is a process involving certain functions
and activities that managers perform
Management as a Discipline
Management as a discipline implies that it is body of
knowledge (principles, concepts, and theories) that
can be learned and practiced.
Management as a Human Activity
People are an organizations most important ASSET;
Orgs require mutually satisfying partnership between
management and the HR they manage.
Management as a Career
Managers are associated with sequence of work
related experiences over the span of their lives 1-5
 DefinitionsContd

What then is Management?

Definition. 1
Management is the process of planning,
organizing, directing, and controlling
the work of organization members
and of the organization
using all available resources to
achieve organizational goals.

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 DefinitionsContd
Definition 1
Recognizes that management is an
ongoing activity
Entails reaching organizational goals
Involves knowing how to perform the
functions of management-Planning,
organizing, staffing, directing & Controlling

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 DefinitionsContd
Definition 2
The process of working with and through others to
achieve organizational objectives in a changing
environment. Central to this process is the
effective and efficient use of limited resources.
(Krietner,1992)

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 DefinitionsContd
Definition 3
Management is the process of achieving
results through the use of human, material,
and financial resources.
The process involves:
Planning, organizing, directing, staffing and
controlling
The use of resources:- financial, material and
Human
Coordinating resources toward achieving
goals/results

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 DefinitionsContd
Definition 4
The process of getting things done, effectively and
efficiently, through and with other people
Process
represents the primary activities
that managers perform
Efficiency
- doing the task right,
- the relationship between inputs and outputs
Effectiveness
- doing the right task
- attaining organizational objectives
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 DefinitionsContd
Definition 4 shows that
All organizations have people who
are responsible for achieving goals
These people coordinate the
activities of others to achieve
goals/results
so
Management
is what a manager does to get
things done through others.
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Management Performance
Evaluation Criteria

EFFICIENCY
Using resources wisely and
in a cost-effective way

AND

EFFECTIVEVENESS
Making the right decisions and
successfully implementing them

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 The Significance of Management
The importance of Management may be highlighted in the following points:
a. Achievement of group goals- Management creates team-work and co-
ordination in the group
b. Optimum utilization of resources- Managers ensure that the organization
has adequate resources and at the same time does not have idle
resources.
c. Minimization of cost- Management helps to improve organizational
efficiency by directing day-to-day operations in such a manner that all
wastage and extravagance are avoided.
d. Survival and growth- Management facilitates the continuity and prosperity
of business, enabling the organization to minimize the risks and exploit
opportunities created due to changes in the business environment.
e. Generation of employment- By setting up and expanding business
enterprises, managers create jobs for people. They help to satisfy the
economic and social needs of employees.
f. Development of the Nation- Efficient management is equally important at
the national level. It helps to manage wealth producing resources
properly.
Management increases the national income and the living standards of
people.
Thus, management is regarded as a key to the economic growth of a
country. 13
Management as a Science and an Art?
Science
A body of systematized knowledge
accumulated through study and
accepted to understand the general
truth.
Uses operational definitions, careful
observation, systematic data collection
and analysis, and accurate measurement
carried on to determine the nature and
principles of the subject under study.

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Science as an Art.Cond
Art
A system of doing a particular work
in the best way in a specific time,
place, and condition tactfully, wisely,
and creatively.
Characterized by using common
sense, personal feelings, beliefs,
impulses, etc.
Tries to make adjustments based on
the possibilities through trial and
error method.
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 Objectives of Management
The objectives of Management can be examined from
three perspectives, which include: organizational,
personal and social objectives.
1. Organizational objectives
(a). Reasonable profits get a fair return on the capital
invested in business
(b). Survival and solvency of the business continuity
of the business
(c). Growth and expansion of the enterprise
(d). Improving the goodwill or reputation of the
enterprise

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 objectivescont.
2. Personal objectives
(a). Fair remuneration for work performed
(b). Reasonable working conditions
(c). Opportunities for training and
development
(d). Participation in management and
prosperity of the enterprise
(e). Reasonable security of service
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 Objectives cont.
3. Social objectives
Management is expected to fulfill the objectives
of the society which include the following:
(a). Quality of goods and services at fair price to
consumers
(b). Honest and prompt payment of taxes to the
government
(c). Conservation of environment and natural
resources
(d). Fair dealings with suppliers, dealers and
competitors
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 Objectives cnd
(e). Preservation of ethical values of the
society

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 Functions of Management

Planning
Select goals
& ways to
attain them
Controlling Organizing Assign
Monitor responsibility for
activities & tasks
make
corrections
Leading
/directing Use
influence to
motivate

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 Planning as a Mgt Function
The process of setting performance objectives
and determining what actions need to be taken
to accomplish them.
Plans are the guides by which:
the organization obtains and commits the
resources required to reach its objectives;
members of the organization carry on activities
consistent with the chosen objectives; and
progress toward the objectives is monitored
and measured to take action if progress is
unsatisfactory.

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 ManagementContd
Planning enables managers to decide
What is to be done
Who is to do it
How is to be done
When is to be done
Where is to be done
Why is to be done

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 Organizing as a Mgt Function
The process of arranging and allocating
work, authority, and resources among
an organizations members so that they
can achieve the organizations
objectives.
Determining:
what tasks will be done,
who will do them,
how the tasks will be grouped,
who will report to whom, and
where decisions will be made.

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 Directing as a Mgt Function
The process of directing, influencing, and
motivating employees to perform tasks in
an organization.

Every organization contains people, and that

part of a manager's job is to direct and
coordinate the activities of these people.

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 Controlling as a Mgt Function
The process of measuring work
performance, comparing results to
objectives, and taking corrective action
as needed.
Controlling function involves:
establishing standards of performance;
measuring current performance;
comparing this performance to the
established standards;&
taking corrective action if deviations are
detected.
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Levels of Managers
Top managers
Responsible for the attainment of
the overall goals of the organization.
Middle managers
Directly responsible for the work of managers at the
lower levels.
First-line Managers
Managers at the lowest level of the organizational
hierarchy who are directly responsible for the work of
operation (non-managerial) employee

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 Robert Katzs Management Skills
Technical skills
The ability to apply specialized knowledge or
expertise.

Human skills
The ability to work with, understand, and
motivate other people, both individually and
in groups.

Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
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Mintzbergs Managerial Roles

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Managerial RolesContd

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Managerial RolesContd
 Qualities of a Good Manager
The following are the qualities required of an effective
Manager.
Education: A Manager must be well educated and qualified.
Should have both general and specific education in business
administration.
Training: The Manager must have the specific training for the
job he/she is required to perform.

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 Leadership: The Manager cannot perform all
the activities of the business by
himself/herself. Therefore, he/she should have
the quality of leadership in order to extract
the maximum worth of all individuals.
Personality: The Manager should have
sound health
Good manners and/or behaviors

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 Pleasing personality
Scientific outlook:
Managerial decisions should not be made
based upon emotions, but on logical
considerations.
Every important decision should be fair and
unbiased.

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 Ability to do and get work done:
The Manager must know the work he/she is
assigned.
He/she should be well versed in the art and
technique of extracting the maximum
contribution of subordinates.
Self confidence:
The Manager has to be self confident about
his decisions.
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 Honesty:
Honesty is the best policy in the business.
Technical proficiency:
The Manager should be technically proficient .
He/she cannot effectively supervise what
he/she does not know.
Human touch:
Must honor the emotional and

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Psychological needs of employees.
He/she should not be cruel in his/her dealings.

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The Context of Organization
The organization is a complex social system
Organizations exist in order to achieve
objectives and to provide satisfaction for
their members.
Organizations enable objectives to be
achieved that could not be achieved by
the efforts of individuals on their own.

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 What is an organization?

A consciously coordinated social unit

composed of two or more people that
functions on a relatively continuous
basis to achieve a common goal.
OR
A collection of people working together
to achieve a common purpose, with that
purpose being to produce goods and /or
services that satisfy the needs of the
customers.
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 Features of Organization

Organizations are characterized as being:

Purposive - common objectives to

accomplish task
Peopled - cooperative efforts
Structured . hierarchal, rules and
regulations, communication

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 Types of Organizations
Service Organization (e.g., charities, public
schools, park, zoo, road, etc.).
Economic Organization (e.g., co-operations,
proprietorships, partnerships, etc.).
Religious Organization (e.g., Churches, Mosques).
Protective Organization (e.g., police, military, fire
department, etc.).
Social Organization (e.g., clubs, teams, etc.).
Government Organization (e.g., Federal &
Regional States, cities, courts, etc.).
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