1.

Corporate Governance in management

a) Meaning of corporate governance
Corporate governance is a set of rules that define the relationship between stakeholders,
management and the board of directors of an organization.
b) Importance of corporate governance in management.

It increases the accountability of a company.

It enhances the companys image in the public eye as a self- policing company that is

responsible and worthy of shareholders and debtholder capital.

It keeps a company honest.
It dictates the shared philosophy, practices and culture of an organization and its

employees.
It translates to better performance of an organization thus aids growth.
c) Application of corporate governance in management.
A company or an organization must have a framework of rules and practices that guides the
day to day running of an organization. These may be in form of a board charter that guides
the board, Human resource policy that guides the employees of the organization, and
procurement policy that guide the relationship between the organization and its suppliers.
Every organization must have all the relevant policies and should implement them.
2 Governance Boards in management.
a) Meaning of Governance boards in management
A Governance board is a group of people that oversee or manage the running of an
organization.
The Governance board should be composed of competent, diverse and qualified members
capable of exercising objective and independent judgement.
The board membership should of an organization should not be less than five and should be
composed of both executive and non-executive members
b) Importance of Governance boards in management
It approves and authorizes the annual operating plan and the supporting operating and

capital budgets
It approve board committee appointments, board work plan and annual board budget
Approve all policies formulated by management that involve legal, regulatory and other

external issues.
Select the CEO and determine his or her compensation and annual increases

c) Application of Governance boards in management

The governance board provides the overall leadership and is responsible for the strategic
direction of an organization.

Every organization should have a Governance board to ensure that all the operations of the
organization run smoothly.
The Governance board approve policies which are then implemented by the management of
an organization.
3 Management by objective.
a) Meaning of management by objectives.
Management by objective is a technique and philosophy of management based on
converting an organizational objective into a personal objective on the presumption that
establishing personal objectives makes an employee committed, leading to better
performance.
Management by objective was introduced by Peter Drucker in 1954 and later was developed
by various writers like Douglar McGregor, John Humble and George Ordiorne.
b) Importance of management by objectives.
An effective system of Management by objective helps:

To make a more systematic evaluation of performance in an organization.

To locate weak and areas with problems because of improved communication and
organization structure,

To stimulate the surbordinates motivation.

Serve as a device for organizational control integration.

In improving productivity as the management team concentrates on the important task

of reducing costs.

Provide managers with the opportunity for personal satisfaction because they participate
in the setting of objectives and rational performance appraisal.

c).Application of management by objectives

Management by objective is applied in the modern day management in a case where an
organization has a set of objectives for all employees starting from the top level to the
lowest level of management.
Resources are also allocated as per the set objectives in an economical manner to ensure
that the objectives are met.

4. Management by walking around.

a).Meaning of management by walking around
This means the unstructured approach to hands-on, direct participation by the managers in
the work-related affairs of their subordinates. In MBWA practice, managers spend a
significant amount of their time making informal visits to work area and listening to the
employees.
This method is common to individual who need very close supervisions to perform their
work and also if dealing with quality management system especially in production
functions. Otherwise, it may make some staff members feel untrusted hence not
performance well their tasks. The method should be strictly be applied in cases based on the
nature of work and need basis.
b).Importance of management by walking around.

It allows the management to collect qualitative information by listening to the

complaints and suggestions of the employees.

c).Application of management by walking around

Management by walking around can be applied by management in a flower farm.The
manager makes informal visit supervising the flower pickers and listening to their opinions
about their work.
5. Total Quality Management
a) Meaning of total quality management.
Total Quality Management according to pfau (1989) is an approach for continuously
improving the quality of goods and services delivered through the participation of all levels
and functions of the organization.
Kiritharan(2004) described Total quality management as a commitment to continuous
improvement of quality.
Total quality management suggest that for any organization to remain competitive the
customer requirements should be met at the lowest cost possible.
b) Importance of total quality management
Total quality management leads to:

Establishment of effective goals and objectives.

Improved organizational performance capability.

Better performance in meeting the customers needs.

Increase in the profitability of an organization.
Greater knowledge and work satisfaction on the part of the members of an organization.

c) Application of total quality management

Every organization should work continuously to improve the service and products quality so
as to enhance the customers and employee satisfaction. Customer and employee satisfaction
is one of the managements objectives.
Total quality management allows an organization to remain competitive because the
customers needs are being met at the lowest cost possible
6. Balanced score card
7. Use of consultants
a) Meaning of use of consultants.
A consultant is a professional who provides professional or expert advice in a particular area
to others to help them understand what they need to do to make better profits.
The use of a consultant is the bringing in of an expert to an organization to help the
management understand what they need to do and how they should do it so as to remain or
become relevant in the market.
b) Importance of use of consultants.

Consultant help analyse the market and devise the kind of plans that will help with
growth of an organization especially with the fierce competition nowadays

They provide solutions to specific challenges and situations in an organization.

They help validate ideas that have already been created in the organization

Consultants bring in an experienced outsiders evaluation and point of view

Consultant facilitate the search for ideas and solutions with existing team members
of an organization

They facilitate creation and implementation of methodologies and systems that

enhance efficiency in an organization

Consultants help bring, teach or implement new business ideas and procedures.

d) Application of use of consultants.

A company manufacturing soft drinks can use consultants to find out what market they are
in and who their target market is. The consultants will help survey potential customers and
find out what they want and what they would buy, so that the company can find a way to
gain the most number of customers for their soft drinks.
8. The historical background of management.
a) Meaning of historical background of management
Management is the planning, organizing, leading and controlling of human and other
resources to achieve organizations goals effectively and efficiently.
The study of management as a separate discipline started in the last century.
Most writers agree that the origin of management can be traced to the work performed by
F.W. Taylour and his associates who generated the scientific management movement around
1900.
b).Importance of historical background of management.

9. Theories of management.
Classical Management Theory
This theory is among the first schools of management thought, it
developed during the Industrial Revolution (1900-1930) when new
problems related to the factory system began to appear. Managers were
unsure of how to train employees (many of them nonEnglish speaking
immigrants) or deal with increased labor dissatisfaction, so they began to
test solutions. As a result, the classical management theory developed
from efforts to find the one best way to perform and manage tasks. This
school of thought is made up of two branches: classical scientific and
classical administrative, described in the following sections.
1. The classical scientific branch arose because of the need to
increase productivity and efficiency. The emphasis was on trying to
find the best way to get the most work done by examining how the
work process was actually accomplished and by scrutinizing the
skills of the workforce.

The classical scientific school owes its roots to several major contributors,
including Frederick Taylor, Henry Gantt, and Frank and Lillian Gilbreth.
Frederick Taylor is often called the father of scientific management.
Taylor believed that organizations should study tasks and develop precise
procedures.
Henry Gantt, an associate of Taylor's, developed the Gantt chart, a bar
graph that measures planned and completed work along each stage of
production. Based on time instead of quantity, volume, or weight, this
visual display chart has been a widely used planning and control tool since
its development in 1910.
Frank and Lillian Gilbreth, a husbandandwife team, studied job
motions. In Frank's early career as an apprentice bricklayer, he was
interested in standardization and method study. He watched bricklayers
and saw that some workers were slow and inefficient, while others were
very productive. He discovered that each bricklayer used a different set of
motions to lay bricks. From his observations, Frank isolated the basic
movements necessary to do the job and eliminated unnecessary motions.
Workers using these movements raised their output from 1,000 to 2,700
bricks per day.
Based on the studies by the above pioneers, basic ideas regarding
scientific management developed. They include the following:

Developing new standard methods for doing a job

Selecting, training, and developing workers instead of allowing them

to choose their own tasks and train themselves

Developing a spirit of cooperation between workers and

management to ensure that work is carried out in accordance with
devised procedures

Dividing work between workers and management in almost equal

shares, with each group taking over the work for which it is best
fitted

2. The classical administrative approach concentrates on the total

organization. The emphasis is on the development of managerial
principles rather than work methods.
Contributors to this school of thought include Max Weber, Henri Fayol,
Mary Parker Follett, and Chester I. Barnard. These theorists studied the
flow of information within an organization and emphasized the importance
of understanding how an organization operated.
In the late 1800s, Max Weber disliked that many European organizations
were managed on a personal familylike basis and that employees were
loyal to individual supervisors rather than to the organization. He believed
that organizations should be managed impersonally and that a formal
organizational structure, where specific rules were followed, was
important. In other words, he didn't think that authority should be based
on a person's personality. He thought authority should be something that
was part of a person's job and passed from individual to individual as one
person left and another took over. This non personal, objective form of
organization was called a bureaucracy.
Weber believed that all bureaucracies have the following characteristics:
A welldefined hierarchy, Division of labor and specialization,
Rules and regulations, Impersonal relationships between
managers and employees and Competence.
Henri Fayol, a French mining engineer, developed 14 principles of
management based on his management experiences. These principles
provide modernday managers with general guidelines on how a
supervisor should organize her department and manage her staff.
Mary Parker Follett stressed the importance of an organization
establishing common goals for its employees. She stressed the
importance of people rather than techniques a concept very much
before her time.
Chester Barnard, introduced the idea of the informal
organization cliques (exclusive groups of people) that naturally form

within a company. He felt that these informal organizations provided

necessary and vital communication functions for the overall organization
and that they could help the organization accomplish its goals.

Neo-classical Theory
Neoclassical approach of management (1930-1960): The Neoclassical
approach began with the Hawthorne studies in the 1920s (Wikipedia,
2013). It grew out of the limitations of the classical theory. Under classical
approach, attention was focused on jobs and machines. After some time
workers resisted this approach as it did not provide the social and
psychological satisfaction. Therefore, attention shifted towards the human
side of management. George Elton Mayo (1890- 1949) is considered to be
the founder to the neoclassical theory (Gupta C B, 1992). He was the
leader of the team which conducted the famous Hawthorne Experiments
at the Western Electric Company (USA) during 1927-1932.
There are mainly three elements of neoclassical theory of management.
They are Hawthorne Experiment, Human Relation Movement, and
Organizational Behavior.
Human Relations Movement
The human relations movement was a direct result of Elton Mayo and Fritz J.
Roethlisberger's Hawthorne studies, which were designed to find ways to
increase worker productivity at Western Electric's Hawthorne Works factory by
assessing working conditions related to things such as lighting levels, rest periods,
and the length of a work day. Those participating in the experiments were watched
closely by the researchers. During the experiment, productivity levels of those
participating in the experiment increased but not directly due to the conditions that
Mayo and Roethlisberger were imposing on them.

Because they could not correlate the increase in productivity to the working
conditions that they were controlling in the experiment, alternative causes were
explored. Eventually, the researchers attributed the increase in productivity to the
higher morale that was witnessed in the group during the experiment. This morale
and productivity boost was indirectly caused by the changes the researchers made
to working conditions, including:

Workers feeling special because they were selected to participate in the study
and were being paid so much attention by the researchers.

Workers developing strong interpersonal relationships with one another and

their supervisor as they determined how to manage their work together under
the new structure. They all valued the contributions of their coworkers.

The strong interpersonal relationships also created a pleasant and enjoyable

work environment.

Application/Appraisal of neoclassical approach

Neoclassical theory has made significant contribution to an understanding
of human behavior at work and in organization. It has generated
awareness of the overwhelming role of human factor in industry.
Contributors to this approach recognize an organization as a social system
subject to the sentiments and cultural patterns of the member of the
organization, group dynamics, leadership, motivation, participation, job
environmental, etc constitute the core of the neoclassical theory. This
approach changed the view that employees are tools and furthered the
belief that employees are valuable resources. It also laid the foundation
for later development in management theory. Neoclassical approach is not
free from limitations. First, it lacks the precision of classical theory
because human behavior is unpredictable. Secondly, its conclusions lack
scientific validity and suffer from a clinical bias, its findings are tentative.
Lastly its application in practice is very difficult because it requires

fundamental changes in the thinking and attitude of both management

and workers.

Modern Management Theory (1960 to present)

The modern business ideologists have recognized the social
responsibilities of business activities and thinking on similar lines. During
the period, the principles of management reached a stage of refinement
and perfection. The formation of big companies resulted in the separation
of ownership and management.
This change in ownership pattern inevitably brought in salaried and
professional managers in place of owner managers. The giving of control
to the hired management resulted in the wider use of scientific methods
of management. But at the same time the professional management has
become socially responsible to various sections of society such as
customers, shareholders, suppliers, employees, trade unions and other
Government agencies.
Under modern management thought three streams of thinking
have been noticed:
(i) Systems Approach.
(ii). Contingency Approach
(iii) Quantitative or Mathematical Approach.

(ii) Systems Approach:

In the 1960, an approach to management appeared which tried to unify
the prior schools of thought. This approach is commonly known as
Systems Approach. Its early contributors include Ludwing Von
Bertalanffy, Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L.
Kahn, W. Buckley and J.D. Thompson.

They viewed organization as an organic and open system, which is

composed of interacting and interdependent parts, called subsystems.
The system approach is to look upon management as a system or as an
organised whole made up of subsystems integrated into a unity or
orderly totality.
System approach is based on the generalization that everything is interrelated and inter-dependent. A system is composed of related and
dependent element which, when in interaction, forms a unitary whole. A
system is simply an assemblage or combination of things or parts forming
a complex whole.
One of its most important characteristic is that it is composed of hierarchy
of sub-systems. That is the parts forming the major systems. For example,
the world can be considered to be a system in which various national
economies are sub-systems.
In turn, each national economy is composed of its various industries, each
industry is composed of firms; and of course, a firm can be considered a
system composed of sub-systems such as production, marketing, finance,
accounting and so on.
The basic features of systems approach are as under:
(i) A system consists of interacting elements. It is set of inter related and
interdependent parts arranged in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter- relationships
rather, than in isolation from each other.
(iii) An organisational system has a boundary that determines which parts
are internal and which are external.
(iv) A system does not exist in a vaccum. It receives information, material
and energy from other systems as inputs. These inputs undergo a
transformation process within the system and leave the system as output
to other systems.

(v) An organisation is a dynamic system as it is responsive to its

environment. It is vulnerable to change in its environment.
The systems approach is considered both general and specialized
systems. The general systems approach to management is mainly
concerned with formal organizations and the concepts are relating to
technique of sociology, psychology and philosophy. The specific
management system includes the analysis of organisational structure,
information, planning and control mechanism and job design, etc.
(iii) Contingency or Situational Approach:
The contingency approach is the latest approach to the existing
management approaches. During the 1970s, contingency theory was
developed by J.W. Lorsch and P.R. Lawrence, who were critical of other
approaches presupposing one best way to manage. Management
problems are different under different situations and require to be tackled
as per the demand of the situation.
One best way of doing may be useful for repetitive things but not for
managerial problems. The contingency theory aims at integrating theory
with practice in systems framework. The behaviour of an organisation is
said to be contingent on forces of environment. Hence, a contingency
approach is an approach, where behaviour of one sub-unit is dependent
on its environment and relationship to other units or sub-units that have
some control over the sequences desired by that sub- unit.
Thus behaviour within an organisation is contingent on environment, and
if a manager wants to change the behaviour of any part of the
organization, he must try to change the situation influencing it. Tosi and
Hammer tell that organization system is not a matter of managerial
choice, but contingent upon its external environment.
Contingency approach is an improvement over the systems approach. The
interactions between the sub-systems of an organisation have long been
recognised by the systems approach. Contingency approach also

recognises that organisational system is the product of the interaction of

the sub systems and the environment. Besides, it seeks to identify exact
nature of inter-actions and inter-relationships.
Contingency views are ultimately directed towards suggesting
organisational designs situations. Therefore, this approach is also called
situational approach. This approach helps us to evolve practical answers
to the problems remanding solutions.
Kast and Rosenzweig said, The contingency view seeks to understand the
inter-relationships within and among sub-systems as well as between the
organization and its environment and to define patterns of relationships or
configurations of variables contingency views are ultimately directed
toward suggesting organization designs and managerial actions most
appropriate for specific situations.

IMPORTANCE OF MANAGEMENT
1) Acquisition and utilization of resources Management performs efficient
acquisition effective development and utilization and proper coordination
of resources.
2) Environmental adaptation. Management adopts organization to
changing environmental forces.
3) Goal achievement Management achieves goals by balancing the
requirement of jobs and people.
4) Problem solving. Management solves organizational problems. It
identifies and evaluates various alternatives and choose appropriate
course of action.
5) Performance control. Management measures and evaluates the actual
performance.

6) Social responsibility Management anticipates and acts beforehand to

social expectations.

Ref;
Bertalanffy, Ludwig von. 1968. General System Theory: Foundations,
Development, Applications.
Robbins, S.P. and David A. Decenzo (2001) Fundamental of Management.
Delhi: Pearson

10. Professionalism.
Professionalism is defined as the skill, good judgment, and polite behavior that is expected
from a person who is trained to do a job well.
The Merriam-Webster dictionary defines professionalism as "the conduct, aims, or qualities
that characterize or mark a profession or a professional person"; and it defines a profession
as "a calling requiring specialized knowledge and often long and intensive academic
preparation." The above definitions imply that professionalism encompasses a number of
different attributes, and, together, these attributes identify and define a professional.
The key attributes of professionalism include:
Specialized Knowledge: the deep personal commitment to develop and improve their skills,
and, where appropriate, they have the degrees and certifications that serve as the foundation
of this knowledge. These professionals have worked in a serious, thoughtful and sustained
way to master the specialized knowledge needed to succeed in their fields; and that they
keep this knowledge up-to-date, so that they can continue to deliver the best work possible.
Competency: Professionals get the job done as they are reliable, keep their promises, by
managing expectations up front.
Honesty and Integrity: Professionals exhibit qualities of honesty and integrity by keeping
their word and will do the right thing even when it means taking a harder road. This implies

that the professionals will immediately ask for help when they need it, and are willing to
learn from others.
Accountability: Professionals hold themselves accountable for their thoughts, words, and
actions, especially when they have made a mistake. This personal accountability is closely
tied to honesty and integrity, and it is a vital element in professionalism.
Self-Regulation: Genuine professionals show respect for the people around them, no matter
what their role or situation. They exhibit a high degree of emotional intelligence (EI) by
considering the emotions and needs of others, and they don't let a bad day impact how they
interact with colleagues or clients.
Image: Professionals look polished, and they dress appropriately for the situation as this
exudes an air of confidence, and they gain respect for this.
11. Ethics in management.
11. Ethics in management
Dfn: Management ethics is a set of principles and rules dictated by upper
management that define what is right and wrong in an organization. It is the guideline
that helps direct a lower manager's decisions in the scope of his or her job when a
conflict of values is presented.
Ethical management refers to corporate management that not only fulfills economic
goals and legal responsibilities, but also meets the ethical expectations imposed by
social norms in conducting business.
Importance
i.

A positive and healthy corporate culture improves the morale among

workers in the organization, which may increase productivity and
employee retention; this, in turn, has financial benefits for the organization.
Higher levels of productivity improve the efficiency in the company, while

ii.

increasing employee retention reduces the cost of replacing employees.

make employees want to stay with the business, reduce labor turnover

iii.

and therefore increase productivity

attract more employees wanting to work for the business, reduce
recruitment costs and enable the company to get the most talented
employees

Application of management ethics in the modern day

The point of a corporate ethics code is to promote ethical behavior not to enhance
productivity, profits or public relations. Still, a sound, well-administered code can
benefit a company and its stakeholders in a variety of ways. It can:

i.

Guide employees in situations where the ethical course of action is not

ii.

immediately obvious.
Help the company reinforce and acquaint new employees with its
culture and values. A code can help create a climate of integrity and

iii.

excellence.
Help the company communicate its expectations to the staff to suppliers,
vendors and customers. Also, by soliciting feedback and questions, a
company can use the code to encourage frequent, open and honest

iv.

communication among employees.

Minimize subjective and inconsistent management standards. A code
explicitly outlines the rights and responsibilities of staff members and helps

v.

guard against capricious and preferential treatment of employees.

Help a company remain in compliance with complex government
regulations. The landmark Sarbanes-Oxley Act of 2002 requires public

vi.

companies to have an ethics code for senior financial officers.

Build public trust and enhance business reputations. Also, a code helps

vii.
viii.

demonstrate the companys values to socially responsible investors.

Offer protection in preempting or defending against lawsuits.
Enhance morale, employee pride, loyalty and the recruiting of outstanding

ix.

employees.
Help promote constructive social change by raising awareness of the
communitys needs and encouraging employees and other stakeholders to

x.

help.
Promote market efficiency especially in areas where laws are weak or
inefficient by rewarding the best and most ethical producers of goods and
services.

Adapted from Josephson Institutes Good Ideas for Creating a More Ethical and
Effective Workplace, by Steve Nish